AbstractThis paper describes a method for dynamic simulation of HVDC transmission systems based on transient circuit analysis during abnormal conditions. Such conditions include sudden drop or rise in the AC system voltage at the rectifier or inverter sides and short‐circuit faults on the DC link. The waveforms of the calculated DC current and terminal voltages of the DC link agreed reasonably with those reported before. The accuracy of the simulation method is also checked during normal operating conditions. For different short‐circuit faults on the DC link a conventional third‐order controller is proposed (for the first time) to reduce the DC current to its normal level in a more efficient way than the first‐order controller being used before. Copyright © 2004 John Wiley & Sons, Ltd.