Microgrids are local electrical grids
with defined electrical boudaries acting as a single and controllable entity.
They are usually able to operate both in
grid-connected
and
islanded mode
but totally
stand-alone microgrids
exist and are used to feed loads in remote areas where connection to the national grid is not feasible.
Microgrids have their own
Distributed Energy Resources (DER)
and
Energy Storage Systems (ESS).
Switching from grid-connected to islanded mode and vice versa is dictated by technical or economic conditions. In this way microgids improve the security of supply (energy security) within the microgrid cell and can supply emergency power. In the same way they can be beneficial to the distribution grid providing ancillary services.