The main objective of this paper is three-fold. First, to provide an overview of the current status of the power electronics technology, one of the key actors in the upcoming smart grid paradigm enabling maximum power throughputs and near-instantaneous control of voltages and currents in all links of the power system chain. Second, to provide a bridge between the power systems and the power electronic communities, in terms of their differing appreciation of how these devices perform when connected to the power grid. Third, to discuss on the role that the power electronics technology will play in supporting the aims and objectives of future decarbonized power systems. This paper merges the equipment, control techniques and methods used in flexible alternating current transmission systems (FACTS) and high voltage direct transmission (HVDC) equipment to enable a single, coherent approach to address a specific power system problem, using ‘best of breed’ solutions bearing in mind technical, economic and environmental issues.