This paper proposed the reduced rating star connected transformer based interline unified power quality conditioner. This work comprises of unified power quality conditioner connected between the two feeders, star connected transformer and LC filter. This hybrid approach significantly improves the performance of UPQC under unbalance source voltage condition. The UPQC adopted to compensate current and voltage-quality problems of sensitive loads and suppressing the load current harmonics under distorted supply conditions. The series converter control strategy is based on the fuzzy-logic controller. The extensive simulation results have carried out in MATLAB/Simulink environment power system blockset toolboxes. From the results it has shown that hybrid interline UPQC achieves superior capability of mitigating the effects of voltage sag/swell and suppressing the load current harmonics, phase current harmonics and neutral current under distorted supply conditions. To validate the results produced by the proposed method, it is compared with the conventional UPQC method and better results obtained from the hybrid approach.
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