The Electricity Journal 29 (2016) 8–15

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The Electricity Journal

journal homepage: www.elsevier.com/locate/electr

Energy Policy Institute’s Sixth Annual Energy Policy Research Conference

Using microgrids to enhance energy security and resilience

Xiaonan Lua , Jianhui Wanga,* , Liping Guob
a
Energy Systems Division at Argonne National Laborotary, Lemont, IL 60439, United States
b
Department of Engineering Technology, Northern Illinois University, DeKalb, IL 60115, United States

A R T I C L E I N F O A B S T R A C T

Article history:
Available online xxx Although microgrids are now widely studied, challenges still exist. A reliable control architecture needs
to be developed to coordinate different devices. Advanced forecasting and demand response
management approaches should be implemented to cope with the intermittence of renewable
Keywords: generation. Moreover, interconnection issues should be further studied to eliminate the influence of
Distribution system microgrid integration and achieve coordinated operation throughout the system.
Microgrids © 2016 Elsevier Inc. All rights reserved.
Resilience

1. Introduction traditional passive distribution system is being changed to an

Traditional power grids are implemented based on a centralized
architecture. Such an architecture provides limited automation for
power system operation and lacks situational awareness. Only
one-way power flow is allowed, and power generation is regulated
following the load. The whole system has little flexibility, for
example, with respect to new producer participation and agile
system configuration.
The legacy power system architecture has been dramatically
upgraded with the increasing penetration of renewable energy
sources (RESs) and more controllable load-side management. The
concept of the smart grid was proposed to identify the significant
differences between a modern power system and a conventional
one. The U.S. Department of Energy (DOE), Smart Grid European
Technology Platform, and Institute of Electrical and Electronics
Engineers (IEEE) (Olken, 2009) have proposed descriptions of the
smart grid from different aspects. Smart grids incorporate the
operational characteristics of both the source and load sides and
combine the functions of producers and consumers. Therefore, the
concept of “prosumers” has been defined to identify the dual
function of the controllable units in smart grids. From the control
standpoint, modern smart grids feature different control archi-
tectures. The legacy central control architecture is being replaced
by a hybrid central and distributed configuration. This paradigm
shift significantly facilitates the integration of dispersed RESs and
increasing numbers of controllable loads on the customer side,
which satisfies the requirements of modern electric grids. Also,
with the penetration level of RESs increasing rapidly, the
* Corresponding author.
E-mail address: jianhui.wang@anl.gov (J. Wang).
active system with bidirectional power flow, thus driving the
development of new control and protection schemes. The
modernization of the electric power system and its wider impact
on multiple infrastructures are depicted in Fig. 1 (Mohsenian-Rad,
2012).
Electric power grids play an even more critical role today, as
compared to the past. They not only provide power and energy to
enable advanced manufacturing, they guarantee necessary daily
power requirements. Hence, a safe and reliable operation with
respect to power generation, transmission, and distribution must
be ensured in modern power systems. From this standpoint, an in-
depth study of power outage and interruption should be
conducted. Meanwhile, as mentioned, with power systems
transitioning from a conventional central architecture to today’s
distributed configuration, the characteristics of power outages are
changing accordingly. The study of power outages should
comprehensively address the issues of the change in power
system architecture.
Among different types of power outages, those imposed by
natural disasters such as hurricanes and floods have drawn
significant attention. Compared to the other types of power
outages, those caused by natural disasters can induce more severe
damage and even trigger system-wide blackouts. Damage caused
by natural disasters can be extremely costly, and restoration is hard
to implement due to the large area of the damage and the
uncertainties associated with the outage. A comprehensive survey
of the impacts of natural-disaster-based power outages can be
found in (Wang et al., 2016a), where a critical comparison between
conventional and natural-disaster-based outages has been con-
ducted. The comparison results can be also found in Table 1. Table 1
illustrates that the severe damage caused by natural-disaster-

http://dx.doi.org/10.1016/j.tej.2016.11.013
1040-6190/© 2016 Elsevier Inc. All rights reserved.
 X. Lu et al. / The Electricity Journal 29 (2016) 8–15 9

Fig. 1. Power system evolution toward modernization. (a) Traditional power grids. (b) Today’s power grid.

Table 1
Differences between Typical Power Outages and Natural-Disaster-Induced Outages.

Typical Power Outages Power Outages Due to Extreme Weather Events

 Single fault due to one component failure  Multiple faults due to catastrophic damage

 No stochastic feature involved in general analysis  Uncertainty and stochastics with the process of natural disasters

 No spatiotemporal correlation for the fault – fault happens randomly  Spatial-temporal correlation for the faults due to natural disasters

 Most power generation units are working and stay connected  Power generation units may be out of service

 Transmission and distribution networks remain intact  Transmission and distribution networks are damaged and incomplete

 Only power grid infrastructure involved  Interdependence with other infrastructures

 Quickly repaired and restored  Difficult to repair and restore (e.g., debris after the disaster)

based power outages has a strong correlation with the physical
systems and communication infrastructure in electric grids. The
faults can occur at multiple locations with high uncertainties,
thereby significantly increasing the difficulties of post-fault service
restoration. Based on a recent U.S. DOE study, it was revealed that
sustained power outages in the U.S. (i.e., those that last more than
5 min) incur costs of more than $26 billion annually (LaCommare
and Eto, 2004). Hurricane Sandy left approximately 7.5 million
customers without power across 15 states and Washington, DC
(Che et al., 2014), after it hit the eastern shore of the U.S. A few days
10 X. Lu et al. / The Electricity Journal 29 (2016) 8–15
after Sandy, nearly 3 million customers in New Jersey and New
York were still without power, and 700,000 more customers in 11
other states, from Massachusetts to Virginia and as far west as
Michigan, were affected by power outages. This example shows
that advanced technologies are needed to tackle the obstacles of
power outages, especially those induced by natural disasters.
As mentioned previously, conventional power grids feature a
central generation configuration. This architecture is easy to
control and operate. However, it has relatively low reliability
compared to distributed generation, since the power supply may
be impacted by a single point of failure. Inspired by the advantages
and flexibility of distributed energy resources (DERs) and the
potential benefits of using a distributed system architecture,
distributed control strategies have been extensively studied for the
purpose of grid security and resilience enhancement.
Based on the distributed control architecture and the require-
ments of mitigating the impact induced by natural disasters, Fig. 2
depicts the features of a modern power grid (U.S. Department of
Energy, 2008). It can be seen that a modern electric grid is
implemented through a flexible combination of solar, wind, energy
storage, electric vehicles, smart buildings, and actively participat-
ing customers. This future grid architecture has the following
characteristics:
 Integrative: Planning and operation (temporal), information
technology and power engineering (cyber), integrated transmis-
sion and distribution (spatial), supply and demand (system-
wide);
 Interdependent: Coupling of critical infrastructures (e.g., gas,
water, power, and communications);
 Robust, flexible, and resilient: Uncertainty and variability of
renewable energy, extreme weather events, etc.;
 Hybrid dynamic control architecture: Centralized method (e.g.,
high-performance computing (HPC) for faster-than-real-time
interconnection-level simulation) and decentralized method
(e.g., microgrids, electric vehicles);
 Cyber and physical security: Coupled cyber and physical system
security in terms of threat defense, detection, and mitigation.
2. Concept of the microgrid
2.1. Definition of microgrids
The concept of the smart grid was proposed to meet the
requirements of the evolution of power system architecture, that
is, the change in the paradigm from a centralized to distributed
configuration. In order to implement and facilitate this change of
architecture, end users should be actively involved in the operation
and control of the power system. Rather than purely absorbing
Fig. 2. Features of modern power grids.
power from the main grids, end users should participate in power
generation; that is, they should become producers and generate
power to support grid needs. Hence, these end users can be defined
as “prosumers.” To be fully functional prosumers, end users should
be self-adequate. In particular, they are commonly equipped with
DERs that can be used for local power generation. Meanwhile,
distributed energy storage units (ESUs) are also commonly used to
maintain the local power balance and stabilize frequency and
voltage in a distributed manner. By coordinating the local DERs and
loads and using distributed ESUs to mitigate the power mismatch
between sources and loads, end users can become a fully
controllable unit and participate in grid support services. These
types of end users can be defined as microgrids.
Different types of microgrids are being studied or deployed
today based on their various applications. In order to electrify
remote areas, isolated microgrids can be implemented (Hajipour
et al., 2015). These remote microgrids are commonly energized by
diesel generators or ESUs to maintain the stability of the local
system. Meanwhile, based on the type of local resource, different
types of RESs can be used (e.g., photovoltaics [PVs], wind turbines).
Campus microgrids are also frequently used to provide additional
power supply in a campus area (Shahidehpour and Khodayar,
2013). Buildings energized by RESs are usually included in these
microgrids to diversify the power generation mix in the campus
area. Community microgrids are also being studied and developed;
these usually feature a networked configuration to link multiple
microgrids and achieve a harmonized control and operation
scheme in a wider area (Lu et al., 2015). These networked
microgrids can be used to coordinate the operation of different
zonal areas and further enhance the flexibility and reliability of the
whole system.
In addition to the classification of microgrids based on their
applications, they can also be categorized into AC, DC, and hybrid
AC and DC microgrids based on the nature of the electricity of
common coupling (Guerrero et al., 2011; Dragi9 cevi
c et al., 2016a,
2016b). For AC microgrids, the whole microgrid is implemented by
using AC electricity, while DC microgrids are developed using DC
electricity. Most of the microgrids today are built based upon AC
coupling since the main grid is implemented using AC electricity.
However, considering the advantages of higher energy conversion
efficiency, simple algorithms of resynchronization, and so forth, DC
microgrids have also drawn increasing attention. Recent studies
also indicated that hybrid AC and DC microgrids provide a
promising solution to integrate both AC and DC microgrids into
existing electric power grids and leverage the merits of both types
of microgrids.
2.2. Features of microgrids
A microgrid is a discrete energy system consisting of DERs (e.g.,
renewables and storage and loads capable of operating in parallel
with or independently from the main grid). The primary purpose
and characteristics are to ensure affordable energy reliability and
security for commercial, industrial, and federal consumers.
Benefits that extend to utilities and the community include lower
greenhouse gas (GHG) emissions and lower stress on the
transmission and distribution system (Akshata et al., 2012). When
connected to the main grid, microgrids rely on a generation mix,
depending on the metric to be optimized (e.g., cost, GHG, and
reliability).
Table 2 presents a detailed comparison of a traditional power
grid and a microgrid (Akshata et al., 2012). The comparison was
conducted in terms of cost, fuel efficiency, reliability, emissions,
security, and construction constraints. Based on the comparison,
the value proposition of microgrids can be summarized as follows:
 X. Lu et al. / The Electricity Journal 29 (2016) 8–15
Table 2
Comparison of Traditional Power Grids and Microgrids.
Performance Traditional Power Grids
Measure
Cost At most locations in the U.S., power delivery costs between 6 and 15 cents/kW.
Fuel Efficiency Fuel efficiency is 30% to 50% depending on the type of participating power plants.
Reliability The average reliability of a power grid is 99.97%.
Emissions Emission issues of traditional power plants are a major concern. By combining traditional Emission issues are significantly resolved by using fuel cells,
power generation with natural gas, emission issues can be alleviated.
Security Damage to major infrastructure induces a significant impact on a large number of
customers.
Construction Difficult to build new lines and substations.
Constraints
 Efficiency: Lower energy intensity and distribution system loss;
 Reliability: Extremely high (i.e., near 100%) uptime for critical
loads;
 Security: Enables both cyber and physical security;
 Quality: Stabilizes power to meet consumer energy require-
ments exactly;
 Sustainability: Expands generation to renewables and cleaner
fuel sources.
3. Microgrid implementation
Implementing a microgrid solution can involve four phases: (I)
demand reduction, (II) on-site generation and storage, (III)
advanced controls, and (IV) automatic grid independence. Each
phase is not completely distinct, nor must they be implemented in
sequence. There are areas of overlap. The general four-phase
sequence is shown in Fig. 3 (Dohn, 2011).
3.1. Phase I: demand reduction
Reducing the demand of electricity, natural gas, and water
consumption requires a change in customer behavior, in combina-
tion with the implementation of conservation measures. Some
examples of widely commercialized solutions include program-
mable thermostats, occupancy sensors, efficient lighting, building
envelope improvements, chiller and boiler upgrades/retrofits,
variable frequency drives (VFDs) for heating, ventilation, and
air-conditioning (HVAC) units, building management systems, and
advanced metering. The cost savings that result from conservation
Fig. 3. Four-phase sequence of microgrid implementation.
11
Microgrids
Microgrids are capable of lowering fuel costs to under
10 cents/kWh.
With combined heat and power (CHP), fuel efficiency can be
increased to 70%–90%.
Microgrids can achieve higher reliability if they have a
traditional power system as backup.
PV, wind, etc., in microgrids.
Only local customers are affected by the damage in
microgrids.
Microgrids can be used to release the conventional
construction constraints in a traditional power system.
measures can be leveraged to fund advanced on-site generation
and storage solutions. While electricity conservation is the primary
focus of this phase, water conservation will improve project
payback.
3.2. Phase II: on-site generation and storage
Implementation and integration of on-site generation (both
renewable and conventional) and storage are the next level of
microgrid development. The goal is to deploy power generation
that is cleaner (i.e., incurring lower GHGs) and more efficient for
end users than what is generated by the main grid.
Renewable-based on-site electricity generation options include
solar PVs and small wind turbines. Given the relatively low cost of
natural gas and the efficiency of modern combined heat and power
(CHP) solutions, end users can deploy small gas turbines (<50 MW)
to provide an economically viable generation capability. To lower
the total carbon footprint, locally produced biomass or methane
from landfills can be used as fuel for the turbines rather than
natural gas. Storage of energy, whether thermal or electric, may be
high- or low-tech. Batteries, flywheels, compressed air, and
pumped hydroelectric storage are among the more high-tech
and higher-cost options. Relatively low-tech storage solutions
include chilled water or ice storage. Electric vehicles offer another
alternative for energy storage. Although experts are split on the
feasibility and business case of using electric vehicles as storage,
what is universally accepted is the appeal of recharging vehicles at
night, when both the demand for and cost of electricity are low.
3.3. Phase III: advanced controls
Control systems such as distribution supervisory control and
data acquisition (SCADA), building management, and demand
response are all parts of an intelligent microgrid network. As the
percentage of on-site renewable generation approaches around
20% of the total power supply, the control and optimization of the
power system become a significant challenge. Meanwhile,
centralized transparency into all devices, from power generation
assets to the devices that consume electricity, enables proactive
management of the power system. With automated monitoring
and controls, power system supply and demand can be optimized
and balanced in real time, and faults can be quickly detected,
isolated, and repaired.
Advanced controls allow systems to operate based on perfor-
mance metrics such as economics, carbon footprint, or reliability.
Advanced demand response systems enable automatic peak load
shedding and participation in the energy markets where they are
allowed by local regulations, which is a key revenue-generating
opportunity. In addition, storage assets can be automatically
12 X. Lu et al. / The Electricity Journal 29 (2016) 8–15
deployed to sustain mission critical loads. The key challenge is
integration of the disparate systems to optimize the total system.
3.4. Phase IV: grid independence
A fully evolved microgrid is the culmination of the previous
three phases and the ability to operate independently from the
main grid for an extended period of time. Automatic controls know
and determine when, how, and why to be grid independent, or to
be connected to the main grid.
In particular, grid independence can be accomplished in two
ways:
 First, if the microgrid has internal combustion engines, the
power system can connect or disconnect via relays, switches, and
breakers. This is the mature method and is commercially
available today; or
 Alternatively, the microgrid generation and storage assets can
connect to the main grid via a series of inverters, allowing for
more advanced control of power in both directions between the
main grid and the microgrid.
Considering the four-phase microgrid implementation method,
a microgrid is envisioned as a combination of generation,
consumption, and storage with intelligent management by using
advanced controls and automation systems. A fully developed
microgrid should have the capability of automatically disconnect-
ing and operating independently from the main grid. It will have
approximately 20–25% of its on-site power generation from
renewable technologies, integrated with thermal energy storage
and electric battery storage if cost competitive. For example, if a
storm disrupts energy service from the main grid, automated
controls will reduce non-critical loads (e.g., selected lighting, HVAC
systems), and the microgrid will distribute power from on-site
generation and storage for an extended period of time. When the
main grid is back online, the microgrid will automatically
reconnect, recharge energy storage, and ramp down on-site
generation as appropriate.
4. Microgrid operation
4.1. Typical microgrid configuration
To clearly identify the operation of a microgrid, it is necessary to
understand the typical microgrid configuration. As depicted in
Fig. 4, a typical microgrid is commonly connected to the main grid
via a single point of common coupling (PCC). However, with the
development of microgrid technologies, multiple PCCs can coexist
to form the microgrid as a multi-terminal network. Under these
conditions, the PCCs can also be regarded as the points of
interconnection (POIs) (Wang et al., 2015a). Whether a microgrid
Fig. 4. Typical microgrid configuration.
features single or multiple coupling points, it is usually connected
to the distribution system at a low or medium voltage level. Hence,
the microgrid can be seen as a controllable unit in the central
energy management system of the distribution grid.
The devices deployed in microgrids can be classified into two
categories: inverter-based units and rotation-based units (Wang
et al., 2015a). The inverter-based units are interfaced via power
electronic inverters (e.g., PVs, wind turbines, ESUs, and active and
controllable loads), while the rotation-based units are imple-
mented via rotating devices (e.g., small-scale generators, flywheel
ESUs). Different types of devices in microgrids feature common
plug-and-play characteristics. Hence, flexible control and opera-
tion can be achieved.
Also, the controllers used in microgrids normally have a hybrid
architecture (Shahidehpour and Khodayar, 2013; Guerrero et al.,
2011). In other words, both local and master controllers are used to
coordinate local control of each micro-source and central control
for achieving high-level control objectives.
4.2. Operational differences between microgrids and the main grid
Because of the various architecture and operation objectives,
microgrids and the main grid operate differently.
First, compared to the main grids, microgrids are usually
implemented in a small area. Thus the control objective of a
microgrid is commonly determined based on local needs; for
example, local frequency and voltage stabilization, power and
energy balance in the local CHP systems, and local economic
dispatch.
Second, considering that most of the DERs are interfaced via
power electronic inverters, although they can provide higher
flexibility and controllability compared to conventional rotation-
based devices, their inherent inertia is low due to the absence of
rotating parts in traditional generators. This low inertia may
degrade system stability and induce extra resonance or oscillation
issues. Additional control algorithms or active devices should be
used to avoid violating the stability constraints during the
operation of microgrids.
Third, microgrids should be self-adequate systems. Their safe
and reliable operation should not rely on the main grid. In
particular, a microgrid should be able to run in both grid-connected
and islanding operation modes (Mehrizi-Sani and Iravani, 2010). In
grid-connected mode, the microgrid should support the operation
of the main grid and behave as a controllable unit to follow the
commands issued by higher-level controllers in distribution
systems (e.g., distribution management systems [DMSs]). On the
other hand, when running in islanding mode, the microgrid should
be able to run in autonomous operation and achieve a power
balance between the source and load sides. Meanwhile, a smooth
transition between grid-connected and islanding operation modes
 X. Lu et al. / The Electricity Journal 29 (2016) 8–15
should be achieved, and the microgrid should be able to schedule
and conduct the mode transition in a controllable manner.
5. Microgrid control
5.1. Local controller
The hierarchical control system developed for microgrids is
implemented by using coordinated local controllers (LCs) and
master controllers (MCs) (Shahidehpour and Khodayar, 2013;
Guerrero et al., 2011). For LCs, droop control is a common control
method used in microgrids. This control method usually follows P-f
and Q-V droop curves. These relationships are implemented in the
microgrids with majorly inductive line impedance. For the
microgrids with majorly resistive line impedance, such as in some
remote microgrids, the above droop relationship should be
modified, where P is related to V, while Q is related to f. In
addition to using droop control methods, the LCs should also be
able to control the local active and reactive power to ensure that
DERs can follow local demand requirements. Therefore, the LCs
should run in either droop control mode to achieve autonomous
operation or PQ control mode to follow the commands for demand
response.
LCs should not only run in normal operation but also be
designed to have fault ride-through capabilities. The LCs of DERs
should be controlled to determine whether to ride through the
faults or to disconnect themselves to prevent further damage on
the other parts of the system. This control function during faults
should follow the corresponding standards (e.g., IEEE Std. 1547).
In addition to conducting effective control of the devices inside
local microgrids, the LCs should monitor and coordinate with the
other LCs (at least the neighboring LCs) to be aware of system-wide
operation situations and provide corresponding and responsive
control strategies. Meanwhile, the LCs should communicate with
the MCs to respond to central control commands, such as economic
dispatch and requirements for emerging support.
5.2. Master controller
There are two main functional modules in the MCs—energy
management module (EMM) and protection coordination module
(PCM) (Gonen, 2013). EMM provides the set points for output
Fig. 5. Configuration of network-integrated microgrids.
13
active and reactive power and voltage and frequency to each LC.
The values of the set points are decided according to the
operational needs of the microgrid. The EMM must ensure the
source and load balance in the microgrids and make certain that
the microgrid operates following the pre-determined constraints.
The PCM provides effective protection coordination among
different LCs. Most importantly, it adaptively modifies the settings
of the protective devices when the operation modes of microgrids
change. In particular, when the microgrid runs in grid-connected
mode, since the main grid can contribute a significant amount of
fault current, the settings of the protective devices should be high
enough to avoid protection malfunction. However, when the
microgrid runs in islanding mode, since the fault current is solely
contributed by the DERs, the fault current level can be low,
especially for inverter-dominated microgrids. In this case, the PCM
should decrease the settings of the protective devices. Thus the
protection system can be sensitive enough to conduct the expected
protection behavior.
Since microgrids need to switch between grid-connected and
islanding operation modes following the commands issued by the
controllers at the distribution system level, the MCs are also
responsible for resynchronizing the microgrids during reconnec-
tion and detecting the unexpected islanding situation.
6. Interconnection of multiple microgrids
In order to achieve flexible operation and maximize the
controllability of microgrids, the maximum capacity of a microgrid
is commonly limited to approximately 10 MVA following IEEE Std.
1547 (IEEE, 2009). Therefore, to enhance the grid supporting
functionalities, such as participation in voltage and frequency
regulation at the distribution system level, multiple microgrids can
coexist to establish a networked configuration to improve grid
interactive services. This architecture of networked microgrids is
depicted in Fig. 5 (Wang et al., 2016b). It can be seen that each
microgrid can be an autonomous system with local DERs and loads,
while they can be interconnected at the distribution system level
to support grid operation. In networked microgrids, the central
controller at the distribution system level should coordinate the
operation of multiple microgrids. Meanwhile, each microgrid
controller should be responsible for managing the device-level
assets inside the corresponding microgrid and being responsive to
14 X. Lu et al. / The Electricity Journal 29 (2016) 8–15
the operation commands issued from the grid side. The networked
microgrids can provide more redundancy to ensure higher
flexibility and resilience of the whole distribution system.
While there are foreseeable advantages of networked micro-
grids, the following challenges remain for microgrid interconnec-
tion:
 Optimal coordinated operation,
 Decentralized communication and control,
 Self-healing strategies,
 Renewable generation uncertainty.
The coordinated energy management of a networked microgrid
can be formulated as a stochastic bi-level problem. In the upper
level, the distribution network operator (DNO) guarantees
operational constraints such as power flows and voltage levels,
while in the lower level, microgrids minimize operation costs of
individual systems (Wang et al., 2015b).
7. Microgrid integration with the distribution system
A DMS plays a critical role in control and management of
distribution grids (Wang et al., 2015a, 2016c; Wang, 2015a, 2015b).
The IEEE Power and Energy Society (PES) DMS task force proposed
and accepted the following definition of DMS (Wang et al., 2015a):
A DMS is a decision support system that is intended to assist the
distribution system operators, engineers, technicians, manag-
ers and other personnel in monitoring, controlling, and
optimizing the performance of the electric distribution system
without jeopardizing the safety of the field workforce and the
general public and without jeopardizing the protection of
electric distribution assets.
Increasing penetration of DERs challenges the conventional
DMS. Existing technologies for control and management of DERs
include the microgrid controller and DER management system
Fig. 6. Data communication and function mapping between microgrid controller and DMS.
(DERMS). It is necessary to consider the seamless integration of the
microgrid controller and DERMS to form an advanced DMS
(ADMS).
Advanced applications are the key elements of a DMS. Based on
the information gathered from an industry survey (Wang et al.,
2015a), DMSs have been widely implemented in existing
distribution systems, and most utilities are equipped with multiple
advanced applications. The critical part of integrating the micro-
grid controller and DERMS into a DMS is to understand the impact
of different advanced applications during the integration. The
integration can be achieved in three ways: integration through
enterprise service bus (ESB) and SCADA, peer-to-peer individual
integration, and embedded integration. In both normal and fault
conditions, the microgrid controller and DMS can exchange data, as
shown in the data communication and function mapping in Fig. 6
(Lu et al., 2015; Wang et al., 2015a).
The increasing number of microgrids in modern distribution
systems necessitates the advance of DMSs. In particular, the
advanced applications in DMSs should be upgraded accordingly to
resolve issues such as bidirectional power flow, protection
malfunction, and voltage violation. Improvements in these
advanced applications can significantly facilitate the control and
management of distribution systems, especially for the evolution
from legacy operation methods to distribution automation. Two
examples of advanced applications are discussed below.
For the advanced application fault location, isolation, and service
restoration (FLISR) in a DMS, the improvement of this application,
considering the increasing penetration level of DERs and micro-
grids, should focus on the changes from a conventional passive
network to an active system. Particularly, bidirectional power flow
should be taken into account. Meanwhile, the traditional protec-
tive devices should be retrofitted to address the needs of protecting
both the distributed sources and loads. FLISR in a DMS should
effectively coordinate the use of different types of protective
devices.
 X. Lu et al. / The Electricity Journal 29 (2016) 8–15
For the advanced application voltage-volt optimization (VVO) in
DMS, the improvement of this application should focus on the
potential voltage violation induced by DERs and microgrids.
Different from conventional passive distribution systems, an
unexpected voltage rise can be imposed by distributed RESs.
The voltage violation should be avoided by coordinating the local
microgrid controllers and the central control algorithm in a DMS,
that is, VVO. VVO in a DMS should be modified to effectively keep
the voltage profile in the whole distribution system within the
acceptable range.
8. Conclusion
The existing electric power system has been challenged by the
evolution of energy structure and extreme conditions such as
natural disasters, which drive the development of system
infrastructure and grid modernization. As an effective and flexible
distributed solution, microgrids play a significant role in retrofit-
ting the existing power system architecture. They appear to the
main grid as aggregated units of loads and micro-sources. They can
be designed as small-scale, low-voltage systems with CHP
networks for supplying electrical and heat loads simultaneously.
A microgrid can be implemented by using the four-phase
approach: demand reduction, on-site generation and storage,
advanced controls, and grid independence. Local and master
controllers work together to optimize the operation of a microgrid
and its interaction with the main grid. The hierarchical control
diagram is responsible in islanding operation, grid-connected
operation, and the smooth transition between these two operation
modes.
To further enhance the reliability and resilience of power
generation, multiple microgrids can be connected to form an
interconnected network. Hence, a large load demand can be
separated and supplied by multiple microgrids. Meanwhile,
multiple microgrid controllers can be integrated into a DMS to
improve the controllability of the power exchange between
microgrids and distribution systems.
Although microgrids are now widely studied, challenges still
exist. A reliable control architecture should be developed to
coordinate different devices. Advanced forecasting and demand
response management approaches should be implemented to cope
with the intermittence of renewable generation. Moreover,
interconnection issues should be further studied to eliminate
the influence of microgrid integration and achieve coordinated
operation throughout the system.
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Xiaonan Lu is with the Energy Systems Division at Argonne National Laboratory in
Argonne, Illinois. His research interests include modeling and control of power
electronic converters in renewable energy systems and microgrids, hardware-in-
the-loop real-time simulation, active distribution system, multilevel converters,
and matrix converters. Dr. Lu received a Ph.D. in Electrical Engineering from
Tsinghua University, Beijing, in 2013. He co-chaired the special session entitled DC
Microgrids: Control, Operation and Trends at the IEEE Energy Conversion Congress
and Exposition in 2015.
Jianhui Wang is with the Energy Systems Division at Argonne National Laboratory
in Argonne, Illinois. He is an Affiliate Professor at Auburn University and an Adjunct
Professor at the University of Notre Dame. He also is an associate editor of the
Journal of Energy Engineering and an editorial board member of Applied Energy. He
also served as guest editor for a special issue of IEEE Power and Energy Magazine on
Electrification of Transportation, which won an APEX Grand Award. He has held
visiting positions in Europe, Australia, and Hong Kong, including a VELUX Visiting
Professorship at the Technical University of Denmark. Dr. Wang is also the secretary
of the IEEE Power & Energy Society (PES) Power System Operations committee.
Liping Guo is an Associate Professor with the Department of Technology at
Northern Illinois University. Her research interests include power electronics
(switch mode power supplies, digital control, wide bandgap devices) and
renewable energy (solar, wind, fuel cells).