This paper discusses a transformerless shunt static compensator (STATCOM) based on a modular multilevel converter (MMC). It introduces a new time-discrete appropriate current control algorithm and a phase-shifted carrier modulation strategy for fast compensation of the reactive power and harmonics, and also for the balancing of the three-phase source side currents. Analytical formulas are derived to demonstrate the accurate mechanism of the stored energy balancing inside the MMC. Various simulated waveforms verify that the MMC based STATCOM is capable of reactive power compensation, harmonic cancellation, and simultaneous load balancing, while controlling and balancing all of the DC mean voltages even during the transient states.
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