A microgrid is a local electrical grid with defined electrical boundaries, acting as a single and controllable entity. It is able to operate in grid-connected and off-grid modes. Microgrids may be linked as a cluster or operated as stand-alone or isolated microgrid which only operates off-the-grid not be connected to a wider electric power system. Very small microgrids are sometimes called nanogrids when they serve a single building or load.
A grid-connected microgrid normally operates connected to and synchronous with the traditional wide area synchronous grid (macrogrid), but is able to disconnect from the interconnected grid and to function autonomously in "island mode" as technical or economic conditions dictate. In this way, they improve the security of supply within the microgrid cell, and can supply emergency power, changing between island and connected modes. This kind of grid is called an islandable microgrid.