The multilevel inverters have become popular equipment for medium and high power applications in recent years. These inverters can constitute high voltage and decrease harmonics by their own circuit topologies. This paper presents a modular multilevel inverters based SHAPF for medium voltage applications, focusing on its control method and operating performance. The compensation process is based on synchronous reference frame method. Theoretical analyses and simulation results are obtained from an actual industrial network model in PSCAD. The simulation results are presented for a proposed system in order to demonstrate that the harmonic compensation performance meets the IEEE-519 standard.