Power electronic converters have rapidly emerged as one of the main used devices to interchange energy with the utility grid, at several power and voltage levels. In this context, VSC based converters are among the most preferred interfaces to perform the interconnection, especially for integration of distributed energy sources, active filtering, and power supply applications due to the development in the devices material technology and in the control strategies development. The most important requirement of power system operations is sustained availability and quality supply of electric power. In Electrical Power Distribution System (EPDS), non-linear loads are the main cause of power quality (PQ) degradation. The level of distortion depends on the internal elements of the DGUs as well as on the characteristics of the grid, loads, and controls, among others. The PQ problems generated by these non-linear loads are complex and diversified in nature. The power system which is not capable to handle non-linear loads faces the problem of voltage unbalance, sag, and swell, momentary or temporary interruption and ultimately complete outage of EPDS.