The increased penetration of Distributed Energy Resources (DER) is challenging the entire architecture of conventional electrical power system. Microgrid paradigm, featuring higher flexibility and reliability, becomes an attractive candidate for the future power grid. In this paper, an overview of microgrid configurations is given. Then, possible structure options and control methods of DER units are presented, which is followed by the descriptions of system controls and power management strategies for AC microgrids. Finally, future trends of microgrids are discussed pointing out how this concept can be a key to achieve a more intelligent and flexible power system.
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