The economic growth of any country depends on the utilization of energy resources. This paperrnpresents the traction system power quality issues and methods of improvement about harmonicsrncurrent, voltage unbalance, and power factor problems. Power quality issues in power systemsrnhave been increased due to nonlinear loads. To compensate these problems direct powerrncompensator (DPC) will be proposed in this paper, in which a capacitive coupled hybrid LLCrnstructure is added. The proposed DPC contains back to back converter by giving out the same dcrnlink power and also connected with the secondary side of 132/27.5kV v/v transformer to providerna voltage balance in transmission line. A dual converter with a compensator is employed togetherrnwith co-phase traction transformers to reduce the current harmonics, telecommunicationrndisturbance, voltage unbalance and power factor problems.rnReduction in direct power compensator (DPC) operation voltage can lead to a decrease in therncompensation device capacity, power consumptions, and installation cost. The parameter designrnprocedures for minimum dc voltage operation of direct power compensator (DPC) are beingrnexplored. To inject the same compensating currents to the traction power supply system, the DCrnbus voltage of the direct power compensator (DPC) could be much lower than that of arnconventional railway power conditioner (RPC). As a result, the cost of the power qualityrnconditioner is reduced.rnSimulation models are built with a direct power compensator (DPC) connected to the secondaryrnside of a 132 kV/27.5 kV V/V transformer. Simulation results shows the direct powerrncompensator (DPC) could compensate reactive power, unbalance voltage and current harmonicsrnsimultaneously.rnAccording to this research the system voltage and current harmonic distortion without directrnpower compensator was 6.71% and 26.46% respectively with power factor value of 0.81. Butrnwhen DPC is used voltage and current harmonic distortion is changed to 0.82% and 1.28% withrnpower factor value of 0.99. Co-phase traction power supply with proposed direct powerrncompensator (DPC) is therefore, suitable for high-speed traction applications.