A zero-sequence current balancer for a controlling zero-sequence current in a three-phase power system includes a zig-zag transformer coupled to the three-phase power system, an inverter coupled to an output of the zig-zag transformer, and at least one of: (i) a clamp device operating as a normally open switch, the clamp device being provided in between the output of the zig-zag transformer and a neutral conductor (which may be grounded) and being connected in parallel with the inverter, and (ii) a load-break switch provided between the output end of the zig-zag transformer and an input of inverter. A controller is structured and configured to detect a fault condition in the three-phase power system, and in response cause at least one of the closing of the clamp device or the opening of the load-break switch in order to protect the system.