Energy Systems

https://doi.org/10.1007/s12667-024-00676-6

REVIEW ARTICLE

Energy management system in networked microgrids:

an overview

Jhojan A. Rodriguez‑Gil1 · Eduardo Mojica‑Nava1 · Daniel Vargas‑Medina1 ·

Miguel F. Arevalo‑Castiblanco1 · Camilo A. Cortes1 · Sergio Rivera1 ·
John Cortes‑Romero1

Received: 27 June 2023 / Accepted: 14 April 2024

© The Author(s) 2024

Abstract
Energy management systems (EMS) play a crucial role in ensuring efficient and
reliable operation of networked microgrids (NMGs), which have gained significant
attention as a means to integrate renewable energy resources and enhance grid resil-
ience. This paper provides an overview of energy management systems in NMGs,
encompassing various aspects including system architecture, optimization algo-
rithms, control strategies, and integration of distributed energy resources. The paper
highlights the challenges and opportunities associated with energy management
in NMGs and presents key approaches and technologies adopted in the field. Fur-
thermore, it explores the implications of emerging trends such as data-driven mod-
eling, machine learning, and advanced communication technologies on the design
and performance of energy management systems in networked microgrids. Through
this comprehensive overview, the paper aims to provide researchers, practitioners,
and policymakers with valuable insights into the state-of-the-art developments and
future directions in energy management systems for networked microgrids.

Keywords Microgrids · Energy management system · Distribution systems

1 Introduction

Distributed energy resources (DER) are turning into a cornerstone in the evolution
of power systems to a smarter grid. The rapid evolution of energy management
systems poses significant challenges for real-time implementation, particularly in
the areas of optimization, control design, and their seamless integration with dis-
tribution systems [1]. These challenges arise due to the increasing complexity and

* Eduardo Mojica‑Nava
eamojican@unal.edu.co
1
Department of Electrical and Electronics Engineering, Universidad Nacional de Colombia,
Carrera 30 No. 45‑03, Bogotá D.C. 111321, Cundinamarca, Colombia

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dynamic nature of networked microgrids. Achieving efficient and effective opti-

mization algorithms and control strategies that can adapt its parameters in real-
time to changing conditions becomes crucial. Additionally, integrating energy
management systems with distribution systems requires addressing interoperabil-
ity issues, ensuring reliable communication, and coordinating the operation of
diverse energy resources. Overcoming these challenges is essential to enable the
seamless and reliable operation of energy management systems within networked
microgrids, facilitating the efficient utilization of resources and the integration of
renewable energy sources. Such an impulse towards improving these key areas is
currently being driven by green initiatives that motivate and depend upon the use
of renewable energy resources. This is not to say that existing power systems are
unable to take advantage of renewable energies. On the contrary, a significant por-
tion of the energy being produced today is renewable. However, smart grids are
being compared with centralized generation plants to take advantage of DER in
a much more efficient way. Microgrids (MGs) are currently being studied as one
of the most effective approaches to integrate DERs [2]. Since they are capable of
managing electrical resources efficiently, they promise to be a cost-effective gen-
eration alternative that would also reduce the environmental impact of this pro-
cess. Indeed, they can both work autonomously or in a grid-connected mode to
accomplish a power demand, which makes them very efficient and versatile. MGs
can also integrate distributed generators of renewable or non-renewable energy
to supply the energy demands of a given area [3]. To effectively integrate MGs
into the distribution system, a key component is the energy management system
(EMS). EMS in a microgrid relies on power system analysis to ensure efficient
and reliable operation. The EMS uses this information to optimize the dispatch of
distributed energy resources to meet demand while maintaining the stability of an
MG under varying conditions. Within the studies of intelligent energy manage-
ment for distribution systems with MGs, it is necessary to consider the demand
response, the optimal intra-day prices of the MGs connected in the network, and
the intermittent behavior in the generation and the load. This information can be
captured through real-time integrated demand response programs based on time
of use and prices [4–7].
On the other hand, models for an MG as a single entity depend on the applica-
tion. It is common to use a detailed MG model and apply an order reduction tech-
nique such as the Prony analysis model, coherency principle model, and perturba-
tion methods, among other methods [2]. For example, in [8], a detailed model for an
MG is obtained, and then a reduced model is proposed based on the structure pres-
ervation method. The reduced model exhibits accuracy of dynamics and simplic-
ity concerning the complete model. Approaches based on artificial neural networks
have also been proposed to approximate the dynamics of NMGs systems, as shown
in [9] and [10]. The main drawback for distributed generation is uncertainties due to
climatic conditions. In this way, tools such as artificial neural networks, vector sup-
port machines, and Gaussian process regression are used to model and predict wind
and solar generation. It allows proposing control methodologies that can improve
the performance of current techniques and provide information that is used in MG
operator decisions [11]. A recent review of these topics is presented in [12, 13].

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Energy management system in networked microgrids: an overview

MGs operating in autonomous mode are common scenarios that could lead to
energy quality problems or even instability when they have sizeable sudden load/
generation changes [14]. A fault can be caused in a distributed generator due to
uncertainties in the energy supplied by the non-dispatchable sources. Interconnect-
ing several MGs together in a neighborhood to form networked microgrids (NMGs)
is an alternative to overcome these issues by improving stability and resilience
against critical operation or fault cases [15–17]. On the other hand, the connection
of multiple MGs creating a distribution system with NMGs can improve the per-
formance and reliability of distribution systems [14]. The concept of NMGs is also
associated with multi-microgrid, which is a system with several MGs interconnected
to a common coupling point, enabling power flow between them or with the upper-
level power system. In the IEEE Standard 1547-2018 (Standard for Interconnec-
tion and Interoperability of Distributed Energy Resources with Associated Electric
Power Systems Interfaces), it is stated that the reliability of a distribution system can
be improved by the inclusion of multiple MGs through the energy sharing among
MGs to satisfy the power demanded, reducing the burden on the main grid while
improving the integration of renewable energies [14]. NMGs or multi-microgrids
have emerged as a key approach to deal with the energy management of DERs in
distribution systems, and several recent survey papers have presented relevant com-
plementary topics as introduced in this work, such as in [16] where the main con-
ceptualization of NMGs and future perspective are presented. In [17], it is reviewed
the control architectures for DERs integration in distribution systems employing
NMGs. Finally, in [14] the challenges that the uncertainties present for the energy
management in multi-microgrids are reviewed.
Traditionally, energy management tasks are performed by the distribution sys-
tem operator (DSO). In emerging scenarios with new actors such as NMGs or
multi-microgrids in the distribution system, cooperative coordination with DSO is
a fundamental challenge in modern power grid operation, since crucial issues such
as privacy, security, and uncertainty must be considered. Optimal energy manage-
ment of NMGs jointly with DSO is a fundamental problem currently under exten-
sive research. For instance, NMGs require careful and precise control of the power
flow between individual MGs. Several review articles on flow control in MGs (see
[16, 18], and references therein) have been presented, but few of them mention ter-
tiary-level control or energy management systems in NMGs. Such a crucial element
of NMGs demands greater attention to be properly understood. In addition to the
control strategies, the modeling of the NMGs is a fundamental part of the develop-
ment of energy management systems. Models can be obtained from different meth-
odologies or even by data-driven estimation [19]. Likewise, optimization algorithms
including real-time decision variables, models, and the set of restrictions for itera-
tive operations are the core of an effective real-time energy management system in
NMGs. Therefore, the main contribution of the present study is to review and dis-
cuss different EMS strategies for AC and DC NMGs strewn in the academic lit-
erature encompassing various aspects including system architecture, optimization
algorithms, control strategies, and integration of distributed energy resources. The
paper highlights the challenges and opportunities associated with energy manage-
ment in NMGs and presents key approaches and technologies adopted in the field.

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 J. A. Rodriguez‑Gil et al.

Furthermore, it explores the implications of emerging trends such as data-driven

modeling, machine learning, and advanced communication technologies on the
design and performance of energy management systems in networked microgrids.
We also offer a brief general analysis of the advantages and drawbacks of each
strategy.
The rest of the paper is organized as follows. In Sect. 2, the preliminaries and
basic definitions on networked microgrids and main control stratagies are presented.
Section 3 contains the development of the energy management system for networked
microgrids. Section 4 presents the perspectives on intelligent energy management
system for NMGs, finally, in Sect. 5, some conclusions are drawn.

2 Networked microgrids: cyber‑physical structures

In this section, we introduce the main concepts of networked microgrids, the main
layer topologies, communication network configurations, and control architectures.
In Fig. 1, it is shown a general cyber-physical energy structure of NMGs including a
distribution network with physical MGs connected at different points, and the cyber
variables 𝜉i interacting through a communication network. First, we begin defining
microgrids. An MG system is defined as a set of DERs such as distributed genera-
tors or energy storage devices, and a collection of controllable loads, with the ability
to self-management its energy and its connection/disconnection to the main grid.
MGs allow flexible integration of these resources and provide reliable electrical
power [20]. One key feature of MGs is that they are self-sufficient and can operate
either in an isolated or grid-connected mode [21]. Furthermore, the peculiar struc-
ture of an MG makes it easily identifiable when it is part of a large-scale system
[22]. They can also improve the reliability and efficiency of power systems that inte-
grate them [23, 24]. Moreover, with the ever-growing renewable energy resources,
MGs may contribute to changing the energy-distribution paradigm from a central-
ized to a distributed system. However, this entails some important challenges that

Fig. 1  Cyber-physical energy structure of networked microgrids

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Energy management system in networked microgrids: an overview

must be overcome. For instance, the fact that renewable-energy generation, such as
solar or wind, has such an unpredictable output must be considered [25]. Moreover,
every individual MG energy generation and energy-storage limitation limits their
applications. Their stability conditions are also different from those of large-scale
power systems, in particular, the ratio of inverter rating to network capacity leads to
a smaller stable region in MGs [26].
To exploit the advantages of MGs and overcome some of their limitations in the
inclusion of DERs, NMG systems have emerged as a fundamental paradigm to the
energy management of distribution systems with high inclusion of DERs [16]. For
instance, NMGs are much more reliable, durable, and resilient than any individual
MG [27] and can provide power support to each other with less power production
cost. It is possible to achieve this cost reduction via appropriate strategies of energy
sharing [28]. Indeed, some numerical results show a cost reduction of around 30%
[29]. Additionally, the intrinsic resiliency of NMGs makes them apt to support city
operations during extreme events or catastrophes [30]. Besides, cooperation among
NMGs showcases serious advantages for an individual MG operation [31]. For
example, coordination among NMGs can reduce generation costs and improve the
reliability and resiliency of the whole system [16, 21]. However, NMG systems have
their particular challenges. For instance, information-sharing among the different
components of the grid is still an issue. We know that centralized information man-
agement is not a convenient solution for this problem, and a distributed scope where
entities share only partial information is an appealing approach. Another crucial
challenge of NMGs is modeling uncertainties and working with limited precision
level, either generation uncertainties of renewable resources or system simplifica-
tions [32].
There are several ways of classifying NMGs. NMGs can be classified as AC
NMGs, DC NMGs, and AC/DC or hybrid NMGs [21, 23, 33, 34]. AC MGs are
comparatively easier to design and implement, which makes them the most common
type of MG. They also have the advantage of being compatible with the existing
electrical grid. However, they have some drawbacks, such as the need for complex
electronic devices to manage some distributed DER. DC MGs, on the other hand,
can take advantage of the fact that some DERs operate natively with DC power,
to use energy storage systems (ESS), e.g., batteries, it is necessary a DC link, and
many devices are DC loads. Additionally, DC MGs are simpler structures and cost
less than AC MGs. However, the main drawback of DC MGs is their incompatibility
with actual power systems. Based on the interconnection technology, NMGs can use
power transformers or power electronics converters [35].
The rest of this section is organized as follows. First, some possible physical
architectures for NMGs are introduced. Second, some communication architectures
that may be implemented in these systems are shown.

2.1 Physical layer topologies for NMGs

A fundamental part of NMGs is their physical interconnection. This physical layer

defines some key features of NMGs, for instance, whether they are connected with

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the central distribution system or not. This also determines whether an MG with a
deficit in energy generation can obtain support from one, two, three, or more MGs
in its neighborhood. The type of physical interconnection chosen for an NMG has a
significant impact on its final cost as well, since it determines, for example, the type
of interconnection devices that must be installed for it to work [35]. Which topology
will fit an NMG better depends on the scope and the intended application of the lat-
ter [22]. This subsection presents an overview of principal NMG topologies.

2.1.1 Radial topology

The main feature of radial topology is every MG direct connection with the central
grid, as shown in Fig. 2a. Indeed, this network architecture entails that, for any set
of n MGs, there will be an individual switch that will allow each MG to work in its
isolated or connected mode. Thus, since MGs are neither connected through a com-
munication link nor a physical link for power-sharing, there is no direct interaction
among MGs. However, each MG communicates with the distributed network opera-
tor (DNO) to coordinate its interaction with the main grid. Hence, when an MG can
not supply its load demand, it can purchase electrical power to the main grid. On the
contrary, when an MG has a surplus of energy, it can be sold to obtain an economic
benefit [36]. Another appealing feature of this architecture is that it allows for the
isolation of a specific MG or set of MGs when a contingent arises. Thus, the micro-
grids that remain unaffected by the fault can continue working in a normal fashion.
Moreover, radial topologies are a desirable alternative because of their plug-and-
play capacity, which allows them to implement NMGs in large distribution systems
[37]. Some authors also claim that, compared with other topologies, this architecture
has the minimum possible impact on grid operation [22].

2.1.2 Daisy‑chain topology

In this network architecture, MGs are also connected directly to the main grid.
However, each one is connected to its adjacent MGs as well (Fig. 2b). Thus,
energy and/or information can flow faster and more directly among MGs, which

Fig. 2  Network microgrids topologies

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Energy management system in networked microgrids: an overview

facilitates collaboration and energy trading. Moreover, besides allowing for the
isolation of a specific microgrid in the event of a fault, the multiple connections
inherent to this architecture allow NMGs to reroute energy through alternative
energy paths when needed [38]. However, the information exchange required for
the smooth operation of a daisy-chain NMG entails an enormous challenge: how
to protect user privacy [36].

2.1.3 Mesh topology

As depicted in Fig. 2c, each MG is connected to several MGs by a physical or a

communication link. Due to this topology being more complex than the former
ones, coordination is more complicated. However, if NMGs with this topology
behave cooperatively, it will improve operational performance and reduce opera-
tional costs [36, 39]. Moreover, the decision process is not only influenced by its
local generation and local load demand but also influenced by the decisions of
any other MG in the network [36]. Besides the above topologies, it is possible to
define other schemes for systems with NMGs. In Fig. 3a, it is possible to observe
a system with a parallel structure, the first set of microgrids NMG1 {MG1 , MG2 ,
MG 3 } and a second set NMG2 {MG4 , MG 5 }. Each of these microgrids can have
one of the previous architectures, but they have one connection with another
microgrid. NMG1 and NMG2 have only one PCC. In this architecture, electrical
interconnection between NMG1 and NMG2 is through the external grid. In Fig. 3b
is shown that from MG 5 to MG1 are in a series scheme. They only have one point
of connection with the principal distribution network. In both cases, these micro-
grids work connected to the grid or in autonomous mode. Another possible option
is a mixed parallel-series connection, a combination of the previous architectures.

Fig. 3  Network microgrids alternative topologies

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2.2 Communication networks in NMGs

Communication systems are an indispensable feature in NMGs, because sharing

data is crucial for achieving their benefits and a normal operation [40], and they
are decisive for the control and protection of the system [33]. They allow the
coordination and use of distributed energy resources to improve the average per-
formance of the system. On the other hand, these technologies entail other chal-
lenges due to packet loss and latency, and failures in the communication layer.
These issues even can affect the system’s stability if a centralized approach is
adopted. Besides, control performance on NMGs is related to the communication
layer [20]. Thus, it is clear that communications protocols and networks have a
relevant role in the operation of NMGs.

2.2.1 Master–slave communication network

In a master–slave architecture, there is a master controller and a set of slave con-

trollers. The master controller collects measures and data from slave controllers,
then computes control actions and sends them to each slave controller. Then, it
is required to have predefined knowledge about the connections. Hence, in this
topology, the plug-and-play feature is not possible [16]. Usually, when NMGs
work in autonomous mode they use master–slave strategies [41] using protocols
such as Modbus, Distributed Network Protocol 3 (DNP3), and IEC 61850 use a
master–slave scheme. Modbus is a good choice for NMGs because of its stability,
simplicity, and support. In this protocol, the network security varies depending on
the transport layer. Likewise, DNP3 allows communication between substation
equipment, control systems, and remote terminal units. It has several additional
features that Modbus does not support, such as communication with devices over
long distances. In the security aspect, DNP3 supports secure authentication. IEC
61850 is a protocol for data models, exchanges, and events management between
power systems substations. IEC 61850 does not discuss aspects of cybersecurity
where there is another standard for this topic (IEC 62351).

2.2.2 Publish‑subscribe communication network

Publish-subscribe is an indirect communication channel that uses a specific pro-

tocol to share data. Here, an individual can broadcast information (publish) or
read it from other elements in the same NMG [16]. The data distribution ser-
vice (DDS) allows the use of the publish-subscribe scheme, and it has scalable
and interoperable features. These elements are desirable for real-time applications
of microgrids. In [42] it is highlighted that this communication protocol has the
following advantages. First, automatic self-configuration of the network with-
out a central node (plug-and-play feature). Second, it allows an intelligent data

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Energy management system in networked microgrids: an overview

exchange due to nodes subscribing only to the information that they are interested
in. Finally, the node role depends on network requirements.

2.2.3 Peer‑to‑peer communication network

This communication approach considers that each MG can communicate with all
other MGs. Since each MG can produce or consume energy (it is a prosumer), peer-
to-peer communication allows trading energy among MGs. Thus, each MG can sell
or buy energy with or without intermediation (central coordinator), i.e., the rel-
evant information is shared only by the parties concerned [43]. Therefore, peer-to-
peer communication offers an alternative to achieve a fully decentralized grid [44].
This alternative also permits the exploitation of MG features such as getting a lower
generation cost, a higher economic benefit for producers, reducing power losses,
improving the management of distributed energy resources, and so on. In [45], a
control strategy based on peer-to-peer communication, employing a broadcast gos-
sip algorithm, is proposed to regulate voltage and reactive power-sharing. Numerical
simulations in different scenarios (such as load variations, plug-and-play operations,
and communication link failures) show good performance.

2.2.4 Event‑triggered communication network

In an ideal communication process, data sampling is done continuously or periodi-

cally at a fixed time step. However, NMG systems have a communication layer with
a finite bandwidth and energy constraints, thus the previous assumption is not met
in these systems. Hence, event-triggered communication is an alternative to use
the bandwidth efficiently, reduce energy consumption, and leverage resources in
this layer [46, 47]. In [46], it is shown a secondary control strategy for frequency
synchronization and voltage restoration with event-triggered communication.
Authors claim that this control strategy achieves control objectives while reducing
the number of control actions and communication among microgrids. In [47], it is
proposed a distributed secondary control scheme for active power-sharing and fre-
quency regulation with event-triggered communication, and their results show good
performance.

2.3 Cybersecurity models

considering that NMGs are naturally cyber-physical systems, they could be exposed
to cybersecurity vulnerabilities [48]. Some cybersecurity approaches have been pro-
posed as a possible solution to this issue, as it is shown in this section.

2.3.1 Quantum cybersecurity

The current communication protocols ensure information security using com-

plex mathematical problems. Contemporary problems allow proposing safe keys
to encrypt the information to be shared, since they can not be solved efficiently by

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modern computers. However, the appearance of quantum computers compromises

the security of these protocols because they can solve the aforementioned mathe-
matical problems. Hence, new communication protocols have been proposed based
on quantum laws. Thus, communication is assured. In [49], it is studied how to deal
with a DoS attack when a communication protocol based on a distributed quantum
key is used and proposes a strategy to overcome this issue.

2.3.2 Blockchain cybersecurity

Blockchain technology is another proposal to ensure security in the communication

layer of NMGs. Its use allows the exchange of information among different MGs
safely and transparently [50]. This technology also enhances the robustness against
threats such as cyber-attacks [50]. In [48], it is claimed that blockchain will have
a relevant role in active distribution systems In [48], it is proposed a decentralized
transactive energy management system for NMGs at the power distribution level
using blockchain technology.
In the next section, it is introduced the main concepts of traditional control archi-
tectures in NMGs.

2.4 Overview of control strategies for NMGs

In this section, we introduce a brief overview of the control strategies for NMGs.
First, we present the structure of the multilayer architecture. Then, some variations
of the traditional hierarchical architecture are discussed. The control layers in MGs
have distinct responsibilities. For example, the primary layer stabilizes the MG,
while the secondary layer restores voltage or frequency in self-governing mode.
Hierarchical control is considered the practical architecture in MGs, especially in
isolated operation mode. This is due to the pre-existing control layers and commu-
nication infrastructure. Hierarchical control has been developed for interconnected
MGs, considering challenges such as power exchange during real-time operation.
While the primary control level remains consistent for both isolated and intercon-
nected MGs, the secondary control level is adapted to enable coordinated control
and optimal sharing of resources among the participating MGs. This involves the
development of communication protocols, decentralized decision-making algo-
rithms, and coordinated control strategies to ensure effective energy management
and system stability across the network. Similarly, the tertiary or global control level
in NMGs is restructured to facilitate system-level coordination, market mechanisms,
and demand-response programs, considering the interconnected nature of the micro-
grids. By tailoring the secondary and tertiary control levels to the specific needs
of NMGs, efficient and coordinated operation can be achieved, enabling enhanced
energy sharing, improved stability, and effective integration of renewable resources.
Although NMGs present several advantages, controlling the power flow between
MGs properly is not a trivial task. For that reason, the control of NMGs has been
an area of research in recent years [51]. First, we should briefly explain the com-
mon hierarchical control structure of MGs, initially introduced in [52] and then

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Energy management system in networked microgrids: an overview

Fig. 4  Common control structure for MGs. Level zero control in orange, primary control in green, and
secondary control in yellow

established in standards for the operation of microgrids such as IEEE 2030.7-2017

[53] and IEC TS 62898-2: 2018. The general scheme is shown in Fig. 4, where the
level zero control, the primary control, and the secondary control are presented:

1. Internal loops or level zero control: This level is related to the generation pro-
cess, i.e., to the amount of voltage and current provided by the power electronic
interface to the common bus (or tie-line). It is formed by two loops: An internal
current loop and an external voltage loop, which act directly on the switches to
track sinusoidal voltage/current references.
2. Primary control: This level provides the sinusoidal voltage/current references to
the internal loops. Depending on the distributed generator (DG) operation mode
as a grid forming or grid following, it can have two different control objectives:
(a) In grid forming mode, DG changes the amplitude and frequency of the volt-
age reference to achieve proper power-sharing. To accomplish this task, a very
common and widely used control concept is the droop control [54]. (b) In grid
following mode, it changes the amplitude and frequency of the voltage reference
to guarantee that reactive power Q tends to zero (unitary power factor), and P
reaches the maximum point power tracking.
3. Secondary control: This level corrects the deviations caused by the primary con-
trol, regulating the voltage amplitude and frequency to their nominal values. Also,
in AC MGs, this level is responsible for proper synchronization between the DG
and the main grid.
4. Tertiary control: This level manages the import and export of P and Q between
the MG and the main grid and/or between other MGs. This power flow manage-
ment consists of two modules: The first one is the control strategy that ensures
that the MGs follow specific power references. The second one is usually an EMS,

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which generates the proper power references for each MG using an optimization
algorithm that minimizes some cost function (often a generation cost function).

As this paper is related to the EMS in NMGs, it is focused on the tertiary control,
with a brief mention of the other control levels when necessary for understanding
purposes. Figure 5 shows the schematic structure of the centralized scheme for the
tertiary control level. The communication network (COM Network) allows the send-
ing of all the necessary information to the global central controller (GCC), which
performs the objectives of the tertiary control level. This scheme can provide an
optimal operation; however, its main drawback is its single-point failure characteris-
tic. Nonetheless, with the increased performance and reliability in communications,
this drawback is becoming less relevant. This scheme aims to send the proper volt-
age correction terms to the secondary control to guarantee the desired power flow
between MGs according to an optimization algorithm, which takes into account all
necessary information from MGs such as the state of charge (SoC) of the batteries,
generation and load forecasting, rated power from DGs and power limits, and market
prices.
Controlling NMGs involves various objectives, such as preventing emergency
conditions, improving network features, optimizing power management, and enhanc-
ing stability and communication factors. Several control methods, including power
exchange and sharing among synchronous interconnected MGs, have been proposed to
improve specific control indices, stability, and communication factors [51]. By strategi-
cally reconfiguring the distribution network, several benefits can be achieved. These
include improved overall system reliability through the creation of redundant paths,
enhanced controllability by enabling optimal coordination and control of distributed
energy resources, increased scalability to accommodate the integration of additional
microgrids, improved energy efficiency through reduced transmission losses, lower
reserve requirements due to distributed generation and load balancing, and cost mini-
mization through optimized resource allocation and utilization. The reconfiguration of
distribution networks serves as a valuable tool to realize the advantages of NMGs and
to optimize the operation and performance of the overall energy system [51]. Other

Fig. 5  Centralized structure for

tertiary level

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Energy management system in networked microgrids: an overview

control methods aim to optimize power allocation while considering economic con-
straints [4], low inertia and dynamic stability [55], and improve communication factors
such as decreasing communication load using event-triggered methods, and addressing
packet loss and communication failures [51].
In [56], it is proposed a distributed scheme for power flow between MGs by con-
trolling the isolated bidirectional DC/DC converters (IBDCs). Defining IBDCik as the
IBDC used to interconnect MG-i and MG-k, the control strategy uses information from
the secondary control in combination with the voltage output of these two MGs to gen-
erate a power error term that is then processed by a PI controller. The obtained term is
compared with the filtered power reference to generate a power tracking error, which
is processed by another PI controller to generate the control action that is sent to the
IBDC. However, how the power flow references are generated is not specified.
A generalized schematic of the interconnection for hybrid (DC/AC) NMGs is
presented in Fig. 6. The tertiary control is accomplished by controlling the back-to-
back interlinking converters (BTBCs). These BTBCs allow interconnection between
AC and DC MGs and between AC MGs with different operating frequencies. In
[63], it is introduced a distributed control scheme based on BTBCs to match the
power between the DC and AC MGs. The intra-microgrid control uses a distributed
scheme to achieve, via consensus, proper voltage levels. The inter-microgrid control
has a current loop based on the active and reactive power demand to generate the
proper signal to the BTBC and supply the required power. The active and reactive
power references based on demand are assumed, and there is no information about
how they are determined. When connecting two MGs, they use two BTBCs linked
by a DC-link, and the control of the power flow is made by changing the operating
frequency in each BTBC according to the power offer and demand. This strategy
allows interconnecting AC MGs with different voltage and frequency rated values
and DC MGs. A different way to connect MGs is using an interlinking converter
(ILC). The ILC is controlled using a double loop based on droop characteristics to
control the power flow direction. One of the MGs will act as a source of energy and
others as dynamic loads, depending on the requirements of each MG derived from
voltage and frequency measurements. Bidirectional AC/DC converters are used to
interconnect MGs in [64]. The authors proposed a reinforcement-learning-based
online optimal control strategy for the hybrid ESS, improving its charge and dis-
charge dynamics. Neural Networks are designed to estimate the nonlinear dynamics
of HESS and learn the optimal control input for the bidirectional converters and, in
that way, control the power flow between the MGs.
Finally, Table 1 presents an overview of the control strategies for networked
microgrids illustrating the control approach and its communication architecture, and
main features.

3 Energy management systems for networked microgrids

The EMS plays a crucial role in the functioning of NMG systems, whether they
are operating in grid-connected or islanded modes. The primary responsibili-
ties of the EMS include assigning generation references to every microgrid and

13
13
Table 1  Overview of control techniques for networked microgrids
Control approach Features Architecture References

MPC Scheduling of power exchanges between MGs Centralized [34, 57]

Consensus-based regulator Hierarchical voltage control ensuring reliable operation of DC MG clusters Distributed [58]
Averaging-based control Secondary frequency regulation Distributed [59]
Consensus-based control Regulation of the power flow among multiple microgrids operating in islanded mode Distributed [55]
Peer-to-peer scheduling algorithm Peer-to-peer framework for DC MGs Distributed [44]
Bidirectional DC–DC converters control Coordinated power control for a DC MGs cluster Centralized [56]
Cluster-oriented cooperative control Intra/inter-cluster control of multiple AC MG clusters Centralized [60]
Consensus-based Proportional power-sharing in islanded microgrids Distributed [4]
Event-triggered consensus-based control Voltage regulation and current sharing control for ESSs in DC microgrid clusters Hierarchical [61]
Droop-free control Frequency control strategy for networked micogrids Distributed [62]
Data-driven control Voltage control using Koopman operator approach Distributed [19]
J. A. Rodriguez‑Gil et al.
Energy management system in networked microgrids: an overview

Fig. 6  Generalized structure for hybrid NMG

controllable DGs, managing the controllable loads to regulate the power produc-
tion and energy consumption within the system, and sharing surplus energy [36,
65]. Energy cooperation among MGs has emerged as a promising solution to
attain resilient and cost-effective operations. By fostering collaboration and coor-
dination between MGs, energy cooperation enables the sharing and exchange of
energy resources, optimizing their utilization and enhancing overall system per-
formance. This cooperative approach promotes resilience by allowing MGs to
support each other during peak demand periods, supply disruptions, or system
failures. Additionally, energy cooperation offers economic benefits by facilitating
load balancing, reducing the need for costly infrastructure upgrades, and enabling
the efficient integration of renewable energy sources [39, 66]. Furthermore, the
MGs in an NMG could have different owners with shared or differing interests,
making it essential for energy management to take various elements into account
in a comprehensive and holistic approach. Managing and coordinating energy
among MGs and DSO become increasingly complex due to various sources of
interdependent and correlated uncertainty, including renewable resources, load
variation, and the energy market. The EMS for the whole system shall promote
dynamic energy trading stably and cost-effectively. Simultaneously, the EMS
for individual MGs plays a crucial role in establishing external interactions with
other MGs and internally coordinating the local power supply and demand [67].
Figure 7 shows a traditional EMS for NMGs indicating the main control signals
between the EMS and MGs.
In the context of NMGs, the costs incurred by a single microgrid during opera-
tion consist of not only the operational costs of its DGs, but also the expenses
associated with purchasing electricity from the main grid and neighboring micro-
grids. On the other hand, a microgrid’s revenues are generated through the sale of
electricity to neighboring microgrids and the main grid. Consequently, the energy
trading activities of networked microgrids are interconnected through their
respective variables and constraints. A general mathematical optimization prob-
lem for the EMS is defined as follows. Consider a set N = {1, 2, … , N} of NMGs
in a distribution system. The EMS optimization problem can be expressed as

13
 J. A. Rodriguez‑Gil et al.

Fig. 7  Traditional EMS for NMGs with the main control signals

T N
∑ ∑
min Ci (pti ) + Bi (xit ) + fi (ptij )
t=1 i=1
s.t. pti + ptij = ptd ∀i, j ∈ N,
p ≤ pti ≤ pi ,
i
(1)
p ≤ ptij ≤ pij ,
ij
N
∑
p ≤ ptij ≤ pexc ,
exc
i=1
xi ≤ xit ≤ xi ,

where Ci is the cost function produced by MG-i, Bi is the cost function caused by
other variables in MG-i, such as transmission losses or environmental benefits, fi
represents the payment derived from trading energy with other microgrids and the
main grid, pi is the power generated by MG-i, pd is the load of the system to be
allocated to the NMGs, pij is the energy exchanged between MG-i and MG-j, xi
represents the other electrical variables such as voltage, current, temperature, etc.,
finally (⋅) and (⋅) stands for the upper and lower bounds of the variable capacities,
respectively. It is also assumed bounds of the total energy to be exchanged, pexc. The
energy resource allocation problem for NMG (1) involves coupled variables, such as
the exchanged energy power or flow power constraints [68]. The mutual relationship

13
Energy management system in networked microgrids: an overview

between the objectives and/or constraints results in a highly complex optimization

problem.
From a point of view of decision-making structures to solve optimization prob-
lem (1), EMS architectures can be categorized into four main types: centralized,
hierarchical, distributed, and decentralized. Each architecture offers a unique
approach to coordinating and controlling energy resources within a system.

1. Centralized architecture: In a centralized energy management system, a central

control entity has complete authority and control over all energy resources within
the system. It collects data from various sources, makes decisions, and sends
commands to control devices. This architecture provides a unified and integrated
approach to energy management, allowing for optimized operation and coordina-
tion of resources. However, it may suffer from single-point vulnerabilities and
scalability challenges.
2. Hierarchical architecture: The hierarchical architecture divides the energy man-
agement system into multiple levels, each responsible for specific functions. At
the top level, there is a central coordinator who sets high-level objectives and
coordinates the lower levels. Lower levels handle localized control and manage-
ment tasks, such as microgrids or individual devices. Hierarchical architectures
enable scalable and modular designs, facilitating easier integration of new compo-
nents. However, decision-making processes may be slower due to the multi-level
coordination.
3. Distributed architecture: In a distributed energy management system, decision-
making authority is distributed among multiple entities or devices within the
system. Each device has a degree of autonomy and makes local decisions based on
local information. The devices communicate and collaborate to achieve system-
level objectives. Distributed architectures offer increased resilience and adapt-
ability, as they are less susceptible to single-point failures. They can also accom-
modate dynamic changes in the system. However, coordination and optimization
across the system may be more challenging due to the decentralized decision-
making.
4. Decentralized architecture: The decentralized architecture combines aspects of
both distributed and hierarchical approaches. It delegates decision-making author-
ity to specific entities or control zones, allowing for local control and optimiza-
tion. Each control zone may have its own hierarchical structure and decision-mak-
ing processes. Decentralized architectures provide a balance between autonomy
and coordination. They offer scalability, adaptability, and fault tolerance while
allowing for localized decision-making. However, ensuring overall system-level
optimization and coordination can be complex.

The choice of energy management system architecture depends on various factors

such as the size and complexity of the system, the level of control required, scal-
ability needs, and the desired trade-off between centralized decision-making and
distributed autonomy. Each architecture has its advantages and challenges, and
the selection should align with the specific requirements and characteristics of the

13
 J. A. Rodriguez‑Gil et al.

energy system being managed. Figure 8 shows the EMS decision-making archi-
tectures: centralized, hierarchical, distributed, and decentralized and its inter-
action with DSO. Table 2 presents a comparison of the main approaches used
for the EMS for NMGs with its decision-making architecture, features and chal-
lenges, communication complexity, and privacy preservation.
In general, EMS looks for an optimal operation point to minimize the overall
operation cost [21, 36, 71, 73]. For the economic dispatch solution, methods such
as the lambda iteration method, stochastic, and dynamic programming strategies are
handled to find a global or near-global solution. The EMS manages the RES and
ESS to meet the power demand. It is also considered other aspects of the energy dis-
patch process such as costs, power limits, the lifetime of the system’s devices, and
so on. When the EMS works closely with a communication system, it is possible to
increase the penetration level of renewable energy and reduce operating costs. How-
ever, with the increase of energy resources, ESSs, or MGs in NMGs, the problem
of energy management increases and becomes more complicated. Some distributed
approaches to face this problem are based on dual decomposition, game theory, or
ADMM [36]. In general, all different strategies for energy management can be clas-
sified into two fields: competitive and collaborative strategies. In competition, each
entity in the system has its objectives and tries to find a set of actions to reach these
objectives. This behavior causes the global system to converge to a Nash equilib-
rium, however, this equilibrium point could not be economically optimal. For this
reason, collaborative strategies appear. In these strategies, entities in the system
make joint choices to obtain collective payoffs appropriate for them [45, 73].
In the next subsections, the different EMS decision-making architectures are dis-
cussed. Figure 9 illustrates the main EMS decision-making approaches identified
for NMGs. On one hand, we have model-based methods such as distributed opti-
mization based on consensus algorithms, game theory, and MPC algorithms. On
the other hand, we have identified data-driven methods whose main feature is the
lack of a model of the system to perform energy management. In particular, data-
driven optimization methods have recently emerged as powerful frameworks to deal
with uncertainties such as robust, stochastic, and distributionally robust optimiza-
tion algorithms. Alternatively, several machine learning algorithms such as neural
networks and reinforcement learning have emerged as promising approaches to deal
data-driven applications.

3.1 Centralized EMS for NMGs

Centralized EMS have emerged as a vital component in the operation and optimiza-
tion of networked microgrids. As the demand for efficient and sustainable energy
solutions continues to rise, these systems are fundamental in coordinating and con-
trolling energy generation, storage, and consumption within microgrid networks. By
integrating advanced technologies such as real-time monitoring and intelligent deci-
sion-making algorithms, centralized energy management systems enable effective
coordination of distributed energy resources, enhance grid stability, and facilitate
optimal energy utilization.

13
 Table 2  Overview of EMS for networked microgrids
EMS approach Decision-making architecture Features/challenges Comm. complexity Privacy References

Consensus-based optimization Distributed Proportional power-sharing in islanded microgrids Low ✓ [4]

Convex optimization Centralized Highly dependence on the central controller High × [69]
Distributed convex optimization Hierarchical Partial dependence of the central controller Medium × [67, 68, 70, 71]
Game theory Decentralized Multiagent processing with global guarantees Low ✓ [29, 66]
Model-free RL Centralized Requiring a central coordinator High × [72]
Stochastic multiobjective optimization Centralized Including uncertainty quantification/requiring a High × [73]
central coordinator
Cluster-oriented cooperative control Hierarchical Agents need to share information Medium × [60]
Pining-based cooperative control Distributed Consensus and pinning-based sharing information Medium × [74]
Population games Fully Distributed Transactive energy system model Low ✓ [1]
Saddle-point dynamics Fully Distributed Transactive energy system model Low ✓ [75]
Energy management system in networked microgrids: an overview

Distributed ADMM Fully Distributed Efficient asynchronous computation algorithms Low ✓ [24, 76]
Cooperative MPC Distributed Guarantees constraints satisfaction and fairness in Medium ✓ [31]
the use of the shared resources/Model-based
Deep neural network and model-free Centralized DSO selects its retail pricing strategy via an RL High ✓ [72]
reinforcement learning algorithm optimizing the decision based on
prediction
Distributionally robust optimization Decentralized Peer-to-peer energy trading and network opera- Low ✓ [77–80]
tion of interconnected microgrids considering
uncertainty

13
 J. A. Rodriguez‑Gil et al.

Fig. 8  EMS decision-making architectures

Fig. 9  EMS decision-making approaches

In [22], it is proposed a strategy that uses a market policy to manage the import
and export of power between each MG and the grid. This management is done
via maximizing a profit function, defined as the difference between the revenue
term (based on the power bought to the upstream network) and the expenses term

13
Energy management system in networked microgrids: an overview

(based on the cost for active power bought from the grid and compensations to DG
sources). The revenue and expense terms are defined based on market prices, avail-
able generation, and local demand. This information is exchanged by a centralized
distribution management system (DMS) connected to all the MGs in the NMG. In
[57], authors proposed a GCC for the operation of NMGs. An energy management
unit is used as a communication interface between the GCC and the MGs. A DNO
provides certain power from non-renewable sources at a certain cost to the MGs.
The GCC aims to generate the appropriate set points for all the DERs for optimizing
the total benefits of the NMGs while satisfying the forecasted demand. This strat-
egy is based on an MPC algorithm that considers the current state of the MGs and
predicts a future horizon to generate the control action for that period. A different
approach is presented in [81], where a voltage-frequency management technique
(VFMT) is proposed as the tertiary control. This technique is an algorithm that aims
to maintain each MG within the acceptable voltage and frequency limits by modify-
ing the generator’s set points and the power injection/absorption of ESS. Also, it
manages the connection and power flow between MGs depending on the status of
each MG (overloaded or overgenerated). Finally, recent work including deep neural
networks and model-free reinforcement learning has been proposed for the EMS in
multi-microgrid [72].

3.2 Decentralized EMS for NMGs

In a distribution system with NMGs, cooperation among multiple MGs can lead to
a reduction in the operating cost of the entire network. However, conflicts and com-
peting interests may arise due to the goal of each MG to maximize its profit while
sharing surplus renewable energy. This poses a challenge in making decisions that
align with individual or group interests, considering the available information and
capabilities of each MG. Game theory has emerged as a robust framework for devel-
oping cooperative power control strategies among interconnected MGs. Cooperative
and non-cooperative game theory approaches have been used to tackle this problem
in various settings. By leveraging game theory, it becomes possible to analyze and
optimize the interactions and decision-making processes among MGs, enabling the
establishment of cooperative agreements and the resolution of conflicts to achieve
mutually beneficial outcomes [1, 29, 67, 69, 70, 82]. Cooperative game theory is
commonly utilized in networked MGs to enable each MG to achieve greater benefits
than operating alone, providing adequate control strategies in a cooperative frame-
work. Moreover, coalitional game theory-based algorithms have been proposed to
obtain additional benefits for MGs with varying requirements, as the cooperation
structure offers clear benefits [29].
To ensure fair and effective energy trading among NMGs, a proposed incentive
mechanism based on Nash bargaining offers a promising solution. This mechanism
aims to distribute cooperative benefits equitably among microgrids by formulat-
ing an energy trading Nash bargaining problem. The problem considers the perfor-
mance improvements of all microgrids as a product and incorporates constraints on
energy exchange with the main grid and other microgrids. By utilizing coalitional

13
 J. A. Rodriguez‑Gil et al.

game theory, the sharing and trading of renewable energy in smart interconnected
households can be optimized, leading to the minimization of the total cost incurred
by the microgrids. This approach enables the establishment of a balanced and effi-
cient energy market, fostering cooperation and facilitating the adoption of renew-
able energy sources within networked microgrids [36]. The approach employed in
this scenario involves distributing the worth or revenue of a coalition among its
members based on a fairness rule. The worth or revenue represents the collective
amount of cost savings achieved by the group. By implementing a fairness rule,
each member of the coalition receives a fair share of the benefits, ensuring equitable
distribution. This approach promotes cooperation and incentivizes active participa-
tion within the coalition, fostering a sense of fairness and encouraging collaborative
efforts to achieve cost savings collectively. On the other hand, non-cooperative game
theory involves multiple decision-making entities without any binding agreement
between them. Each entity tries to maximize its benefits. Nash equilibrium provides
a strategic framework for analyzing the decision-making process of buyer MGs and
finding a stable state where no MG can unilaterally improve its outcome by devi-
ating from its chosen energy demand strategy enabling a simultaneous, balanced,
and efficient allocation of energy resources within NMGs, taking into account the
individual demands and competitive dynamics among the participating MGs in the
energy market.

3.3 Distributed EMS for NMGs

Assuming that Problem (1) satisfies some structural requirements such as convex-
ity, separability, and decomposability (for ADMM), it can be rewritten using a
Lagrangian function based on duality theory to relax the coupling in constraints.
This is often done in energy distribution problems that have both coupling variables
and coupling constraints. In such cases, a hierarchical primal-dual decomposition
method is used, which transforms the centralized problem into N subproblems. The
master problem updates the dual variables, which serve as shadow prices. Based on
these dual variables, each subproblem can be solved independently, as it represents
the optimal allocation problem for a single MG with its objectives and constraints.
This allows parallel optimization of the subproblems, resulting in a mitigated com-
putational burden [67, 68, 76, 83].
Recently, an EMS has been proposed to operate NMGs considering power flow
equations for every subsystem for different types of topologies such as meshed
and radial configurations, and avoiding centralized distribution system coordinator
requirements. The proposed distributed optimization algorithm is built on the alter-
nating direction method of multipliers [76]. Similarly, another approach focuses on
an online energy management algorithm for the distribution system operator, utiliz-
ing regret minimization. Notably, this online algorithm is independent of predicted
data, which helps overcome the challenge of inaccurate forecasting [24]. These
advancements in EMS offer more efficient and reliable energy scheduling for net-
worked microgrids while reducing the dependence on forecast data and improving
overall system performance.

13
Energy management system in networked microgrids: an overview

The distributed scheme is one of the most used for a tertiary level because of the
advantages in terms of expandability and reliability against the centralized scheme,
and also the advantages in terms of achieving an optimal operation against a decen-
tralized scheme. A traditional consensus protocol is presented as follows
∑
eV = aij (Xi − Xj ), 𝛿V = eV ⋅ C(s),
(2)
j∈Ni

where aij is the weight between node i and j, Xi is the controlled variable (voltage,
current, SoC, etc), C(s) is the controller (which usually implements a PI controller),
eV is the error variable term, 𝛿V is the voltage correction term sent to the secondary
control, and Ni is the set of MG neighbors of MG i. Figure 10 shows the common
structure of the traditional distributed structure (2) for EMS.
On the other hand, considering again the EMS optimization problem (1), we can
obtain the total cost function for a fixed time t as F = Ni=1 Fi , with each agent cost
∑
function is defined as
Fi (pti , xit , ptij ) = Ci (pti ) + Bi (xit ) + fi (ptij ). (3)

With these functions (3), we can use the general gradient-based distributed optimi-
zation algorithm to solve the EMS optimization problem as follows
( )
∑
(4)
t+1 t t t t t
pi = PX aij pj − 𝜂 ∇Fi (pi , xi , pij ) ,
j∈Ni

with 𝜂 t is stepsize and PX is the projection onto the constraint set X obtained from
optimization Problem (1).
In [84], the control strategy uses a pinning strategy for secondary control to reach
consensus in the voltage of the MGs that conform to the NMG system, taking into
account a correction term that the leader nodes transmit to the pinning nodes into
each MG. The leader nodes are the common buses of each MG. This correction term
is provided by the tracking power error in the tie-line that is processed by a PI con-
troller and then sent to the leader nodes in each MG. However, there is no mention
of how the power reference in the tie-line is generated. Similarly, in [58], the strat-
egy is strongly integrated with the secondary level and has two correction terms.

Fig. 10  Common distributed structure for tertiary level

13
 J. A. Rodriguez‑Gil et al.

The first module is used to regulate the voltage in each MG (centralized secondary
scheme) and reach via consensus the nominal rated value for the average voltage
in the NMG system. The second module is used to make a power flow control that
aims to reach a consensus in the SoCs of the batteries of all the MGs over the NMG
system. These two modules generate correction terms that are sent to the secondary
control.
Additionally, a strategy to achieve a proper power flow can be based on the con-
sensus of currents provided by each MG using a cooperative strategy to balance
the currents in the NMG system. Using a voting protocol, the average of per-unit
currents (per-unit current is the measured current over the rated current) is used
to reach a consensus between MGs, processing the corresponding error term via a
PI controller and sending this correction term to the secondary centralized control
[85]. The per-unit averaged current is obtained using the communication network
in the secondary level, and the error term is obtained as in (2). Similarly, in [61], it
is implemented a strategy based on the averaged currents to achieve a proper power
flow between MGs. However, the averaged current term is obtained via consensus
estimation, and then compared with the measured current to generate the error term.
In this case, a proportional gain is used to process the error term and generate the
voltage correction term.
The distributed scheme in AC NMGs uses the same typical structure presented
previously in Fig. 10 and (2). However, the variables used to reach consensus are
usually the active power (P) and/or the reactive power (Q), and the correction term
could be not only for voltage but for frequency too (𝛿𝜔). In [62], it is proposed an
unconventional droop-free strategy, which uses for the tertiary level a consensus
error term based on the normalized active power (measured active power over the
maximum rated active power). Then it is processed by a PI to generate the corre-
sponding correction term to the frequency. On the other hand, considering DC
NMGS, most of the strategies apply the consensus-based protocol to achieve syn-
chronization in the MGs voltages, the MGs currents, and/or the SoCs of the batteries
in the NMGs system. This scheme is usually integrated with a distributed secondary
control, using in some cases the communication network or information from that
level (e.g., variable averages, pinned nodes, leader nodes, among others).
A cluster-oriented control strategy is proposed in [60] to achieve a proper power
flow between MGs cooperatively. This approach uses two layers: In the first one
(intracluster), proportional droop control is used to reach power-sharing between
DERs in the MG. The voltage and frequency reference values are achieved via a
tracking consensus problem. These reference values are determined by the second
layer (intercluster), which aims to regulate the voltage and frequency to its nominal
operation range values and to achieve proper power-sharing between MGs based on
the consensus error term of the normalized active and reactive power. In [74], it is
also used as a distributed scheme for a secondary level that is integrated with the
tertiary level via pinned nodes. The tertiary level uses graph theory to generate the
voltage and frequency references for each MG based on the nominal values and to
achieve good reactive power-sharing. The strategy aims to reach the nominal values
for frequency and voltage via consensus, and the error consensus term related to
the reactive power is introduced to modify the voltage reference. Recently, a fully

13
Energy management system in networked microgrids: an overview

distributed privacy-preserving EMS for NMG cluster has been introduced in [86],
where the privacy issues are dealt by means of homomorphic encryption.
Finally, the energy management system can be approached from a bi-level control
perspective [1, 75]. The first level is defined as distribution system control, which,
by learning way, is based on reinforcement learning (RL) strategies for the DSO
control. Commonly at this level, a regularization is defined through a least-squares
function to obtain each microgrid’s optimal price. However, it does not intrinsically
maximize its profit, but rather it iteratively maximizes the information of the entire
system as a whole. The exact problem is to find the best retail price for all agents.
The next level is defined as energy management. The DSO receives price informa-
tion in a time window to solve (commonly) a nonlinear programming problem for
price-based energy dispatch, including price constraints, to determine the active and
reactive power of distribution in the PCC. It is essential to consider a direct rela-
tionship between the solution of the optimization problems at each level due to the
price-dispatch relationship. The bi-level formulation can be alternatively represented
as a Stackelberg game, incorporating multiple followers within a problem that oper-
ates in two distinct time scales, where the leader agent is in the upper-level. To
solve the bilevel optimization problem, distributed population games offer a suitable
approach. Unlike consensus-based methods, distributed population game-theoretical
techniques have emerged as a flexible framework for effectively coordinating the
operation of networked devices [87]. Leveraging this approach offers several advan-
tages, including improved real-time operation and enhanced robustness in the face
of variations in environmental conditions.

4 Perspectives on intelligent EMS for NMGs

The path to a smarter grid is still facing several challenges for optimal energy man-
agement with the inclusion of heterogeneous DERs. With thousands of devices
accessing the communication networks to negotiate energy in real-time, a central-
ized control entity responsible for managing the energy transaction will not be pos-
sible. Hierarchical distributed controllers of NMGs systems at different time scales
with minimum information traffic are expected to be deployed to ensure the safe
and reliable real-time operation of future distribution systems. Fully distributed
energy management schemes are deemed particularly well-suited for NMGs as they
facilitate efficient and effective energy sharing through simplified and autonomous
approaches. We anticipate that these schemes will take center stage in future MGs
research, serving as a focal point for advancements in this field.
In the era of data-oriented networks, the utilization of data-driven modeling tech-
niques and machine learning methods holds immense potential. Drawing inspiration
from existing literature such as [77–80, 88] these modeling ideas can be effectively
applied to refine energy management in NMGs. Data-driven learning algorithms
have proven valuable in tasks such as MG energy management considering diverse
environment conditions, real-time detection of cyberattacks in peer-to-peer NMGs
energy markets, and modeling of DERs and loads in islanded MGs. By harness-
ing the power of data and intelligent algorithms, these approaches pave the way for

13
 J. A. Rodriguez‑Gil et al.

efficient and optimized energy systems in the evolving landscape of smart grids [88,
89]. Besides traditional DERs, new multi-energy systems will be supplying diverse
kinds of energy to the NMGs. On the other hand, a crucial factor to be considered
in the future implementation of NMGs is the uncertainty at all levels, from incom-
plete modeling to variable load predictions, risk-aware methods for optimal energy
management have to be developed for the NMGs to deal with these uncertainties.
In contrast, all these emerging applications of data-driven modeling lead to some
challenges in dealing with collecting, processing, and storing the large amount of
data produced by NMGs. Efficient data handling is crucial in managing the large
amount of data produced by microgrids. Utilizing advanced data collection systems,
such as IoT devices and sensors, helps gather real-time data on energy consump-
tion, generation, and grid conditions. Cloud-based storage solutions and distributed
databases can be employed to store and process this data, ensuring accessibility and
scalability. Cloud computing is a viable strategy to address the computational cost
of optimization algorithms in networked microgrids. Cloud platforms provide scal-
able and on-demand computational resources, allowing EMS to perform complex
optimization tasks efficiently.
In the context of control strategies, several challenges have been envisioned. For
instance, to enhance power exchange among MGs and to incorporate additional con-
siderations ensuring cyber-security in control communication, promoting resilience,
and maintaining power quality, new data-driven control approaches such as machine
learning are emerging to deal with these control objectives. Particularly in the case
of intelligent microgrids, which are inherently more vulnerable, it becomes essen-
tial to bolster their resilience against cyber-physical disasters and large-scale dis-
turbances. This necessitates a reevaluation of their modeling, stability, and control
mechanisms employing resilient control strategies. Optimization techniques in com-
munication-based controllers, such as event/time-triggered approaches, can further
contribute to reliable, accurate, and cost-effective performance. By incorporating
these considerations, the power exchange and control within MGs and NMGs can be
significantly improved, paving the way for more robust and secure energy systems.
In distribution systems with NMGs, the correlation of renewable energy gen-
eration within a limited geographical area, coupled with the unpredictable arrivals
and departures of electric vehicles, gives rise to spatial-temporal uncertainties. It
becomes crucial to incorporate these uncertainties into system modeling to enhance
accuracy. A significant research direction for the future lies in achieving effective
energy sharing within this interconnected and multivariate environment. Address-
ing the challenges posed by these uncertainties and developing strategies for suc-
cessful energy sharing will remain key focal points in upcoming research endeavors.
Given the stochastic nature of power-related variables such as renewable resources
and load demand, as well as market-related variables like prices in NMGs, online
optimal algorithms hold great promise for energy scheduling. The research empha-
sis in online algorithm development should be placed on lowering computational
complexity while attaining robust convergence performance that aligns closely with
offline global results. By addressing these challenges, online optimal algorithms can
significantly contribute to efficient and effective energy scheduling in NMGs, ensur-
ing optimal resource utilization and enhancing overall system performance.

13
Energy management system in networked microgrids: an overview

Energy management in NMGs must account for the divergent requirements of

both users and energy utilities while safeguarding privacy concerns. It is imperative
that the developed optimal strategies achieve fair energy allocation that satisfies the
requirements of all stakeholders. On the other hand, it is crucial to acknowledge the
significance of reactive power within NMGs systems. Including reactive power in
energy management considerations enhances the overall robustness and reliability of
the system.
On the other hand, the power-to-x concept has emerged as an important frame-
work to convert surplus electrical energy into other forms, such as hydrogen (Power-
to-H2), synthetic fuels (Power-to-Fuels), or other valuable products. An advanced
EMS in microgrids should integrate algorithms that can optimize power flows to
support power-to-x applications. Addressing the computational cost of networked
microgrid optimization involves leveraging cloud computing, implementing efficient
data collection and storage mechanisms, integrating power-to-x concepts into EMS
algorithms, ensuring smart grid compatibility, and prioritizing robust cybersecurity
measures. These considerations collectively contribute to the effective and sustain-
able management of networked microgrids.

5 Conclusion

MGs have attractive features to benefit from renewable energy sources and encour-
age a more friendly generation system. Models for NMG and communications
are crucial topics to obtain the maximum benefit from distributed generation. The
interconnection among MGs can limit some of their characteristics or allow them
to support each other. In NMGs, data sharing is necessary to reduce the generation
cost and increase the stability and reliability of the system, among others. However,
ensuring communication against faults or malicious attacks is also decisive in real-
world applications. Therefore, this work shows an overview of models and commu-
nication architectures in MGs. From a control perspective, the centralized scheme
offers the possibility of achieving an optimal operation in the NMGs system. Also,
the single point of failure cannot represent a common scenario with the increasing
performance and reliability in communications. A decentralized scheme avoids the
single point of failure, provides high reliability, and reduces communication costs.
However, an optimal power flow in NMGs is not possible to achieve. The distributed
scheme offers a sensible option because it considers information from neighbors,
but the single point of failure is avoided as it operates cooperatively. Also, a subop-
timal operation can be achieved without the need for an energy management system.
Finally, as the different schemes offer different features, choosing what scheme to
use in the control of NMGs depends highly on the conditions and characteristics
where the NMG system project will be implemented.
Acknowledgements This research was funded by Minciencias grant number CT 542-2020, “Programa de
Investigación en Tecnologías Emergentes para Microrredes Eléctricas Inteligentes con Alta Penetración
de Energías Renovables”.

13
 J. A. Rodriguez‑Gil et al.

Funding Open Access funding provided by Colombia Consortium.

Declarations
Conflict of interest The authors declare no Conflict of interest. The funders had no role in the design of
the study; in the collection, analyses, or interpretation of data; in the writing of the manuscript; or in the
decision to publish the results.

Open Access This article is licensed under a Creative Commons Attribution 4.0 International License,
which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long
as you give appropriate credit to the original author(s) and the source, provide a link to the Creative
Commons licence, and indicate if changes were made. The images or other third party material in this
article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line
to the material. If material is not included in the article’s Creative Commons licence and your intended
use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permis-
sion directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/
licenses/by/4.0/.

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