Abstract: The objective of this paper is to propose a three phase back-to-back power conditioner with optimal a current
regulation strategy in microgrid. To achieve high stability ,the frequency and the voltage of the microgrid is controlled
by using bidirectional power flow control .The active and reactive power of Active Power Conditioner(APC) is used
here. The dc-link capacitor is the main component of the back-to-back power conditioner for power decoupling and
power flow balancing. Optimal current regulation strategy is developed to improve the power quality and stability of
the micro grids as well as to reduce the dc link capacitance. Under steady state, the optimal ac current regulation is
able to achieve the dc-link voltage regulation and to reduce the injected ac line current variation. Simulation result was
used to demonstrate the feasibility and performance of the proposed active power conditioner.