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This paper studies the feasibility of segmenting large power system interconnections with AC link using energy storage technology, similar to the DC link, for improving the system dynamic stability. Firstly, the segmentation validity of the AC interconnected power system using energy storage technology is proved in terms of theoretical analysis, and then a simple and effective control strategy is proposed. Moreover, the influences of the energy storage device location and capacity on the proposed method are discussed in detail. The effectiveness of the proposed method for large AC interconnected power system segmentation is verified by simulations in two AC interconnected power systems.