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A microgrid is a separate power system consisting of interconnected loads and distributed power sources that can operate in parallel or independently of the main power grid. A microgrid is generally a smaller version of the grid that transports electricity from the producer to the consumer. They help reduce overall costs and provide network backup in the event of a failure.
Microgrids are more efficient than traditional grids and can be integrated with a variety of renewable energy sources such as solar, wind, small hydro, geothermal, incinerators, and combined heat and electricity (CHP) systems. Batteries, distributed generators and solar panels can also be used to provide power. Moreover, they are a reliable power source as they operate continuously during power outages.