AC microgrids have emerged as a promising solution to address the challenges associated with conventional centralized power systems, such as enhanced resilience, improved reliability, and integration of renewable energy sources. However, the presence of multiple DERs and complex interconnected components in a microgrid can introduce various fault scenarios, necessitating a thorough investigation of their effects on system performance and stability. The integration of AC microgrids has emerged as a promising research area, revolutionizing the conventional energy landscape (Patnaik, et al. in AC microgrid protection–a review: current and future prospective Appl Energy 271:115–210, 2020). AC microgrids are small-scale, localized power systems that encompass various energy sources and loads, enabling efficient and resilient energy management. At the heart of this innovative system lies the utility grid, acting as the primary energy provider and the backbone of microgrid. The electricity grid ensures continuous electricity supply and serves as a crucial backup during high-demand periods or when renewable energy sources experience fluctuations to enhance sustainability and reduce carbon emissions, renewable energy sources play a pivotal role within the AC microgrid. Photovoltaic (PV) panels are widely employed to harness solar energy, converting sunlight into electricity to power the microgrid (Manditereza in Renew. Sustain. Energy Rev 58:1457–1465, 2016). This clean and renewable energy source not only contributes to a greener environment but also reduces dependency on conventional fossil fuels. Moreover, a diesel generator is incorporated into the AC microgrid to provide backup power when renewable energy generation is insufficient or during emergencies. The diesel generator serves as an essential element, guaranteeing microgrid's stability and uninterrupted energy supply even in adverse conditions. For efficient energy storage and load balancing, batteries form a critical component of the AC microgrid (Singh in Seamless transfer of renewable-based microgrid between utility grid and diesel generator IEEE Trans. Power Electron. 33:8427–8437, 2018). These energy storage systems store excess electricity generated from renewable sources and provide it during peak demand periods or when renewable generation is limited. Batteries ensure a smooth and stable energy supply, mitigating the challenges posed by intermittent in renewable energy generation. Lastly, the AC microgrid is interconnected with various AC loads, representing the end-users and their diverse energy needs. These loads include homes, businesses, and industrial facilities, each with unique energy consumption patterns. The microgrid efficiently manages and distributes electricity to these loads, promoting energy efficiency, reliability, and cost-effectiveness. The incorporation of these elements into an AC microgrid transforms the traditional power distribution model, offering a more sustainable and decentralized energy system (Basak, Chowdhury Halder Nee Dey, Chowdhury in A literature review on integration of distributed energy resources in the perspective of control, protection and stability of microgrid. Renew Sustain Energy Rev 16(8):5545–5556 2012). Researchers and experts are continuously exploring novel approaches to optimize the operation and control of AC microgrids, paving the way for a cleaner and more resilient energy future. As this technology progresses, it holds immense potential to address energy challenges and foster sustainable development on a global scale ( Schwaegerl in Advanced architectures and control concepts for more microgrids More Microgrids, Siemens AG, STREP Proj. funded by EC under 6FP, SES6-019,864, TG2. Anal. Tech. benefits, TG3. Anal. Soc. Econ. Environ. Benefits 1–145 2009).