Energy Strategy Reviews 49 (2023) 101127

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Microgrids: A review, outstanding issues and future trends

Moslem Uddin a ,∗, Huadong Mo a ,∗, Daoyi Dong a , Sondoss Elsawah a , Jianguo Zhu b ,
Josep M. Guerrero c
a School of Engineering & Information Technology, The University of New South Wales, Canberra, ACT 2610, Australia
b School of Electrical and Information Engineering, University of Sydney, Camperdown, NSW 2006, Australia
c
Department of Energy Technology, Aalborg University, 9220 Aalborg, Denmark

ARTICLE INFO ABSTRACT

Keywords: A microgrid, regarded as one of the cornerstones of the future smart grid, uses distributed generations and
Microgrid information technology to create a widely distributed automated energy delivery network. This paper presents
Energy management a review of the microgrid concept, classification and control strategies. Besides, various prospective issues and
Renewable energy
challenges of microgrid implementation are highlighted and explained. Finally, the important aspects of future
Battery energy storage system
microgrid research are outlined. This study would help researchers, scientists, and policymakers to get in-depth
and systematic knowledge on microgrid. It will also contribute to identify the key factors for mobilizing this
sector for a sustainable future.

1. Introduction of the world’s MGs are currently located in North America and Asia-
Pacific, with the People’s Republic of China providing the majority of
Electricity distribution networks globally are undergoing a transfor- the capacity in Asia-Pacific. While there is no central registry, as of the
mation, driven by the emergence of new distributed energy resources fourth quarter of 2017, a semiannual tracker estimated 1869 MGs with
(DERs), including microgrids (MGs). The MG is a promising potential a total capacity of 20.7 gigawatts (GW) [23]. MGs are predicted to grow
for a modernized electric infrastructure [1,2]. The term ‘‘microgrid’’ significantly in the next years, particularly in Asia-Pacific and North
refers to the concept of a small number of DERs connected to a single America, with annual capacity installation and spending expected to
power subsystem. DERs include both renewable and /or conventional climb fivefold between 2018 and 2027 [24]. MGs are expected to
resources [3]. The electric grid is no longer a one-way system from the become more popular in areas with inadequate or deteriorating power
20th-century [4]. A constellation of distributed energy technologies is infrastructure, as well as remote business activities such as mining pits.
paving the way for MGs [5–7]. It can act as a well-regulated single grid- MGs are likely to become an increasingly important part of the energy
level entity to provide either islanded or grid-connected operation [8]. sector as current and future challenges arise [25].
It has the potential to improve power quality, boosts energy security The MG has also attracted much attention in global academic com-
for critical loads, and maximize overall system efficiency [9,10]. MGs
munities. Fig. 1 shows the number of MG-related web of science (WoS)
have gained popularity in recent years as a result of technological
articles from 2000 to 2021. These statistics motivate the authors to
improvements in small-scale power generation [11]. Meanwhile, envi-
conduct an in-dept study in this field to clarify the state of knowledge
ronmental concerns about centralized electric power generation have
and identify needed research. Several review papers have addressed
been a motivating reason behind the development of MGs [12–18].
different aspects of MGs. The basic concept of MGs has been briefly
The MG market is expected to continue growing, despite the fact
presented in [26,27]. A review has examined the MG technology [28].
that the most important feature of MG technology is not effectively ex-
Planning, modeling, design and architectures of hybrid renewable MGs
pressed in monetary terms: resiliency [19,20]. Various MG deployments
or current experiments are taking place around the world to better un- have also been reviewed in [29]. A survey has classified MGs into
derstand how MGs work [21]. For varied purposes, many technologies different groups [30]. In [3], existing MGs architectures have also been
and topologies have been investigated. Some of the trials are carried investigated. AC and DC MGs have been surveyed concisely in [31].
out only for research and development, while others are set up on Several review articles have explored MG control strategies [32–34].
islands or in remote areas. Since the MG concept is much versatile, the Control methods proposed for inverter-based MGs have also been pre-
experiment settings and goals can be widely varied [22]. The majority sented [35]. Control strategies for DERs in MGs were investigated and

∗ Corresponding authors.
E-mail addresses: [Link]@[Link] (M. Uddin), [Link]@[Link] (H. Mo).

[Link]
Received 14 February 2023; Received in revised form 2 July 2023; Accepted 4 July 2023
Available online 15 July 2023
2211-467X/© 2023 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license ([Link]
nc-nd/4.0/).
M. Uddin et al. Energy Strategy Reviews 49 (2023) 101127

footprint. Therefore, these MGs are becoming increasingly popular and and transport, not to mention that transportation has its own carbon
being deployed across the world. However, the uncertain and intermit- burden. Many communities that employ diesel generators face this
tent output of RESs increase the complexity of effective operation of the problem on a regular basis. MGs are exploring for cleaner options as
MGs [100]. Also, meeting the time-varying demand presents a pivotal a result of these impacts [110].
challenge to an isolated MG. ESS is one of the most appealing technolo-
gies for enabling maximum utilization of renewable and is extensively 4.4.3. Hybrid MGs
used for balancing demand and supply in MGs [101]. However, the A hybrid MG system combines RESs, fossil fuel generators (diesel/
critical challenge is to coordinate storage systems, distributed RESs and gas), and/or batteries to operate in both isolated and grid-connected
variable power demand. Therefore, an EMS is crucial for renewable modes [111]. Fuels-renewable energy hybrid MGs are replacing 100%
MGs [102]. diesel/natural gas MGs as a more popular option. Hybrid cars sub-
Renewable MGs can be classified into five subgroups based on stantially lower fuel usage while also being less expensive, more reli-
renewable sources: solar, wind, biomass, micro-hydro and hybrid MGs. able, and less environmentally damaging over their lifetime. However,
hybrid systems require fuel-based generators, and hence noise and
• Solar MGs: Solar MGs are an attractive renewable energy op-
pollution are inescapable.
tion since they can be used at any scale and can be scaled up
afterwards. As a result, they are widely regarded as a feasible
4.5. Classifying MGs on the basis of scenario
and durable rural electrification option across the world. Since
solar MGs rely on the sun for electricity, they function best
Residential: A typical residential MG consists of an advanced control
in places with abundance of sunshine. To deal with gloomy
system (or ‘‘controller’’) that combines customers’ electrical demands,
weather, most systems include storage capacity that allows them
regulates distributed resources such as solar PV and energy storage, and
to run through periods of scant sunshine [103–105]. Solar MGs
coordinates with the distribution networks. A residential MG provides
have the potential to be an environment-friendly energy option.
emergency power to key circuits during power outages, reducing a
However, the output of solar photovoltaics (PV) is constrained
customer’s dependency on a centralized electrical supply. The MG
by its fluctuating nature. Therefore, a suitable control technique
is imperative. Solar MGs are commonly used to power schools, controller turns a residence into a flexible, dynamic, and fast-acting
street lights, homes, businesses, hospitals and irrigation pumps network resource that can provide services to electricity distribution
for agriculture. and transmission network operators. This types of MGs is designed to
serve household customers and will consequently be multi-users, with
• Wind MGs: A wind MG is an electrical distribution system with
a set of interconnected load and wind turbines that operate as a the MGs being managed by a separate company. It may be rural or
single controlled source within clearly defined electrical bound- urban in nature.
aries. Wind-based MGs typically employ an ESS to smooth out the Industrial: The key reasons for implementing an industrial MG are
supply and store the excess energy for future use in the MGs. the security and reliability of the power supply. Power outages may
• Biomass MGs: An MG powered by biomass is known as a biomass disrupt many production processes, resulting in considerable revenue
MG. Biomass gasifier systems produce syngas in this MG by losses and lengthy start-up times. Chip production, the chemical in-
incompletely burning biomass, which is then burned in an engine dustry, and the paper and food industries are just a few examples.
to power a generator [106–108]. Bioenergy MGs are gaining Uninterruptible power supplies are now being installed at some indus-
traction in many locations, despite the fact that solar and wind trial sites if their use is economically justified. The MG architecture may
power is more typical MG generation alternatives. As they use offer additional benefits, such as the ability to combine a reliable power
biomass gasifiers, which are less expensive than solar PV, their supply with great energy efficiency and the use of renewable energy.
capital requirements are comparatively modest. Biomass gasifiers, Commercial: Commercial customers often deploy these MGs to serve
on the other hand, are confined to places with a sufficient biomass single users, such as airports, hospitals, data centers, and so on. This
source. They also require a great amount of feedstock, decent type of electricity systems is likewise self-contained and may operate in-
storage procedures, and a fair number of manpower compared dependently of the main grid. They may also be connected to the main
to other types of systems. Tar build-up or wet husk can stymie grid at times. By diversifying their energy sources, taking advantage
operations on a daily basis. Spark plug failure, battery discharge, of time-of-day electricity pricing, and having backup power on hand
and bottle coil failure are all common problems with these sys- whenever it is needed, facilities connected to public grids can minimize
tems (an unintentional current to the spark plug). Keeping the energy costs and boost self-sufficiency.
husk dry during the monsoon season is another challenge.
• Micro hydro MGs: Micro-hydro-based MGs are mainly run-of- 4.6. Classifying MGs on the basis of location
the-river projects in which water is redirected from a river or
streams through a pipe into a turbine to generate electricity. The Urban MGs: Urban MGs are MGs that have been established in urban
cost of energy generation per kWh is quite low. Micro-hydro areas near utility systems. These MGs are capable of operating in both
systems, however, are confined to places with sufficient water grid-connected and islanded modes. They conform to all rules, con-
supply. trol strategies, and synchronization techniques to maintain the utility
• Hybrid MGs: An MG with the capability to provide electricity to grid’s system stability and power quality [112]. Hospitals, universities,
a remote site using hybrid renewable sources such as PV, wind, industries, communities, offices, and shopping malls are among the
biomass, and micro hydro [109]. commercial and residential sectors where urban MGs are implemented.
Remote MGs: Remote MGs are MG systems that are located in
4.4.2. Fossil fuels MGs remote regions where utility power systems are unavailable due to
MGs powered by fossil fuel (diesel/natural gas) based generator, geographic location. Military installations, hilltop areas, and islands are
which can supply power to the remote areas. They can work in both all instances of remote MGs. Because the utilities are not there, these
islanded and grid-connected environments. For many years, energy MGs operate in an isolated manner. Because of the economic, political,
sources like steam/gas turbines and diesel generators have been the and technological challenges, they are rarely installed in comparison to
standard for generating local power in an MG. These, however, have urban MGs [113,114]. Remote MGs provide access to energy outside
a negative influence on both the environment and the economy. The of the grid. Remote MGs, like island MGs, have traditionally relied on
fossil fuels required to power these MGs are expensive to purchase diesel, but are increasingly combining solar and storage.

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M. Uddin et al. Energy Strategy Reviews 49 (2023) 101127

Fig. 3. MG control structures: (a) centralized, (b) decentralized, and (c) distributed.

4.7. Classifying MGs on the basis of application • Optimization: Determines the best MG dispatch plan in order
to maximize economic advantage. In addition, depending on the
The MGs may be divided into several groups according to their MG’s conditions, it ensures enhanced energy efficiency.
applications. The following are some of the categories. • Synchronization: For optimal power transmission, the MG must
be synchronized with the power network.
• Military MGs: Military MGs are small-scale electricity infrastruc- • Stability: The MG’s voltage and frequency are regulated as it op-
tures that can operate almost autonomously in a military base erates in various modes. Furthermore, both the AC- and DC-sides
camp. of the MG benefit from a robust and reliable power network.
• Campus MGs: Corporate, university and college campuses are all
examples of campus MGs. They are frequently introduced through 5.1. Control techniques
the use of CHP.
• Community MGs: A community MG is a coordinated local grid re- A detailed classification of the MG control methods that are fre-
gion served by one or more distribution substations and supported quently utilized in MG operations can be found in Fig. 3 [120–124].
by high penetrations of local RESs and other DERs. They are
frequently employed in developed countries to help communities
5.1.1. Centralized control techniques
reach renewable energy goals.
Centralized control management allows for easy deployment and
• Island MGs: They are small-scale MGs that are completely discon-
real-time monitoring of the entire system. Within the framework of
nected from the main grid and generate their own electricity. centralized control, a single individual CC serves as the primary con-
• District energy MGs: District energy MGs provide both electricity troller. In MG systems, CC manages the operation of different DG
and thermal energy for various facilities’ heating (and cooling). units. A LC is used by each DG unit, which can interact with the
CC directly. Recent computation technologies help CC to monitor and
5. Microgrid control analyze the data received from the LC in real-time operation [125].
The implementation of centralized control is rather straightforward. It
MGs’ resources are distributed in nature [115]. In addition, the has also demonstrated excellent response in the operation of the MG
uncertain and intermittent output of RESs increases the complexity of system. However, many concerns remain unresolved, particularly when
the effective operation of the MG. Therefore, a proper control strategy working with a large-scale hybrid system [126]. CC failures impact the
is imperative to provide stable and constant power flow. MG Central entire system’s functionality. In addition to this, the control technique
Controller (MGCC) is used to control and manage the MG. MGCC can has a low degree of flexibility and expandability [44,127].
be installed at a local control center or a distribution substation [116].
Local DG units and distributed ESS devices are controlled by MGCC, 5.1.2. Decentralized control techniques
which communicates with controllers at lower hierarchical levels. MGs In recent years, decentralized control has been extensively devel-
can also be managed using more distributed methods like droop control oped to maximize the autonomy of the micro sources and loads in
and agent systems. MGs. The key aspects of this control technique are to maintain stability,
In an MG context, a control strategy should meet the following cost-effective operation, and reliability [128]. The control decision is
requirements [31,117–119]: made by relying on the local measurement and it requires limited local
connections [129]. Furthermore, high-performance computer units and
• Power balance: Coordination of DG supply and efficient load a high level of connection are not required [125]. However, global
sharing. optimum solutions for the whole MG system cannot be guaranteed.
• Transition: Islanding to the grid-tied mode or vice versa is a
seamless transition between MG modes of operation. 5.1.3. Distributed control
• Protection: Monitoring of energy flow and important equipment, Some information is shared among controllers so that each has some
as well as grid fault management. understanding of the behavior of the others, so improving the overall
• Power transmission: Exchange of power between the main grid performance [130]. Table 3 summarized the different control methods
and the MG. with their advantages and disadvantages.

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Table 3
A summary of MG control methods options with their advantages and disadvantages [131].
Control method Advantages Disadvantages
– Global optimal solutions – Require communication infrastructure
– Significant computational burden is involved
Centralized
– Reduced scalability
– Communication network affect stability
– No communication infrastructure is required – No global optimal solution
– Reduced computation complexity
Decentralized
– Enhanced scalability
– Higher reliability
– Reduced computation complexity – Sub-optimal solutions
Distributed – Enhanced scalability – Require communication infrastructure
– Better reliability – Communication network affect stability

5.2. Advancements in MG control systems 6.1.1. PV modules

The PV panel’s output power is affected by meteorological condi-
Recent advancements in control and supervision systems for MGs tions such as net sun irradiation and solar panel temperature. As a
have been driven by the increasing incorporation of RESs, the need result, these variables are interdependent as the following [149]:
for enhanced grid flexibility, and the growing complexity of MG op- ( )
erations. The primary aim of these technological advancements is to 𝑅(𝑡) [ ]
𝑃𝑃 𝑉 (𝑡) = 𝑃𝑃𝑟𝑎𝑡𝑒𝑑
𝑉 1 + 𝛼𝑝 (𝑇𝑎𝑚𝑏 − 𝑇𝑟𝑒𝑓 ) . (1)
improve the performance, reliability, and efficiency of MGs, ensuring 𝑅𝑠𝑡𝑛𝑑
seamless integration of DERs, and effective management of grid oper- where 𝑃𝑃𝑟𝑎𝑡𝑒𝑑 refers to the nominal output of the solar cell, 𝑅𝑠𝑡𝑛𝑑 denotes
𝑉
ations. Some notable advancements in control and supervision systems the solar irradiation under the typical standard conditions. The value
for MGs include: of 1 kW/m2 is a standard condition typically applicable to the northern
• Intelligent EMS: Advanced EMS solutions utilize artificial intel- parts of the Earth, while closer to the equator, the solar irradiation
ligence, machine learning, and optimization algorithms to ef- under standard conditions is generally higher, around 2 kW/m2 . 𝑅(𝑡)
ficiently manage the generation, storage, and consumption of is the solar radiation at time 𝑡 and 𝛼𝑝 is the temperature coefficient
energy within microgrids [132–134]. These systems continuously of output. 𝑇𝑎𝑚𝑏 stands for the ambient temperature, and 𝑇𝑟𝑒𝑓 is the
monitor and forecast energy demand and generation, dynamically standard temperature of a solar panel, which is 27◦ Celsius.
optimize energy dispatch, and enable real-time decision-making
to achieve optimal operational performance. 6.1.2. Wind turbine
• Advanced ESS management : To optimize the utilization and effec- The wind turbine’s output power (𝑃𝑤 ) is a function of the air density
tiveness of ESS in microgrids, sophisticated control strategies have
(𝜌), turbine swept area (𝐴𝑤𝑡 ), turbine efficiency (𝜂𝑤𝑡 ) and wind velocity
been developed. These strategies involve intelligent scheduling
(𝑉𝑤 ). It is possible to calculate 𝑃𝑤 by [150]:
and control of ESS based on real-time capacity demand, renew-
( )
able energy availability, and grid conditions [135–137]. This 1
𝑃𝑤 = 𝜌 𝐴𝑤𝑡 × 𝑉𝑤3 × 𝜂𝑤𝑡 (2)
facilitates the efficient balancing of energy, peak reduction, load 2
shifting, and grid support.
• Grid-forming inverter control: Grid-forming inverters have attracted 6.1.3. Diesel generator
attention due to their ability to independently regulate the voltage In MGs, a DG can act as a backup supply, turning on when the bat-
and frequency of MGs, eliminating the dependence on the main tery bank’s minimum permissible depth of discharge (DoD) is reached.
grid [138]. This feature is particularly significant as RESs become
It can be calculated based on its fuel consumption (FC) in litres per
more prevalent. Advanced control algorithms for grid-forming
kilowatt-hour (L/kW) [151] as:
inverters enhance grid stability, strengthen MG resilience, and
enable seamless transitions between grid-connected and islanded 𝑟
𝐹 𝐶(𝑡) = 𝐴𝐺 𝑃𝐷𝐺 (𝑡) + 𝐵𝐺 𝑃𝐷𝐺 (3)
modes [139–141].
𝑟
• DR integration: Control systems in microgrids are incorporating where 𝑃𝐷𝐺 is the generated power in kW and refers to the rated
𝑃𝐷𝐺
DR mechanisms to allow consumers to actively participate in power in kW of DG. The two coefficients 𝐴𝐺 and 𝐵𝐺 represent the fuel
load management. Advanced DR algorithms and communication curve slope (L∕h∕kW𝑜𝑢𝑡 ) and fuel curve interception (L∕h∕kW𝑟𝑎𝑡𝑒𝑑 ) of
protocols enable real-time interaction between the MG opera- DG, respectively.
tor and end-users, which facilitates load shedding or load shift-
ing during peak demand periods and optimizes overall energy 6.1.4. Battery energy storage system (BESS)
consumption [142,143]. The behavior of the battery can be represented as the state of charge
• Cyber-physical security: It is crucial to ensure the cybersecurity and (𝑆𝑂𝐶) in percentage that is related to the battery energy level, 𝐵𝐿(𝑡),
resilience of MG control systems as they grow more networked
at time 𝑡 as follows [152]:
and dependent on digital communication and control technolo-
gies [144,145]. To defend against cyber threats, control and 𝐵𝐿(𝑡)
𝑆𝑂𝐶(𝑡) = × 100% (4)
supervisory systems are integrating advanced security features 𝐵𝐿𝑐𝑎𝑝𝑠
like encryption, authentication protocols, anomaly detection, and subjected to
intrusion prevention systems [146–148].
𝑆𝑂𝐶𝑚𝑖𝑛 < 𝑆𝑂𝐶(𝑡) < 𝑆𝑂𝐶𝑚𝑎𝑥
6. Modeling and simulation studies
where 𝐵𝐿𝑐𝑎𝑝𝑠 is the battery’s initial nominal capacity of battery;
6.1. Mathematical modeling of MG 𝑆𝑂𝐶𝑚𝑖𝑛 is the minimum limit of the battery, and 𝑆𝑂𝐶𝑚𝑎𝑥 is the max-
imum limit of the battery 𝑆𝑂𝐶. The limits require to be set for min-
This subsection discusses detailed mathematical model of MG com- imizing the influence on battery ageing, hence extending the battery
ponents, which can be used for optimum capacity planning. life [153].

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Fig. 4. Monthly variation of MG performance indices: (a) capacity factor, (b) plant use factor, (c) load factor and (d) utilization factor.

6.1.5. Power converter modeling

The power converter chosen for an MG should be able to accom-
modate the maximum expected AC load. Therefore, the converter size
(𝑃𝑐𝑜𝑛𝑣 ) can be selected based on the maximum load demand (𝑃𝑝𝑒𝑎𝑘 ) and
inverter efficiency (𝜂𝑖𝑛𝑣 ) as given by [154]:
𝑃𝑝𝑒𝑎𝑘
𝑃𝑐𝑜𝑛𝑣 = (5)
𝜂𝑖𝑛𝑣

6.2. Simulation case study

MGs face great challenges to meet demand with unpredictable daily

and seasonal variations. Therefore, energy management (EM) for MGs
has attracted much attention in global academic and industrial com-
munities. In this study, an isolated campus MG has been considered as
a case study for illustrating concepts of peak shaving-based EM [155].
The test MG is powered by two conventional gas turbine generators Fig. 5. Proposed structure of test MG.
(GTG), time-varying loads, and battery storage. The maximum power
output of each GTG is 4.2 MW, whereas the maximum power output
of the BESS is 400 kW. Actual load statistics are from the campus The findings of the statistical data-based study show that the test
MG system, representing a typical working day. The statistical data of MG’s performance is considerably below ideal. The significant disparity
installed capacity, generation and loads are used to analyze the MG’s between the peak and average peak loads caused the test MG to un-
performance under variable load conditions. Statistical analysis results derperform. In practice, the introduction of battery storage-based EMS
are depicted in Fig. 4. Key observations from the results are: can improve the MG’s performance significantly. Since the electrical
demand fluctuates throughout the day, the supply–demand mismatch is
• The capacity factor for the test MG ranged from 52.77% to
more likely to happen. BESS is expected to supply the essential amount
63.32% against the industry best practice 50%–80%. of energy into the power system during the low load demand. Fig. 5
• The plant utilization factor had an average value of 75.04%. The illustrates the simplified structure of the proposed model for the test
low plant utilization factor reflects a poor ratio between the actual MG.
and projected energy productions. Fig. 6(a) shows the hourly demand or the load profile of the test
• Average load factor was 60.35%, which is low compared to the MG for a working day. Two major peaks are observed: the day and
industry standard of 80% or more. evening peaks. The evening peak is observed at about 6:20 PM, which
• The highest level of utilization factor (UF) recorded was 67.65%. is slightly higher than the optimum capacity of 𝐺1 . Typically, 𝐺2
The UF fluctuated throughout the year and it was never close to is operated along with 𝐺1 to meet this evening peak. However, as
the optimal practice, which is 80%. can be seen from the simulation results illustrated in Fig. 6(a), the

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M. Uddin et al. Energy Strategy Reviews 49 (2023) 101127

Fig. 6. Simulation results for case MG: (a) EM results (power) with dispatch of generator 𝐺2 , and (b) charge–discharge (kW) behavior of BESS and SOC.

battery energy control system can precisely maintain the instantaneous 7. Challenges and issues
power balance. The required power from BESS to meet the peak load
is determined by the battery energy control system. Meanwhile, the Despite the potential benefits, MG development has a number of
controller allows BESS to absorb power from the gas turbine generation challenges and limitations, as explained. The fundamental challenges
system during the off-peak hours and stores it for later use (during the of MGs can be classified under four groups as illustrated in Fig. 7.
peak load demand). As a result, the campus MG’s dynamic performance
7.1. Technical challenges in MGs
is improved significantly.
The BESS can offer more cost-effective generator operation. It will 7.1.1. Operation and management
decrease the cost of energy production. Without BESS, there will be Operation and management: The following are the major manage-
several on-off generator operations, which will make it more expensive. ment and operational issues that an MG experiences:
In addition, without BESS, generators operate at exceedingly low loads
• Issues during start-up of island mode: The system’s frequency and
in the evening. This also adds to the cost of energy generation. Gen-
voltages can be affected by the drastic intake of current during
erator dispatch results are illustrated in Fig. 6(a). The short inspection the earliest stages of island mode start-up. This may cause the
reveals that 𝐺1 must function throughout the day whereas 𝐺2 works generators to trip and shut down during the initiation phase. To
for a particular amount of time in order to power the associated loads. address this, an investigation of energy generation methods in
The availability of stored energy yields minimal operational hours for island mode is required, as well as the development of specialized
𝐺2 . Reduced use of traditional generators will improve the system controls suitable for MG operations.
economics and lessen the environmental impact. • Energy management: In general, energy regulation includes several
The charge–discharge and SOC results of the BESS are depicted fine-tuning parameters. After that, the parameters need to be
in Fig. 6(b). The simulation results show that the BESS follows the simulated for finding the best solutions. Finding an ideal value
in MGs is a challenging task because of the varied ambiguity
considered energy management approach. During the periods of low
and unspecific instances, as well as the well-identified specific
demand, such as when MG is operating in the evening peak, the battery
event [156–158].
unit supplies the system with the necessary amount of power. During • Appropriate design: MGs, particularly renewable energy-based
the day’s peak demand, the GTG generation is sufficient to meet the MGs, have a different design, modeling, and planning require-
demand. As a result, during the daytime peak period, the BESS unit ments than conventional fuel-based systems, with which most
is not required to engage with the system for supplying the stored people are already aware [159–162]. One of the major factors
energy. The BESS unit absorbs the power from the system after the that reduces the longevity of MGs is poor design. The design of re-
discharging process, particularly during the low demand periods. To newable MGs necessitates a thorough understanding of the avail-
prevent overcharging and underdischarging, the minimum level of able energy supplies as well as the demands of the users [163].
charge for a battery storage is regarded to be 20%, while the maximum It is also important to consider how changes in available energy
is 90%. The simulation results demonstrate that BESS performed as resources and demand can affect energy supply availability and
reliability. As a result, proper MG design remains a challenge.
planned.
• Identifying the MG’s modes of operation: Each integrated power
The following are the key insights of this simulated case study:
source versus load scenario in the MG should be identified and
• Using battery storage, the current EM method can minimize the specified for situations such as temporary switching or emergency
shedding. As an MG consists of loads and generators with varying
challenges related with the fluctuating demand. BESS can mini-
operational natures and behaviors, this phase becomes critical
mize the peaks in demand profile optimally, and maximize the
and challenging [43,164].
economic benefits.
• System security: To keep the system secure, contingency plan-
• The EM may regulate the BESS’ charging/discharging process to ning and emergency actions (such as demand-side management,
ensure optimal functioning of the MG. load shedding, islanding, or unit shutdown) are needed. Under
• The EM can ensure that the conventional generators are utilized contingency scenarios, generation should be rescheduled eco-
to their full potential, which can result in economic benefits for nomically to accommodate system loading and load-end volt-
the MG. age/frequency. System security should be maintained in an MG

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M. Uddin et al. Energy Strategy Reviews 49 (2023) 101127

Fig. 7. Challenges of MG implementation.

through emergency operations and contingency planning, such while planning power system studies. As a result, the funda-
as load shedding, distributed source management, islanding, and mentals for illuminating and demonstrating the MG’s operating
unit shutdown. behavior are essential [172–174].
• Maintaining power quality: To ensure power quality, MG’s active • Designing feeders for MG: Feeders are now developed based on
and reactive power balance should be maintained on a short-term robust sources of power generation and delivery, as per the
basis. existing power system. However, there is a challenge when the
• Supervisory control and data acquisition: The CCs and MCs of demand for feeders in MGs remains unfulfilled [43,175,176].
MG should incorporate SCADA-based metering, control, and pro- • Telecommunication infrastructures and communication protocols:
tection capabilities. Provisions should be established for system Complete energy management, protection, and control necessi-
diagnostics through state estimation functions. tate telecommunication infrastructures and communication pro-
• Analysis on control system: To get the most out of an MG, it tocols [177].
is critical to have a good design and functional analysis. The
mode of operation and configurations of the MG are essential 7.1.3. Integration of DERs
while designing the MG control system. To successfully handle the When an MG is connected to the main grid, power flows between
operating scenario, the control system should incorporate each the main grid and MG are bidirectional. Voltage rise concerns arise as
promising control strategy [32,165]. a result of the addition of a large number of distributed generators to
• Load flow analysis: Load flow should be analyzed in every MG the grid, which is one of the biggest technological challenges [178]. As
operating condition and configuration to determine current flow solar PV is intermittent, it typically causes short-term voltage changes,
and voltage levels. The challenge is listing relevant loads and which disrupt the operation of power regulation and protection systems
determining their critical levels. Additionally, stating the times and, as a result, shorten the equipment’s life. [179].
of variable load profiles may add to the complexity [166,167].
• Balancing between generation and load in island mode: This is one • Bidirectional power flows: The presence of DG units at low voltage
of the most typical issues that MGs encounter. It is necessary to levels in the network may produce reverse power flows, posing
maintain a continual balance between load and power generation. challenges with protection coordination, undesirable power flow
Instability in the island system can be caused by sudden or patterns, fault current distribution, and voltage control.
significant changes in loads.
• Analysis on system stability: As MG stability is crucial, it is crit- 7.1.4. Protection
ical to forecast, monitor, and estimate the transient events that The following are the major protection issues that an MG may
occur as a result of both common and unusual disruptions. MGs experience:
are composed of various power sources and components. It is
• Evaluation of short-circuit current: Short-circuit current (SCC) limits
challenging to maintain system stability while employing inertia-
are typically calculated using the maximum and minimum levels
based generators, static converter-based PV, wind, and energy caused by power system faults. The difficulty originates from the
storage devices [168,169]. Furthermore, there are other sorts widely variable SCC between operating configurations as a result
of converters, such as those based on power electronic devices of different power sources and loads [168,180,181].
and virtual synchronous generators. To maintain system stability, • Earthing: Neutral earthing is a vital and difficult issue in MGs
manufacturers and designers should conduct a comprehensive in terms of the protection plan. This is because the MG shifts
study and close connection of equipment [170,171]. between power sources, uses numerous power sources (such as
spinning machines and converters), and interfaces with the main
7.1.2. Component and compatibility grid. The installation of earthing is governed mostly by local
• Equipment specifications: The specifications and single-line dia- grid regulations, but the distribution and maintenance of neutral
grams of the system are the most important factors to consider earthing may bring particular issues [182].

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M. Uddin et al. Energy Strategy Reviews 49 (2023) 101127

• Analysis on protection and coordination: Due to the obvious chang- 8. Future research areas in MGs
ing and low SCC, protection research is necessary. The MG con-
figuration should include effective protection equipment and per- The MG is an exciting research field in power engineering. Vari-
sonnel safety, as well as coordinated and sequenced protection ous research challenges have been addressed with great attention in
device operation. In MGs, the traditional protection plan may not recent MG studies. However, it still has several critical areas that need
be easy or successful, necessitating innovation and compromise to be addressed. Both AC and DC MGs leave open research areas
[164,183,184]. that should be considered when considering future improvements.
This paper highlights some of the most critical aspects for future MG
7.2. Economic challenges research.

MG investments remain substantial. Some of its components, in- • Modeling: In future MGs, power sources, ESSs, and loads will all
cluding fuel cells, energy storage technologies, smart grid infrastruc- desire to function as plug-and-play units, which will increase its
ture, and grid management software, are not yet commercially viable complexity. To avoid this growing complexity, future MGs will
without some form of financial assistance. necessitate an MG system redesign.
Ensuring economic operation: Generation schedules, economic load • Mode of operation: Another topic of future research could be to
dispatch, and efficient power flow operations should all be used to investigate and design a system that allows MGs to seamlessly
achieve a cost-effective operation. The economic operation of the MG transition from grid-connected to autonomous operation.
should be ensured by economic load dispatch, generator scheduling, • Protection: Fixed relay settings are commonly used in classic distri-
and optimal power flow operations. bution network protection mechanisms. For MGs, this protection
Increased power generation cost: The implementation of a hybrid mechanism may be insufficient. As a result, more study is required
system will result in an overall increase in complexity, and there is a to develop a protection strategy capable of ensuring the MG’s safe
possibility that the cost of producing electricity would go up as a result. operation in all modes and transitions.
Fixed cost reimbursement: Infrastructure expenses are factored into • Control: When the operating elements of the MG have vary-
utility tariffs. Individual users will purchase less power from the utility
ing characteristics, an efficient technique for controlling system
if they are encouraged to generate their own electricity. Some will also
parameters is necessary for standalone mode.
generate additional electricity for selling to the utilities. Customers who
• Energy management: Coordination of renewable sources, storage
use net metering will remain connected to the grid, and they may be
systems, and load is not straightforward/trivial. Therefore, a strat-
benefited from this infrastructure without having to pay for its fixed
egy is imperative to maintain the power delivered by the renew-
expenses. As a result, consumers who do not adopt net metering will
able sources, generators, and ESS for achieving an economical use
face the consequences of infrastructure expenditures. Utilities are also
concerned that as more individuals opt for net metering, they may be of the power sources.
unable to afford the massive infrastructure upgrades that a modern, • Generation-load stability: An efficient control strategy is required
clean grid necessitates [185]. for the MGs operating in standalone mode for maintaining an
Additional cost for the remote MG: The MG installation in rural places equalization between generation and load
makes maintenance difficult and increases transportation costs. • Storage units: It will be critical in the future to investigate the
High costs of DERs: MGs have a significant disadvantage in terms potential use of ESS with diverse features to maintain the MG’s
of installation costs. This can be mitigated by securing some type of inertia.
government subsidy to promote investment. For the sake of satisfying • Integration of electric vehicles: Electric vehicles (EVs) are grow-
environmental and carbon capture targets, this should be done at least ing significantly. Therefore, a greater focus on EV incorporation
temporarily. A global goal has been set to increase renewable green with MGs could produce interesting findings for power system
power output and cut carbon emissions by 50% by 2050. development.
• Integration of nuclear energy and RESs: Future research can focus
7.3. Market challenges on the integration of nuclear energy and RESs to achieve a
balanced and sustainable energy mix. This entails studying hybrid
Market monopoly: If MGs are permitted to distribute energy au- energy systems, devising strategies for integrating nuclear power
tonomously to priority loads during any interruption of the main grid, and intermittent renewables into the MG, and exploring energy
the key question is who will be responsible for energy supply pricing storage technologies that can effectively harness the benefits of
during the outage. Since the main grid would be disconnected and the both nuclear and RESs [186,187].
electrical market would lose control over energy prices, MGs may sell • Co-ordination among multiple MGs: To allow multi-MGs to co-
energy at a very high price, taking advantage of market monopoly. As ordinate and collaborate, reliable signaling and communication
a result, to support the long-term development of MGs, proper market infrastructure should be established. This will help MGs in achiev-
infrastructure should be established and implemented.
ing a balanced operation and a continuous supply of energy to
loads.
7.4. Regulatory challenges
• Communication channel: In MGs, smart metering and network
control are required to be integrated.
Standards need to be reviewed: MG is a relatively new industry.
Standards and protocols for micro source integration and participation • Policy and standards: It is necessary to have a universally accepted
in traditional and deregulated power markets, as well as recommen- set of standards, regulations, and processes in order to foster and
dations for safety and protection, should be developed. To properly support the successful incorporation of MGs all over the world.
combine MGs with active distribution networks, standards such as
G59/1 and IEEE 1547 should be reviewed and restructured. Also, 9. Conclusion
research is needed to review IEEE 2030.7-2017– IEEE Standard for the
Specification of Microgrid Controllers. This work was set out to present the overview of MGs. Due to the
Administrative and legal barrier: In most countries, there is no stan- potential importance of MGs, this survey explores the key technologies
dard legislation or regulation that regulates the operation of MGs. used in MGs. This review also classifies MGs into seven groups accord-
Some governments are promoting the development of green electricity ing to their applications, infrastructure, and end-users requirements.
MGs, although standard regulations have yet to be drafted for future Further, MG control strategies are reviewed to provide an insight
implementation. into these techniques. There is no doubt that the emergence of MGs

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M. Uddin et al. Energy Strategy Reviews 49 (2023) 101127

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