A microgrid refers to a small-scale energy system consisting of interconnected loads and distributed energy resources that can operate independently or collaboratively with other grids. It can connect and disconnect from the grid, which enables it to function in both the grid-connected as well as the island-mode.

Moreover, a microgrid not only provides backup for the grid in case of emergencies but can be employed to minimize costs and assist in connecting with a local resource which is too small or unreliable for traditional grid usage. Currently, the demand for microgrids is on a rise as they allow authorities to meet environmental objectives by utilizing renewable energy as a source of power generation. In addition to this, governments in various countries are undertaking initiatives to establish biopower, solar and wind energy farms. According to the global microgrid market report by IMARC Group, the market reached a value of US$ 19.3 Billion in 2018. Looking forward, the global microgrid market size is further projected to reach US$ 36.3 Billion by 2024, at a CAGR of 10.9% during 2019-2024.