A method for estimating a fundamental component of an AC voltage includes receiving a timely varying measurement signal of the AC voltage; parametrizing a fundamental component of the AC voltage; and determining parameters of the fundamental component based on minimizing a cost function. The fundamental component has a rated frequency, a variable amplitude and a variable phase shift. The cost function is based on an integral of a norm of a difference between the measurement signal and the parametrized fundamental component via a time horizon. The time horizon starts at an actual time point and goes back via a predefined length. The cost function includes a term based on a norm of the difference between a value of the fundamental component at the actual time point and a value of a previously estimated fundamental component at the actual time point, where the previously estimated fundamental component has been determined for a previous time point.