Abstract: Over a century, human beings have consumed this easily available finite resource very inefficiently. This increasing energy consumption based on fossil reserves has resulted in financial instability, climate change, major depletion of the reserves, and political turmoil in the world. Initially generation of electricity from large power plants was encouraged; because it was considered to be more efficient than a large numbers of small dispersed power plants. Because of this trend in development along with depletion of fossil fuel reserves and the associated widespread environmental pollution, it has become urgent to find energy alternatives that are cost effective, sustainable and environment friendly. Renewable energy sources such as wind, solar, hydro and biomass provide energy security and will play an important role in the future to supply increasing global energy demand. Research and development in renewable energy technologies confirm that renewable energy sources are undoubtedly sustainable and that green technologies can shift global dependence away from fossil fuels.

Keywords: Microgrid, Optimization, Solar, Wind.