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Grid-tie inverters are used to convert DC power into AC power for connection to an existing electrical grid and are key components in a microgrid system. This paper discusses the design and implementation of a grid-tie inverter for connecting renewable resources such as solar arrays, wind turbines, and energy storage to the AC grid, in a laboratory microgrid system while also controlling real and reactive power flows. The Atmel EVK1100 with an AVR32UC3A0512 microcontroller, will be used to coordinate all of the different functions of this grid-tie inverter. The EVK1100 will communicate with Rockwell PLCs via Ethernet. The PLCs are part of the communication, control and sensing network of the microgrid system.