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STATCOM is a FACTS controller that is used in power systems to regulate the line voltage, enhance the power transmission capacity and extend the transient stability margin. STATCOM is conventionally realized by a voltage-source converter; however, being a current injection device, its performance can be improved when realized by a current-source converter (CSC) that can generate a controllable current directly at its output terminals. In this paper, a STATCOM based on the current-source converter topology is proposed. The nonlinear model of the current-source converter, which is the source of the difficulties in the controller design, has been modified to a linear model through a novel modeling technique. The proposed modeling technique is not based on the linearization of a set of nonlinear equations around an operating point. Instead, the power balance equation and a nonlinear input transformation are used to derive a linear model independent of the operating point. This model acts as the basis for the design of a decoupled state-feedback controller. The proposed STATCOM has been simulated using the PSCAD/EMTDC package. The simulation results show that a CSC-based STATCOM can result in excellent current and voltage waveforms as well as very short response time while operating at a low switching frequency. This makes the proposed scheme suitable for high power applications. [ABSTRACT FROM PUBLISHER]