It may be necessary to provide local fast reactive supply sources in order to protect the system, including the DVR, from voltage collapse and cascading interruptions.
Although both are utilized for series voltage sag compensation, their operating principles differ from each other. On the other hand, the DVR compensates the unbalance in supply voltage of different phases. Also, DVRs are usually installed on a critical feeder supplying the active power through DC energy storage and the required reactive power is generated internally without any means of DC storage.
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