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This paper studies the space vector modulation algorithm of three-level diode neutral point clamped convertor (NPC). A novel SVM method based on mixed coordinate (MC-SVM) is presented, which inherits both advantages of conventional 2D-SVM and 3D-SVM algorithms. Then, a three-phase voltage-source grid-connected PWM rectifier system based on MC-SVM is successfully designed. Both the steady and transient characteristics of the PWM rectifier validate the proposed modulation technique.