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Microgrids are receiving attention due to the increasing need to integrate distributed generations and to insure power quality and to provide energy surety to critical loads. Since renewables need to be in the mix for energy surety, a high renewable-energy penetrated microgrid is analyzed in this paper. The standard IEEE 34 bus distribution feeder is adapted and managed as a microgrid by adding distributed generation and load profiles. The 25 kV system parameters are scaled down to 12 kV and renewable sources including solar PV and wind turbines, an energy storage system, and a diesel generator for islanded mode have been added to the 34-bus system. The distribution generations (DG) and renewables are modeled in detail using PSCAD software and practical constraints of the components are considered. The monitoring of the microgrid for measuring power quality and control requirements for these DGs and storage are modeled to maintain the power quality of the system when loads are varied. Renewable sources are modeled with seasonal variation at different locations. The microgrid is monitored at number of buses and the power quality issues are measured and indexes are calculated. This paper proposes a generalized approach to design (determine the capacity requirements) and demonstrates the management of microgrids with metrics to meet the power quality indexes.