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A current-regulated inverter with an output-coupled inductor for driving AC arc welding machines is proposed. The output-coupled choke keeps the load current continuous and retains the energy during the commutation period. The commutation time can thus be reduced to avoid arc extinction and to ensure a better welding performance. Also the stored energy can be released in the next energy transfer cycle to raise the conversion efficiency. The circuit operations and design procedures are examined thoroughly. Experimental results on prototype inverter for driving a 100 A AC arc welding machine are recorded to validate the effectiveness of the proposed scheme.