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In this paper, authors propose a new power multilevel converter topology that is very competitive compared to the existing ones. It consists of packed U cells (PUC). Each U cell consists of an arrangement of two power switches and one capacitor. It offers high-energy conversion quality using a small number of capacitors and power devices and consequently, has a very low production cost. An averaged model of the topology is detailed. The operating principle of the transformerless seven-level inverter is analyzed and detailed. The multilevel sinusoidal modulation has been adapted for use with the PUC-based structure. The control strategy has been designed to reduce the harmonic contents of the load voltage. With such converters, filters' rating is considerably reduced. A comparative study is performed to highlight the advantages of the new packed U cells topology. The operation of the proposed converter topology has been verified through simulation. Experimental validation was performed using DS1103 DSP of dSpace.