The increasing penetration of the distributed energy resources (DERs) in the electrical grid introduces new challenges in terms of grid’s reliable operation. DERs are
connected to the main network at the distribution level, possibly through the microgrid, at the point of common coupling (PCC). Microgrids have often the capability of operation in both grid-tied and islanded modes. In the islanded mode, the generated active and reactive powers must be in equilibrium with the load demand, while in the grid-tied mode, the active and active powers follow the desired references defined by the distribution system operator. Therefore, in both cases, proper control is crucial for the operation of the microgrid and its DERs. In this paper, a fault tolerant control (FTC) method based on H∞ observer is proposed for a DER supplying a grid-tied microgrid to make it resilient against sensor and actuator faults and guarantee its reliable operation.