1

Microgrids A Review of Modeling, Control,

Protection, Simulation and Future Potential
Shyam Naren Bhaskara, Student Member, IEEE,

Abstract Results of a literature survey done on microgrids

from conception to installation is presented. The purpose is to
evaluate the current status, major obstacles and existing research
efforts directed toward establishing functional microgrids within
utility systems. This review paper covers technical issues
associated with frequency control and re-synchronization
associated with typical distributed energy sources. Also evaluated
are regulatory and policy issues associated with ownership,
maintenance, availability, coordinated equipment control,
obligation to provide adequate power quality, etc. associated with
operating an islanded microgrid within a utility companys
service territory. Actual microgrids in operation today are
described. Benchmark test systems for steady state and dynamic
simulations are also discussed.
Index TermsSmart grid, frequency control, voltage control,
modeling, simulation, literature survey.

I. INTRODUCTION

EEE Std 1547.4-2011 [1] defines Distributed Resource

(DR) island systems or microgrids as electric power
systems (EPS) that: (1) have DR and load, (2) have the ability
to disconnect from and parallel with the area EPS, (3) include
the local EPS and may include portions of the area EPS, and
(4) are intentionally planned.
A report by SBI Energy [2] states that the world market for
microgrids had reached over $4 billion in 2010 and is
expected to continue through this decade spurred by growth in
renewable energy and energy storage as well as new standards
under development in the general area of smart grids. Another
report by Pike Research [3] forecasts that more than 2,000
microgrid sites will be operational worldwide by 2015, up
from fewer than 100 in 2010. These include
1. Institutional/campus microgrids (single owner)
2. Commercial/industrial microgrids (multiple owners)
3. Community/utility microgrids tied to the larger utility
grid infrastructure
4. Remote off-grid systems (commonly in developing
countries)
5. Military microgrids (to support remote base operations
without a fuel supply)
Shyam Naren Bhaskara is a Graduate Research Assistant in the Electrical
& Computer Engineering department, Missouri University of Science &
Technology, Rolla, MO 65409 USA (e-mail: sbhxf@mst.edu). Badrul H.
Chowdhury is a Professor in the Electrical & Computer Engineering
department, Missouri University of Science & Technology, Rolla, MO 65409
USA (e-mail: bchow@mst.edu).

978-1-4673-2729-9/12/$31.00 2012 IEEE

Badrul H. Chowdhury, Senior Member, IEEE

The report anticipates that the first category of

institutional/campus single owner microgrids will be the
largest segment followed by the second category of
commercial/industrial microgrids with multiple owners.
Clearly, there are tremendous opportunities for both industry
and academia to contribute to stable and functioning
microgrids.
There are, however, many challenges and issues that have
to be resolved before true microgrids are a reality. Research
and development continues worldwide at a fast pace to bring
about transformational changes in the way power grids are
operated. This paper focuses on producing an annotated
bibliography of the literature on microgrids from conception
to installation. The purpose is to evaluate the current status,
major obstacles and existing research efforts directed toward
establishing functional microgrids within utility systems.
Specifically, the paper addresses regulatory and technical
issues associated microgrid control during islanded operation
and challenges associated with synchronizing when
paralleling with the utility system while terminating islanded
operation. The literature covers technical issues associated
with frequency control and re-synchronizing associated with
typical distributed energy sources, such as solar photovoltaic,
wind turbine, fuel cells and micro-turbines. There is also
intent to evaluate regulatory and policy issues associated with
ownership, maintenance, availability, coordinated equipment
control, obligation to provide adequate power quality, etc.
associated with operating an islanded microgrid within a
utility companys service territory.
Publications are categorized under eight different topics.
These are:
Topic 1: Benefits and Necessity
Topic 2: Economics
Topic 3: Operation and Control Strategies
Topic 4: Stability
Topic 5: Modeling of Microgrids
Topic 6: Protection of Microgrids
Topic 7: Existing microgrids
Topic 8: Microgrid Service Restoration and Islanding
Detection
II. BENEFITS AND NECESSITY
There are several benefits to microgrids [4-5]. Firstly,
microgrids facilitate distributed generation (DG) and high
penetration of renewable energy sources. They also facilitate
cogeneration in a combined heat and power (CHP) system.

They increase power quality and reliability of electric supply.

They defer network investments. They contribute to adequacy
of generation because of its ability to control internal loads
and generation. They also support the electrical network in
remote sites and rural areas.
There are also economic benefits from microgrids.
Barker, et al [6] have estimated the cost of power from
microgrids with DG support to be 10 /kWh as against
10.5/kWh in case of conventional power.
The necessity of microgrids can be understood from the
article in PEI magazine [7] which quotes that the vision of
DOE for smart grids to improve power quality with more
control and awareness of the operational state of the electric
system at affordable prices cannot be achieved either until the
T&D system is fixed or microgrids come into existence.
Venkatramanan et al [8] present a growth model wherein the
various features and barriers for microgrids have been
identified.
The other reasons for such recognition for microgrid over
recent times have been because of increased awareness for the
environmental concerns and the ever increasing price for
fossil fuels which has resulted in the increased attention
towards implementing renewables into our power system.
Also there is a high priority for countries to have energy
security. All these reasons have increased governments
interest in microgrids.
At the same time several obstacles have also been
identified [1] for the growth of microgrids which need to be
addressed. Lack of established regulatory policies and a solid
regulatory base in place has been a major. At the same time
there are certain legal issues, such as the Public Utility
Holding Company Act (PUHCA) in the United States which
mandates that sale of electricity for resale in interstate
commerce would turn the seller into a public utility and
require filings with the Securities and Exchange Commission
(SEC) and the Federal Power Commission (FPC). Pudjianto et
al [9] present a review of the regulatory situation in
Netherlands, United Kingdom and Spain. Also, King [10]
presents results of a survey involving the staff representing 26
different state PUCs and the PUC of the district of Columbia
concerning the legality of microgrids, interaction between
microgrids and utilities and regulatory oversight of microgrids
and microgrid firms.
III. ECONOMICS
There is extensive literature on the economics behind
microgrids [11-14]. Economics is studied in terms of the costs
and the benefits of microgrids. The primary cost drivers of
microgrids can be capital cost of establishing the microgrid
including its management and control equipment,
communication systems, energy storage devices and suitable
protection schemes. Fuel costs for the DGs are also important
cost considerations. Apart from these there are others like the
purchased/selling price of electricity from the main grid,
construction cost of the distribution lines and thermal grid cost
in case of CHP.
The benefits from the microgrid have been analyzed in
terms of electricity sales, avoided losses due to transmission,

emission reduction, investment deferral and increased

reliability
Costa, et al [13] have presented mathematical expressions
to evaluate the costs and the benefits and applied that to a
sample microgrid supplying 44 customers, to calculate the
total benefits to be 114,239.40 over a period of 20 years.
Asanol, et al [12] have pointed out that the load shape of the
customers is also a dominant factor. They have identified that
the factors which contribute to viability can be summarized as
size of the microgrid, percent of capacity from PV or wind
power and the extra cost the customers have to pay for the
premium power.
IV. OPERATION AND CONTROL STRATEGIES
Four modes of operation have been identified by the
IEEE Std. 1547.4-2011, namely: area EPS-connected mode,
transition-to-island mode, island mode, and reconnection
mode.
In the Area EPS connected mode, it is advised that the
Measuring, Information exchange and Control (MIC)
equipment needs to be in operation to make system related
information available including protection device status,
generation levels, local loads, and system voltages, to the
island control scheme such that a transition can be planned in
advance.
During the transition-to-island mode, it is advised that
enough DR and DR of the correct type (DR conforming to all
the IEEE Std. 1547.4) is ensured to be available to support the
system voltage and frequency for whatever time the island
interconnection device and protective relaying take to effect a
successful transition. Also, if sufficient DR and DR of the
correct type are not present, then black start capability needs
to be provided inside the island. Pedrasa, et al [15] identifies
some more issues such as balance between supply and
demand, power quality, communication among microgrid
components and micro-source issues like lack of inertia, lack
of spinning reserves and slow response or ramp time.
During the island mode, it is suggested that one or more
participating DR will need to be operated outside the IEEE
1547 voltage regulation requirement to assure DR island
system voltage and frequency stability. Also, there should be
adequate reserve margin that is a function of the load factor,
the magnitude of the load, the load shape, the reliability
requirements of the load, and the availability of DR. It is
suggested that to balance the load and the generation within
the island various techniques such as load-following, load
management, and load shedding be used. Also, it is pointed
out that transient stability should be maintained for load steps,
DR unit outage, and island faults. It is also suggested that
adaptive relaying may be implemented to provide adequate
protection for a variety of system operating modes. Bollen, et
al [16] propose standard operating ranges for frequency and
voltage based on the European standard EN50160 for
interconnected and islanded systems.
For reconnection of the DR island system to the EPS,
monitoring should indicate that the proper conditions exist for
synchronizing the island with the EPS. It is advised that after
an area EPS disturbance, no reconnection shall take place until
the area EPS voltage is within Range B of ANSI/NEMA

C84.1-2006, Table 1, the frequency range is between 59.3 Hz

to 60.5 Hz, and the phase rotation is correct. Also, the voltage,
frequency, and phase angle between the two systems should
be within acceptable limits as specified in IEEE Std 15472003 in order to initiate a reconnection. Several ways to
reconnect the DR island system back to the EPS are also
mentioned.
The control systems designed are responsible to make
sure of the operation in all the above modes. There are
different architectures proposed for the control system. The
major control architectures present in literature can be
summarized as (i) autonomous control architecture [17], (ii)
hierarchical control architecture [18], (iii) agent based control
architecture [19-20], and (iv) neural network based energy
management system [21].
In autonomous control, the microgrid is designed to run
autonomously ensuring stable, sustainable and reliable
operation.
In hierarchical control architecture, the control functions
are shared by various levels of hierarchy. There are three
control levels or hierarchies present in this architecture. The
lowermost level comprises of the local micro-source
controllers (MC) and the load controllers (LC). The MC is
responsible for control of voltage and frequency of the
microgrid in transient conditions. Control is achieved with the
help of power electronic interface of the DG sources. The next
level of control is performed by the Microgrid system Central
Controller (MGCC). The Distribution Management System
(DMS) is the uppermost level of this architecture. The MGCC
provides the MCs with the demand requirements among other
control functions. It is also responsible for the microgrids
value and the optimization of its operation.
In agent based control, the several control functions are
represented in terms of agents which can be software or
hardware components. Agent platforms such as JADE (Java
Agent DEvelopment framework) have been used for
implementing this type of architecture.
In neural network based EMS system, multi later
perceptron neural networks have been used for performing
control functions within the microgrid.
There are several control strategies in the literature which
have been used with different control architectures. Lasseter,
et al [22] present the most popular of the control strategies to
control based on droop characteristics. A VSI based control
scheme is presented as well [23]. Tsikalakis, et al [24]
presents a hierarchical control scheme with three levels of
control accommodating demand side bidding and production
bidding. Sofla, et al [25] present an advanced sliding mode
controller based on Lyaponuv stability function used for
controllers employing a current controlled VSI interface for
each DER. S-J. Ahn, et al [26] identify two methods to control
active power of DGs namely, unit output power control and
feeder flow control. Kawasaki et al [27] present an
autonomous dispersed control scheme which does not require
a communication line among the controllers. Iravani, et al [28]
discuss a multivariable servomechanism controller which
utilizes an internal oscillator for frequency control and a
servomechanism controller to regulate voltage. Serban, et al
[29] propose an unbalance compensation based controller to

improve power quality. Multi-agent system based control [30]

is also very popular. Lok et al [31] propose Unit Power
Control and Feeder Flow Control modes to be used with
droop control. Vandoorn et al [32] have proposed a control
technique based on a smart tap changing transformer located
at the point of common coupling.
Further, for inverter based microsources several control
schemes for the inverters have been proposed in literature.
Vandoorn et al [33] proposes a droop based control with dclink voltage. Sao et al [34] propose a voltage-power
droop/frequency reactive power boost control scheme that
allows multiple voltage source converters to operate in
parallel. Dasgupta et al [35-36] proposed a p-q theory based
approach based control scheme for series and parallel single
phase inverter based DGs. Kim et al [37] propose a mode
adaptive droop control scheme. Roscoe et al [38] discuss a
comparison between different inverter control modes and
emphasize upon the tradeoff between AC power quality and
DC bus ripple for three-phase three-wire inverter connected
devices within microgrids. Li et al [39] discuss certain
drawbacks in employing frequency and voltage based droop
control for a low voltage microgrid,. They have also proposed
a power control strategy comprising of a virtual inductor at the
interfacing inverter output.
The operation of microgrids can also be different from the
operation of traditional power systems. Pudjianto et al [40]
discuss the differences in the market operation of the
microgrid in comparison with the traditional system in terms
of decentralized dispatch decisions and closed loop pricing.
Other issues concerning microgrid operation have also been
studied. Diaz [41] presents a complementarity constraint
approach based method to determine equilibrium point of
operation for a microgrid. Sinha et al [42] describe the
peocess of setting of market clearing price taking two market
settlement techniques, namely day ahead and real time
settlement, into consideration.
Stability is ensured by the control strategy employed in a
microgrid. Dike, et al [43-44] have presented a versatile
voltage stability index to be evaluated for four operating
modes. Voltage sensitive loads, islanding detection time could
also be a critical factor on microgrid transient stability. Also,
in many cases, transient stability has been improved by
increasing the inertia of rotating machines in a microgrid.
V. PROTECTION OF MICROGRIDS
Protection within a microgrid can be tricky. There are
major differences between protection of microgrids and
conventional power systems[45]. The primary difference is
that the fault current is limited. Also, the fault current path is
complex. There are also other differences with regards to the
imbalance in the system and the dynamic power characteristic
from certain DGs. Also use of electronically coupled DGs
also offer challenges in protection. The challenge also lies in
identifying the location of the fault to help clear it.Several
solutions to this problem have been identified in literature. For
use with voltage source inverter interfaced DGs,
Vilathgamuwa, et al. [46] present two current limiting
algorithms to prevent the flow of large line currents:
resistance-inductance feed-forward algorithm and flux-charge

model feedback algorithm. Al-Nasseri et al. [47] have

proposed a abc-dq transformation method to detect the
presence of a short circuit. The measurements from different
parts of the network are compared to locate the fault.
Zeineldin et al. [48] present an approach to use directional
over current relays for microgrids consisted of synchronous
generator based DGs. The relay coordination problem is
formulated by mixed integer selective nonlinear programming
problem and is solved by using particle swarm optimization.
Miao et al. [49] propose a feeder automation scheme based on
wireless sensor network. Esreraig et al [50] propose an
observer based protection system. Laaksonen [51-52] propose
a high speed standard communication IEC-61850 based
protection scheme. Shahabi et al [53] have proposed a
protection scheme wherein the system is divided into several
zones in such a way that in each zone, there is no DG or if
there is any balance of generation and consumption in that
zone is possible regardless of the main grid. Sortomme et al
[54] have proposed a protection scheme utilizing the
principles of synchronized phasor measurements and
microprocessor relays to detect all types of faults including
high impedance faults. Han et al [55] have identified a
component of fault current which only presents in fault
condition and an adaptive fault current protection algorithm
has been proposed based on this component.
Grounding is also an important aspect of protection. It
becomes even more significant if the microgrid is of mixed
AC/DC type. If the microgrid comprises of inverter interfaced
DGs, then the point in the network which is grounded will
also have to be chosen apart from the type of grounding.
Salomonsson et al [56] have discussed this topic in detail.
VI. MICROGRID SERVICE RESTORATION AND ISLANDING
DETECTION

A sequence of actions for service restoration based on the

information stored in a database about the last microgrid status
is presented by Moreira et al [57]. Li, et al [58] propose a
microgrid restoration model using a multi-agent system which
takes capacity limitation constraints, limits on branch power
flow and power balance constraints into consideration to
maximize the capacity of the served loads while giving
priority to the important load power. Also, a sequence of
control actions for service restoration has been identified by
Resende et al. [59]. An active synchronization method that
adapts network based control of multiple DGs to adjust the
frequency and voltage of the microgrid has been proposed by
Cho et al [60]. Xu et al [61] have also proposed a multiagent
based load restoration algorithm to restore the un-faulted but
out-of-service loads once a fault in the microgrid has been
cleared.
In events of unplanned islanding, there are several
islanding detection techniques. The following is a list of the
known techniques that are reported in literature [4]:
1. Passive methods methods which operate measuring local
values of voltage, frequency and phase
1.1. Under/Over voltage detection
1.2. Under/Over frequency detection
1.3. Phase jump detection

2. Active methods methods which employ varied techniques

such as injection of active signals
2.1. Algorithm based on current injection
2.2. Sandia National Laboratories algorithm which
monitors voltage and frequency values at the
inverter outputs
3. Utility level methods
3.1. By means of communication signals
3.2. SCADA based system
An islanding detection scheme based on synchronous
reference frame phase locked loop is also presented by
Balaguer et al [62].
VII. MODELING OF MICROGRIDS
Modeling of the various components of microgrids is
essential to simulate and test the microgrid under various
circumstances.
Several models for the components of the microgrid such
as wind turbines, gas turbines, solar panels, fuel cells, and
other inverter based and rotating machine based DGs have
been proposed. Pogaku et al [63] present a small signal state
space model of autonomous operation of inverter-based
microgrids. Voltage and current controllers are used in
inverter internal controls to reject high frequency disturbances
and damp the output filter for prevent any resonance with
external network. Mohamed et al [64] present a generic
mathematical model for a micro-turbine and solid oxide fuel
cell. Kanello et al [65] and Abdelsalam et al [66] present
modeling techniques for photovoltaic generator equipped with
a maximum power point tracker. Bailey et al [67] present a
detailed analysis of various combined heat and power
technologies and have presented mathematical models for
them. Models for three phase synchronous generator based
DG unit and electronically coupled DER unit interfaced with a
three phase three wire voltage source converter have been
presented by Kamh et al [68]. Katiraei et al [69] have
presented a systematic approach to small-signal modeling of a
microgrid system that includes conventional and electronically
interfaced DGs. The authors have also presented a model for
synchronous machine based DGs which represents
electromechanical dynamics of the synchronous machine
including the exciter and governor systems.
Apart from modeling of equipment used in microgrids,
literature exists on modeling of noise and harmonic
interactions between the equipment present in the microgrid.
Guezgouz et al [70] present a SPICE based approach to model
electromagnetic noise generated by equipment in a microgrid
and evaluate its influence anywhere in the network without
the use of systematic heavy and expensive measurements.
Wang et al [71] proposed an impedance based analytical
method for modeling and analysis of harmonic interactions
between the grid and aggregated DG inverters. Using this
model, a method to forecast the impedance network quasiresonance between DG inverters and the grid is identified.

VIII. EXISTING MICROGRIDS

There have been various microgrid test sites established
all over the world over the last few years. The following is the
list of major microgrid test sites as found in the literature.
Lidula, et al [72] have summarized many of the existing
experimental microgrids and test systems.
1. Boston Bar BC Hydro, Canada: Radial microgrid
driven by two hydro plants with a peak load of 3MW.
Controlled by autonomous controller.
2. Boralex planned islanding Hydro Quebec (HQ),
Canada: Microgrid formed to facilitate replacement of
40km feeder serving 3000 customers with a peak load
of 7MW. The microgrid is served by a thermal power
plant and is controlled autonomously.
3. The CERTS testbed United States [73]: Mesh type
microgrid driven by three converter based sources
driven by natural gas controlled autonomously. The
microsources have plug-and-play functionality.
4. UW microgrid United States: Radial microgrid driven
by PV and diesel generator controlled autonomously
using active power-frequency droop and voltage
control.
5. Bronsbergen Holiday Park microgrid Netherland: Mesh
type microgrid driven by several PV DGs with central
energy storage. The peak generation capacity is 315
kW and the microgrid is centrally controlled.
6. The Residential Microgrid of Am Steinweg in Stutensee
German: Mesh type microgrid driven by several PV
DGs, CHP with available electric power of 28kW and a
lead acid battery rated at 880 Ah. Agent based control
is implemented.
7. CESI RICERCA DER test microgrid Italy: Low
voltage(400V) DC radial microgrid is driven by 14kW
PV DG, 10kW solar thermal DG, 10kW biomass based
CHP DG, 100kW microturbine based CHP DG and 3
different battery energy storage units.the system is also
equipped with a flywheel for power quality purposes.
Agent based control is implemented.
8. Kythnos island microgrid Greece: Centrally controlled
Radial microgrid driven by 12kW PV DG, 53kWh
battery bank, and 5 kW diesel DG.
9. Microgrid system at National Technical University of
Athens (NTUA) Greece: Laboratory scale microgrid
driven by two PV generators, one wind turbine, and
battery energy storage. Agent based control is
implemented.
10. DeMoTec test microgrid system German: SCADA
controlled test microgrid driven by two battery units,
two diesel generators and a wind generator.
11. University of Manchester microgrid/flywheel energy
storage laboratory prototype UK: 20kVA radial
laboratory microgrid prototype driven by a
synchronous generator coupled to an induction motor.
The system is also equipped with a flywheel connected
through an inverter.
12. Aichi microgrid project Central Japan airport city
[74-75]: Centrally controlled radial microgrid driven by
seven fuel cells of various kinds rated at 1.4MW, PV

13.

14.

15.

16.

17.

18.

generator rated at 330kW and a NaS battery storage

system.
Kyoto eco-energy project (Kyotango project) Japan:
Mesh type centrally controlled microgrid driven by gas
turbines totaling 400kW, 350kW of fuel cells, two PV
systems and a 50kW small wind turbine.
Hachinohe project Japan [76]: Radial centrally
controlled microgrid with 5 PV units 130kW in all, 4
wind turbines 20kW in all, and 3 diesel generators rated
at 170kW each.
Test network at Akagi of the Central Research Institute
of Electric Power Industry (CRIEPI) Japan: A
centrally controlled test system emulating PV
generation derived through three 100kW inverters and
a 200kVA dummy load. The microgrid is set up to test
power control equipment like static VAR
compensators, step voltage regulators, and loop balance
controllers.
Sendai project Japan: Radial centrally controlled test
microgrid system consisting of two 350kW gas engine
generators, one 250kW fuel cell, 50kW PV and battery
storage system. Customers are divided into various
classes and each class has a predefined power quality
commitment.
Microgrid testbed in Hefei University of Technology
(HFUT) China: Mesh type microgrid driven by PV
generators, 3-phase wind generation simulators, fuel
cell, battery bank, ultra capacitor bank, conventional
generators used to simulate small hydrio and fossil
generators. The system is controlled using an agent
based controller.
KERI microgrid pilot plant [77]: Radial 120kW
microgrid driven by PV, PV and wind hybrid, two
diesel generators, and a battery storage system.

Regional differences among the development of

microgrids have also been highlighted. North American
countries are not focused on using renewable energy resources
but rather on maintaining the reliability of power supply by
means of microgrids. Also the use of autonomous control for
the maintenance of voltage and frequency is prevalent. The
European and Asian microgrids, on the other hand, have not
only focused on reliability of power but also on utilizing
renewable energy. The Asian microgrids are observed to be
predominantly centrally controlled except for the agent based
control for the microgrid in china. The European microgrids
seem to be either centrally controlled or agent based.
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Pike Research, More than 2000 microgrids to be deployed by 2015,
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report,
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26,
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6
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X. BIOGRAPHIES
Shyam Naren Bhaskara (M2007) obtained his Bachelors degree in
Electrical and Electronics Engineering from Jawaharlal Nehru Technological
University, Hyderabad, India in 2010. He is currently working towards a
Masters degree in Electrical Engineering with emphasis on Power Systems.
Badrul H. Chowdhury (M'1983, SM1993) obtained his Ph.D. degree in
Electrical Engineering from Virginia Tech, Blacksburg, VA in 1987. He is
currently a Professor in the Electrical & Computer Engineering department of
the Missouri University of Science and Technology, formerly known as the
University of Missouri-Rolla. From 1987 to 1998 he was with the University
of Wyomings Electrical Engineering department. Dr. Chowdhurys research
interests are in power system modeling, analysis and control; renewable
energy and microgrid control.