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In this study an adaptive control is designed for a three-phase voltage source converter (VSC) acting as a static synchronous compensator to provide power factor compensation. The proposed method relies on an approximate third-order nonlinear model of the VSC that accounts for uncertainty in three system parameters. The design ensures asymptotic tracking of q-axis current and dc-voltage reference trajectories. Simulation and experimental results verify the performance of the controller relative to an established vector control method.