Chapter 2

Microgrid

2.0. Introduction

Traditional power network consists of large, high-voltage transmission systems where

electricity is carried over long distance from the generators towards the electrical loads.
The conventional networks are designed on the basis of radial topology where one
generator is attached to many consumer loads. This long-distance interconnected loads
form complex networks. Maintenance, protection and control are the major difficulties in
conventional power transmission and distribution system. In addition, the automated
protection devices provided to existing centralized control schemes place a heavy load on
data communication networks. With increasing complexity in power networks, the
functioning of control system becomes more difficult and challenging. This results in
failure of wide-systems with the failure of central controller. Though some
reconfiguration can be made at the edges of power network but the core structure is
difficult to change in-situ, which results at risk of failure.

Conventional power distribution network generally follows the assumption of a

unidirectional power flow; this gives rise to operating systems which are no longer
accurate. Moreover, the unreliable power supply to long-distance consumers is always
been a major problem in the existing power systems.

Evolutionary changes in the regulatory and operational climate of traditional electric

utilities and the need for smaller generating systems have opened up new opportunities
for on-site power generation by electricity users. In this context, distributed energy
resources (DER) has emerged as promising option to meet growing customer needs for
electric power with an emphasis on reliability and power quality. The DER includes
generators, energy storage systems, load control, and for certain classes of systems,
advanced power electronic interfaces between the generators and the bulk power
provider. The power flow in both directions are possible for DERs or distributed
generators (DG) as it is quite common for power to flow locally in varying directions
between distributed generators and nearby consumers [14]. These DERs or distributed
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generators have a number of benefits that drive their uptake, with cost effectiveness as a
result of nil transmission losses and less distribution losses. Greater robustness in the face
of extreme weather events or attack, improved reactive power support, and decreased
deployment time are also the advantages that are provided by DGs or DERs. Importantly,
distributed generators are often based on low or zero-emission generation sources.
Moreover, the introduction of renewable energy sources such as wind and solar
generation in DER technologies cause environmental benefits [15]. Though the range and
depth of distributed generation technologies are great, but their use sometimes fail to
significant challenges. Fundamentally, though current power systems are traditionally
operated in an inflexible way, but DERs also faces difficulty in many aspects. In few
places the increasing penetration of distributed generation such as wind farms causes
unmitigated problems in the integrity and security of electricity system. With expectation
from localized generators to supply power back into the grid when local supply exceeds
local demand, control and operation of DERs or DGs face strong challenges. Another
challenge to the reliable operation of current power systems comes from the growing
popularity of distributed generation-electricity generation sources that are typically much
smaller than conventional power stations, and located close to electrical loads in the
network. Moreover individual consumers may sometime find distributed generation as a
costly option.

In focus to these issues, microgrid concept came up as a best way of integrating

distributed generators with loads, larger electricity grids encompassing various other
options. The concept of microgrid actually has a century wide history behind it’s
development.

2.1 History of Microgrid

The modern micro grid, that receives much attention today, stems from the concept of
original power system constructed by Edison in 1882 [16]. The electrical pioneer created
the earliest power systems, i.e. Edison’s first Pearl Street station in New York City. This
power delivery system served with DC power to just a few blocks of the city. It had a
total generating capacity of initially less than 1 MW. By 1886, fifty-eight direct current
(DC) micro grids were installed by Edison’s firm [17]. The early power industry began

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during 1880 – 1910 and was basically DG systems implemented in micro-grid
architectures. By today’s standards, a microgrid power delivery system exactly matches
the size and range of distributed generation, over a given limited area, i.e. the Pearl Street
Station. A distributed generator in a microgrid of range of 100 kW was then called as
Jumbo Dynamo by Edison. During end of 1918 most of the customers, in towns and small
cities, use to receive their power from small-scale isolated power systems. These small-
sized plants were well under 10 MW in capacity. The areas served were less than a few
square miles. The power systems during 1880-1910 in individual towns were not
interconnected with each other, which is alike or similar to an independent islanded mode
micro-grid. During the first two decades of the twentieth century, micro-grids were the
dominant form of electric power system. Many small-scaled power generating plants
were applied in different individual hotels, commercial offices, and business houses.
However, the power delivery system became unreliable since earlier micro grids were
designed to supply energy as only one power plant.

The early power plant based systems use to have total energy efficiency of less than 25%
when waste heat was not utilized. Moreover, early power systems were generally rated
for supplying power to light loads. Furthermore the power generations were also time
dependent such as the evening hours, since it was uneconomical to operate generators
during periods of low usage time. The cost of energy was often more than $1 per kWh,
which resulted in a cost-ineffective system. During earlier times, most of the systems
were DC while few others were with various frequencies between the approximate values
of 25 Hz and 100 Hz [18]. Due to lack of standardization of frequency, many systems
were not easily inter-connectable. Again, in consideration to improve reliability in early
days, the power system engineers implemented interconnection of two adjacent towns’
power generating systems. The idea helped in achieving improved load factor and more
economical operation of the generation plants through a gain of greater diversity of load.
This concept led people to consider the interconnection of isolated micro-grids into a
larger system. The barriers in interconnection of different remote power plants were
mainly due to dearth of methods of synchronization, protection, and control. During 1910
and 1920, technological innovations and other developments set the stage for a move
away the early micro-grid system towards an increasingly larger scale central-power-
station-based power delivery approach where generating units were interconnected with
transmission lines [19]. Shortly thereafter, a relatively large amount of power used to be
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transmitted efficiently over significant distances with a transmission voltage of about 150
kV. However, after this period, the electric services industry gradually evolved to a state-
regulated monopoly market, thus removing incentives for microgrid developments.
However due to its inherent strength microgrids are gaining a lots of attention these days.

2.2 Microgrid Today

Currently a microgrid is defined as a collection of controllable and physically proximate

distributed generator and load resources with multiple sources of power including at least
one power storage system along with the systems involving non-conventional energy
technology such as fuel cells, biomass, small-hydro, wind or solar energy. Nowadays,
microgrid power system is generally equipped with a two-way power inverter that can
both deliver and absorb power. The later occur when excess power is available with
respect to demand. The generators or microsources employed in a Microgrid for power
generation are usually renewable or non-conventional distributed energy resources
(DERs). Figure 2.1 shows a typical microgrid consisting of various renewable distributed
energy resources along with grid connection for supplying power to an office load.

Figure 2.1 A Typical Microgrid Power Delivery System

A provision of exporting power to grid is also available in microgrid power generating

system. This is done by using a two-way point of common coupling (PCC), when power
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generation is greater than the required load. The micro sources in a micro grid system are
equipped with power electronic interfaces (PEIs) to provide a better operational control
system [20]. This control system offers flexibility in meeting local energy needs to the
consumers for reliability and security. This allows microgrid in forming a single
controlled unit to maintain the specified power quality and energy output. This grouping
of distinct distributed resources as a single aggregated system to the wider electricity
system ensures a better operation without affecting the existing infrastructure.

Microgrids generally operate in two modes; i.e. islanded mode and grid-connected mode.
In both the cases the loads and distributed generators are located within close
geographical proximity of each other. When microgrid operates in islanded mode, the
isolation from grid is made at PCC, and then the loads are supplied from the embedded
distributed generation only. In these cases, microgrid usually employs a battery storage
system. In grid-connected mode, the Microgrid remains connected to the main grid either
totally or partially, and receive or deliver power from or to the main grid. The control is
done carefully where loads are allowed to draw power, in order to balance supply with
demand. Moreover, fluctuations in the renewable generation due to the changes in
weather conditions are balanced by careful charging and discharging of the batteries
under the supervision of other microgrid control system [21].

Besides, using distributed generators for production of power, microgrid system allows
the DG to provide several other functions. By-product heat of combined heat and power
generator is utilized by some heat entail client. Hence, microgrids are capable of
providing both electrical and heat loads for a small community such as an academic or
public community, a suburban locality, a housing estate or a university or school, a
commercial area, a trading estate or an industrial site, or a municipal region. Microgrids
constitute dynamic load control system. It also includes the use of multiple grid-
connected inverters. Microgrid system is basically an active distribution network because
it combines different DG systems of various loads at distribution voltage level [22].

Technically microgrids are best en suite for supplying power to remote areas or localities
of any country where supply from the national grid system is very difficult to avail either
due to the topology or frequent disruption caused by severe climatic conditions or man-
made events.

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2.2.1 The Key Features of Microgrid Power Delivery System
The main characteristic features a microgrid should posses are as follows:

 Micro-energy resources are of much smaller capacity in comparison with the large
generators in conventional power plants.

 Electrical or heat loads can be efficiently supplied with negligible line losses by
microsources which are normally installed close to the customers’ premises.

 Power generated at distribution voltage can be directly fed to the utility

distribution network.

 Power supplied by microgrids has in general satisfactory voltage and frequency

profile with respect to conventional power delivery system.

 Microgrid is operated as a single controlled entity within the power system from
grid point of view.

 Microgrid has easy controllability and compliance with grid rules and regulations
without hindering the reliability and security of the power utility.

 Microgrids are beneficial for meeting electrical loads and heat requirements
locally.

 The uninterruptible power supply improves local reliability, reduces feeder losses
and provides local voltage support.

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  Environmental benefits through utilization of low-carbon technology are achieved
by microgrid systems

2.3. General Microgrid Configuration

A typical Microgrid configures micro-generators with electrical or heat loads through a

LV distribution network. Micro-sources present in microgrid are generally combined heat
power (CHP) and renewable resources. The heat loads are generally placed close to the
source. This results in minimizing heat loss during heat transmission. The micro-sources
are provided with plug-and-play features. The feature helps a microgrid to operate in any
of two modes, namely, grid-connected and standalone. These operations are performed by
the help of control and metering systems. A microgrid system usually has PEIs to
implement the control, metering and protection functions during both stand-alone and
grid-connected modes of operation [20]. The seamless transition of microgrid from one
mode to another also occurs with the help of this feature. Radial feeders are present in
microgrid system to supply electrical power. The micro generators and storage devices
are connected to feeders through micro-source controllers (MCs). On the basis of type of
power required, load is characterized into two types. The loads demanding for
uninterrupted power supply is generally known as priority load. This type of load is
generally connected to priority feeders. The other type of load, known as non-priority
loads are connected to non-priority feeder. Circuit breakers are also present in microgrid
which connects and disconnects the feeders with loads. As per standard interface
regulations [23], the microgrid is coupled with main grid or utility grid of medium
voltage (MV) and is made through a circuit breaker. At the point of common coupling
(PCC), the circuit breaker is operated to connect and disconnect the entire microgrid from
the main grid as per the selected mode of operation. To reduce the line losses the micro-
generators on priority feeders are placed quite apart from the Microgrid bus. This also
provides good voltage and optimal use of waste heat. The control of power flow and
voltage profile along radial feeders becomes quite complicated when several
microsources are connected to a common radial feeder instead of a common generator
bus. The plug-and-play features of the microsources are then used by the microgrid to
overcome this complicated control. The microgrid switches over to stand-alone mode
operation in cases of fault arising in the main grid. During this period, the main grid still

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delivers power to the priority load by disconnecting the entire microgrid by opening the
circuit breaker. Here all the micro-sources feed all the loads in both priority and non-
priority feeders. During fault condition, microgrid can also operate in islanded mode by
disconnecting priority feeders through opening of circuit breakers connected to the
priority feeders. In this case, some feeders supply power to the priority loads and the
other feeder delivers through the disturbance.

The microgrid power delivery in both islanded and grid-connected mode operates under
different types of controller along with management and protection unit, which are
explained below:

2.4. The Control Scheme of Microgrid

Two types of controller mainly used in microgrid are as follows:

2.4.1 Local micro-controller (MC)

The micro-source controller controls the power flow independently without any
communications from the central controller (CC). Moreover, micro-controller does not
interact independently with other MCs in such a way that it does not override the CC
directives and prevents dangerous operation for microsources. In response to any
disturbance and load changes, MC controls the load-end voltage profile of the micro-
source. Each microsource quickly picks up its generation to supply its share of load in
stand-alone mode and automatically comes back to the grid-connected mode by the help
of CC. The microsource controllers quickly respond to the locally monitored voltages and
currents irrespective of the data from the neighboring MCs. This control feature facilitates
the addition of new micro-sources at any point of Microgrid without affecting the control
and protection of the existing units. Thus the micro-sources can act as plug-and-play
devices. The micro-controller also performs other functions such as economic generation
scheduling, load tracking and demand side management by proper control of charging
and discharging of electric storage devices in microgrid system.

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2.4.2 Central controller (CC)
The key function of central controller (CC) is to perform an overall control of microgrid
operation and protection through the MCs. It also provides the power dispatch and
voltage set points for all the MCs. Central controller maintains the voltage and frequency
through power-frequency (P-f) and voltage control at a specified value at the load end
[23]. Besides, it also controls energy optimization for a microgrid. Though the central
controller usually operates in automatic mode but it is designed with a provision for
manual intervention as and when required. The central controller (CC) performs its
operation by two functional modules, namely, Energy Management Module (EMM) and
Protection Co-ordination Module (PCM). The operations of these functional modules are
described below:

2.4.2.1 Energy Management Module (EMM)

The Energy Management Module provides specific set points for voltage, frequency,
active and reactive power output, to each MC [23]. The specific value considered as the
set points are decided on the basis of the operational needs of the Microgrid. This
function is performed either by the techniques of artificial intelligence or by state-of-the-
art communication. EMM monitors the correct supply of heat and electrical loads to
customer satisfaction. It also checks microgrid’s satisfactory operation as per the priori
operation in contract with main grid. The module also keeps watch over microgrid
operation with minimum losses and less emissions of greenhouse gases and particulates.
EMM also offers micro-sources operation at their highest possible efficiencies.

2.4.2.2 Protection Co-ordination Module (PCM)

The Protection Co-ordination Module mainly deals with correct protection and co-
ordination of the Microgrid. It senses and responds to microgrid and main grid faults and
loss of grid (LOG). Changes occurring in fault current levels, during change over from
grid-connected to stand-alone mode, are also dealt with by proper communication
between the PCM, MCs and upstream main grid controllers [23].

During the occurrence of minor faults, protection co-ordination module allows the
microgrid to ride through in the grid-connected mode for some time and it continues to

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operate when the temporary fault is removed. While, on the other hand, when fault occur
at main grid PCM immediately switches over the Microgrid to stand-alone mode for
supplying power to the priority loads. Moreover, if any grid fault endangers the stability
of the microgrid, then PCM disconnects the microgrid fully from all main grid loads
through the non-priority feeder. This leads to ineffective utilization of the microgrid in
delivering power. In case of faults occurring within a portion of microgrid feeders, more
specifically, the priority feeder, the small faulty zone of that feeder is eliminated to
maintain proper supply to the healthy parts of the feeders.

The under-frequency and under-voltage protection schemes with bus voltage support are
used for protecting the sensitive loads. PCM monitors closing of suitable feeder during
switching microgrid from isolated to grid connected mode of operation. It also helps
microgrid to re-synchronize with main grid after the initiation of switchover [23].

The central controller functions differently in two different operating modes. In grid
connected mode CC monitors the system which collects information from various micro-
sources. It evaluates the appraisal for security, state performance, and economic
generation. In this mode of operation, CC ensures the synchronized operation of
microgrid with the main or conventional grid through maintenance of proper power
exchange at priori contract points. On the other hand, during islanded mode, the central
controller maintains stable voltage and frequency at load ends. This is done by controlling
active and reactive power of the micro-sources. It performs demand side management
with storage device support along with the adoption of load interruption or load shedding
strategies [23]. Bus voltage and power balance are thus maintained. PCM switches
microgrid from one mode to other, i.e. islanded mode to grid- connected mode or vice-
versa, without hampering the stability of either grid. It guarantees the improvement in
reliability and continuity of service after initiating a local black start. With different types
of controlling features available, sophisticated microgrids are available these days with
higher degree of flexibilities.

2.5 A Sophisticated Microgrid

In comparison to a typical simple microgrid, a sophisticated microgrid includes several
features, which leads to a more beneficial power delivery system. The technologies

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involved in a sophisticated microgrid include a diverse range of generation types on the
generation side. This allows the microgrid to take advantage of the availability of various
generation sources along with their typical characteristics such as solar, wind, or fuel
generators. On the demand side, some discretionary ability is present which is activated
when needed. This provides flexibility to the microgrid in scheduling demand to match
generation [21]. To aid the balance of supply and demand some form of thermal,
electrical or mechanical energy storage such as heat retained in the walls of an air-
conditioned building, batteries or flywheels is present in microgrid. Inspite of having no
central point of grid, an advanced high-speed control methods are required to maintain
microgrid stability and to provide intelligent and dynamic operation. A sophisticated
sensing communication and control system is also included to link all the microgrid assets
together. Integrated communications systems present in a sophisticated microgrid link the
various resources in the microgrid in order to ensure the reliable operation even during
typical communication outages. The technology involves an advanced sensing,
diagnostics forecasting, and adaptation methodologies to provide the control system with
detailed and up-to-date information on the status of the microgrid [21]. Moreover, a
minimum number of sensors and advanced materials are used in order to minimize the
total capital outlay. Finally, high-performance energy storage devices, such as batteries or
flywheel technologies facilitate microgrid of growing complexity and size.

2.5.1 Key Issues for Sophisticated Microgrid

The main concerns for development of better microgrid power delivery system involve
following points:

2.5.1.1 Dynamic Operation of Microgrid with Main Grid

The issues related to stability and security of both the main conventional grid and the
microgrid draw more attention in the wake of increasing microgrid operations. The
microgrid does not affect the stability of main grid while operating in a grid-connected
mode since its capacity is sufficiently small at present. The effects of DER penetration
have a low impact on the main grid because, as of now, the DERs mainly ensure local
energy balance within a small load area [23]. However, the stability and security of the
main grid will be influenced significantly with higher penetration of DERs through
microgrids. Thus the dynamic interactions between microgrid and the main grid becomes

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a key issue in the operation and management of both the grids. Microgrids are needed to
be designed properly to take care of their dynamic impacts on main grid in the context of
better operational feature of microgrid in grid-connected mode [23]. As a result, through
operational management the overall stability and reliability of the whole system is
improved significantly.

2.5.1.2 Operational Management of Microgrid

Under proper regulatory framework, a microgrid operator should be able to choose the
mode of operation. The microgrid should operate in stand-alone mode in regions which
are far away from the utility supply or where the supply is not available at all. It should
also perform an isolated operation during a grid-connected mode within a larger utility
distribution network. Supervisory control and data acquisition (SCADA) based metering,
control and protection functions should be included in the microgrid’s central controllers
(CCs) and micro-controllers (MCs) [23]. Through generation scheduling, economic load
dispatch and optimal power flow operations the microgrid should operate economically.
Infrastructures for suitable telecommunication and communication protocols should be
employed for overall energy management, control and protection [23].

2.5.1.3 Intelligent Emergency System

Diagnosis of wrong function, proper security and maintenance should be the key
requirements for microgrid. System diagnostics through state estimation functions should
be provided in newly developed microgrid system. The system security must be
maintained through contingency analysis. Other provisions for security problem should
be present through emergency operations, like demand side management, load shedding,
islanding or shutdown of any unit. Attention towards system loading and load-end voltage
or frequency can be paid by economic rescheduling of generation, under contingency
conditions. Carrier communication and IEC 61850 communication infrastructures should
be employed for better controlled operation of microgrid [23].

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2.5.1.4 Proper Power demand supply balance
Power supply with respect to load demands should not be disrupted for any minor
reasons. Temporary mismatch between generation and load can be eased through proper
load forecasting and demand side management. Again shifting of loads might help
through flattening of the demand curve to reduce storage capacity. However, the
maintenance of power quality, active and reactive power balance can be maintained
within the Microgrid on a short-term basis. Hence suitable planning for power generation,
supply and storage with respect to load demand should be made, on the basis of long-term
energy balance.

2.6 Advantages of Microgrid

Microgrid is promisingly beneficial for any application requiring reliable electric energy.
The merits of microgrid are mentioned below:

2.6.1 Environmental Issues:

In comparison with conventional power resources, i.e. large conventional thermal power
stations, the microgrids have much lesser environmental impact. This includes reduced
emissions of gaseous and particulate matters due to close control of the combustion
process. This also helps in combating the global warming. Moreover, the physical
proximity of micro-sources with customers helps to increase the awareness of customers
towards careful usage of energy [23].

2.6.2 Operational Issues:

Reduction of physical and electrical distance between microsource and loads improves
reactive support of the whole system. This enhances the voltage profile. Transmission &
Distribution feeder congestions are diminished in microgrid power delivery systems.
Losses in transmission are nil, while that in distribution is about 3%. The expansion of
transmission and generation systems by proper asset management can be handled without
large capital investment.

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2.6.3 Power Quality Issue:
Reliable power supply is achieved from decentralized or distributed energy resources
which are the microsources of microgrid. This improves the power quality in distributed
power generations. A reliable power supply is achieved due to the reduction of the impact
of large-scale transmission and generation outages. This leads to a better match of supply
and demand. Finally, the quality of power supplied can also be improved by minimizing
downtimes and enhancing the restoration process through black start operations of micro-
sources [23].

2.6.4 Cost Issues:

Expenses can be minimized in microgrid by the utilization of waste heat in CHP mode of
operation. Moreover, substantial infrastructure is not required for heat transmission since
the CHP sources are usually located close to the customer loads. Again, the running costs
of renewable energy sources are nil in microgrids. The transmission & distribution costs
are drastically reduced or eliminated as several integrated microsources are locally placed
in plug-and-play mode. The generated electricity can be shared locally among the
customers, which again reduce the need to buy and sell power from or to the main grid
over longer feeders. A total energy efficiency of more than 80% is achieved as compared
to a maximum of 40% for a conventional power system [23].

2.6.5 Market Issues:

In case of market participation, microgrid finds them in a very advantageous position.
The market-driven operational procedures of the microgrids make the electricity market
more competitive leading to a significant reduction of market power exercised by the
established generation companies [23]. Moreover, the modular plug-and-play
microsource applications contribute to a reduction in energy price in the power market.
The Microgrids are also useful in widespread ancillary services which help in attaining

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good market participation. A reduction in long-term electricity customer prices may occur
by appropriate economic balance between network investment and DG utilization [24].

2.7 Problems of Microgrid Development

In spite of potential benefits, development of Microgrids experiences several challenges

and demerits as explained below:

2.7.1 Technical Difficulties:

These difficulties mainly occur due to the lack of technical experiences in controlling a
large number of plug-and-play microsources. As the solution for closing adaptive
protection along with synchronism check are quite expensive, so cost effective seamless
switches are used during operating modes which cause major problems. Absence of
specific telecommunication infrastructures and communication protocols for microgrid
and active distribution networks are the reasons for such problems [25]. Protection and
control aspects provide microgrid hindrance in choosing proper size and placement of
microsources due to nonexistence of real-time and off line management [23].

2.7.2 Lack of Standards:

Since Microgrid is a comparatively new area, standards are not yet available for
addressing operation [26]. This in turn hampers protection issues. Power quality data for
different types of sources also deteriorate. The aspects like proper integration of
microsources and their participation in conventional and deregulated power markets,
safety and protection guidelines also face problems due to lack of proper standards [27].

2.7.3 Expensive Distributed Energy Resources (DERs):

Microgrid generally involves different non-conventional or renewable energy sources as
distributed energy resources (DERs) which generally have high initial cost. Moreover,
few renewable sources include high installation costs. However, these can be reduced by
arranging some form of subsidies from government bodies to encourage investments, in
the light of global target in enhancing renewable green power generation by 20% by 2020
and reducing carbon emission by 50% by 2050 [23].
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2.7.4 Administrative Barriers:
Governments of some countries are facing legal problems in delivering electric power as
no standard legislation and regulations are available to the operation of microgrids [28].

2.7.5 Market Monopoly:

During the period over which main grid is not available and microgrid is in operation, the
current electricity market loses its control on the energy price. In such situations, the
microgrid may start retailing energy at very high prices by exploiting the market
monopoly [23]. Therefore, questions arise on the distribution of authority in controlling
energy supply prices for a hybrid microgrid-grid scenario. Thus, suitable market
infrastructures are needed to be designed and implemented for sustaining development of
microgrids [29].

Even with all the key features related to configuration, operation, control, back-up
protection, as discussed in this chapter, an appropriate microgrid fails to operate without a
power generating system. Again, since microgrids integrate the power generation unit and
power consumption unit, i.e. consumers within close vicinity, so it utilizes small
distributed or decentralized generation for power generation instead of conventional
power plant. A detail picture of different types of DERs and their operational features has
been presented in the next chapter.

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