This paper proposed the p-q-r coordinate system where the instantaneous active power p, and the two instantaneous reactive powers qq, qr were defined. The three power components are linearly independent, so the compensation for the two instantaneous reactive powers leads to control the two components of the current space vector. With the theory, the neutral current of a three-phase four-wire system can be eliminated by only compensating the instantaneous reactive power using no energy storge element.