In this project a Microgrid consisting of different distributed generation (DG) units are presented. These distributed generation (DG) units are connected to the distribution grid. The distributed energy resources are necessary to saving the energy for future use. Here an Energy-management algorithm is implemented to coordinate the operations of the different DG units in the Microgrid for grid-connected and islanded operations. The control of DG inverters is achieved by using a newly developed model predictive control (MPC) algorithm. The advantage of this method is that it has faster computational time by enhancing the steady-state and transient state control problems separately.

The proposed Microgrid consists of a photovoltaic (PV) array, a proton-exchange membrane fuel cell, a lithium-ion storage battery. Photovoltaic array act as the primary generation unit of the microgrid and the proton-exchange membrane fuel cell is used to supplying power for preserving the output voltage of primary generation unit within a range. A lithium-ion storage battery is helps in reducing the amount of energy purchased from the main utility grid during grid connected operation and also maintaining the shortage of power by supplying power during islanded operation in such a way that it helps in maintain the stability of the distribution network.