SUMMARY
This paper process DWT-differential analysis for optimal relay coordination issue for the microgrid. This solution works for grid-connected as well as the disconnected mode of operation. Coordination among relays of the microgrid is a complex part to handle, as the insertion of DG causes a bidirectional flow of current. Advanced protection methods involving DWT analysis of fault current can provide intelligent and smart ways of protection. Previous work has been applied with the differential algorithm on grid-connected and islanded mode, but one major deficiency is an increase in operating time of primary and secondary relay, which further decreases the reliability of Microgrid. The proposed system relies on DWT-differential Analysis based approach, which removes all unwanted noise and bandwidth from fault signal and differential analysis helps to select the best pair of a relay. The problem is formulated as a Non-linear programming constraint to minimize overall operating Relay time. The Scheme is tested with IEEE-9 bus system. The comparative analysis is carried out with two traditional methods, the result shows that it achieves a remarkable reduction in operating time in the primary and backup relay.