JCIR_V4_N4_RevP1 Modern Trends in MicroGrids: A Review Manohar Gangikunta Sreenadh Reddy Duvvuru Journal on Circuits And Systems 2322–035X 4 4 33 40 Microgrid (μG), Distributed Generation (DG), Distributed Energy Resources (DER), Point of Common Coupling (PCC), Island Microgrids provide a powerful solution for enabling the conversion of the electric grid to a more distributed architecture and providing greater flexibility of electricity service to customers. Microgrids are small, independent electric-power grids, including both sources and loads. Microgrids have the capability to connect and disconnect effortlessly from the traditional grid. A microgrid comprises distributed generation, energy storage, loads, and a control system that is capable of operating in grid-tied mode and islanded mode. The concept of microgrid including it's architecture, components, types, mode of operation, various projects, benefits, and the challenges of microgrids have been summarized in this paper. September - November 2016 Copyright © 2016 i-manager publications. All rights reserved. i-manager Publications http://www.imanagerpublications.com/Article.aspx?ArticleId=12396