A series compensator for damping power oscillations in an electric power transmission system includes a switching power converter which injects a voltage into the transmission line having a phase angle relative to transmission line current which is controlled to provide reactive compensation and to inject virtual real impedance into the line. The switching power converter is a dc to ac converter which is capable of injecting virtual real impedance into the transmission line by virtue of the fact that it has a power exchange device connected to its dc terminals. Where the power exchange device is a resistor, the switching power converter is capable of absorbing real power during surges in power on the line. Alternatively, the power exchange device is a storage device such as a battery bank or a super conducting magnet, in which case the switching power converter can provide both virtual positive and negative real impedance.
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