The utilization of Flexible AC Transmission System (FACTS) devices in a power system can potentially overcome limitations of the present mechanically controlled transmission system. Also, the advanced technology makes it possible to include new energy storage devices in the electrical power system. The integration of Superconducting Magnetic Energy Storage (SMES) into Static Synchronous Compensator (STATCOM) can lead to increase their flexibility to improve power system dynamic behavior by exchanging both active and reactive powers with power grids. This paper describes structure and behavior of STATCOM/SMES compensator in power systems. A control strategy based on direct Lyapanov method for compensator is used. Moreover, the performance of...