This paper presents the improvement of power Quality in the area of Generation and Distribution generation by an Active Power Conditioner. Eloquent amount harmonic currents through power system causes voltage distortions and this distorted voltage waveform results in Harmonic currents at the point of Common Coupling (PCC). It can be compensated by a fast acting PI based active power conditioner (PIAPC). The APC acting as frontier for Renewable Energy sources and Microgrid requires variation of DC link voltage within prescribed limits. An innovative control strategy of APC allows the line current at the point of common coupling to be balanced even when the load is unbalanced. The APC behaves as a good substantiate to compensate voltage and current disturbances in power systems. In this paper, an energy based fast-acting dc-link voltage controller with a dc-link capacitor is proposed due to the slow transient retort of the conventional PI dc-link voltage controller. The MATLAB/Simulation result shows the innovative restraint strategy and its credibility.