AbstractDuring the operation of the ITER machine, hundreds of MW/Var of active and reactive power will be exchanged with the grid. The E‐STATCOM scheme composed of the Modular Multilevel Converter (MMC) and split supercapacitor energy storage has been proposed to improve the power compensation performance of the existing reactive power compensation system in the previous study. However, one of the main technical challenges which is lack of research is to precharge all submodule capacitors and supercapacitors from zero to their nominal voltage values efficiently during a startup process. As the capacitance and operating voltage of supercapacitors are much different from capacitors in each submodule, the startup of E‐STATCOM is a more complicated process. To coordinate the energy exchange between submodule capacitors and supercapacitors, submodule capacitors and the grid, this paper presents an optimized four‐stage AC side startup strategy for the E‐STATCOM. The proposed method minimizes the use of current‐limiting resistors while suppressing the surge current in the zero‐voltage startup process of supercapacitors, in addition to optimizing the energy consumption. The pulse current charging, constant current charging and constant power charging strategies of supercapacitors are adopted in different charging stages, and the detailed coordinated control scheme between submodule capacitors and supercapacitors are described and analyzed. The effectiveness and performance of the proposed method are verified by simulation results and hardware‐in‐the‐loop (HIL) experiments.