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 modes. 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.