With the increased use of power electronic for ac-to-dc converters, electrical distributions systems are experiencing an increased in non-linear loads. These non-linear loads, such as the classical rectifier, draw non-sinusoidal currents which tend to have a deleterious impact on the power quality of the modern AC distribution systems. The interaction of non-sinusoidal currents with the grid impedance leads to distorted system voltage which can adversely impact other devices connected to the grid. The integration of distributed energy resources (DERs) with the distribution power grid can further exacerbate the harmonic power issues. The traditional methods of compensation are no longer adequate and hence it is necessary to develop a means to provide local reactive and harmonic compensation at the source of the power quality problem within the low-voltage distribution network. This article investigates the use of a capacitor-less distribution static synchronous compensator (D-STATCOM) for power quality compensation in modern distribution systems. The proposed topology is based on a matrix converter (MC), controlled by finite control set model predictive control (FCS-MPC) which makes possible the use of inductive energy storage rather than electrolytic capacitors, which have been proven to be the most failure-prone components in a power electronic circuit. Simulation and experimental results are presented to validate the effectiveness of the approach. (c) 2019 The Authors. Published by Elsevier Ltd.