This paper provides with an idea of design and the various control techniques to be used to design a micro grid effectively. It gives the concept of distributed generation and the micro grid. There are various techniques used to determine the best design of micro grid in order to effectively utilise the resources to provide quality electrical supply which is the main motive of every generation. Micro grid refers to the operation in connection with the utility grid but it also has a special feature of operating in the standby mode which is called as islanding mode. The primary purpose of micro grid designing is to enable continuous and quality supply.