A hybrid transformer having a primary side for receiving input voltage (Vin) and current from a source and a secondary side for providing output voltage (Vout) and current to a load, the hybrid transformer comprising: a ferromagnetic core; first, second and third windings wound around the core, wherein the first and the second windings (108, 106) are a primary winding structure connectable to the source and the third winding is a secondary winding structure connectable to the load; and - an AC-AC converter connected to the primary winding structure, the AC-AC converter is connected in parallel with the first winding and connected in series with the second winding, and comprises: a first switching bridge connected to the first winding; a second switching bridge connected in series with the second winding; a DC bridge connected between the first and second switching bridges; - a controller connected to and configured to control the first and second switching bridges to: - provide reactive power to the load through the primary and secondary winding structures thereby controlling the power factor on the primary side of the hybrid transformer; and - maintain the output voltage (Vout) at a reference output voltage by reducing variations in the output voltage in the event of a change in the input voltage. a ferromagnetic core; first, second and third windings wound around the core, wherein the first and the second windings (108, 106) are a primary winding structure connectable to the source and the third winding is a secondary winding structure connectable to the load; and - an AC-AC converter connected to the primary winding structure, the AC-AC converter is connected in parallel with the first winding and connected in series with the second winding, and comprises: a first switching bridge connected to the first winding; a second switching bridge connected in series with the second winding; a DC bridge connected between the first and second switching bridges; - a controller connected to and configured to control the first and second switching bridges to: - provide reactive power to the load through the primary and secondary winding structures thereby controlling the power factor on the primary side of the hybrid transformer; and - maintain the output voltage (Vout) at a reference output voltage by reducing variations in the output voltage in the event of a change in the input voltage. - an AC-AC converter connected to the primary winding structure, the AC-AC converter is connected in parallel with the first winding and connected in series with the second winding, and comprises: a first switching bridge connected to the first winding; a second switching bridge connected in series with the second winding; a DC bridge connected between the first and second switching bridges; a first switching bridge connected to the first winding; a second switching bridge connected in series with the second winding; a DC bridge connected between the first and second switching bridges; - a controller connected to and configured to control the first and second switching bridges to: - provide reactive power to the load through the primary and secondary winding structures thereby controlling the power factor on the primary side of the hybrid transformer; and - maintain the output voltage (Vout) at a reference output voltage by reducing variations in the output voltage in the event of a change in the input voltage. - provide reactive power to the load through the primary and secondary winding structures thereby controlling the power factor on the primary side of the hybrid transformer; and - maintain the output voltage (Vout) at a reference output voltage by reducing variations in the output voltage in the event of a change in the input voltage.