In this paper, the authors present the design of a multi-level inverter with Flexible AC Transmission Systems (FACTS) capability for small to medium size (10 – 20kW) permanent-magnet wind applications using Modular Multi-level Converter (MMC) topology. The aim of the paper is to design a new type of inverter with Distribution STATic synchronous COMpensator (D-STATCOM) option to provide utilities with more control on active and reactive power transfer of distribution lines. The proposed inverter is placed between the renewable energy source, specifically a wind turbine, and the distribution grid in order to fix the Power Factor (PF) of the grid at a target value, regardless of wind speed, by regulating active and reactive power required by the grid.