The global power system faces significant challenges due to rapid urbanisation, rising electricity demand, and renewable energy integration; these trends amplify concerns around reactive power compensation and voltage stability, critical factors for grid reliability.This paper conducts a comparative analysis of capacitor banks and Static variable compensators (SVCs) exploring the role of Flexible AC Transmission System (FACTS) devices in enhancing grid stability by addressing voltage fluctuations and reactive power imbalances.A power system, designed to mirror a real-world grid, is simulated using ETAP software to evaluate the performance of these devices under different load profiles and grid contingencies.With this architecture providing a realistic environment to analyse reactive power flows and voltage profiles, the results demonstrate the speed, precision, and adaptability of both technologies, highlighting their respective advantages and limitations.The paper further provides a detailed assessment of the technical and economic impacts of each device on grid performance.The outcomes of the analyses conducted were verified against standards such as IEC and IEEE.
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