Please start by describing the system that the equipment is to be attached to, and the magnitude of the problem to be solved. 1 sentence doesn't give the forum much to go on, leaving the readership in a position where questions need to be asked to determine the help that is needed. The response will be different for a 1kVA problem to a 1MVA problem.

What is the voltage of the supply? What is the loading on the supply? What is the location? What other research has been done to evaluate the above chosen direction? What is the business environment like at the location? Is there a budget? What solution suppliers have been approached already, and why is an off-the-shelf solution deemed to be not applicable in this case?

http://en.wikipedia.org/wiki/STATCOM

Much more information is required as this is a very complicated and dangerous project.