Understanding Microgrids and Their Future Trends

Ritu Raj Shrivastwa, Ahmad Hably, Kaouthar Melizi, Seddik Bacha

Univ. Grenoble Alpes, CNRS, Grenoble INP∗
GIPSA-lab, G2Elab 38000 Grenoble, France
∗
Institute of Engineering Univ. Grenoble Alpes
ritu-raj.shrivastwa@grenoble-inp.fr, ahmad.hably@grenoble-inp.fr

Abstract—Depletion of natural resources to meet power de- This paper is organized as follows. In section II we discuss
mands has revolutionized the use of Renewable Energy Sources about the types of the Microgrids followed by section III and
(RESs).The paradigm shift from the centralized to distributed section IV where different sources and storages are discussed.
control is witnessed due to the Microgrids. Different config-
urations using smart grids and Microgrids are expected to Effect of the Microgrids on the power grids is discussed in
ensure grid stability and security.Eventually, electricity market section V. Section VI and VII talks about the economics and
is subjected to change due to the projected changes in the the optimization and control of Microgrids and finally the
grid architecture. This paper is a review on the Microgrids, review is concluded with the future prospects in section VIII.
its elements and the controllability. This paper discusses the
major issues in the Microgrids, the factors affecting the choice II. T YPES OF M ICROGRIDS
of the Microgrid type and also various generation sources and
their combination for reliable power quality and control. Recent The choice of Microgrids highly depends upon the criteria
developments with future trends are also addressed in this paper. like stability, connectivity, total capacity, available sources and
available infrastructure.
Index Terms—Microgrids, distributed generation, Microgrid Connectivity with grid has a vital role to play in the stability
architecture, electricity markets, optimization
and choice of current for operation in the Microgrid. Due to
the massive existing infrastructure of the AC, most of the grid
I. I NTRODUCTION connected Microgrids tend to operate in the AC (alternating
current) domain however, the isolated Microgrids preferably
Changes in the global climatic conditions has raised a operate in LVDC which results in low losses and also has
demand in the use of RESs irrespective of the changes in a possibility to be connected to the grid in the future with
the control and efficiency of the existing utilities. Demand advanced PE devices. However, depending on the sources
side installations of distributed generation (DG) sources marks employed in the microgird, connectivity may affect the overall
a upcoming change to the electricity markets due to the inertia of the grid to which the Microgrid is connected.
increasing number of market players. Passing over an active Stability can be a major game changer in the deployment
role to the Distribution Network Operators (DNOs) chang- of the Microgrids. Strategic control structures are needed to
ing the control from centralized to distributed, the market counter the non-synchronous nature of the generating sources.
gives opportunities for new players like ancillary service Exchanges through tie lines are possible for better stability
(AS) providers to participate in the transactions. However, in the Microgrids because of which the grid connected Mi-
intermittency of the RESs pose a threat to stability of the crogrids tend to have better stability than those of islanded
grids. Also, penetration of power sources should be done at operations. Use of secondary storages with RESs can signifi-
specific nodes to avoid voltage imbalances [1]. Hedging of the cantly improve the delivery profile of the system.
investment in the electricity market is becoming easier with the Total capacity of the Microgrid also determines the threat
introduction of the Microgrids enabling the players to engage of imbalance due to small changes. The load-generation ratio
in different markets. is a critical balance in low capacity grid. However, this con-
Major classifications of Microgrids usually divides them as sideration significantly changes with the Microgrids operating
physical Microgrids (PM) and commercial Microgrids (CM). under large capacities of both generation and consumption
In PM all the sources and the loads are connected through a because larger is the generation and load of the system greater
point of common coupling (PCC), where as the concept of is the inertia and lesser is the swing due to the change in
PCC does not exist in CM which means that the loads and the loading conditions or the generated power. Similarly, the
sources can lie on either side of the LV or MV lines. The PM capability of the available sources to control deviations in grid
are used for meeting the technical demands and the supply is highly considered in designing. Sources like PV and wind
demand balance in the grid however, the term CM is used are uncontrollable and thus are put to the category of non-
often to meet the financial aspects of the electricity market. synchronous and poses a threat to the stability. Also, some
Also, synchronous and non-synchronous sources being used in generate DC and others generate AC and also at different
the Microgrids affect the stability drastically depending upon levels, these factors also determines the choice of the operating
their share. voltage and current. However, if the available infrastructure

l-))) 

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is of AC then preferably the installed sources will deliver
AC power for consumption. But new Microgrids which are
recently being constructed can be made to work efficiently
with DC power with LVDC.
Based on the above discussions, the Microgrids can be
classified into DC, AC and Hybrid Microgrids.
The term AC Microgrids, as presented in figure 1, refers
to the Microgrids with AC power. Most of the installed or
Fig. 2. Schematic representation of a DC Microgrid
available infrastructure corresponds to AC. All the loads and
sources are connected at the point of common coupling (PCC).
Exchange of power among the sources and loads and also grid as technological. The extreme expense on the power power
connected operation can be done through the PCC. In terms lines is among the reasons to have an AC or DC Microgrid for
of grid stability, with the advanced PE converters with the these places [6]. In hybrid Microgrids, both AC and DC loads
capability of regulating the active and reactive power, AC Mi- and sources can be present [6]. PCC will have an important
crogrids are feasible to participate. Also, conventional sources role in controlling the power flow. In [7], operation with
like diesel generators can also be utilized in cooperation with AC/DC loads and generation is portrayed. Different control
the other sources to stabilize the grid under disturbances. Most algorithms can be used depending upon the location of the
of the protection devices manufactured by the companies focus installations [8]. Home Area Network (HAN), or Wide Area
on the AC systems, thus feasibility of having a AC Microgrid Network (WAN) being used by the Smart Home Management
is always more in today’s scenario. Due to high use of PEs Systems or MCC respectively are some wide examples of
inverters, the DC power generated by the sources can be modern day architectures of the Microgrids. Also, the control
efficiently converted to AC power to be used in the AC grids mechanism of hybrid grids is complex than that of simply AC
[2]. or DC Microgrid due to the increase in the control parameters
like reactive power, phase compensation and frequency [9].
Several authors have studied the real time operation of the
hybrid Microgrid and analysed the control structures as in
[10]. In view of this explanation, figure 3 is how a hybrid
Microgrid structure looks like.

Fig. 1. Schematic representation of an AC Microgrid

Sources like PV systems, a major proportion of the sources

in DGs, generate power in DC. Also, through the use of DC
generators in the micro wind and micro hydro units can be
an option towards DC Microgrids. In literature, many authors
have suggested use of control mechanisms for the peer power
exchange for Microgrid. Smart power routers (SPR) in [3] Fig. 3. Schematic representation of a Hybrid Microgrid
can be a good substitute to the centralized Microgrid central
controller (MCC) [4]. SPRs can play a vital role in the future
grids in not only controlling the power flow but also in III. D ISTRIBUTED G ENERATION S OURCES
management of the cost of the electricity of the owner. In DGs are gaining larger proportion of the distribution net-
such grids, the loads are usually all DC loads and the level of work creating paradigm shift from centralized to distributed.
operating voltage can also vary in the range 48V to 310V or Also, integration of Power Electronic (PE) converters with PV
other levels depending upon the loads, communication system systems as in [11] and [12], the landscape of DG is changing
used or the designers. In comparison to the AC Microgrid, the drastically. Also, new micro-hydro and wind turbines are also
DC Microgrid is simpler as it does not have physical quantities contributing to it. However, DG sources are not all stable or
like reactive power, and frequency. Also, phase consideration continuous sources and they highly depend on climate and
is absent which makes the coupling of DC devices and sources geographical locations. The intermittency of the sources affect
simpler. A simple representation of the DC Microgrid can be the grid stability at large in the Microgrids. Use of storage
depicted as in figure 2. systems alongside RESs are a better way to supply stable
According to the data from world bank, approximately and constant power [13] besides increasing the overall cost
14% of the world’s population untill 2016 had no access to of the unit. Primary sources in DG are PV systems, micro-
electricity [5]. The reasons being economical, political as well wind, micro-hydro, biomass and diesel generators divided into



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two major categories based on the basis of participation in like horizontal and vertical axis for the domestic use with the
grid control i.e. synchronous and non-synchronous sources. designs and their characteristics. The patent [19] discusses
Intermittency in the wind speed leads to unprecidented gen- about savonius, the possible micro wind generation turbine
eration from wind leading to low grid inertia. Where as, the for domestic and low voltage generation. In similarity to the
sources like diesel and hydro can be controlled to respond PVs, wind also can participate in LFC but with the ESS [20].
to the power fluctuations and are referred to as synchronous Since ages water has been the sources of energy and life.
sources maintaining grid inertia. The kinetic energy of the flowing water has been used in
irrigation, powering windmills for harvesting the crops and in
A. Photovotaic (PV) systems
many other applications. With the use of water for generation
Sun’s heat and light has been a source of energy for hu- of electricity with the application of a simple equation as
mankind for many years. Use of solar insolation for generation in Equation 3, a reliable sources was aggregated in the
of electric power is a major breakthrough for DG. In [14], conventional sources.
the authors have discussed about the scenario of solar and its
advantages in comparison to the conventional power sources. P = HF g; (3)
Advanced PE converters have shaped a way for solar power in Where, P is the power that can be generated in W atts with
the grids. Large scale solar farm to rooftop solar installations a head of height H in meters and g is the acceleration due
are widely in application throughout the world. In most of to gravity in m/s2 . The available power is not completely
the parts of the world, insolation is approx. 1000W/m2 . But harvested due to the involvement of the electromechanical
due to low efficiency of the solar panels, the tapped energy units like turbines and synchronous generators. Frictional
is only 20% of the the total insolation. Rooftop solar panels losses and other losses in the generation modules constitute
are bringing a paradigm shift in the distribution network with a considerable sum of the generated power. However, to put
increasing installations and allowing the consumers home to hydro power in renewable resource or not has always been a
grid services. In order to obtain the capacity of the solar for matter of discussion. However, only large dams were used for
any specific application, Equation 1 can be used: generation of power due to the limitations on the efficiency of
Psolar = Ereq /(ηHsun ) (1) small generating units. But with recent developments in the
field of micro hydro units as in [21] and [22] can be sought
where, Psolar is the required capacity of the solar panels. Ereq as a future distributed generation resources. With minimum
is the energy required for the whole duration and η is the construction requirements, generation of power using micro-
efficiency of the panels with Hsun being the hours of sunlight hydro turbines can vary from watts to few kilowatts as
in that location [15]. Standard solar panel manufacturers presented on website [23], which introduces a new concept
manufacture the panels in the range of 250W. Depending upon of level differential hydro turbine model for micro generation.
the applications the size of the panels may vary but with In the designs, the flow of water can be controlled and thus the
the decrease in size the cost per watt of the panels increases power generated can be in the sync with the power demanded.
[16]. Thus, the trade off between the size and cost is a major Thus, this type of generation unit increases the inertia of the
parameter in determining the installation in the Microgrids grid.
[17]. Also, the PV generation in association with the electrical
storage systems (ESS) can be used to participate in LFC. C. Biomass and diesel generators
Largely available but scarcely used is one of the best and
B. Micro-wind and micro-hydro turbines reliable sources of energy i.e. biomass. Use of biomass has
Conversion of the kinetic energy of the wind to electrical been into production of compost, green fuels and for heat
form or to other required forms has been a practice since through burning [24]. Biomass is considered as one of the best
ages. Wind power has been utilized to irrigate agricultural sources for generation of electricity either directly or through
field and in recent years to light homes through the wind its byproducts. Gasification of biomass [25] and then using the
farms generating power. However, using the wind turbines for gases for generating electricity through the fuel cells or simply
lower level of generation has been a challenge but in recent exploiting the calorific content of the biomass is a worldwide
years it has been accomplished through the micro turbines applied technique. Biomass is finding its applications in the
with the capability of generating from watts to few kilowatts. Microgrids with time, because of the offered controllability
The generalized equation as in Equation 2 for the generation and participation in the control methods [26]. The report [27]
of power through wind is given by: presents a elaborated study on the impacts of biomass being
used for energy generation on environment but the studies can
P ower(P ) = 0.5ρACP V 3 Ng Nb (2)
be utilized for other geographical locations as well. Also, due
Where, ρ is the air density in kg/m3 , A is the rotor swept to its controllability it can be used for the development of the
area in m2 , CP is the coefficient of performance, V is grid.
wind velocity, Ng is the generator efficiency and Nb is the In the Microgrids, stable operation is highly desired as most
gearbox bearing efficiency. In the review [18], the authors have of the sources used in the generation are intermittent. Thus,
discussed about the different possibilities of the wind turbines in most of the studies as in [28], wind turbines are usually



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coupled with ESSs or diesel generators to deliver controlled VI. E CONOMICS OF M ICROGRIDS
power output for improved efficiency. Different sizing methods The energy management and economics of Microgrid are
and strategies are proposed by authors in their work of which active fields of research which aim to minimize operating costs
using DFT is mentioned in the work by Xiao et. al. in their namely maintenance costs, fuel costs and energy purchase cost
work [29]. Time constant of the diesel generator being low, from the utility grid [38]. These formulations of optimization
responding to LFC is a major ability of the diesel generators. have been classified on the basis of objective functions,
Many studies as in [30] and [31], portray the idea of using constraints, optimization types, solution approaches and tools
the wind or PV generation units in conjugation with the used to solve the energy management problem. However, the
diesel units for better control and stability. When operated cost of construction of the infrastructures also constitute a
together, the fast response from the diesel generator mitigates major portion in determining the overall operation and costing
the intermittent nature of the natural sources. of the Microgrids [39].
IV. S TORAGE DEVICES VII. O PTIMIZATION AND CONTROL OF M ICROGRIDS
In the world of intermittent devices the storage system plays After an established infrastructure, an optimized control has
a very important role in stabilizing and mitigating the grid a great contribution towards the stable and efficient operation
frequency excursions [32]. However, the cost of the system of a Microgrid. The control can be exercised in both cen-
increases with the involvement of the storage. Coordinated use tralised [40] or decentralized control. To optimize the opera-
of the DG sources with the storage systems also provides the tions of the sources and the grid as a whole several objective
controllability for LFC. Depending upon the time and purpose functions need to be described. The objective functions in
of use, the storage devices can vary. The most common Microgrid are based on geographical area, user preferences,
storage systems used in the grids are batteries, fuel cells, capacity of Microgrid, equipments installed in Microgrid,
capacitor banks with either the conventional capacitors or government regulations, energy storage and generation, types
super-capacitors. Different tools such as ragone plots can be of tariff. However, the optimization of economic dispatch is
helpful in determining the choice of the storage used for spe- highly recommended as stated and performed in [41] and [42].
cific purposes [33]. Batteries need charge controller for stable Some of the methods are:
operation. In case where the system is AC, use of PE inverters • Linear Programming: In [43] as a universal tool, two
will be important. Advance PE converters also are impacting dispatch-optimizers are proposed for energy management
the grid with high amount of penetration of harmonics in system. An enhanced mixed integer linear programming
the grid [34]. Due to perturbations, storage devices can also (MILP) based method and improved genetic algorithm
be shifted to capacitors where the fast response may help to code have been developed to schedule the economic
achieve improved response. dispatch and the unit commitment of Microgrid units,
furthermore a novel method has been introduced to deal
V. E FFECTS ON P OWER GRIDS
with the limitations of the MILP algorithm for dealing
In the context of additional sources in the conventional with the non-linear power system topology constraints.
grid, penetration of RESs needs many prior investigations and In [44] a novel double-layer coordinated control ap-
information gathering of the grid to identify the nodes of proach for Microgrid energy management is proposed:
penetration. Due to the resultant low inertia it is required to the schedule layer and the dispatch layer. The schedule
identify the node of the grid where the penetration of the RES layer obtains an economic operation scheme based on
can be more effective with least effect on the grid stability forecasting data and the dispatch layer provides power of
[35]. As mentioned in dispersed way in the previous sections, controllable units based on real-time data. [45] presents
the effects of the Microgrids on the electrical power grids can a two-stage optimal planning and design method for
be summarized in the following points: combined cooling, heat and power Microgrid system. The
• Reduction of the inertia of the overall system due to the stage of a MILP algorithm which determines the optimal
penetration of more and more renewable sources [36]. operation strategy, and the stage of genetic algorithm
• Need for better and faster control infrastructures is in- (GA) which used to solve the optimal dispatch problem.
creased which leads to the increment in the capital cost. [46] proposes a combined sizing and energy management
• More number of control parameters like power tapping methodology, formulated as a leader-follower problem.
from the sources and frequency regulation, maximum The leader problem focuses on sizing which is solved
power point tracking (MPPT) and ESS management pose using a genetic algorithm while the follower problem : the
a major optimization challenge for the power system energy management issue which is solved with a MILP. In
engineers. [47] the authors propose the Cost Aware Smart Microgrid
• Microgrids however can be used to reduce the stress on Network (CoSMoNet) design approach which is based
the coventional generation sources if they are provided on an Integer Linear Programming ILP formulation that
with secondary storages or through EVs, which may be allow economic power transactions among SMGs.
effective in handling the frequency excursions through • Nonlinear Programming: [48] presents an EMS algo-
fast responses [37]. rithm based on mixed-integer nonlinear programming



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