Abstract: The development of high-efficiency green electric furnace smelting technology is an important measure to eliminate backward production capacity and upgrade the steel industry. It is essential to prevent voltage drops caused by reactive power shocks in electric arc furnace operations. At present, the single active or passive compensation method cannot meet the need of both the increasing large capacity load and fast response period of reactive power compensation device. The hybrid compensation method combining static var compensation(SVC) and static var generator(SVG) is studied in this paper. The characteristics of SVC in phase-separated unbalanced large-capacity compensation and SVG in fast response of reactive power are analyzed. The reactive power demand of an electric arc furnace is calculated. A hybrid scheme is designed to offset the residual reactive power gap, and PSCAD/EMTDC is applied for joint application simulation to confirm the theoretical validity.