Abstract: A method of static reactive power compensation is disclosed wherein the system voltage is compensated by supplying advanced-phase or retarded phase reactive power in dependence upon the difference between the system voltage and a reference voltage. The difference is formed by a comparator which receives a variable reference voltage from a filter containing a time lag circuit and which receives the system voltage as an input. For transients, the output of the filter does not change and thus reactive power is applied. For smooth variations, the output of the filter follows that of the system voltage so that the output of the power compensation circuit is maintained at zero.