A power converter includes at least one leg including a first string that includes controllable semiconductor switches, a first connecting node, and a second connecting node and that is operatively coupled across a first bus and a second bus. A second string is operatively coupled to the first string via the first connecting node and the second connecting node. The second string includes a plurality of switching modules wherein each of the plurality of switching modules includes a plurality of fully controllable semiconductor switches and at least one energy storage device. The power converter includes a system controller to control activation of the controllable semiconductor switches and switching modules such that a controlled electrical variable is maintained at a first predetermined reference voltage value and the average internal stored energy of the energy storage devices is maintained at a second predetermined reference value.