Recently, the world has shown its great interest and ambition of integrating RESs and DGs into

the transmission and

distribution network (electrical grid) because of many advantages. These advantages include additional energy-related
benefits (improved security of supply, avoidance of overcapacity, peak load reduction, reduction of grid losses) and
network-related benefits (transmission network infrastructure cost, power quality support, reliability improvement).
Moreover, RESs/DGs can increase the overall fuel efficiency of the plant considerably as the heat can be used locally.

The MGs comprise dispersed energy resources (such as WTs, PV panels, and microgas turbines (MGTs)), storage
devices (such as flywheels, supercapacitors, and batteries), and controllable loads in order to offer considerable control
capabilities to the local network operation. These systems are interconnected to the low-voltage distribution network.

With the fast development of distributed RESs, many efforts should be done in domains of (i) modernization of
transmission and distribution networks (such as SGs) for integration of distributed RESs and MGs, (ii) innovation of
the local system’s management and control concepts (such as MGs) for distributed RESs’ local demand and supply
optimization, and (iii) implementation of controllable and reliable generation (such as active generators) to overcome
the intermittent and fluctuant availability of renewable energies and to supply ancillary services to the electrical
network. Research activities are more and more headed toward solutions for meeting the ever-growing energy demand.
In order to ensure a continuous development in a sustainable way, a considerable portion of the electrical energy has
to be generated by the RESs. One of their main drawbacks is the non-constant nature of the primary energy sources
(e.g., solar irradiation and wind changes).Hence, the increasing penetration of renewable generators into the energy
mix could cause difficulties for system operators in matching the power production and demand thus degrading the
quality of power supplied to the customers and further causing disruptions in power supply.

The microgrid central control (MGCC) controls the MG operation through the local generator controllers (Fig. 2.22).
In the connected operation mode, a timing power planning is established between the DSO and the MGCC. The
MGCC adapts the power reference of some DGs (e.g., gas micro turbine and diesel generator) in order to fulfill this
contract. In the islanded operation mode, the MG should ensure the local electricity supply and energysecurity.

To perform the power balance between the production and consumption, the MGCC should predict the local
production capacity and the local consumption needs for the next period. If the production is more than the
consumption, the power production of the under controlled DGs must be reduced, and during this transient state, the
excess power is dissipated in dummy resistor loads in case of overvoltage. If the production is less than the
consumption, two solutions exist. The specified DGs will be prepared to supply the deficit power or a part of loads
will be disconnected from the MG (if necessary).

Various scenarios for future architecture of electricity systems recognize the fundamental fact that with increased
levels of RES penetration, the distribution network can no longer be considered as a passive appendage to the
transmission network. The entire distributed system has to be designed and operated as an integrated unit. In addition,
this increased complex operation must be undertaken by a system under a multilevel management electrical system.
In a modern power grid, the MGs provide their own supply with limited exchange of energy with the rest of the
distribution network.

With a large number of widely dispersed DGs, the real-time communication and control are difficult to perform for
the whole power system, especially with extremely large amounts of information and long transmission distance.
Therefore, the optimized real-time control and management of DGs and loads should be implemented within local
power grids. The necessary information should be first gathered and then be exchanged with the grid system operator
for the whole power grid control and optimization. As a new control and management concept of organizing the
distributed RESs and local loads, the MGs have attracted great attention all over the world.

Many technical challenges are associated with the operation and the control of MGs. Energy management is very
important for the achievement of good energy efficiencies by optimizing production and consumption.
Operation Modes

MG flexibility can be achieved by operating under two different conditions. In the normal operation, the MG is
connected to a main MV distribution grid being either partially supplied from it or injecting some amount of power
into it. Depending on the demand request, in the grid-connected mode, the main grid and local DGs may send power
to the loads. As the MV grid sets the root mean square (RMS) voltage, all DGs inside the MG can only generate
currents but can be dispatched by the MGCC in order to provide power references. The control system in the local
controller of the DGs (MCs) is known as “PQ inverter control” and the DG is said to be in “PQ mode.” If an event in
the main grid appears, an islanded operation mode can be implemented because the electrical system is organized in
the form of an MG with an MGCC. The MG islanding process may result from an intentional disconnection from the
MV grid (due to maintenance needs) or from a forced disconnection (due to a fault in the MV network such as voltage
dips). As mentioned earlier, the disconnection is performed by a static bypass switch opening the MG as a controllable
small grid.