Microgrids can be classified into two main groups: AC and DC (“Alternating Current” and “Direct Current”) microgrids based on their operational setup. Following is a brief description of each of these types along with their relative pros and cons. . There is an emerging focus on microgrids as a means to achieve more electric efficiency and less dependence on conventional power grids. These small-scale systems provide an alternative way to create and distribute power (generate as well as distribute locally enabling better control and. . Different threats to the power grid, including cyber attacks, physical attacks and natural disasters, can limit its ability to provide reliable power to consumers and critical industries. Microgrid systems can. . AC Microgrids and DC Microgrids are defined as a decentralized network of loads and energy generation units located within specified electrical boundaries. It is a small-scale po er system with distributed energy resources.