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This paper studies the use of a voltage-source converter (VSC) with dc capacitors as an energy storage medium for the compensation of pulsating active and reactive power of the European Organization for Nuclear Research's (CERN's) proton synchrotron (PS) particle accelerator. The PS accelerator load demands periodic, active, and reactive power pulses of about 2-s duration and a magnitude of up to 45 MW and 65 Mvar. The proposed compensator is able to control both reactive and active power exchange with the network in order to eliminate network disturbances. The controllability study reveals that the best control strategy is to use a q-axis converter input for active power and a d-axis input for reactive power regulation. An analytical system model is created to study the system dynamics and to aid the controller design. The eigenvalue study with the MATLAB model reveals that with large energy storage units and small converter losses, there is only a small interaction between the control channels. The final testing is done with a detailed nonlinear model in PSCAD/EMTDC. The simulation results show that it is possible to fully compensate the active power exchange with the network during typical accelerator cycles and, at the same time, to achieve excellent ac voltage control.