With the increasing popularity of renewable energy sources and harmonic generating loads, issues with power quality can be addressed with the help of the advanced metering infra-structure (AMI). Power quality is a major issue with microgrids because they tend to have low short circuit power with higher levels of harmonic distortion and asymmetry than major power grids. Energy delivered to the customer by distorted and asymmetrical voltages and currents can be composed of a useful component and a component that can be harmful to customers and/or the utility. Unfortunately, traditional analog based energy meters are incapable of distinguishing these components and billing for them appropriately. Using a new concept of working, detrimental, and reflected active power, via the advanced metering infrastructure, sources of degradation can be pinpointed so entities responsible for harmonic distortion and asymmetry can be made aware of the issue. A model of a microgrid bus will demonstrate the con-sequences of distortion and asymmetry. Enforcing penalties can result in better voltage and current profiles thus increasing the overall efficiency of the microgrid for a minimal cost of software updates to AMI meters.
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