This paper proposes a calculation of compensation current using phase shift to eliminate ripple components of instantaneous active power under unbalanced or non-linear loads condition. The proposed phase shift method instead of existing method(LPF; Low Pass Filter) to remove ripple components and this proposed method improves performances of transient and steady state response. To compare proposed method with existing method, experiments have been done for calculating an average active power at load side. Their results show that transient response and steady state response of proposed method is improved.