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This paper describes a back-to-back converter using a new36-step voltage source converter, in which the number of steps in the output voltage can be increased using a new auxiliary circuit. The operational feasibility of new 36-step converter was verified through computer simulations with PSCAD/EMTDC and experimental works with 2 kVA hardware prototype. The application feasibility of new36-step converter for back-to-back HVDC systems was confirmed using theoretical approach and computer simulations with PSCAD/EMTDC. The newly devised 36-step back-to-back converter can control the active and reactive power of HVDC systems independently.