Smart Grid is to further develop the electrical power grid so that it can handle a large proportion of renewable electricity production, such as wind and solar, as well as new loads, such as electric vehicles. This means that the flexibility in the electrical power grid must increase. FACTS controllers will be important to control power flows and voltages. When the quantity of production such as wind and solar based increases, also the power grid stability will be lower, and the need will increase for more power electronic controllers to stabilize voltages and mitigate harmonics.
Smart Grid introduces a new possibility where the consumer is much more involved (active). It is really about consumption being adapted to production. It enables demand response to allow a high degree of intermittent production.
FACTS will facilitate integration of renewable energy production by means of voltage control, increased grid stability, and enabling frequency and balance regulation. When required, SVC's or STATCOM's can be applied for grid voltage support at the point of connection for instance of Wind Turbine Generators. Likewise, TCSC (Thyristor Controlled Series Capacitor) can be incorporated in new as well as existing grids for control of power flows.