Abstract
A Smart Grid is a reviving structure of traditional centralized power sector which incorporates smart software and hardware technologies. It provides communication among the prosumers and consumers to achieve sustainability and reliability in an economical way. A microgrid (MG) is a unit of smart grid which consists of distributed energy sources with renewable energy sources, energy storage units and variable loads. Because of stochastic nature of renewable energy sources to maintain balance between supply and demand a novel hybrid energy management controller need to be devised. This paper presents various operational objectives and constraints associated with energy management system of hybrid energy system. Also it compares and discusses various optimization algorithms in the literature.
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