Gradual depletion of fossil fuel resources, poor energy efficiency of conventional power plants, and environmental pollution have led to a new grid architecture known as smart microgrid. The smart microgrid concept provides a promising solution that enables high penetration of distributed generation from renewable energy sources without requiring to redesign the distribution system, which results in stable operation during faults and disturbances. However, distributed generators/loads and interaction between all nodes within a microgrid will substantially increase the complexity of the power system operation, control, and communications. Many innovative techniques and technologies have been proposed to address the complexity and challenges of microgrids including power quality, power flow balancing, real‐time power management, voltage and frequency control, load sharing during islanding, protection, stability, reliability, efficiency, and economical operation. All key issues of the microgrids, different solutions, and available methods and technologies to address such issues are reviewed in this chapter. Pros and cons of each method are discussed. Furthermore, an extensive comprehensive review for researchers and scholars working on microgrid applications is provided in this chapter to help them identify the areas that need improvements and innovative solutions for increasing the efficiency of modern power distribution grid
