A Systematic Review of Challenges in the Implementation and Integration of Decentralized Microgrids

Abstract

Decentralized microgrids are necessary for global decarbonization, making the grid more resilient and expanding universal access. But a complicated web of interconnected challenges makes it very hard for them to be widely commercialized. This systematic review thoroughly examines these deployment challenges within technical, economic, social, environmental, and policy frameworks. While employing dual-lens analytical methodology, 105 peer-reviewed publications and reports published from 2014 onwards were aggregated from ScienceDirect, Google Scholar, and Academia. The results show that complicated inverter control requirements, non-detection zones in islanding, and power quality degradation make it much harder to deploy technology. The high upfront capital costs of battery energy storage systems and the lack of local peer-to-peer electricity marketplaces make it hard for local residents to make investments, especially in low-income areas. To promote real energy democracy, social integration needs to get past behavioral resistance, “NIMBYism,” and a history of uncertainty in institutions. The unsustainable mining of vital minerals and the impending catastrophe of technological waste create significant ecological contradictions. Also, old, centralized regulatory frameworks and the absence of common interoperability standards make these administrative problems much worse. A cross-regional analysis reveals significant geographic disparities: Europe and North America focus on the digital integration of prosumers and the reinforcement of legacy grids against severe weather, whereas emerging economies in Africa and South Asia contend with fundamental rural electrification amid inadequate infrastructure. This assessment provides a strategic path to fill these research gaps. It focuses on AI-driven predictive controllers, circular economy frameworks for batteries that have already been used, and the harmonization of grid codes around the world.