A Microgrid is a localized, self-sufficient energy generation and distribution system that serves a concentrated geographic area. As a small-scale independent power grid, it provides stable electricity to specific user scenarios—including university campuses, hospital complexes, commercial centers, residential communities, and more.

Its core composition includes distributed energy resources (DERs) within the area (such as solar panels, energy storage generators, etc.) responsible for local power production; combined with energy storage systems and intelligent control equipment, it forms a complete closed loop of “generation-storage-distribution.”