The integration of distributed energy resources (DES) with the distribution network offers a number of technical, environmental, and economical benefits. This paper demonstrates the functions of a series grid interconnection module that integrates distributed generations (DG) and energy storage (ES) for peak load shaving and power quality enhancement. The proposed module uses a voltage source converter (VSC) to control the output voltage of an injection/booster transformer connected in series with the distribution network feeder. Due to the series connection, the module's power output varies concurrently with the line current, therefore, exhibits a load leveling characteristic, and islanding operation can be avoided more effectively. The proposed system can also execute voltage compensation function to deal with voltage sag problems.