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• Voltage regulation using combined active and reactive power. • Control algorithm for active energy minimization in voltage regulation. • A comparative analysis performed on a battery energy storage system. The voltage drop affecting consumers at the end of distribution lines is one of the problems regarding power quality. The solutions applied to transmission lines are not fully effective in distribution lines, where line parameters are significantly high. In low-voltage distribution network, the reactive power compensation method is not as effective as active and reactive power compensation. This effect occurs on lines where the significant series resistance becomes remarkable in relation to the total line impedance. This paper presents the design and implementation of a four-wire, three-phase voltage source converter (VSC) with output current control for voltage regulation at the point of common coupling (PCC), using active and reactive power injection. A reactive power prioritization and minimization of active power strategy is proposed to overcome the problem of distribution line parameters. Digital design methodology is used to design the management controllers and loops, and a digital signal controller (DSC) is used for the entire implementation. The mathematical analysis results are validated using numerical simulation and proven with the construction of a 3.8 kVA prototype. The results showed that the converter accomplished an effective voltage regulation at the PCC with reduced active power. [ABSTRACT FROM AUTHOR]