The Static Synchronous Series Compensator, performing power control and reactive power compensation, is an important aid to stable and flexible operation of recent electrical power distribution networks. The paper describes a compensator based on a bidirectional Z-source inverter with PWM technology. This inverter has a wide control range and does not require a switching dead time. Its design using small signal theory to obtain suitable L-C network parameters for desired time response is described. Model predictive current control and direct current control schemes are analysed and compared, and satisfactory performance of the whole compensator is demonstrated.