Hybrid cascade multilevel PWM inverter has advantages of hybrid structure which enhances the better utilization of power semiconductor switches, that is, both hi호 power-low frequency switch, GTO and low power-high frequency switch, IGBT can be used in the same circuit. In this paper, a static var compensator using hybrid cascade 5-level PWM inverter is presented for high voltage/high power applications. The proposed system is modelled by circuit DQ transformation, and thus an equivalent circuit is obtained which reveals the important characteristics of the system and lead to the related equations. Finally, circuit structure and characteristics is presented and the validity of the characteristics analysis is shown through PSIM simulation.