The electric arc furnace is the most widely used steel furnace around the world, it can be used to smelt high-quality steel and other special steels. Though the arc furnace came out in the 1900s, the major development has waited its time till the end of WWII. During the latest decades, the development has escalated and brought revolutionary changes to the steel industry. While the total output capacity remains growing slow, the percentage of crude steel made from scraps has rising fiercely to 40% in 2001. One of the major solutions, arc furnace can be built and operated with a lower cost than the traditional blast furnace. Since the concept of the UHP arc furnace(ultrahigh power arc furnace) emerged in the mid-60s, people have tried to build a bigger furnace with higher power and capacity. The application of advanced technologies like dynamic compensation system and water-cooling system boosts the development vigorously.