I. Introduction
Load unbalancing, voltage regulation and poor power factor are some of the common power quality problems encountered in distribution systems [1]–[2]. Passive filters have been in use for a long time now. More recent solutions relate to custom power devices used in the distribution systems and flexible ac transmission systems (FACTS) devices [1]–[2]. Shunt compensators are used to solve power quality problems arising at the load end. The proliferation of nonlinear loads also injects harmonics into the point of common coupling (PCC), thereby affecting the performance of other interconnected loads. The use of shunt compensators for arc furnace and other rapidly fluctuating and highly nonlinear loads is now necessary for power quality improvement.