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The analysis of low-frequency inter-area oscillations is of special concern in large weakly interconnected power systems. The ability ofstatic VAr compensators (SVC) to contribute to damping depends strongly on the relative location ofgeneration, load and the SVc. A comprehensive investigation ofthe use ofstatic VAr compensators to aid damping oflow-frequency inter-area oscillations in a real weakly interconnected large power system is presented. Based on modal analysis, efficient algorithms to compute voltage-and power-oscillation flow for each mode of concern are developed. Controllability and observability measures are also used to assess the impact ofdynamic voltage support on system damping as well as to identify optimal locationsfor SVc. The knowledge gained by these techniques allows to investigate the influence ofexistent SVC on overall system damping as well as to evaluate suitable alternatives to site new devices. Detailed time-domain simulations are finally performed to check the validity of the knowledge gained and to assess the impact of dynamic voltage support Oil system transient behaviour. (I a)