A thyristor controlled LC (TCLC) compensator for compensating dynamic reactive power in a power grid system, with an advantage of mitigating harmonic current injection from solid-state switches during switching on or off is provided. Exemplarily, the TCLC compensator is shunt-connected to the three-phase power grid and comprises an electronic controller, a coupling inductor (Lc), a first branch of circuit with a parallel inductor (LPF) and a solid-state switch, and a second branch of circuit with a parallel capacitor (CPF), wherein the coupling inductor (Lc) is connected in series with a parallel combination of the first and second branch of circuit. The electronic controller for the TCLC compensator is configured in accordance to the generalized instantaneous reactive power theory for improving the response speed instead of using traditional average reactive power concept.