In this paper, a novel Instantaneous Symmetrical Component Active Power theory with Finite Control State based Model Predictive Control (ISCAP‐FCS‐MPC) strategy is proposed for Distribution‐Static‐Compensator (DSTATCOM) to enhance the power quality in distribution system. Unlike conventional control schemes, the proposed method does not necessitate modulators for switching pulse creation and the discrete implementation of the system is offered to assess the forthcoming actions of the source currents for each of the eight achievable switching actions. These switching actions are generated with regard to turbulences raised in load as well as source sides. The proposed methodology is justified via MATLAB/Simulink environment and a relative analysis is realized through conventional Proportional Integral based Hysteresis Current Control (PI‐HCC) strategy. Further, an experimental investigation is accomplished with consideration of Real‐Time Digital Simulator (RTDS) incorporated with front end processor Xilinx spartan‐3 XC3S5000.
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