Abstract: Large-scale urban power grid is facing increasingly serious trend of heavy load problem. The cost of traditional solutions is usually high due to large investment and difficult implementation of urban construction. In this literature, the application of three types of power electronic technology in solving unbalanced power flow of urban power grid is considered. The technical theory of UPFC is analyzed for entry point. By comparing with flexible DC technology and SSSC which are of the same type with UPFC, the application scenarios of three types of power electronic technology are demonstrated and the feasibility of UPFC above flexible DC technology and SSSC in urban power grid are proposed. Then an actual problem of a real urban power grid and several solutions including UFPC are studied and compared, which shows the application potential of UPFC in project perspective.