In MORE Microgrids EU project, the project partners, ERSE & Turbopowersystems, have successfully implemented a virtual microgrid under laboratory conditions; this has allowed the examination and investigation of Microgrid topologies and generation scenarios under well defined steady state and transient network situations. The methodology used within the Project has investigate on “VIRTUAL ISLANDING”; tests on different generators and storage systems, operating on a stable reference MICROGRID, with the interposition of an inverter between the “main grid” and the “microgrid”, have been done with: ƒ voltage & frequency variation (360V÷440V, 45Hz÷65Hz) ƒ load and phase unbalance (with drop out of all or one of the phases) ƒ transfer of power TO and FROM the main grid (active and reactive) Moreover, tests on the CONTROLLED TRANSITION from grid connected to “virtual islanding” operation and reverse”, have been done, investigating on microgrid performance during transition processes The main conclusions that have been reached are that with steady state conditions, Microgrids are well behaved and can usefully complement the network operation, however under transient conditions of transferring to and from grid for islanding operation, issues affecting overvoltage on the Microgrid can arise which leads to concern.