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Smart Grid- PV system interface requires power electronic converter interface and robust optimal controller to ensure maximum solar energy utilization. This paper presents a new Controller based on an optimized search algorithm for maximum power point tracking controller performance using a modified Perturb and Observe P&O Algorithm for a smart grid connected PV DC-AC interface system. The modified P & O method is based on dividing the change of the power into three distinct zones with assigned zone- duty cycle ratio of the Chopper converter (D) has an initial preset value. The feasibility of the proposed method is easily implemented using proportional plus integral and fuzzy logic controllers. The controllers are assumed to control the active output power through adjusting of the dc bus voltage as well as the reactive power given to the ac smart grid network. Digital simulation results of a comparison with conventional P&O approach reflects the fast conversion and dynamic superiority of the new algorithm even under both uniform and partial shading conditions. Furthermore, the active and reactive output powers are regulated at the inverter interface with smart grid.

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