The STATCOM is an electronically generated three - phase voltage source that is connected to the AC system. When operating as a pure STATCOM the generated voltage is exactly in phase with the AC system voltage. If the generated voltage is greater than the terminal voltage then the device will supply VARs (i.e. is capacitive) to the system. If the internal voltage is less than the terminal voltage, the device will absorb VARS (i.e. is inductive) from the system. The control system of the STATCOM is extremely fast and therefore can rapidly change the magnitude (and phase) of the electronically generated voltage.