Conventional power system is facing many challenges, for example, the risk of chain blackouts exists in the current off-line mode, the instability of renewable power, the high population growth rate of developing countries etc. Therefore, the ideal transforming of the centralized power supplied systems to decentralized systems are many discussions in the world recently. The decentralized systems have many advantages, such as, being easy to find the installation location, high flexibility of the investment in equipment, the feasibility of being used as emergency power, high energy usage efficiency, low outage rate, being easy to manage, the feasibility of making use of low-carbon energy and reducing the investment on the power transmission equipment and line infrastructure. Thus, the United States, Europe, Japan and other advanced countries in recent years actively focus on the advanced network technology.
Considering electricity supply security and high foreigner energy dependency, adopting more distributed power generation like PV, Wind and improving energy efficiency has become Taiwan’s energy policy. In the short-term, the installation of microgrid technology could increase the capability of carrying more distributed power in the power girds. Moreover, in the long-term, this could help the power company to manage transformer load and electrical equipments. The emerging microgrid technology could be regarded as the blue ocean of Taiwan’s energy industry. The implementation of microgrid is a critical transition to sustainable energy supplies. This study analyzes the concept of microgrid operation, technology promotion strategy, microgrid market potential, and the domestic development state in terms of advanced countries. The study will eventually give suggestions of microgrid development strategies in Taiwan.
Keywords：Micro grids, Smart grid, Cascaded Fault, Renewable Energy
