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A high performance advanced static VAR compensator (ASVC) based on the theory of the instantaneous reactive power which uses a voltage source inverter is presented and analyzed in this paper. The ASVC system is analyzed using the alpha - beta transform and employs a current hysteresis control. The ASVC correct the power factor on the supply side by generating the same amount of reactive power supplied by the load in order to improve the stability and the performances of the electrical network. Simulated results obtained with MATLAB are also presented and discussed to validate the control approach.