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In the world of Electrical power system Continuity of supply along with power quality is a technical challenge for electrical researchers. Load characteristics on power system are dynamic in nature. Motor starting and short circuit faults are the two main causes of voltage sag. Conventional flywheel systems are capable of storing energy but not suitable for high speed energy storage. In this paper STATCOM is proposed for compensating voltage fluctuations in distribution system. This paper dealsdoi:10.24001/ijcmes.icsesd2017.90 fatcat:e7e46ox5ivcbjdurjftmrqemce