The world today is plagued with problems of increased transmission and distribution (T&D) losses leading to poor reliability due to power outages and an increase in the expenditure on electrical infrastructure. To address these concerns, technology has evolved to enable the integration of renewable energy sources (RESs) like solar, wind, diesel and biomass energy into small scale self-governing power system zones which are known as micro-grids (MGs). A de-centralised approach for modern power grid systems has led to an increased focus on distributed energy resources and demand response. MGs act as complete power system units albeit on a small scale. However, this does not prevent them from large operational sophistication allowing their independent functioning in both grid-connected and stand-alone modes. MGs provide greater reliability as compared to the entire system owing to the large amount of information secured from the bulk system. They comprise numerous sources like solar, wind, diesel along with storage devices and converters. Several modeling schemes have been devised to reduce the handling burden of large scale systems. This paper gives a detailed review of MGs and their architecture, state space representation of wind energy conversion systems & solar photovoltaic (PV) systems, operating modes and power management in a MG and its impact on a distribution network.
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