Microgrids have been identified as key components of modern electrical systems to facilitate the integration of renewable distributed generation units. Their analysis and controller design require the development of advanced (typically model-based) techniques naturally posing an interesting challenge to the control community. Although there are widely accepted reduced order models to describe the dynamic behavior of microgrids, they are typically presented without details about the reduction procedure hampering the understanding of the physical phenomena behind them. Preceded by an introduction to basic notions and definitions in power systems, the present survey reviews key characteristics and main components of a microgrid. We introduce the reader to the basic functionality of DC/AC inverters, as well as to standard operating modes and control schemes of inverter-interfaced power sources in microgrid applications. Based on this exposition and starting from fundamental physics, we present detailed dynamical models of the main microgrid components. Furthermore, we clearly state the underlying assumptions which lead to the standard reduced model with inverters represented by controllable voltage sources, as well as static network and load representations, hence, providing a complete modular model derivation of a three-phase inverter-based microgrid. (C) 2016 Elsevier Ltd. All rights reserved.