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This paper proposes a novel dynamic voltage restorer (DVR) topology based on reduced-order matrix converter modules. The topology utilizes two modules for selective and independent sequence voltage synthesis. As a result, the DVR proposed herein can compensate for balanced as well as unbalanced voltage sags/swells. Each module is realized using a vector-switching matrix converter. The entire topology is energy storage free, and each module is pulsewidth modulated using simple dc duty ratios. This paper provides details on the DVR modeling, equivalent circuit, and feedback controller design. Thorough computer simulations and experimental prototyping are used to validate the approach.