The intelligent universal transformer (IUT) is a special solid-state transformer for converting high voltage grid to low voltage applications. The low voltage side supplies customers with AC and DC loads. The IUT benefits upstream utilities by maintaining unity power factor.

The goal of the IUT is to use modular power electronics technology to replace the conventional copper-and-iron based bulky distribution transformer. The modularity allows flexibility should the user require a different voltage or power level.

The IUT has been built and tested to show numerous advantages over conventional transformers. These advantages include:

1. voltage sag ride through
2. outage backup
3. unity power factor even with nonlinear and lagging loads
4. voltage regulation under overload and unbalanced load conditions
5. clean output during utility capacitor switching
6. over-current and short circuit protections, etc.