This chapter presents capacitive compensation for enhancement of load profile in MG connected with back-to-back voltage source converter and also presents microgrid load variations for different conditions between utility grid and MG system. The power flow control between the grid and MG is proposed. The real and reactive power exchange between the grid and MG is with simulations conducted in MATLAB/SIMULINK. The back-to-back voltage source converter protects against voltage or frequency fluctuations from utility side, and islanding and resynchronizing during fault conditions are validated between relay and circuit breaker coordination. The proposed control setup proves resilient to changes in grid-side voltage and frequency, ensuring a stable and reliable power-sharing mechanism under various operating conditions.