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The relationship between overvoltage ratio, power factor, phase shift angle and compensation voltage is first analyzed in this paper. Then the investigation into the DC-link voltage pumping-up from the viewpoint of active power flow is conducted and a novel closed-loop phase shift control method based on the DC-link voltage is proposed. The experiment conducted in the laboratory examines the feasibility of the proposed idea, the results show that AVQR based on the proposed idea performs well in sustaining DC-link voltage, and it also ensures the progressive phase shift of load voltage. Two AVQRs with a respective rating of 50 kVA and 100 kVA are also developed afterwards, they have been successfully integrated into a realistic power system environment and have a good performance of mitigating voltage disturbances.