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The MicroGrid concept assumes a cluster of loads and microsources (<100 kW) operating as a single controllable system that provides both power and heat to its local area. This concept provides a new paradigm for defining the operation of distributed generation. To the utility the MicroGrid can be thought of as a controlled cell of the power system. For example this cell could be controlled as a single dispatchable load, which can respond in seconds to meet the needs of the transmission system. To the customer the MicroGrid can be designed to meet their special needs; such as, enhance local reliability, reduce feeder losses, support local voltages, provide increased efficiency through use waste heat, voltage sag correction or provide uninterruptible power supply functions. This paper provides an overview of the MicroGrid paradigm. This includes the basic architecture, control and protection and energy management.
R.H. Lasseter (2003) studied this question.