Realisation of high-efficiency modular multilevel converters (MMCs) during wide AC grid voltage variation is a significant challenge for the voltage-source-converter based high-voltage direct-current system. In this study, the DC component of the sub-module output voltage is investigated to be a new control freedom by building the inherent relationship between the DC voltage component and active sub-module number. Then, the effect of AC voltage on DC voltage component is explored. The adaptive DC voltage component modulation is proposed to dynamically regulate the active sub-module numbers during wide AC voltage variation, resulting in the improved MMC conversion efficiency. Moreover, the detailed performance analysis shows that the adoption of the proposed modulation brings little effect on the sub-module capacitor voltage/current ripple, circulating current suppression as well as the AC and DC terminal voltages. Finally, the simulation and experiment results show that the adaptive DC voltage component modulation is effective to reduce the power losses during a wide AC voltage range. Nomenclature U 1 amplitude of AC voltages U dc DC terminal voltage u jp , u jn upper/lower arm voltages of phase j (j = a, b, c) i jp , i jn upper/lower arm currents of phase j (j = a, b, c) u sm sub-module output voltage u sm,dc , u sm,ac DC/AC component of u sm u C sub-module capacitor voltage U C rated sub-module capacitor voltage Δu C sub-module capacitor voltage ripple Δu C1st , Δu C2nd first-/second-order capacitor voltage ripple of Δu C u sm,2f second-order voltage component of u sm u a,2f second-order voltage component of phase a i C sub-module capacitor current i C1st , i C2nd first-/second-order capacitor current of Δi C i cir circulating current of MMC N active sub-module number per arm N rated rated active sub-module number per arm Σu C sum of active sub-module capacitor voltages per arm IET Power Electron.