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As the penetration of distributed generation (DG) systems in the grid is increasing, the challenge of combining large numbers of DGs in the power systems has to be carefully clarified and managed. The control strategy and management concept of the interconnected systems should be flexible and reliable to handle the various types of DGs. This can be suitably met by microgrids. This paper introduces the microgrid structure and elements and states the main objectives that should be achieved by the microgrid controllers and each DG controller in both operation modes (grid‐connected and island mode). It also presents the challenges of having multiple DG units in a microgrid in terms of accurate power control/sharing, voltage and frequency regulation, power management between DGs, different renewable energy sources integration and deployment, seamless mode transfer, and the modeling issues. The centralized and decentralized control techniques as potential solutions have been discussed and compared by highlighting the advantages and disadvantages of each. Furthermore, the recent control techniques for drooped alternating current microgrids and the main proposed solutions and contributions in the literature have been exposed to finally overcome the droop control limitations and obtain a flexible and smart distributed power system. [ABSTRACT FROM AUTHOR]

Abstract As the penetration of distributed generation (DG) systems in the grid is increasing, the challenge of combining large numbers of DGs in the power systems has to be carefully clarified and managed. The control strategy and management concept of the interconnected systems should be flexible and reliable to handle the various types of DGs. This can be suitably met by microgrids. This paper introduces the microgrid structure and elements and states the main objectives that should be achieved by the microgrid controllers and each DG controller in both operation modes (grid‐connected and island mode). It also presents the challenges of having multiple DG units in a microgrid in terms of accurate power control/sharing, voltage and frequency regulation, power management between DGs, different renewable energy sources integration and deployment, seamless mode transfer, and the modeling issues. The centralized and decentralized control techniques as potential solutions have been discussed and compared by highlighting the advantages and disadvantages of each. Furthermore, the recent control techniques for drooped alternating current microgrids and the main proposed solutions and contributions in the literature have been exposed to finally overcome the droop control limitations and obtain a flexible and smart distributed power system.