Summary
Islanding detection is an important factor of the microgrid (MG) protection. Since an MG can work in two modes, ie, grid‐connected and stand‐alone/islanded mode, during any abnormality appearing in the upstream grid, the MG must be decoupled at the point of common coupling and made to operate in the islanded mode to sustain the critical loads. Because of this mode switching, it is necessary to change the pick up current settings of the overcurrent relays (OCRs) at the distributed generators (DGs) to accommodate the changes in the current levels. In this paper, a hardcore reconfigurable multifunctional relay is designed, which is used for the islanding detection as well as mode adaptation within the MG. A modular approach is used to implement the design, which is targeted on field‐programmable gate array (FPGA). Hardware description language, Verilog, is used to develop the optimized hardware. The relay has different submodules viz overcurrent, voltage unbalance, and rate of change of frequency (ROCOF) modules, which are controlled by a soft controller using a multiplexer. Hardware‐in‐loop (HIL) verification for various test cases under different power mismatches is performed on the Real Time Digital Simulator (RTDS) with FPGA setup. The results suggest that the proposed hardcore relay have the capability to identify the islanding event within permissible time and subsequently adapt to the mode of operation effectively.