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In this paper, the joined reactive power compensator and active filter functionality, of a grid connected two level Voltage Source Converter (VSC), is explored. This VSC, fulfills two different objectives: Compensate current harmonics demanded by non-linear loads (active filter application) and exchange reactive power with a grid subjected to balanced and unbalanced dips. For that purpose, a coordinated control structure is proposed based on Dual Vector Current Controllers (DVCC). In addition, by means of detailed simulation and experimental results, the proposed control structure is validated under different operation conditions.