Abstract: In order to solve problems that traditional stationary reactive var compensator only compensates power factor to some extent and cannot eliminate higher harmonic pollution of power network caused by soft starters of high power loads of coal mine, the paper proposed a scheme of using static var compensator to improve power factor and solve harmonic pollution problem. Taking the application of static var compensator in Songhe coal mine as an example, it introduced concrete compensating scheme and design of filter in the compensator, and analyzed compensation and energy-saving effects. The application result showed that the compensator can compensate power factor to 0.95 and restrain higher harmonic effectively, which has perfect energy-saving effect with 4 300 000 yuan saving for Songhe coal mine each year.