A system for integrating energy storage into a modular power converter includes at least one energy storage unit coupled to a first converter for converting a first direct current (DC) voltage of the at least one energy storage unit into a first high frequency alternating current (AC) voltage. At least three phase legs of the modular power converter generate three phase AC voltages. Each phase leg includes a plurality of switching modules connected in series. The switching modules have a plurality of fully controllable semiconductor switches, an energy storage device, and a second converter coupled to the respective energy storage device for converting a second DC voltage of the energy storage device into a second high frequency AC voltage. In the system, three similarly positioned switching modules of the three phase legs form one power unit. Further, a high frequency transformer is provided which has at least one primary winding connected to the first converter and at least three secondary windings, each connected to the second converter of each of the three similarly positioned switching modules. A controller is configured to regulate at least one electrical parameter of the modular power converter.