Unbalanced grid faults will lead to several drawbacks in the output power quality of photovoltaic generation (PV) converters, such as power fluctuation, current amplitude swell, and a large quantity of harmonics. The aim of this paper is to propose a flexible AC current generation method by selecting coefficients to overcome these problems in an optimal way. Three coefficients are brought in to tune the output current reference within the required limits of the power quality (the current harmonic distortion, the AC current peak, the power fluctuation, and the DC voltage fluctuation). Through the optimization algorithm, the coefficients can be determined aiming to generate the minimum integrated amplitudes of the active and reactive power references with the constraints of the inverter current and DC voltage fluctuation. Dead-beat controller is utilized to track the optimal current reference in a short period. The method has been verified in PSCAD/EMTDC software.