A power electronic converter based series compensator that can protect sensitive loads in the microgrid from all supply side disturbances, all kinds of faults, load switching other than outages is called a dynamic voltage restorer (DVR). It is a series connected custom device that injects the appropriate voltage to the load bus in order to maintain the load voltage profile. The compensating voltage is injected by three single phase transformers. These voltages are in synchronism with the load voltage. DVR is capable of generating or absorbing controllable real and reactive power at its ac output terminal. This mitigating device is always connected in the distribution side of the system to compensate for sensitive loads which is shown in figure 3.1.