This thesis presents two-phase modulated digital current control for a three-phase bi-directional inverter with wide inductance variation in dc distribution systems. The bi-directional inverter can fulfill both grid connection and rectification. With the proposed control, the inverter is allowed to have wide inductance variation, reducing core size significantly. Additionally, the control can accommodate three-phase voltage distortion and imbalance. Design and selection of components, such as switches, schottky diodes and core materials, are also addressed in this thesis. Measured results from a 20 kW three-phase bi-directional inverter have been presented to confirm the feasibility of the discussed control approach.