Dynamic power flow controllers are provided. A dynamic power flow controller may comprise a transformer and a power converter. The power converter is subject to low voltage stresses and not floated at line voltage. In addition, the power converter is rated at a fraction of the total power controlled. A dynamic power flow controller controls both the real and the reactive power flow between two AC sources having the same frequency. A dynamic power flow controller inserts a voltage with controllable magnitude and phase between two AC sources; thereby effecting control of active and reactive power flows between two AC sources.