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- This paper deals with the micro-grid consisting of micro-sources which adopt voltage sourced inverters with independent real and reactive power control capability for providing premium power quality. This paper presents dynamic modeling and the stable operating range of the micro-grid system varying the parameters of the micro-sources. The fundamental frequency model of the micro-source inverters are considered to form a dynamic model of the micro-grid system. Stability analysis is performed based on the linearized dynamic model of the micro-grid system. Case study results show the parameters affecting the stability of the micro-grid and the stable operating range of the micro-sources.