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This paper introduces a new adaptive notch filtering approach to extract the harmonic and reactive current components for power quality purposes in grid-connected converters. The main function of this method is to provide synchronized harmonic and reactive current components for control purposes. The theoretical analysis is presented, and the performance of the method is experimentally evaluated. The methodology is applicable for a wide range of equipment such as uninterrupted power supplies, regenerative converters, active power filters, etc., as a basis for generating the reference signals.