Application of fractional order PID controller (FOPIDC) for reactive power compensation and stability analysis in a stand-alone micro grid has been discussed. For enhancement of voltage stability and reactive power compensation of the isolated system, a SVC based controller has been incorporated. This book emphasizes the role of fractional PID based SVC controller which provides a special advantage of having two more degree of freedom for accurate tuning in comparison with the conventional controller The system performance, particularly the variations in different parameters values are studied properly with different input parameters and loading conditions. The optimization problem for the tuning of the parameters of the studied isolated hybrid power system model has been achieved by Imperialist competitive algorithm.