A method for enhancing stability in a power system to which is coupled a power generation facility, wherein said power generation facility is a photovoltaic based solar farm including solar panels, the method comprising: a) detecting a need for enhancing system stability in said power system; b) modulating at least one of reactive power, real power, and a combination of real and reactive power, said real power and said reactive power being provided by said power generation facility by disconnecting and connecting some or all of said solar panels to perform real power modulation and using inverter capacity of said power generation facility to exchange reactive power with said power system; and c) providing at least one of modulated reactive power, modulated real power, and a combination of said modulated real power and said modulated reactive power from said power generation facility to said power system; wherein - a modulation of said combination of real and reactive power is performed simultaneously in a decoupled manner, - step b) further comprises operating at least one inverter of said power generation facility to use at least a portion of said at least one inverter's capacity to provide at least one of said modulated reactive power, said modulated real power, and said combination of said modulated real power and said modulated reactive power, and - at least one of said modulated reactive power, said modulated real power, and said combination of said modulated real power and said modulated reactive power from step b) increases said stability of said power system by performing at least one of: - damping system oscillations; - increasing transient stability; - regulating power system frequency; - improving voltage stability; - increasing power transmission capacity in transmission lines; and - increasing power transmission capacity in distribution lines. a) detecting a need for enhancing system stability in said power system; b) modulating at least one of reactive power, real power, and a combination of real and reactive power, said real power and said reactive power being provided by said power generation facility by disconnecting and connecting some or all of said solar panels to perform real power modulation and using inverter capacity of said power generation facility to exchange reactive power with said power system; and c) providing at least one of modulated reactive power, modulated real power, and a combination of said modulated real power and said modulated reactive power from said power generation facility to said power system; wherein - a modulation of said combination of real and reactive power is performed simultaneously in a decoupled manner, - step b) further comprises operating at least one inverter of said power generation facility to use at least a portion of said at least one inverter's capacity to provide at least one of said modulated reactive power, said modulated real power, and said combination of said modulated real power and said modulated reactive power, and - at least one of said modulated reactive power, said modulated real power, and said combination of said modulated real power and said modulated reactive power from step b) increases said stability of said power system by performing at least one of: - damping system oscillations; - increasing transient stability; - regulating power system frequency; - improving voltage stability; - increasing power transmission capacity in transmission lines; and - increasing power transmission capacity in distribution lines. - a modulation of said combination of real and reactive power is performed simultaneously in a decoupled manner, - step b) further comprises operating at least one inverter of said power generation facility to use at least a portion of said at least one inverter's capacity to provide at least one of said modulated reactive power, said modulated real power, and said combination of said modulated real power and said modulated reactive power, and - at least one of said modulated reactive power, said modulated real power, and said combination of said modulated real power and said modulated reactive power from step b) increases said stability of said power system by performing at least one of: - damping system oscillations; - increasing transient stability; - regulating power system frequency; - improving voltage stability; - increasing power transmission capacity in transmission lines; and - increasing power transmission capacity in distribution lines. - damping system oscillations; - increasing transient stability; - regulating power system frequency; - improving voltage stability; - increasing power transmission capacity in transmission lines; and - increasing power transmission capacity in distribution lines.