Distributed energy resources influence the power grid due to the low visibility of network operators towards distribution system. These resources cause reactive power imbalance, and thus puts a question mark on voltage loading of the grid. The paper discusses these effects of distributed energy resources on the node voltages of an Italian distribution grid. The paper analyses these effects on node voltages, and explains the common procedure and issues of reactive power provision by conventional synchronous generators, mostly through conventional coal and combined cycle power plants. To avoid these issues, the paper then investigates among different compensation techniques for the provision of reactive power. The comparison justifies the use of STATCOMs at the medium-voltage distribution nodes, and then discusses how the STATCOMs can add flexibility to the grid in terms of reactive power provision. The paper compares the effects on node voltages before and after the utilization of STATCOM device, with graphical representation of the analysis performed.