This paper presents the new power dissipation model of individual switching device in a high-level modular multilevel converter (MMC), which can be mostly used in voltage sourced converter (VSC) based high-voltage direct current (HVDC) system and flexible AC transmission system (FACTS). Also, the voltage balancing method based on sorting algorithm is newly proposed to advance the MMC functionalities by effectively adjusting switching variations of the sub-module (SM). The proposed power dissipation model does not fully calculate the average power dissipation for numerous switching devices in an arm module. Instead, it estimates the power dissipation of every switching element based on the inherent operational principle of SM in MMC. In other words, the power dissipation is computed in every single switching event by using the polynomial curve fitting model with minimum computational efforts and high accuracy, which are required to manage the large number of SMs. After estimating the value of power dissipation, the thermal condition of every switching element is considered in the case of external disturbance. Then, the arm modeling for high-level MMC and its control scheme is implemented with the electromagnetic transient simulation program. Finally, the case study for applying to the MMC based HVDC system is carried out to select the appropriate insulated-gate bipolar transistor (IGBT) module in a steady-state, as well as to estimate the proper thermal condition of every switching element in a transient state.