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SUMMARY This paper is concerned with determining the compensation capability of an interline dynamic voltage restorer (IDVR) under various balanced and unbalanced voltage sag scenarios. An IDVR consists of two or more DVRs with a common dc link which enables active power exchange among DVRs. This feature increases the compensation range of an IDVR as compared with separate but otherwise similar DVRs with no energy storage. The steady-state modeling and analysis of an IDVR is briefly explained in this paper. The expressions governing power requirement for compensating various voltage sags are derived. Consequently, the constraints associated with an IDVR operation are obtained and an algorithm is developed to calculate the compensation range of an IDVR and two similar storage-less DVRs. Illustrative graphs demonstrate the operating characteristics of an IDVR and compare these characteristics with those of two similar storage-less DVRs. Copyright © 2013 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]