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This paper discusses a hybrid control for the Static Var Compensator (SVC) to damp power fluctuations. In the proposed control, instantaneous power is calculated from the local measurement of three phase voltages and currents. A three phase voltage vector phase lock loop is used to get the phase angle information of the terminal voltages. The SVC reactive power injection is controlled in such a way that increases the terminal voltage during absolute acceleration of the system and terminal voltage decreased during absolute deceleration of the system. The power system's absolute acceleration or deceleration is identified by checking the direction of power change together with its sign of rate of change of power. During major disturbances phase angle limit is used to extend the control up to critical instability operating point. This control is studied in PSCAD/EMTDC and the result confirmed the effective damping of power fluctuations including major disturbances.