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A new type of fault current limiter (FCL) with series compensation based fast-closing switch is proposed. It is composed of a capacitor bank and a reactor in series.The main control component is a fast-closing switch connected in parallel with the capacitors, which is driven by the electromagnetic repulsion force. When fault occurs, the switch closes and bypasses the capacitors,and the fault is limited by the reactor then. Simulated analysis and experiments show that it is feasible to develop the FCL with low cost and high reliability. The effectiveness of transient stability for power system is evaluated by digital simulation.