Microgrid Operation for a Low Voltage Network with Renewable Energy Sources for Losses Minimisation and Voltage Control M. Z.C. Wanik, A. A. Ibrahim, Dept. of Electrical, Electronics and System Engineering Universiti Kebangsaan Malaysia Bangi, Malaysia mzamri@ukm.edu.my H. Shareef, T. J. Huat, Transmission & Distribution Unit TNB Research Malaysia Bangi, Malaysia hussain.shareef@tnbr.com.my Abstract— This paper present brief description of a Microgrid development project currently in progress. Initially, then Malaysian renewable energy policy is briefly highlighted. The objective of having Microgrid is discussed. The main components of Microgrid and the technique on how the Microgrid central controller was developed is also explained. The result from simulation study of Microgrid system in the project is presented to demonstrate the workability of the concept. The modeling and simulation is performed in DIgSILENT and MATLAB/SIMPOWERSYSTEM software. The simulation shows quite promising results. The Microgrid controller managed to control the voltage and frequency in both grid connected and islanding mode as well as maintained them within mandatory operational limit of respective operation code in Malaysia. An active power loss is also significantly reduced. Index Terms-- Microgrid, renewable energy, distributed generation, coordinated voltage control. I. INTRODUCTION In Malaysia, integration of renewable energy (RE) resources into electrical grid is increasing substantially due to encouraging government policy and very attractive incentive. The government RE targeted that by 2020 is 11 % of Malaysian electricity generation mix is as depicted in Fig. 1. This percentage is targeted to increase exponentially (17% in 2030 and 73% in 2050) to support the Malaysian sustainable economic growth in the future [1-2]. Large amount of the RE as distributed generation (DG) however is expected to create challenges to power system operation due to variability of these resources. Thus, in response to these challenges, a new paradigm in operating power system with the significant presence of RE is proposedtp adopt.. In this new paradigm, a part of distribution network comprises of RE generators is suggested to be operated as a Microgrid [3-4]. Microgrid can be considered as a part of technology under Smart Grid to realized active management of distribution network [5]. Microgrid architectures are being investigated in different research projects in EU, the USA, and Japan with some implemented demonstration project. Important components of a Microgrid include central controller and energy storage. Different control options and strategies are being investigated in each of the above projects [3-4]. The factor influencing these includes energy market scenarios and type of resources available in those regions. Another important factor is the local renewable energy policy and incentives provided by the local government. Figure 1. Malaysia National Renewable Energy Goals [1] For example, Microgrid central controller in EU Microgrid architecture has several control functions that include optimizing generation and load scheduling based on daily forecasts and market prices; ensuring that the Microgrid satisfies the regulations of the distribution network operator; coordinating between different market agents in the Microgrid; and supervising islanding operation, load shedding and restoration, generator blackstart, resynchronization and system restoration [3-4]. This research works is part of collaboration works between TNB Research Malaysia and Power System Research Group of Universiti Kebangsaan Malaysia. TNB (Tenaga Nasional Berhad) is a main electric utility company in Malaysia and a leading utility company in South East Asia with almost MYR 87 billion in assets. TNB Research is a research arm of TNB. The funding is mostly provided by TNB Research. 978-1-4799-8725-2/15/$31.00 ©2015 IEEE