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The paper presents an active voltage compensator (AVC) to prevent voltage fluctuations on the load in both voltage’s rise and fall directions. This AVC is designed based on modeling a three-phase four-branch inverter according to the large-signal average model and the small-signal model—calculation and design of d-q channel controller and 0 channel controller by the frequency-domain method. This AVC significantly reduces production interruptions while protecting equipment life reduction. The theory results are proven through MATLAB/Simulink simulation.