The load of electric railroad can generate voltage fluctuation in the electric railway system because of high speed of the electric railroad and frequent movement and stop. This voltage fluctuation of electric railway system can cause not only voltage imbalance but also harmonic in the utility grid. Therefore the electric railroad system is in need of the reactive power compensation, such as static synchronous compensator (STATCOM) and static var compensator (SVC). Especially, the battery energy storage system (BESS) can control the real and reactive power at the same time. In this paper, the electric railway system using BESS has been modeled to show its voltage compensation effect using Matlab/Simulink.