HTSVG LV STATCOM is mainly comprised of reference current calculation circuit and compensation current generation circuit. The reference current calculation circuit monitors the load current in real time, and converts analog current signal into digital current signal, which is fed into DSP controller for processing. The DSP controller generates reference current by extracting the reactive current component and harmonic current component from the digital current signal. Based on the value of reference current, the current tracking circuit and IGBT drive circuit will send PWM signals as IGBT driving pulse, to drive the IGBTs or IPM power modules in the compensation current generation circuit. As a result, the compensation current, which is of the same value but the reversed phase of the load reactive or harmonic current, is generated and injected into grid to achieve dynamic and precise reactive power as well as harmonic compensation.