Power electronic converters are an integral part of the energy power network in such applications as the power interface of distributed sources, network couplers, devices improving energy quality, compensation of non-active power and control of powerflow in the power system. In the majority of cases implementation of power converters in AC power systems is by use of power electronic converters with DC energy storage element. These elements are often the least reliable part of the whole power converter. The DC circuits cannot be eliminated from power systems,but in some applications the commonly used converters can be replaced by converters without a DC energy storage element. The AC–AC converter offers many potential benefits to power converter applications. They will not be the best solution for all applications,but they offers significant advantages for some. An extensive review of AC–AC converters without DC energy storage element has been presented to provide a clear perspective on various aspects and potential applications in the power system.