In this paper, based on the paradigm of the cascade inverter technique, a new approach to control the dynamic voltage restorer will be proposed. In the method, the required series voltage for the sag correction is first decoupled by the vertical and horizontal component referred to the phase of load current. The vertical and horizontal voltage component is then
generated and compensated via the different reactive and active power module. In this case, as the super capacitor-aided reactive power module can output a large amount of the compensation power, the proposed system will take full advantages of less real power injection during the DVR
operation, mitigating a severe and long duration voltage sag with a significantly smaller energy demand from the cascaded inverter. The method proposed in this paper will be examined under various scenarios. The results help consolidate the feasibility and practicability of the approach for the applications considered.