This paper presents a dual voltage source inverter (DVSI) scheme to enhance the power quality and reliability of the microgrid system. The proposed scheme is comprised of two inverters, which enables the microgrid to exchange power generated by the distributed energy resources (DERs) and also to compensate the local unbalanced and nonlinear load. The control algorithms are developed based on instantaneous symmetrical component theory (ISCT) to operate DVSI in grid sharing and grid injecting

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... s. The proposed scheme has increased reliability, lower bandwidth requirement of the main inverter, lower cost due to reduction in filter size, and better utilization of microgrid power while using reduced dc-link voltage rating for the main inverter. These features make the DVSI scheme a promising option for microgrid supplying sensitive loads. The topology and control algorithm are validated through extensive simulation and experimental results.