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In this paper, it uses PSCAD/EMTDC to build simulation system of STATCOM (Static Synchronous Compensator). According to the principle of coordinate transformation and the theory of instantaneous reactive power, it creates self-defined components in PSCAD/EMTDC. The working principle of the system is explained fistly.Then the theory of instantaneous reactive power and the diagram of simulation system is presented. Each functional module is also discussed in detail. Through the simulation test,doi:10.4028/www.scientific.net/amm.681.141 fatcat:3lauaipbg5fgfgtzjvqszrfiyi