In this paper the problems created by non linear load as well as the solutions having been applied so far are briefly reviewed. A new simple and effective reference current generation method of a shunt active power filter (SAPF) is proposed. This method aims at eliminating harmonics from the mains currents. It also compensates the reactive power which is created from the linear and non linear loads. The new method is applied both in the case that mains voltages are ideal and in the case that mains voltages are non ideal. The new method is compared to the conventional p-q theory and the results are analyzed and commented on. From the analysis and the commentary the advantages of the new technique are concluded.

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