A static synchronous series compensator equipped with energy storage (SSSC- ES) can provide two degrees of freedom to handle real and reactive power flow through a line. This paper focusses on developing the DQ model of a series compensated system incorporating static synchronous series compensator with energy storage and performing linear analysis. The effect of emulated resistance and reactance by SSSC-ES on system stability is investigated. Eigenvalue and damping torque analysis are carried out and performance of various controllers of SSSC-ES on stability is analyzed.