A power system is said to be well designed only if it provides good voltage profile. In the early days of power transmission in the late 19th century problems like voltage deviation during load changes and power transfer limitation were observed due to reactive power unbalances. Today these Problems have even higher impact on reliable and secure power supply in the World of Globalization and Privatization of electrical system and energy transfer. The development in fast and reliable semiconductors devices (GTO and IGBT) allowed new power electronic Configurations to be introduced to the tasks of power Transmission and load flow control.

The FACTS devices offer a fast and reliable control over the transmission parameters, i.e. Voltage, line impedance, and phase angle between the sending end voltage and receiving end voltage. On the other hand the custom power is for low voltage distribution, and improving the poor quality and reliability of supply affecting sensitive loads. Custom power devices are very similar to the FACTS. Most widely known custom power devices are DSTATCOM, UPQC, DVR among them DSTATCOM is very well known and can provide cost effective solution for the compensation of reactive power and unbalance loading in distribution system.

The performance of the DSTATCOM depends on the control algorithm i.e. the extraction of the current components. In this paper we will discuss about instantaneous reactive power (IRP) theory, synchronous reference frame (SRF) theory and compared with the new algorithm ADALINE based on neural network.

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