The paper presents a new STATCOM system based on H-bridge inverter. It can be used in mine power network. It has been commonly verified for the positive effects of SVG on the reactive power compensation and voltage fluctuation suppression. This paper focuses on a generalized structure of multilevel power converter where individual voltage sources are not necessarily the same. The cascade H-bridge consists of two cells, high-voltage cell and low-voltage cell. The high-voltage cell is responsible for voltage lifting, while the low-voltage cell is responsible for PWM modulation. If two cells are cascaded with DC voltages in a ratio of 2:1, the single-phase output voltage can reach 7 levels. Increasing voltage levels of output waveform can bring up AC current quality, optimize harmonic spectrum and enhance converter efficiency. The hybrid multilevel is characterized by per-phase series connection of a high-voltage H-bridge converter and a low-voltage H-bridge converter. Due to the different capacitor voltage, it is a key problem as to how to maintain the capacitor’s voltage at a reference level. Independent DC source can effectively ensure the DC voltage. Through the reactive power compensation technology, the three-phase voltage and current can remain at the same phase.