Grid-forming (GFM) converters are regarded as the most promising solution for grid-connected converters of renewable energy due to their robustness against weak grids. However, attributable to their voltage source characteristics, GFM converters may experience overcurrent issues during large disturbances. The virtual impedance (VI) method is an effective method to solve this problem. Nevertheless, there exists a contradiction between the demands for VI posed by current limitations and transient stability. Firstly, the analytical equations of virtual impedance for limiting the fault steady-state current of a GFM converter with different depths of grid voltage sag are solved. On that basis, an adaptive method based on virtual impedance is proposed to limit the fault current. Moreover, the analytical equation of the output active power of the converter when using adaptive virtual impedance to limit the fault current is solved. On this basis, the effect of the virtual impedance ratio on the transient stability is investigated. Finally, an adaptive virtual-impedance-based current-limiting method with the functionality of transient stability enhancement for a grid-forming converter is innovatively proposed. The enhancement effect of the method is verified by the equal area criterion method and phase portrait method. Finally, the efficacy of the proposed method in limiting fault currents and enhancing transient stability is validated through hardware-in-the-loop (HIL) experiments.

The proliferation of next-generation renewable energy systems has driven widespread adoption of electronic devices and nonlinear loads, causing grid distortion that degrades waveform quality in grid-forming (GFM) converters. Additionally, unbalanced grid faults exacerbate overcurrent risks and transient stability challenges when employing conventional virtual impedance strategies. While existing studies have separately examined these challenges, few have comprehensively addressed non-ideal grid conditions. To bridge this gap, a novel control strategy is proposed that reshapes the output current waveforms and enhances transient stability in GFM converters under such conditions. First, a sliding mode controller with an improved composite reaching law to achieve rapid reference tracking while eliminating chattering is designed. Second, a multi-quasi-resonance controller incorporating phase compensation is introduced to suppress harmonic distortion in the converter output current. Third, an individual-phase fuzzy adaptive virtual impedance strategy dynamically reshapes the current amplitude during unbalanced faults and improves the system’s transient stability. Validated through PSCAD/EMTDC simulations and hardware-in-the-loop experiments, the proposed strategy demonstrates superior transient stability and fault ride-through capability compared to state-of-the-art methods, ensuring reliable GFM converter operation under severe harmonic and unbalanced grid conditions.