Voltage faults and harmonics are some of the main problems in the modern electric power distribution system. Traditional solutions are proved to have several drawbacks. In this paper, a novel AC-AC series voltage compensator without large energy storage elements is proposed to deal with the above voltage problems in the power system, which only requires partial power conversion. In addition, only two bi-directional switches are required in each phase, which reduces the cost. Furthermore, the IGBT bridge-type module is available to realize the bi-directional switch. The system configuration is introduced with the operation principle and the control method of voltage regulation in detail. The system is simulated by MATLAB/Simulink to verify the principle of the proposed device. The experiments are carried out based on a 30kW prototype. All the results show that the voltage problems can be solved effectively by the proposed compensator.