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An Isolated Topology for Reactive Power Compensation With a Modularized DynamicCurrent Building-Block Abstract: This paper presents a novel topology for instantaneous reactive power compensation. The topology is derived from Dynamic-Current or Dyna-C, which is a patented power converter capable of transferring energy for two- or multiterminal DC, single- and/or multi-phase AC systems. The proposed topology has a modularized low-voltage current source building block that can be stacked for medium-voltage (MV) applications to provide dynamic leading or lagging reactive power. In addition, the phases are coupled through a high-frequency transformer for inter-phase fault isolation among the three-phase. The converter functionality is validated through simulations and experimental results with a 480 V, 75 kVAr prototype. Existing system: Proliferation of non-resistive loads imposes power quality concerns over the existing grid network. The reactive power loads, which possess a low power factor, draw high amount of volt-ampere reactive power from the grid and thus restrict the active power transfer capability. The excessive reactive power flow over the network heavily burdens the transformer, distribution and transmission lines, increases the line losses, and impacts the voltage stability. Proposed system: The proposed system proposes a novel modular current source inverter (CSI) based topology to provide STATCOM functionality. The topology is derived from Dynamic-Current or Dyna-C, a patented power converter capable of transferring energy for two- or multi-terminal DC, single- and/or multiphase AC systems. The topology, named Dynamic VAr Compensator (DVC), employs a highfrequency transformer rather than a DC capacitor as the means to store energy, which limits the maximum current that can contribute to a fault. The paper presents the topology and the operating principles, and validates the core functionality through simulation results and experimental measurements of a 480 V / 75 kVAr prototype. Circuit diagram: Reference: