The increasing scale and demand of the power grid makes the effective control of the short-circuit current level of the power grid a problem that must be solved. A fault current limiter with series compensation function is proposed, which consists of capacitor, inductor controlled by power electronic device and series inductance. When the system is in normal operation, it can adjust the equivalent reactance value of the transmission line and improve the transmission capacity of the system. After the system failure, the bypass inductance can limit the short circuit current rapidly. Based on the planning and operation data of 2017 Anhui power grid, the application position of the fault current limiter is studied in substation with excessive current. The simulation model is built, and the simulation results show that FCL can suppress short - circuit current effectively and improve the bus voltage during the fault.