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The aim of this paper is to define an organized approach for improving the economic, reliable and secure operation of microgrids operating either in the On-grid or in the Off-grid. According to this methodological approach, a microgrid can be operated into five Operating Modes and five Transitions. Proper management of each of them has been examined and implemented on the existing microgrid developed at the Prince — Electrical Energy System Lab of the Polytechnic of Bari. This microgrid can be considered a hard test bed for dynamic stability studies since it is an inertialess system. [ABSTRACT FROM AUTHOR]

• Identify the main design features of different microgrids around the world. • This paper explores the main issues arising from the development of a microgrid. • An attempt to define potential solutions to overcome the main technical issues. • It defines guidelines for practical implementation and operation of microgrids. A microgrid is a small portion of a power distribution system with distributed generators along with energy storage devices and controllable loads which can give rise to a self-sufficient energy system. From the utility grid side, a microgrid is seen as an equivalent generator that is able to seamlessly disconnect and operate autonomously once a fault affects the main grid. The design, installation and operation of such systems lead to dealing with a number of technical and operational challenges including control, protection and infrastructure requirements. To help designers and researchers address these challenges and draw potential recommendations for practical microgrid implementations, in this paper a review of the main design features of existing microgrids is undertaken, also in light of the experience gained during the realization of the Prince Lab microgrid at Polytechnic University of Bari, Italy. The main control functions required to guarantee an economic, reliable and secure operation of a microgrid are also reviewed. Finally, key practical guidelines for monitoring, operation and implementation of microgrids are provided. [ABSTRACT FROM AUTHOR]