In this paper the performance of a neutral point clamped three level voltage source inverter is investigated. The inverter feeds an electrical drive which is controlled by field oriented control (F.O.C). The modulation technique used is Space Vector Pulse Width Modulation (SVPWM). Specifically, a new approach is proposed for SVPWM a three level inverter which can be extended to multilevel inverters. The neutral point balancing of a three level inverter is controlled and a possible expansion for multilevel inverters is investigated. The proposed SVPWM algorithm is simulated using Matlab/Simulink software and the performance of the 'inverter-electrical drive' system is investigated for steady and transient state.