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Electrical distribution system is designed to operate in sinusoidal mode, but the voltage and current waveforms shows distortion compared to the sinusoidal mode. Current technology development, which results in an increasing adoption of the local generation and storage capacities, is pushing towards the adoption of smart grid paradigm. An effective technical solution for enforce limitation of various types of power quality (PQ) disturbance is based on power electronics in order to increase energy transmission capacity, improve voltage stability and dynamic behavior, control power flow and ensure a better power quality at distribution inside accepted boundaries. The well-known Flexible AC Transmission System (FACTS) devices like Unified Power Quality Conditioners (UPQC) are usually employed to resolve the issues related to voltage sag, swell, flicker, PQ, and neutral current reduction of distribution systems.