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A flexible alternating current transmission system (FACTS) is a system composed of static equipment used for the alternating current (AC) transmission of electrical energy. It is meant to enhance controllability and increase power transfer capability of the network. It is generally a power electronics-based system.
FACTS is defined by the Institute of Electrical and Electronics Engineers (IEEE) as "a power electronic based system and other static equipment that provide control of one or more AC transmission system parameters to enhance controllability and increase power transfer capability".
According to Siemens, "FACTS Increase the reliability of AC grids and reduce power delivery costs. They improve transmission quality and efficiency of power transmission by supplying inductive or reactive power to grid.