This paper demonstrates how the power flow sharing can be achieved in power system using programmable AC sources that is supplying linear and nonlinear loads. Space Vector Pulse Width Modulation (SVPWM) is used as a control algorithm in a three-phase Voltage Source Converter (VSC) which acts as a Static Synchronous Compensator (STATCOM) for providing reactive power compensation. Voltage Source Converter used as a Static Synchronous Compensator provides efficient damping for sub synchronous resonance that improves the renewable hybrid power system stability in addition to reactive power correction [2]. The Voltage Source Converter with space vector control algorithm is provided for compensating the reactive power flow to correct the power factor, eliminating harmonics and balancing both linear and non-linear loads. Among different Pulse Width Modulation (PWM) techniques space vector technique is proposed as it is easy to improve digital realization and AC bus utilization. The proposed control algorithm relies on an approximate third-order nonlinear model of the Voltage Source Converter that accounts for uncertainty in three phase system parameters. The control strategy for reliable power sharing between AC power sources in grid and loads is proposed by using Space Vector Pulse Width Modulation controller.