With most of the countries on the threshold of industrialization the demand for electrical power also continues to increase steadily and is predominantly strong. Moreover, because the transmission systems are operated near to their thermal and stability limits, the chief challenge for the power industry is to supply electrical power to match the demands of the consumers with the minimum amount of losses while maintaining adequate power quality level. For various reasons, newly installed transmission lines are unable to cope up with the growing power generation. This paper presents the ideas of using FACTS devices for enhanced operation and more effective usage and control of the existing transmission network framework. The development of Flexible AC Transmission Systems, or FACTS based on high power electronics, offers a powerful means of meeting the challenges.