Microgrid is now commonly used in distribution system to produce continuous power supply during abnormal condition and also to reduce the total power losses in the system. During normal condition, microgrid acts as a part of generators to reduce the total power losses in the system. If any fault occurs in the generator or in any lines, microgrid acts as an individual generator and maintains the stability of the system. The most important process in microgrid is to generate power based on the normal or abnormal condition. If any fault occurs in the system, it loses its stability condition. So, to maintain the system stability, the microgrid needs to generate power based on the condition. In most of the works, both normal and abnormal conditions are not considered.