A linear optimal controller is designed to implement Variable Series Compen
sation (VSC) in transmission network of interconnected power systems. The p
roposed controller is used to dampen inter-area oscillations and enhance po
urer system stability. The effectiveness of the linear optimal controller t
o properly control such a variable series reactance is demonstrated through
mode shapes and digital simulation studies on a two-machine system. The di
gital simulation studies are conducted using a PSCAD/EMTDC software package
. The mode shapes and simulation results show that the controller contribut
es significantly to the damping of inter-area oscillations and the power st
ability enhancement.