1
An Introduction to Microgrids
Vineeth.R.H.*
*Electrical and Electronics Department,
Bapuji Institute of Engineering and Technology,
Davangere – 577004, Karnataka, India
Abstract— A microgrid is a localized group
of electricity sources and loads that normally operates
connected to and synchronous with the traditional wide area
synchronous grid (macro grid), but can also disconnect to
"island mode" — and function autonomously as physical or
economic conditions dictate. In this way, a microgrid can
effectively integrate various sources of distributed
generation (DG), especially Renewable Energy
Sources (RES) - renewable electricity, and can supply
emergency power, changing between island and connected
modes. Control and protection are challenges to microgrids.
A very important feature is also to provide multiple end-use
needs as heating, cooling, and electricity at the same time
since this allows energy carrier substitution and increased
energy efficiency due to waste heat utilization for heating,
domestic hot water, and cooling purposes (cross sectorial
energy usage). Microgrids that operate both electrical
generation and loads in a coordinated manner can offer
benefits to the customer and the local utility. The loads and
energy sources in a microgrid can be disconnected from
and reconnected to the utility system with minimal
disruption, thereby improving reliability. Any time a
microgrid is implemented in an electrical distribution
system, it must be well planned to avoid problems. This
paper discusses current microgrid technologies and
standards that are being developed to address
implementation of microgrids.
Keywords— Microgrid, intentional islands, Distributed
Energy Resources (DER), Distributed Generation (DG),
Distributed Storage (DS), Electric Power System (EPS),
utility, load, Macrogrid, Energy Management System
(EMS), advantages, IEEE 2030.7., primary, secondary,
tertiary control, elementary control .
I.INTRODUCTION
M icrogrids are intentional islands formed either
at a customer facility or location that includes parts of the
local utility distribution system that have at least one
distributed energy resource (DER) and associated loads.
Figure 1 shows a schematic diagram for two types of
microgrids: utility microgrids which contain parts of the
utility and industrial/commercial microgrids which only
include customer facilities [1]. DER can be either
distributed generation (DG) or distributed storage (DS) and
are often both used to provide energy within the microgrid.
In a microgrid, the loads and energy sources can be
disconnected from and reconnected to the utility with
minimal disruption to the local loads. There are many
potential benefits to customers from the use of microgrids
including improving reliability by providing power to the
islanded portion of the electric power system (EPS) during
a utility outage and resolving power-quality issues by
reducing total harmonic distortion at the loads. There are
also utility benefits such as resolving overload problems by
removing load from the EPS by allowing a part of the EPS
to intentionally island and allowing for maintenance on the
utility system while intentionally islanded customers still
remain powered.
Any time a microgrid is implemented in an electrical
distribution system, it must be well planned to avoid
problems. For microgrids to work properly, a switch must
open and the DER must be able to carry the load on the
islanded section. This includes maintaining suitable voltage
and frequency levels for all islanded loads. Depending on
the switch technology, momentary interruptions may occur
during transfer from grid-parallel to islanded mode. If
power is lost, the DER assigned to provide power to the
intentional island should be able to restart and pick up the
island load after the switch has opened. Power flow
analysis of island scenarios should be performed to ensure
that proper voltage regulation is maintained and establish
that the DER can handle inrush currents from large loads.
The DER must be able to load-follow during islanded
operation and sense if a fault current has occurred
downstream of the switch location. When power is restored
on the utility side, the switch must not close unless the
utility and islanded portions are in synchronism. This
requires measuring the voltage on both sides of the switch
to allow synchronization of the island and the utility [2].
Figure 1: Schematic diagram of two types of Microgrids:
Utility and industrial/commercial Microgrids.
II.TYPES OF MICROGRIDS
A] Campus Environment/Institutional Microgrids: The
focus of campus microgrids is aggregating existing on-site
generation with multiple loads located in tight geography in
which owner easily manage them.
B] Community Microgrids: Community Microgrids can
serve a few up to thousands of customers and support the
penetration of local energy (electricity, heating, and
cooling).n a community microgrid, some houses may have
some renewable sources that can supply their demand as

well as that of their neighbors within the same community.
The community microgrid may also have a centralized or
several distributed energy storages. Such microgrids can be
in the form of an AC and DC microgrid coupled together
through a bi-directional power electronic converter.
C] Remote Off-grid Microgrids: These microgrids never
connect to the Macrogrid and instead operate in an island
mode at all times because of economic issues or
geographical position. Typically, an "off-grid" microgrid is
built in areas that are far distant from any transmission and
distribution infrastructure and, therefore, have no
connection to the utility grid. Studies have demonstrated
that operating a remote area or islands' off-grid microgrids,
which are dominated by renewable sources, will reduce the
levelized cost of electricity production over the life of such
microgrid projects.
Large remote areas may be supplied by several
independent microgrids, each with a different owner
(operator). Although such microgrids are traditionally
designed to be energy self-sufficient, intermittent
renewable sources and their unexpected and sharp
variations can cause unexpected power shortfall or
excessive generation in those microgrids. This will
immediately cause unacceptable voltage or frequency
deviation in the microgrids. To remedy such situations, it is
possible to interconnect such microgrids provisionally to a
suitable neighbouring microgrid to exchange power and
improve the voltage and frequency deviations. This can be
achieved through a power electronics-based switch after a
proper synchronization or a back to back connection of two
power electronic converters and after confirming the
stability of the new system. The determination of a need to
interconnect neighbouring microgrids and finding the
suitable microgrid to couple with can be achieved through
optimization or decision making approaches.
D] Military Base Microgrids: These microgrids are being
actively deployed with focus on both physical and cyber
security for military facilities in order to assure reliable
power without relying on the Macrogrid.
E] Commercial and Industrial (C&I) Microgrids: These
types of microgrids are maturing quickly in North America
and Asia Pacific; however, the lack of well –known
standards for these types of microgrids limits them
globally. Main reasons for the installation of an industrial
microgrid are power supply security and its reliability.
There are many manufacturing processes in which an
interruption of the power supply may cause high revenue
losses and long start-up time. Industrial microgrids can be
designed to supply circular-economy (near-) zero-emission
industrial processes, and can integrate combined heat and
power (CHP) generation, being fed by both renewable
sources and waste processing; energy storage can be
additionally used to optimize the operations of these sub-
systems. [3]
III. BASIC COMPONENTS IN MICROGRIDS
A] Local generation: A microgrid presents various types of
generation sources that feed electricity, heating, and
cooling to user. These sources are divided into two major
groups – thermal energy sources (e.g., natural gas
or biogas generators or micro combined heat and power)
2
and renewable generation sources (e.g. wind turbines,
solar).
B] Consumption: In a microgrid, consumption simply
refers to elements that consume electricity, heat, and
cooling which range from single devices to lighting,
heating system of buildings, commercial centers, etc. In the
case of controllable loads, the electricity consumption can
be modified in demand of the network.[4]
C] Energy Storage: In microgrid, energy storage is able to
perform multiple functions, such as ensuring power quality,
including frequency and voltage regulation, smoothing the
output of renewable energy sources, providing backup
power for the system and playing crucial role in cost
optimization. It includes all of electrical, pressure,
gravitational, flywheel, and heat storage technologies.
When multiple energy storages with various capacities are
available in a microgrid, it is preferred to coordinate their
charging and discharging such that a smaller energy storage
does not discharge faster than those with larger capacities.
Likewise, it is preferred a smaller one does not get fully
charged before those with larger capacities. This can be
achieved under a coordinated control of energy storages
based on their state of charge. If multiple energy storage
systems (possibly working on different technologies) are
used and they are controlled by a unique supervising unit
(an Energy Management System - EMS), a hierarchical
control based on a master/slaves architecture can ensure
best operations, particularly in the islanded mode.[5]
D] Point of common coupling (PCC): It is the point in the
electric circuit where a microgrid is connected to a main
grid. Microgrids that do not have a PCC are called isolated
microgrids which are usually presented in the case of
remote sites (e.g., remote communities or remote industrial
sites) where an interconnection with the main grid is not
feasible due to either technical or economic constraints.
Figure 2: The structure of Microgrid
IV. MICROGRID TECHNOLOGIES
Microgrids consist of several basic technologies for
operation these include: distributed generation, distributed
storage, interconnection switches, and control systems. One
of the technical challenges is the design, acceptance, and
availability of low-cost technologies for installing and

using microgrids. Several technologies are under
development to allow the safe interconnection and use of
microgrids shown in Figure 1.
Distributed generation (DG) units are small
sources of energy located at or near the point of use. DG
technologies typically include photovoltaic (PV), wind, fuel
cells, microturbines, and reciprocating internal combustion
engines with generators. These systems may be powered by
either fossil or renewable fuels. Some types of distributed
generation can also provide combined heat and power by
recovering some of the waste heat generated by the source.
This can significantly increase the efficiency of the DG
unit. Some of the DG technologies require a power
electronics interface in order to convert the energy into grid
compatible AC power. The power electronics interface
contains the necessary circuitry to convert power from one
form to another. These converters may include both a
rectifier and an inverter or just an inverter. The converter is
compatible in voltage and frequency with the electric power
system to which it will be connected and contain the
necessary output filters.
The power electronics interface can also contain protective
functions for both the distributed energy system and the
local electric power system that allow paralleling and
disconnection from the electric power system. These power
electronic interfaces provide a unique capability to the DG
units and can enhance the operations of a microgrid. If a
power electronics interface is not used, the DG will
typically have a set of protective relays and switches to
safely interconnect with the EPS.[11]
Distributed storage (DS) technologies are used in microgrid
applications where the generation and loads of the
microgrid cannot be exactly matched. Distributed storage
provides a bridge in meeting the power and energy
requirements of the microgrid. Storage capacity is defined
in terms of the time that the nominal energy capacity can
cover the load at rated power. Storage capacity can be then
categorized in terms of energy density requirements (for
medium- and long-term needs) or in terms of power density
requirements (for short- and very short-term needs).
Distributed storage enhances microgrid systems overall
performance in three ways. First, it stabilizes and permits
DG units to run at a constant and stable output, despite load
fluctuations. Second, it provides the ride through capability
when there are dynamic variations of primary energy (such
as those of sun, wind, and hydropower sources). Third, it
permits DG to seamlessly operate as a dispatchable unit.
Moreover, energy storage can benefit power systems by
damping peak surges in electricity demand, countering
momentary power disturbances, providing outage ride
through while backup generators respond, and reserving
energy for future demand.[12]
There are several forms of energy storage available that can
be used in microgrids; these include batteries,
supercapacitors, and flywheels. Battery systems store
electrical energy in the form of chemical energy. Batteries
are DC power systems that require power electronics to
convert the energy to and from AC power. Many utility
connections for batteries have bi-directional converters,
which allow energy to be stored and taken from the
batteries. Supercapacitors, also known as ultra-capacitors,
are electrical energy storage devices, which offer high
power density and extremely high cycling capability.
Flywheel systems have recently regained consideration as a
viable means of supporting critical load during grid power
3
interruption because of their fast response compared to
electrochemical energy storage. Advances in power
electronics and digitally controlled fields have led to better
flywheel designs that deliver a cost-effective alternative in
the power quality market. Typically, an electric motor
supplies mechanical energy to the flywheel and a generator
is coupled on the same shaft that outputs the energy, when
needed, though a converter. It is also possible to design a
bi-directional system with one machine that is capable of
motoring and regenerating operations.
The interconnection switch is the point of connection
between the microgrid and the rest of the distribution
system. New technologies in this area consolidate the
various power and switching functions (e.g., power
switching, protective relaying, metering, and
communications) traditionally provided by relays,
hardware, and other components at the utility interface
into a single system with a digital signal processor. Grid
conditions are measured both on the utility and
microgrid sides of the switch through current
transformers and potential transformers which determine
operational conditions.
To maximize applicability and functionality, the controls
are also designed to be technology neutral and can be
used with a circuit breaker, as well as faster
semiconductor-based static switches like thyristors and
integrated gate bipolar transistor technologies and
applicable to a variety of DG assets with conventional
generators or power converters.
V. MICROGRID CONTROL
In regards to the architecture of microgrid control, or
any control problem, there are two different approaches
that can be identified: centralized and decentralized. A
fully centralized control relies on a large amount of
information transmittance between involving units and
then the decision is made at a single point. Hence, it will
present a big problem in implementation since
interconnected power systems usually cover extended
geographic locations and involves an enormous number
of units. On the other hand, in a fully decentralized
control, each unit is controlled by its local controller
without knowing the situation of others. A compromise
between those two extreme control schemes can be
achieved by means of a hierarchical control scheme
consisting of three control levels: primary, secondary,
and tertiary. Figure 3 shows these types of control.
Figure 3: Hierarchical control of the microgrid

A] Primary Control: The primary control is designed to
satisfy the following requirements:
1. To stabilize the voltage and frequency.
2. To offer plug and play capability for DERs and
properly share the active and reactive power among
them, preferably, without any communication links
3. To mitigate circulating currents that can cause over-
current phenomenon in the power electronic devices
The primary control provides the setpoints for a lower
controller which are the voltage and current control loops
of DERs. These inner control loops are commonly referred
to as zero-level control.[6]
B] Secondary control: Secondary control has typically
seconds to minutes sampling time (i.e. slower than the
previous one) which justifies the decoupled dynamics of the
primary and the secondary control loops and facilitates their
individual designs. Setpoint of primary control is given by
secondary control in which as a centralized controller, it
restores the microgrid voltage and frequency and
compensates for the deviations caused by variations of
loads or renewable sources. The secondary control can also
be designed to satisfy the power quality requirements, e.g.,
voltage balancing at critical buses.
C] Tertiary control: Tertiary control is the last (and the
slowest) control level which consider economic concerns in
the optimal operation of the microgrid (sampling time is
from minutes to hours), and manages the power flow
between microgrid and main grid. This level often involves
the prediction of weather, grid tariff, and loads in the next
hours or day to design a generator dispatch plan that
achieves economic savings. In case of emergency like
blackouts, Tertiary control could be utilized to manage a
group of interconnected microgrids to form what is called
"microgrid clustering" that could act as a virtual power
plant and keep supplying at least the critical loads. During
this situation the central controller should select one of the
microgrid to be the slack (i.e. master) and the rest as PV
and load buses according to a predefined algorithm and the
existing conditions of the system (i.e. Demand and
generation), in this case, the control should be real time or
at least high sampling rate.[7]
V.I. IEEE 2030.7
A less utility influenced controller framework has been
designed in the latest Microgrid controller standard from
the Institute of Electrical and Electronics Engineers, the
IEEE 2030.7. That concept relies on 4 blocks: a) Device
Level control (e.g. Voltage and Frequency Control), b)
Local Area Control (e.g. data communication), c)
Supervisory (software) controller (e.g. forward looking
dispatch optimization of generation and load resources),
and d) Grid Layer (e.g. communication with utility).[8]
V.II. Elementary control
A wide variety of complex control algorithms exist, making
it difficult for small Microgrids and residential Distributed
Energy Resource (DER) users to implement energy
management and control systems. Especially,
communication upgrades and data information systems can
make it expensive. Thus, some projects try to simplify the
control via off-the shelf products and make it usable for the
mainstream (e.g. using a Raspberry Pi).
4
VI. ADVANTAGES AND CHALLENGES OF
MICROGRIDS
VI.I. Advantages
A microgrid is capable of operating in grid-
connected and stand-alone modes and of handling the
transition between the two. In the grid-connected
mode, ancillary services can be provided by trading activity
between the microgrid and the main grid. Other possible
revenue streams exist. In the islanded mode, the real and
reactive power generated within the microgrid, including
that provided by the energy storage system, should be in
balance with the demand of local loads. Microgrids offer an
option to balancing the need to reduce carbon emissions
while continuing to provide reliable electric energy in
periods of time that renewable sources of power are not
available. Microgrids also offer the security of being
hardened from severe weather and natural disasters by not
having large assets and miles of above-ground wires and
other electric infrastructure that needs to be maintained or
repaired following these events.
A microgrid may transition between these two
modes because of scheduled maintenance, degraded power
quality or a shortage in the host grid, faults in the local grid,
or for economic reasons. By means of modifying energy
flow through microgrid components, microgrids facilitate
the integration of renewable energy generation such as
photovoltaic, wind and fuel cell generations without
requiring re-design of the national distribution
system. Modern optimization methods can also be
incorporated into the microgrid energy management system
to improve efficiency, economics, and resiliency.[9]
VI.II. Challenges
Microgrids, and integration of DER units in general,
introduce a number of operational challenges that need to
be addressed in the design of control and protection
systems in order to ensure that the present levels of
reliability are not significantly affected and the potential
benefits of Distributed Generation (DG) units are fully
harnessed. Some of these challenges arise from invalid
assumptions typically applied to conventional distribution
systems, while others are the result of stability issues
formerly observed only at a transmission system level. The
most relevant challenges in microgrid protection and
control include:
1. Bidirectional power flows: The presence of distributed
generation (DG) units in the network at low voltage
levels can cause reverse power flows that may lead to
complications in protection coordination, undesirable
power flow patterns, fault current distribution,
and voltage control.
2. Stability issues: Interaction of control system of DG
units may create local oscillations, requiring a
thorough small-disturbance stability analysis.
Moreover, transition activities between the grid-
connected and islanding (stand-alone) modes of
operation in a microgrid can create transient
stability. Recent studies have shown that direct-current
(DC) microgrid interface can result in significantly
simpler control structure, more energy efficient
 5
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VII. CONCLUSION innovative Technologies.
[11]Z. Ye, D. Finney, R. Zhou, M. Dame, B.
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AUTHOR
REFERENCES
Vineeth.R.H. Under Graduate in Electrical and
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[2] IEEE Draft Guide for Design, Operation, and
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Standard P1547 Draft 4.