Power theory is one of the foundations for financial accounts of energy, efficiency evaluation of power transmission and control of current compensation. Power systems become more and more complex, which exacerbate the problem of harmonics and unbalance. At this time, the traditional power theory is no longer applicable in the non-sinusoidal and unbalanced conditions. Many new power theories are proposed constantly. Among them, the Currents’ Physical Component (CPC) theory is regarded as one of the most promising power theories. In this paper, the connotation of the CPC theory is elaborated. Then, with the simulation of MATLAB / SIMULINK, the current components and their physical meanings in the CPC theory are analyzed. At the same time, the limitations of the theory are presented. This is good for the understanding and further study of power theory.
