Shunt compensation is used basically to control the amount of reactive power that flows through the power system. In a linear circuit, the reactive power is defined as the ac component of the instantaneous power, with a frequency equal to 100/120 Hz in a 50 or 60 Hz system. The reactive power generated by the ac power source is stored in a capacitor or a reactor during a quarter of a cycle, and in the next quarter cycle is sent back to the power source. The reactive power oscillates between the ac source and the capacitor or reactor, and also between them, at a frequency equal to two times the rated value (50 or 60 Hz). For this reason it can be compensated using static equipments or VAR generators, avoiding its circulation between the load (inductive or capacitive) and the source, and therefore improving voltage regulation and stability of the power system. Reactive power compensation can be implemented with VAR generators connected in parallel or in series.

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