As particle accelerator technology advances, rapid cycling machines become more common. An increase in ramping speed of the magnets will draw more pulsed power from the utilities grid up to non acceptable levels. An intermediate storage of active and reactive power with fast reaction times and excellent cycling capabilities becomes more and more important. A study has been performed for the conceivable replacement of the existing magnet power supply of the PS (Proton Synchrotron) of CERN. A possible solution is a SMES-based modular compensator system, which allows a step-by-step build-up of the system in turn with test operations during regular shut-down phases while continuing operation of the existing power supply