The widespread use of non-linear loads and power electronics converters has increased the generation of nonsinusoidal and non-periodic currents and voltages in power systems. Reactive power compensation or control is an important part of a power system to minimize power transmission losses. Given a modulation index, the switch times can be chosen to achieve the fundamental while eliminating specific harmonics. However, the resulting total harmonic distortion (THD) depends on the modulation

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... (see [1][2] ). This work considers the control of the DC capacitor voltage in such a way that one can operate at the modulation index which results in the minimum THD. This paper presents the development of specific control algorithms for a cascaded multilevel inverter to be used for static var compensation.