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The paper introduces a new configuration for a cascade (H-bridge) converter based dynamic voltage regulator, in which the basic cascade converter is supplemented with a shunt thyristor switched inductor. The proposed topology is shown to posses the ability of mitigating severe and long duration voltage sag with a significantly smaller energy demand from the cascade converter. A suitable control system is designed , and the operation of the new device is analyzed using electromagnetic transients simulation as well as mathematical analysis. Simulation and experimental results are presented to demonstrate the feasibility and the practicality of the proposed novel DVR topology.