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In this paper, a configuration of a single-phase bidirectional AC-DC converter and bidirectional DC-DC converter is proposed to transfer electrical power from the grid to an electrical vehicle (EV) and from an EV to the grid while keeping improved power factor of the grid. In first stage, a 230 V 50 Hz AC supply is converted in to 380V dc using a single-phase bidirectional AC-DC converter and in the second stage, a bidirectional buck-boost dc-dc converter is used to charge and discharge the battery of the PHEV (Plug-in Hybrid Electric Vehicle). In discharging mode, it delivers energy back to the grid at 230V, 50 Hz. A battery with the charging power of 1.2 kW at 120V is used in PHEV. The buck-boost DC-DC converter is used in buck mode to charge and in a boost mode to discharge the battery. A proportional-integral (PI) controller is used to control the charging current and voltage. Simulated results validate the effectiveness of proposed algorithm and the feasibility of system.