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Modern power systems need the expansion of EHV and UHV power Transmission networks due to the exponential rise in power demand. The Ferranti effect needs the attention of researchers on the dynamic variation of loads in interconnected power systems. This article focuses on the development of closed-loop control circuitry for both Static Synchronous Compensator (STATCOM) and Static Var Compensator (SVC). The developed transmission system Simulink model has been simulated and Ferranti Effect is observed for both no-load and lightly loaded conditions. The closed-loop control circuits along with power circuits of STATCOM and SVC have been developed and simulated and the results show the significant suppression of the Ferranti effect by both of the shunt devices. [ABSTRACT FROM AUTHOR]