Abstract: Microgrids as distribution networks with distributed energy sources have gained significant interest over the past 20 years. The energy sources are predominantly renewable energy sources, most of which are interfaced with the network through power electronics converters. AC/DC converters are conventionally regulated by fixed parameter proportional integral (PI) controllers designed off-line for a nominal operating condition. Their performance is affected by the change of parameters of passive components depending on temperature and operating conditions. Thus, they cannot provide good converter performance over its entire operating range. Converter performance can be improved by using adaptive control that can track the operating conditions in real-time. An adaptive controller that determines, in real-time, the parameters of the system model transfer function and computes control to match the system parameters is proposed. Converter performance in a hierarchical control environment in a microgrid is described.