Energy consumption is increasing rapidly; hence, the energy demand cannot be fulfilled using traditional power resources only. Power systems based on renewable energy, including solar and wind, are effective and friendly for the environment. Islanded hybrid microgrid systems (IHMS) are relatively new in this industry and combine two or more sustainable sources, such as wind turbines, solar photovoltaic (PV), and other renewable alternatives, ocean, wave, and geothermal energy, etc. While sustainable, long-lasting power sources are the best choice to satisfy the growing energy demands, they are still not yet ready to be used on a large scale due to their stochastic characteristics. Furthermore, integrating these sources into the existing energy system can cause high technical difficulties, due to the stochastic nature of solar and wind in the conventional grid system and common stand-alone framework. A review of research and applications of the effective hybridization of renewable energy sources is therefore essential to address those technical and economic issues and ensure system stability, reliability, and cost-effectiveness. This article discusses the challenges that might arise when a PV plant and a wind power station are combined to produce power for the conventional main grid or in a stand-alone system. In addition, this analysis provides light on optimization approaches for improving power quality and cost-effectiveness in a solar and wind integrated IHMS. Voltage fluctuation, frequency deviation, and the uncertain nature of solar irradiation and wind sources are significant challenges for both grid-connected and standalone hybrid systems. This study then provides an overview of the control strategies which might help enhance the integration of the IHMS in producing electricity for distribution to the grid-connected load and the islanded load. In this study, the possible issues that can hinder the smooth integration of these renewable sources have been discussed. Finally, this study discusses the recent platforms being used in IHMS as well as the potential of dispatch strategies on solar and wind-integrated IHMS.
