A method and system are provided for sourcing and sinking reactive power to an electric grid. The control system includes a terminal electrically coupled to a power source that originates from an electric utility grid. The terminal receives a grid alternating current having a real power component and a reactive power component. A power converter is electrically coupled to the terminal, the power converter includes an active rectifier that converts substantially all of the grid alternating current to a direct current and an energy storage device that stores energy supplied by the direct current. The active rectifier sources the reactive power component and the stored energy through the terminal to the electric utility grid. The power converter further includes an inverter that converts the direct current to a load alternating current having at least one of a load real power component and a load reactive power component.