In this paper, a static synchronous compensator (STATCOM) is proposed in which a new modular structure with conventional three-phase voltage source inverters is used to multilevel operation. The inverters are connected to a transformer in an open-end winding configuration and with three independent DC links. In this structure, the inverters will be connected in a cascade configuration. Besides the multilevel operation, the system is also characterized by low required blocking voltages for switch ratings, since the proposed STATCOM can apply the double of the DC capacitor voltage to the transformer windings. The development of the control system for the proposed topology is also presented. The operation of the proposed topology and the performance of the developed control system will be tested through several simulation and experimental tests.