This paper introduces a hierarchical management scheme for multi micro-grid systems with advanced functionalities embedded in a smart grid. In the proposed scheme, each micro-grid is an intelligent unit referred to as a local smart micro-grid (LSMG). Each LSMG effectively fulfill smart grid demands such as precise control of electric power, dynamic islanding and self-healing in its surrounding area. Also, the proposed hierarchical management scheme allows LSMGs to operate as peer-to-peer entities. The control schemes required for operation of LMSG in grid-connected and islanded modes are discussed. The control schemes are embedded in the distributed generation units available in the LSMGs. The control and management schemes are developed and verified by simulations.
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