The widespread popularity of renewable and sustainable sources of energy such as solar and wind calls for the integration of renewable energy sources into electrical power grids for sustainable development. Microgrids minimize power quality issues in the main grid by linking with an active filter and furnishing reactive power compensation, harmonic mitigation, and load balancing at the point of common coupling. The reliability issues faced by standalone DC microgrids can be managed by interlinking microgrids with a power grid. An artificial intelligence-based Icos$\varphi$ control algorithm for power sharing and power quality improvement in smart microgrid systems is proposed here to render grid-integrated power systems more intelligent. The proposed controller considers various uncertainties caused by load variations, state of charge of the battery of microgrids, and power tariff based on the availability of power in microgrids. This paper presents a detailed analysis of the integration of wind and solar microgrids with the grid for dynamic power flow management in order to improve the power quality and to reduce the burden, thereby strengthening the central grid. A smart grid system with multiple smart microgrids coupled with a renewable energy source with tariff control and judicious power flow management was simulated for power-sharing and power quality improvement. A hardware prototype of the artificial intelligence-based Icos$\varphi$ control algorithm with nonlinear load was also implemented successfully. Furthermore, the economic viability was investigated to ensure the feasibility of the smart microgrid system with the proposed controller design for power flow management and power quality improvement.

There is a rapid increase in power demand which has led to an increase in the need for smaller grids all over the world. The microgrid is such a small power supply system that consists of loads, distributed energy resources, and energy storage systems. With the development of the internet, the power sector has started the development of the newest type of grids, involving a smart technology called smart grids. Smart grids have got smart integration and advanced storage, along with dynamic optimization of grid operation and resources, digital information and control, distributed resources, demand-side resources, energy efficiency resources, and smart metering systems. The developments in intelligent controllers reflect in power flow management also. This paper gives an idea of how to achieve power flow management through a tariff-based Fuzzy Logic Controller (FLC). The control algorithm used here is the k factor-based Icosϕ algorithm, which decides the amount of power shared by microgrids and the grid based on the load demand. The power forecasting of the microgrid with a solar source is performed using ANN. The regression plot and the error histogram obtained show the accuracy of the ANN controller. The simulation of power flow management of the smart microgrid system is tested and analyzed and the proposed system is compared with other existing research. The hardware implementation of the FLC controller with the Arduino interface which is analogous to real-time measurement is explained in detail to compare the simulation results obtained.