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This paper demonstrates a simple electricity generating system that can supply electricity in remote areas such as seashores, hilly regions, etc. Many coastal areas have layers of rock under the sea with considerable petroleum reserves. To extract the petroleum products, electricity is required. In such situations, stand-alone power generating system is preferred. The proposed electricity generating system consists of self-excited induction generator (SEIG) and static compensator (STATCOM)-based voltage regulator. The STATCOM supplies variable reactive power to the SEIG and acts as a voltage regulator. Apart from voltage regulation of SEIG, the STATCOM balances the generating system under unbalanced loading conditions and filters the harmonics of the loads, thereby acting both as balancer and harmonic eliminator. It also enhances the loadability, even to start and run dynamic loads such as induction motors.