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Power quality has always been important for customers, but with increasing applications of electronic loads and controllers sensitive to the power quality, the subject has attracted renewed interest in recent times. Power quality encompasses several aspects. Voltage sags, transients, and momentary interruption of power together constitute 92% of the power quality problems encountered by typical industrial customers. The utilization of dynamic voltage restorers to protect sensitive loads against short-term voltage disturbances has been proven to be a competitive solution in medium and high power applications. For low power applications further cost reductions are required to make the technology even more competitive. This paper discusses the design and operation of a three-phase dynamic voltage restorer and dynamic voltage compensator, including control strategies for the converters. The proposed topology and control strategies are evaluated through simulation studies.