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Definition
A microgrid is a group of interconnected loads and distributed energy resources (DERs) within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode.
Microgrid is a localized grouping of electricity sources and loads that normally operates connected to and synchronous with the traditional centralized electrical grid (macrogrid), but can disconnect and function autonomously as physical and/or economic conditions dictate. By this way, it paves a way to effectively integrate various sources of distributed generation, especially Renewable Energy Sources. It also provides a good solution for supplying power in case of an emergency by having the ability to change between islanded mode and grid-connected mode. On the other hand, control and protection are big challenges in this type of network configuration, which is generally treated as a hierarchical control.