A new simplified topology for a dynamic voltage restorer (DVR) based on direct converter with a reduced number of switches is presented. The direct converter is fabricated using only three bi-directional controlled switches. The direct converter is connected between the grid and center-tapped series transformer. The center-tapped series transformer is used to inject the compensating voltage synthesized by the direct converter. The DVR can properly compensate for long-duration, balanced, and unbalanced voltage sag and swell by taking power from the grid. The switches are driven by ordinary pulse width modulation signals. Simulation and hardware results validate the idea that the proposed topology can mitigate sag of 50% and swell of unlimited quantity.