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Unified power quality conditioner (UPQC) is one of the major custom power solutions that is capable of mitigating the effect of supply voltage sag at the load end or the point of common coupling (PCC). It also prevents load current harmonics from entering the utility and corrects the input power factor of the load. The control of series compensator is such that it injects voltage in quadrature advance to the supply current, so that no active power is consumed by the series compensator at steady state. The UPQC employing this type of quadrature voltage injection in series is termed UPQC-Q. The present paper discusses the VA requirement issues of series and shunt compensators of UPQC-Q and its performance is verified in a laboratory prototype. The phasor diagram, control block diagram and typical experimental results are presented to confirm the validity of the theory.