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This paper addresses real and reactive power management strategies of electronically interfaced distributed generation (DG) units in the context of a multiple-DG microgrid system. The emphasis is primarily on electronically interfaced DG (EI-DG) units. DG controls and power management strategies are based on locally measured signals without communications. Based on the reactive power controls adopted, three power management strategies are identified and investigated. These strategies are based on 1) voltage-droop characteristic, 2) voltage regulation, and 3) load reactive power compensation. The real power of each DG unit is controlled based on a frequency-droop characteristic and a complimentary frequency restoration strategy. A systematic approach to develop a small-signal dynamic model of a multiple-DG microgrid, including real and reactive power management strategies, is also presented. The microgrid eigen structure, based on the developed model, is used to 1) investigate the microgrid dynamic behavior, 2) select control parameters of DG units, and 3) incorporate power management strategies in the DG controllers. The model is also used to investigate sensitivity of the design to changes of parameters and operating point and to optimize performance of the microgrid system. The results are used to discuss applications of the proposed power management strategies under various microgrid operating conditions.

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