This paper describes the application of SVC (Static Var Compensator) for the AC electric railway system, outlines the SVC installed at the Shin-syo sectioning post of San-yo Shinkansen and reports the results of a verification site investigation. A single-phase SVC can reduce the voltage drop in the feeding circuit and improve the power factor at substations by compensating for the reactive power. To compensate for the voltage drop, it is more effective to locate an SVC at a sectioning post than at a substation. The site investigation has revealed that an SVC can reliably suppress voltage drop.