Abstract
<para xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink"> A detailed investigation is made into the causes, standards, and remedies of the excessive neutral current. A reduced-rating voltage-source converter with a zig-zag transformer as a distribution static compensator is proposed for power-quality improvement in the three-phase four-wire distribution system. The proposed DSTATCOM is employed for the compensation of reactive power, harmonics currents, neutral current, load balancing and the voltage regulation at the point of common coupling. The zig-zag transformer is used for providing a path to the zero-sequence current. The performance of the DSTATCOM is validated through extensive simulations using MATLAB software with its Simulink and power system blockset toolboxes. </para>
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