In recent years the theory of border collision bifurcations has been developed for piecewise smooth maps that are continuous across the border, and has been successfully applied to explain nonsmooth bifurcation phenomena in physical systems. However, many switching dynamical systems have been found to yield two-dimensional piecewise smooth maps that are discontinuous across the border. The theory for understanding the bifurcation phenomena in such systems is not available yet. In this paper we present the first approach to the problem of analysing and classifying the bifurcation phenomena in two-dimensional discontinuous maps, based on a piecewise linear approximation in the neighborhood of the border. We explain the bifurcations occurring in a physical system -the static VAR compensator used in electrical power systems, using the theory developed in this paper. This theory may be applied similarly to other systems that yield 2-D discontinuous maps.

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