A new method for reactive power compensation is proposed and applied to the ITER acldc converter units. It requires a capacitor bank permanently connected to the grid and rated for the peak reactive power absorbed from the converter units when controlled in sequential mode and a suitable control strategy which regulates the reactive power demand of the units in order to reduce that delivered by the HV grid. The description of the method and the results of its application to ITER converter units, obtained with a numerical simulation of the system, are reported in the paper.