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{{Main|Microgrid}}
A ''microgrid'' is a localized grouping of electricity generation, energy storage, and loads that normally operates connected to a traditional centralized grid ([[electrical grid|macrogrid]]). This single [[point of common coupling]] with the macrogrid can be disconnected. The microgrid can then function autonomously.<ref>Stan Mark Kaplan, Fred Sissine, (ed.) ''Smart grid: modernizing electric power transmission and distribution...'' The Capitol Net Inc, 2009, {{ISBN|1-58733-162-4}}, page 217</ref> Generation and loads in a microgrid are usually interconnected at low voltage and it can operate in DC, AC, or the combination of both. From the point of view of the grid operator, a connected microgrid can be controlled as if it were one entity.
Microgrid generation resources can include stationary batteries, fuel cells, solar, wind, or other energy sources. The multiple dispersed generation sources and ability to isolate the microgrid from a larger network would provide highly reliable electric power. Produced heat from generation sources such as microturbines could be used for local process heating or space heating, allowing flexible trade off between the needs for heat and electric power.
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