Development and deployment of low-carbon energy technologies has been a national strategy of both the UK and China for a number of years, including the use of renewable generation technologies and the improvement of energy efficiency of operations and activities. The paper addresses several issues of generic importance to a residential microgrid system such as network modelling, advanced control and integration of intelligent monitoring techniques. The system, comprising representative distributed generation technologies of photovoltaics, wind turbines and combined heat and power, has been simulated by PSCAD/EMTDC under different operational scenarios. Studies include the effect of environmental condition changes, control systems and power electronics on wind turbines and PV cells, and the mixture of wind/solar/CHP energy generation under dominance of each technology. The performance and dynamics of the system are examined against symmetrical and asymmetrical electrical faults to seek an optimal isolation and restoration of the distributed generation unit from the connected grid system. Modelling these system interactions has demonstrated the feasibility of the proposed residential microgrid system.