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With the increasing penetration of renewable energy resources, their variable, intermittent and unpredictable characteristics bring new challenges to the power system. These challenges require micro-meteorological data and techniques to provide more support for the power systems, including planning, dispatching, operation, and so on. This paper aims to provide readers with insights into the effects of micro-meteorology on power systems, as well as the actual improvement brought by micro-meteorology in some power system scenarios. This paper provides a review including the relevant micro-meteorological techniques such as observation, assimilation and numerical techniques, as well as artificial intelligence, presenting a relatively complete overview of the most recent and relevant micro-meteorology-related literature associated with power systems. The impact of micro-meteorology on power systems is analyzed in six different forms of power generation and three typical scenarios of different stages in the power system, as well as integrated energy systems and disaster prevention and reduction. Finally, a case study in China is provided. This case takes wind power prediction as an example in a power system to compare the performance when applying micro-meteorological data or not. The experimental results demonstrated that using the micro-meteorological reanalysis dataset with high spatial--temporal resolution for wind power prediction performed better, verifying the improvement of micro-meteorology to the power system to some extent. [ABSTRACT FROM AUTHOR]