A Hybrid AC-DC Microgrid: Opportunities & Key
Issues in Implementation
Rahul Anand Kaushik, Student Member, IEEE and N. M. Pindoriya, Member, IEEE
Electrical Engineering, Indian Institute of Technology Gandhinagar
Ahmedabad, Gujarat, India, Email: rahulanandkaushik@iitgn.ac.in
AbstractHarvesting the maximum possible energy from
distributed renewable energy resources (DER) makes the modern
electric grid more secure and sustainable. Considering that fact,
various technological advancements and government initiatives
are initiated to connect this DER through microgrid to utility
grid at point of common coupling. The hybrid AC-DC microgrid
reduces multiple power conversions in individual AC or DC
microgrid and allows connection of variable AC and DC sources
and their respective loads simultaneously. This paper illustrates
the architecture and energy management of hybrid AC-DC
microgrid. Even though, hybrid grid has numerous advantages
over individual microgrid, the interconnection of two grids has
raised concerns such as complexity, control and protection.
Various technical and economical challenges associated with
hybrid AC-DC microgrid are also discussed.
KeywordsDistributed renewable energy resources (DER),
Microgrid, AC grid, DC grid, Energy balancing.
I. INTRODUCTION
In the last few decades, the demand of electricity is
growing significantly which requires more penetration from
generation units and an efficient operation of the power grid.
Higher living standards, population growth, pollution,
depletion of conventional energy resources like fossil fuels
(coal, petroleum, natural gas etc.) are making the situation
more critical. Fossil fuels have their own disadvantages like
emission of CO2, NOx and SOx which cause pollution and
global warming. The major disadvantage of central generating
plants is their inefficiency because of poor waste heat recovery
and line losses [1], in todays power generation. Distributed
renewable energy resources (DER) like solar, wind, tidal
energy, small hydro plant and fuel cell are free from pollution,
eco-friendly and available abundantly in nature, are the best
resources for power generation. The DER can be integrated at
any point of grid and do not contribute much to transmission
losses if connected nearer to the load demand. Features of
expandability and flexibility are making generation from DER
more popular. In rural areas or remote locations where the
electricity through transmission line is still a challenge, the
distributed generation can solve that problem. However, the
power generation from DER is uncertain due to their
dependence upon metrological conditions and leads the system
highly unreliable. This problem can be overcome with the help
of fuel cells [2] and by improving capacity of energy storage
systems (ESS) [3].
As DER has many good features, it conceptualizes a new
idea of microgrid - a localized grouping of energy sources and
loads which are able to satisfy its local demand and help
improving the grid efficiency [4]. Energy & power flow
management can take care of excess or deficit generation in
microgrid [5]. The main feature of microgrid is that it is
connected to the utility grid at single point of coupling which
can be disconnected whenever abnormal condition occurs in
main grid [6]. Because the microgrid can operate in Island
mode during unwanted failure of central generation or
transmission line fault, it ensures continuous power supply to
critical loads such as hospital, military applications, banking
sectors, security sector etc. It increases overall reliability of
system and avoids blackout [7]. The concept of microgrid not
only introduces the reduction of multiple reverse conversions
in an individual AC or DC grid but also facilitates connections
to variable renewable AC and DC sources and loads to the
power systems. According to the nature of power
injection/withdrawal, a microgrid can be divided into: (a) AC
microgrid and (b) DC microgrid.
Although the traditional AC power system has been much
developed in past few decades and many of our existing loads
are of AC in nature, the improvement of power electronics has
revolutionized most of the major domains of power system
and has changed the load profile of end users. Today, the
modern appliances - laptops, mobiles, remote controllers,
electrical vehicles, etc are operating on DC supply that
facilitates easy control and it has no issues of power factor,
phase sequence, power angle and frequency. In the
conventional AC power system, the DC loads are fed through
AC-DC converter and because the conversion losses, the
system may not be that much efficient.
Having that understanding, a new concept of hybrid AC-
DC microgrid has been proposed in the literature to avoid
multiple AC-DC conversion or vice versa [8]. It has
advantages of both AC and DC grids and also takes care of
both AC and DC loads. In the hybrid AC-DC microgrid, AC
generation units like wind generation, small hydro generation
plant and AC loads are connected on AC grid and DC
generation units like Solar PV, fuel cell, ESS and DC loads are
connected to DC grid. Both the grids are connected to each
other through bidirectional converter which is most important
component of the hybrid AC-DC microgrid and responsible
for power flow between AC and DC microgrid.
The objective of this paper is to illustrate the function of
hybrid AC-DC microgrid and its optimal energy management.
It emphasizes the focus on its benefit and tries to figure out
various challenges associated with its proper functioning and
implementation. Section II highlights the present status of
power generation and contribution from DER R in India. Layout
& flowchart of working of hybrid AC--DC microgrid is
described in section III. Sections IV & V illustrate about
benefits, various challenges and scope relatted to functioning
of hybrid AC-DC microgrid.
II. GENERATION AND SUPPLY - CURRENTT STATUS IN INDIA
According to the survey of Internationaal Energy Agency
(IEA) from 1990 to 2008 the average energgy use per person
has increased by 10%, while the worldd population has
increased by 27%. In India, the energy consumption grew by
140%. Considering the facts, the demannd has not been
matched with supply yet. India is presently facing
f the shortage
conditions both in terms of energy and peaaking availability.
During the year 2012-13, base load requirem ment was 998,114
MU against availability of 911,209 MU whiich is a shortage is
86,905 MU i.e. 8.7% deficit. During peak load the demand
was for 135,453 MW against availability of 123,294 MW
which is a shortage of 12,159 MW i.e. 9.0% [9]. Evidently the
shortage is very high and is only increasing. Power generation
in India is mostly relying on thermal basedd power plant with
contribution of around 68% (shown in Fig. 1) 1 and considering
the fact that the rate of depletion of fossil fuel is increasing,
India has to look forward for more and moore penetration of
DER based generation. At present, total insstalled capacity of
renewable generation is about 29 GW [10] out of total power
generation installed capacity of around 2299 GW (as on Oct
2013).
Fig. 1. Total installed power generation capappcity in India
India has a vast supply of renewable eneergy resources and
to harvest that energy, various long terrm policies, pilot
projects and aggressive R&D have beeen initialized by
Ministry of New and Renewable Energy (MNRE) ( in India.
National Action Plan on Climate Change (N NAPCC) is a major
initiative of the Government of India to proomote ecologically
sustainable growth while addressing India''s energy security
challenge. It will be a major contribution by India to the global
effort of meeting the challenges of climatee change [10]. All
these efforts give huge opportunities to DER R based microgrid
in India and ensure sustainability and stable grid
g operation.
III. HYBRID AC-DC MICROGRID: LAYOUT AND
FUNCTTIONING
The schematic representatioon of hybrid AC-DC microgrid
connected to a utility grid is depicted in Fig. 2. Both AC grid
and DC grid are connected to each
e other through bidirectional
converter [11]. Depending upoon the condition of utility grid,
the hybrid grid can be functioned either in grid tied mode or
individually in autonomous mode. The hybrid AC-DC
microgrid can be controlled centrally
c or under decentralized
control [12].
Fig. 2. The schematic diagraam of hybrid AC-DC microgrid
In normal operating coondition, the hybrid AC-DC
microgrid operates under grid g tied mode, and remains
connected to the utility at singgle point of coupling, in which
the utility acts as a slack bus. Surplus
S power in the hybrid AC-
DC grid will be sent to the utility
u grid, and power shortage
will be supplied by the utiliity grid. In this mode, all the
generation units operate under maximum power point tracking
(MPPT) to harness maximum m power [8], [12]. Whenever a
fault occurs in utility, operatioon of hybrid AC-DC grid shifts
to Island mode in which the ESS E play a very crucial role in
energy balancing for both gridds and in maintaining terminal
voltage on the DC side. Bidirrectional AC-DC converter not
only transfers power between AC and DC grid but can also
provide reference voltage andd frequency for AC grid in this
mode. If total generation is not n capable to supply required
power for the loads, some of o the non-firm loads can be
curtailed according to the prioority. In this scenario, ESS will
operate in discharging mode. However,
H if power generation is
more than demand, ESS units will operate in charging mode
under off MPPT mode. Both PV and wind turbine generator
can operate on MPPT and offf MPPT mode based on system
operating requirements. Poweer balancing in hybrid AC-DC
microgrid under both grid tiedd and island mode is depicted in
Fig. 3. Table I depicts the diifferent modes of operation of
hybrid AC-DC microgrid and their t power balancing equations.
IV. BENEFITS OF HYB
BRID AC-DC MICROGRID
Due to various economicaal, technical and environmental
advantages of renewable energy, many researches are focusing
on extracting maximum posssible power from DER. The
microgrid is a tiny power systeem which can be built to operate
on the principle of either AC C microgrid or DC microgrid
according to nature of geneeration and load. Due to the
development of electronics, DC C grid is resurging [13] and has
inherent advantages for dc loaads in industrial and residential
applications. The DC microgrrid has been proposed in [14] -
[16]. The individual AC and DC D grid has its own advantages
and disadvantages. The hybrid AC-DC microgrid combines TABLE II. VARIOUS POWER CONVERSIONS FOR DIFFERENT TYPES OF
LOADS
advantages of both AC and DC grids. Some of the advantages
of hybrid AC-DC microgrid are as follows [12], [17]: Type Type Type of Loads
of of
Grid Source DC Load AC Load ACwC Load

DC DC/AC/DC DC/AC DC/AC/DC/AC

AC
AC AC/DC NO AC/DC/AC
DC NO DC/AC DC/AC
DC
AC AC/DC AC/DC/AC AC/DC/AC

Fig. 3. Power balancing in hybrid AC-DC microgrid
TABLE I. HYBRID AC-DC MICROGRID AT DIFFERENT MODES OF
OPERATION WITH POWER BALANCING EQUATIONS
Mode of State of Charge
Operation (SOC) of Battery
Power Balancing Equation
PAC _ Gen + PDC _ Gen + PGrid =
Charging PBattery + PDC _ Load + PAC _ Load
QAC _ Gen + QGrid = QLoad
Grid Tied
PAC _ Gen + PDC _ Gen + PGrid +
Discharging PBattery = PDC _ Load + PAC _ Load
QAC _ Gen + QGrid = QLoad
PAC _ Gen + PDC _ Gen = PBattery
Charging + PDC _ Load + PAC _ Load
QAC _ Gen = QLoad
Islanded
PAC _ Gen + PDC _ Gen + PBattery
Discharging = PDC _ Load + PAC _ Load
QAC _ Gen = QLoad
A. Elimination of unnecessary multiple conversion
In hybrid AC-DC microgrid, AC loads and AC generation
units are connected on AC grid. Similarly DC loads and DC
generation units are connected on DC grid. It eliminates
conversion losses of multiple AC to DC conversion or vice
versa. In modern power system, DC loads and AC loads with
converter (ACwC) like refrigerator and air conditioners are
more dominant. In such scenario, the hybrid AC-DC
microgrid helps to reduce that conversion loss. Table II [12]
shows various conversions in individual AC and DC
microgrid according to different types of loads.
B. Improves reliability
Generation of power through AC and DC renewable
resources like wind turbine and PV generation is uncertain in
nature. In autonomous mode, without diesel generator and
ESS reliability of individual AC and DC based microgrid is
always on risk. Hybrid AC-DC microgrid consists of both AC
as well as DC grid and hence whenever such condition arises,
power can be transferred between the two grids. Power
generation from ESS (battery and super capacitor), diesel
generator, fuel cell, etc. does not depend on environmental
conditions and plays a key role. It does not support only local
load but also helps to avoid blackouts.
C. Control
In hybrid AC-DC microgrid different generation units and
their respective loads are connected on separate grids like PV
units and electric vehicle is connected on DC side and wind
turbine and refrigerator is connected on AC side. This
separates the grid into two sub grids whose nature is totally
different and can be controlled individually.
D. Control of harmonics
In microgrid maximum components are connected through
power electronics devices such as boost converter, inverter
and bidirectional converter which injects huge amount of
harmonics of different order in the grid. As connections of all
the DC components are on DC side, harmonic injection into
AC microgrid due to DC grid can be controlled easily.
Different filtering techniques can be used for both grids
individually to eliminate their harmonics, thus it can generate
high quality AC in the utility grid.
E. Reduction in embedded converter
The hybrid AC-DC microgrid has both AC and DC grid;
simplification of equipment is possible without use of extra
inverter or rectifier. It helps in cost reduction of associated
electronic products.
F. Ancillary services
Like other AC microgrid, the hybrid AC-DC microgrid has
the ability to provide ancillary services such as improvement
in power quality by reducing effects of voltage sags,
uninterruptable power supply, reactive power compensation,
power factor correction, and voltage and frequency regulation.
G. Environment friendly
The hybrid microgrid helps to reduce green house effect as
maximum generation units installed in microgrid are free from
pollution. The contribution of some of the generation units
like diesel generator can be reduced significantly with use of
proper coordination among other energy generation units and
ESS.
V. CHALLENGES AND SCOPE IN HYBRID AC-DC MICROGRID
Hybrid AC-DC microgrid is a new trend in microgrid with
numerous advantages over existing microgrid and utility.
However, there are lots of practical issues associated with it,
which should be overcome to make the concept feasible.
These challenges can be broadly divided into a) Technical
challenges and b) Economical challenges.
A. Technical Challenges and Scope
1) Coordination control of AC-DC microgrid: A hybrid
AC-DC microgrid consists of a cluster of generation units,
loads and storage systems. To maintain real and reactive
power import/export from utility or power flow among DC
and AC microgrid itself, a bidirectional converter plays a
significant role. Some of the distributed generation requires
connection with boost converter in order to connect the system
at desired voltage level. In order to achieve proper control
among all the components of AC-DC microgrid units, some
control methods have been proposed [18], [19].
a) Droop control method: In this method, the DER is
controlled as synchronous generator connected to
conventional power system. Its frequency droops when output
active power increases and voltage droops according to
reactive power changes in AC grid, for DC grid only voltage
droop used [20]. The advantage of droop method is that it
eliminates communication among modules for effective grid
control. But it faces problem of circulating current among
DERs because it uses voltage loop (VL) at each node. Fig. 4
depicts droop control [21], where Vref is reference voltage,
current loop (CL), Vo is output voltage of each node, VMG is
microgrid voltage, and IoN is output current of DER.
b) Master Slave method: This technique avoids
circulation of current among each node as one of the DER acts
as master and controls the voltage in Island mode and rest of
the DERs work in current control mode and act as slave. In
grid tied mode, all DER work on current control mode like
slave and grid acts as master to control voltage [22], [23].
Main disadvantage of this method is system reliability, highly
dependent on master DER whose failure will lead to system
failure. Fig. 5 depicts Master Slave control [21], where igN is
DERs output current and ig* and im is reference current for
DER.
As both the control methods have some disadvantages,
improvement in control strategies is one of the major issues.
Fig. 4. Droop control
Fig. 5. Master Slave control
2) Protection of hybrid AC-DC microgrid: Protection of
any system is one of the most important factors that should be
taken care to ensure systems security, safety and reliability.
Losses in the power system due to various faults or unhealthy
operation highly depend upon how quick protection scheme
responses. A hybrid grid consists of both AC and DC grid
with multiple power electronics converters which work under
grid tied mode (normal condition) and in Island mode
(abnormal condition). Such complexity makes the protection
scheme more challenging [24]. Literature provides evidence
that there is significant difference in fault current level in both
grid tied and Island mode [25], [26] which forces to design
protection scheme with different levels of tripping current.
Design of protection scheme for hybrid AC- DC microgrid is
one of the research areas with lots of scope.
3) Synchronization: When hybrid AC-DC microgrid
reconnects to the main grid from island mode, the mismatch in
voltage (V), frequency (f), and phase angle (), of
microgrid should not be more than the prescribed values as
shown below [27] in Table III. Various synchronization
strategies are under research to achieve IEEE 1547 standards.
TABLE III. SYNCHRONIZATION PARAMETER LIMITS FOR
INTERCONNECTION BETWEEN UTILITY GRID AND MICROGRID
Total rating of DERs (kVA) f(Hz) V 0 0 0 0
0-500 0.3 10 20
> 500-1500 0.2 5 15
> 1500 0.1 3 10
4) Power quality issues
a) Harmonics filtering: In power system, the many
distributed generation units are integrated to the utility with
the help of power electronics devices. These electronic devices
are nonlinear in nature and generate harmonics. Due to
unbalanced and nonlinear connected loads, system current
becomes polluted and consists of ve sequence components.
Some filtering techniques are required to ensure pollution free
current in AC utility [18], [28].
b) Reactive power compensation: Smart function of
modern inverters provides real and reactive power to load
[29]. These inverters are voltage source converters (VSC)
which are self commutated in nature and have ability to
provide lag/lead reactive power according to demand. In
power system, VSC is used as DSTATCOM to improve the
voltage quality [30]. The same concept can be used in the
bidirectional AC-DC converter of a hybrid AC-DC microgrid
to extract reactive power from DC grid. It improves voltage
profile [31], power factor and avoids voltage sag.
c) Standardization of technical and comercial protocols:
Both AC and DC generations have been existing for more than
ten decades but early development of transformers made
transmission and distribution path much easier for AC.
Recently developed power electronics converters facilitate
DC transmission, distribution at different voltage levels. DC
has numerous advantages over AC in many areas of power
system, but faces several problems because it is still in
growing stage. It is one of the challenging areas for hybrid
AC-DC microgrid which requires further investigations to
standardize DC grid and its voltage level. Some of the key
problems are [13]: a) Inadequate application and equipment
guidelines for DC power distribution and b) difference in
levels of fault current in both grid tied and island mode.
5) Communication platform: A hybrid AC-DC microgrid
uses digital signal processing for converters to receive or
transmit operation instructions from main/individual
controller. Hence, the efficiency of energy management of
microgrid highly relies upon the communication platform. If
the communication does not have the real-time performance
up to the mark, the microgrid will not work as expected.
Literature [32]-[34] clearly reflects the opportunities of
effective communication network in protection, energy
management [35] and dynamic control of hybrid microgrid
with use of LAN (local area network), CAN (central area
network) and WAN (wide area network). Advanced metering
technologies are under research, which would enable two way
communication between the customer and the utility to make
healthy participation of hybrid AC-DC microgrid in energy
market.
B. Economical Challenges and Scope
1) Co-optimization of energy management and economic
operaton: The energy management of microgrid deals with
economic allocation of power generation among various DER
units, which fulfills load demand with optimal cost. In
conventional power system, demand is satisfied by economic
load dispatch (ELD) and unit commitments (UC). As
microgrid can be treated as a single controllable unit [36], it
can participate in energy market both as a consumer and as a
supplier. By having small generation units, the consumers can
not only sell their generated power but can also provide
ancillary services to earn profit [37]. As the microgrid
generation is governed by renewable resources whose
generation is completely dependent upon environmental
conditions [38], there is a lot of scope to investigate and
develop new energy management techniques to optimize
benefits from microgrid.
2) Unfriendly Mmarket policies: In addition to the
technical improvements, there is a need to implement various
supportive policies to provide favourable market for
microgrid. In present scenario of energy market, microgrid
faces relatively low electricity prices compared to their high
capital cost and which clearly reflected in slow growth of
microgrid infrastructure.
VI. CONCLUSION
This paper discusses the effectiveness of hybrid AC-DC
microgrid for making use of distributed renewable energy and
satisfying the local load demand. The broad structure and
functionality of hybrid AC-DC microgrid has been discussed
through the state-of-the-art. Although clear benefits of hybrid
AC-DC microgrid are undisputable, there are several
challenges in its implementation. A critical analysis of the
literature review undertaken in the present paper reveals
various technical and economical challenges and scope for
further improvement. Therefore, it is long term prospect to
implement hybrid AC-DC microgrid concept in real world.
However, DER based hybrid grids are the future of upcoming
power system and it requires rigorous research and support
from government and independent power producers.
ACKNOWLEDGMENT
This work was supported by Department of Science &
Technology under the grant no. SERB/F/4835/2012-2013.
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