In the present world where environmental issues are posing a great threat to the survival of mankind a better yet
effective way of reducing carbon emissions and improving the environment by less usage of fossil fuels was suggested. This
approach was called microgrid (MG). Renewable energy resources could be used effectively to produce electricity and can be
easily integrated with the conventional grid. This paper elaborates on the basic concept of microgrid, and then describes the
challenges and future prospects of the microgrid. Distribution generators along with energy storage devices and proper
interfacing power electronic devices are used. Working on the basis of the type of microgrid is also discussed in this paper.
