With the raise of energy cost, every country proposes many strategies tosearch for alternative energy. This trend makes the microgrid system with distributedenergy sources more attractive. Distributed energy resources can reduce theinvestment cost of building new fossil-fuel based power plant, mitigate the carbonoxide reduction, provide reactive power compensation and frequency regulation,increase the spin reserve, and enhance the system stability. However, some undesiredeffects are accompanied with their installations and operations, such as imbalance,voltage regulation, voltage fluctuation, and harmonics, as well as interharmonics.To effectively estimate the power quality of systems, a simple and accurateanalysis method is important. Due to the development of fast Fourier transform (FFT)for efficient computation of discrete Fourier transform (DFT), digital measuringtechniques have been greatly promoted since 1960s. Therefore, FFT has been widelyused in the fields of communication, acoustics, videos, and control. However, sincethere are several limitations in FFT, direct usage of this technique would lead tosignificant estimation errors.Because those power quality analysis methods are quite different and havedifferent limitations for different power signals, inexperienced engineers may not beable to effectively and correctly apply these techniques. Hence, several commonlyused methods will be reviewed and compared in this project, and the integrated studyof measurement, testing, grid-connection, compensation, and system simulation forpower quality of renewable energy in AC microgrid will also be performed to enhancepower quality control and provide some strategies for remedy of power quality in ACmicrogrid of Institute of Nuclear Energy Research (INER) or Ping-Tung.From above, the main tasks of this project can be summarized, which include:(1) Review and compare the recent power quality signal processing methods; (2)Implement reviewed methods and make comparisons of performance; (3) Design andimplement the power monitoring system based on INER microgrid according to theproposed designing rules; (4) Make the measurements and analysis for the actualdisturbance sources with the developed microgrid power monitoring system; (5)Establish and design the related database for the power quality signal measurements;(6) Design the standard power quality testing power source; (7) Establish thehardware design and control strategy of standard power quality testing power source;(8) Develop the efficient maximum power point tracking algorithm; (9) Design therelated power electronic converters and control technique to complete thegrid-connection; (10) Propose the reference compensation current control strategy toimprove the power quality of renewable energy and nonlinear loads; (11) Establish themicrogrid model; (12) Make the simulation to realize the power quality of microgridsystem with real-time simulation technique; (13) Propose the remedial strategies toenhance the power quality of INER or Ping-Tung microgrid.