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Summary form only given. The paper presents a new series capacitive compensation concept, which enhances power system dynamics. The idea behind the concept is a series capacitive compensation which provides balanced compensation at the power frequency while it results in phase imbalance at other frequency of oscillations. The compensation scheme is a combination of a single-phase Thyristor Controlled Series Capacitor (TCSC) and fixed series capacitors in series in one phase of the compensated transmission line and fixed capacitors on the other two phases. The paper investigates the effectiveness of the scheme on damping power oscillations. Time domain simulations were conducted on benchmark networks using the EMTP-RV.