This paper presents a design methodology for creating a high power density and highly efficient energy storage converter by virtue of the hybrid three-level topology, which encompasses hardware circuit design, passive component selection, and control system design. Additionally, to address the phase-locked synchronization problem of the converter to the grid in the presence of voltage imbalances or distortions, enabling precise control and distribution of both active and reactive power. An independent control scheme for fundamental current and harmonic current based on the synchronous rotating coordinate system is introduced to effectively suppress current harmonic content. To validate the design, the experimental prototype is developed to verify that the proposed energy storage converter exhibits exceptional efficiency and reliability.