Abstract: Energy demand increases rapidly, utilization of renewable energy resources plays an important role in narrowing down the supply-demand difference. Introduction of more power electronic devices and non-linear loads pollutes the grid and create power quality problems. Both the scarcity of energy problem and power quality problem can be solved by using the grid connected PV system based four wire STATCOM. This paper demonstrates the power quality problem due to installation of solar panel with the grid. In this proposed scheme Static Compensator (STATCOM) is connected at a point of common coupling (PCC) to mitigate the power quality issue of Total Harmonic Distortion (THD). The STATCOM control scheme for the grid connected PV energy system for power quality improvement is simulated using MATLAB/SIMULINK in power system block set. The STATCOM is controlled on the basis of PQ based hysteresis control of STATCOM. Thus with such a control, a balanced linear load appears at the grid with the combination of STATCOM and 3-phase 4-wire linear/non-linear unbalanced load.

Keywords: Power quality (PQ), Static compensator (STATCOM), Point of common coupling (PCC).