In the present trend, there is widespread use of digital or microprocessor controlled devices. Whatever the case, power quality problems may disrupt operations. According to the IEEE definition, power quality is the concept of powering and grounding sensitive equipment in a matter that is suitable to the operation of that equipment. In recent trends in electrical market, most of the electronic devices are more sensitive and may not operate properly when small variations or disruptions in the

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... ctrical supply occurs. Various power quality issues that may damage the sensitive equipment are voltage sag (or dip), very short interruptions, long interruptions, voltage spike, voltage swell, harmonic distortion, voltage fluctuation and noise. To function properly, electronic devices require voltage to flow within a consistent range. Power surges, sags, transients and momentary interruptions can cause voltage to fluctuate outside this range. Based on the above power quality issues and survey of different FACTS devices we would be proposing a custom power device called STATCOM. STATCOM will be developed in MATLAB software for poc ( proof of concept). On top of that, we have a plan to replace Hysteresis controller with Fuzzy logic controller, which can be implemented for closed loop testing to reduce the error and increase the gain margin and proved in the simulation results.