High-power flexible dc links employ modular multilevel converters (MMC) for compact active power redirection in medium and high voltage grids. During contingencies, such converters may need to provide an enhanced active power capacity to avoid overload in vulnerable grid locations. This paper achieves this target by using the capacitor voltage ripple margin of the MMC submodules (SM) to enhance the dc voltage beyond the rated value. This voltage enhancement enables the enhanced active power capacity of the MMC while maintaining rated electro-thermal stresses on the components. Moreover, dynamically varying the dc side voltage reduces the MMC's circulating current, improving its operating efficiency. Because the average capacitor voltage is controlled to remain constant, the overall stresses and harmonic performance of the enhanced MMC remain the same as in the base case. In this paper, the analytical expressions for the voltage and power enhancement limits are derived, revealing a dependence on the grid-injected reactive power. Furthermore, a controller is designed to achieve stable operation during transient conditions when the power enhancement is carried out. Finally, the enhancement concept is validated using simulations and experiments with a down-scaled laboratory MMC prototype.