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The demand for three-phase pulsewidth modulation (PWM) inverters in applications such as power control or grid connecting has been on the increase in recent years. Such inverters are connected to the grid via an L filter or an LCL filter to reduce the harmonics caused by the switching. An LCL filter can reduce the harmonics induced by low switching frequency and generates a satisfactory level of grid-side current using a relatively low inductance, as compared to an L filter. The additional poles introduced by the LC part induces resonance in the system, leading to stability problems; this paper presents a compensation method using power theory to improve these issues, so that the performance of the designed LCL filter system can be improved. The effectiveness of the proposed algorithm is verified by simulations and experiments.