The Power Electronic Building Block (PEBB) concept leads to multifunctional converter systems, which provide robustness and flexibility in heavily power electronics based power systems. Systems comprised of flexible modular converters may have multiple possible operation conditions with respect to individual converters that meet the overall system goals. In this thesis, an optimization method for such flexible online power electronic systems is developed to minimize power losses of the overall group of converters in the system. Here the objective is to allocate sharing such that compensation objectives are met while the power loss of the entire parallel group of compensators is minimized. Considering optimization of an online power electronic system, convergence time and running in the feasible region should be taken into account. This thesis is