Summary This article presents a novel power management strategy for a dc microgrid based on dc bus‐signaling method. The dc microgrid has two subgrids connected through an interlinking bi‐directional dc/dc converter (IBD). In each subgrid, a novel charging and discharging power‐based droop control and state‐of‐charge (SoC) based droop control of the battery are designed to regulate the dc bus voltage. Considering the dc bus voltages, a power management controller is implemented for IBD. It operates by the normalized voltages of subgrids. IBD helps to regulate the dc bus voltages by sharing power among the subgrids. Further, a coordinated power control method is applied to the distributed generation (DG) controller. In full‐charging mode or high SoC mode of battery, it regulates the DG power generation. Hence, storage and generation coordination can be achieved. In an overloaded case, a load curtailment process is developed to regulate the dc bus voltage at its lower cut off value. The dc bus voltages act as information carriers to IBD and DG controllers. Hence, the proposed method does not depend on the communication line, which improves system reliability. The power management strategy has been implemented in islanded dc microgrid in Matlab/Simulink. Its results are compared with the conventional dc bus‐signaling method to analyze its effectiveness.

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