What is Micro-grid?

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A microgrid is a small-scale power grid that can operate independently or in conjunction with the area’s main electrical grid.

Any small-scale localized station with its own power resources, generation and loads and  definable boundaries qualifies as a microgrid. Microgrids can be intended as back-up power or to bolster the main power grid during periods of heavy demand. Often, microgrids involve multiple energy sources as a way of incorporating renewable power. Other purposes include reducing costs and enhancing reliability.