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 in island mode. A 'Stand-alone microgrid' or 'isolated microgrid' only operates off-the-grid and cannot be connected to a wider electric power system.

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 grids are called 'islandable microgrids'.

A stand-alone microgrid has its own sources of electricity, supplemented with an energy storage system. They are used where power transmission and distribution from a major centralized energy source is too far and costly to operate. They offer an option for rural electrification in remote areas and on smaller geographical islands. A stand-alone microgrid can effectively integrate various sources of distributed generation (DG), especially renewable energy sources (RES).

The EnergyPack can integrate electricity from different power generation equipments and different consumers into a Microgrid. Microgrid is independent grid that uses local distributed energy sources to provide grid backup or off-grid power to meet local power needs. EnergyPack is able to maximize the use of clean energy, which are often uncertain and unstable. If the electricity is stored, the utilization rate of clean energy can be greatly improved, and the quality and stability of power supply can be guaranteed.