Abstract

Electrical energy consumption has been increasing in recent years which increases the electric power generation. Distributed Generation (DG) have been gaining interest due to its high reliability, high power quality, efficiency, reduced emissions, high security and effective load management. A better way to apply the benefits and potential of DG, microgrid concept has been gaining more attraction. Microgrid is the future Smart Grid, which works as a local energy provider and reduce energy expenses. So the energy consumption must be reduced to improve the efficiency by efficiently using the sources and thus the overall cost can be reduced. Different aspects of microgrid are discussed in this paper. An energy management strategy must be designed to optimize the power exchanged with the grid profile. The conventional energy management system must be improved and re-designed. Brief descriptions about different types of control techniques for microgrid control are provided. Further energy management schemes, future trends and challenges of microgrid are also described.