A microgrid is a regional power system composed of decentralized energy sources and loads, which can be interconnected and coordinated with the central power grid through information and communication and power monitoring technologies, or operated in isolation to maintain load balancing within the regional power grid. The main applications of a microgrid include the uses in remote/island areas, community/power company distribution networks, schools/institutions, industrial/commercial parks, and military bases.

　　The upstream sector of the microgrid industry is composed of various types of decentralized energy sources that require different equipment depending on the complexity of system design, including solar energy, small and medium-sized wind turbines, fuel cells, micro-generators (such as micro-gas turbines and diesel generators) and battery storage (such as lithium batteries and lead-acid batteries). The midstream sector of the microgrid industry includes the key equipment such as power conversion systems/inverters, cables, power distribution equipment, energy monitoring and management systems, power quality improvement equipment, protective relays and information and communication equipment. The system integration and system construction in the downstream sector of the microgrid industry include the operations of site development, EPC and system integration. Microgrid systems are highly customized, and thus system integrators play an important role in microgrid design and system integration solutions. And the operations and management of microgrids in the downstream sector mainly include business operations and maintenance.

　　The supply chain of the microgrid industry in Taiwan has taken shape, and several demonstration sites are now in operation, including the outlying island type grids on Qimei Island and Wangan Township in Penghu County, and the disaster-proof microgrids in remote areas such as Wutai Township, Mudan Township and Shizi Township in Pingtung County. Since the microgrid development and operation industry involves electricity supply and sales and is a chartered industry, if an operator in Taiwan wants to expand into overseas markets, it is recommended to establish cooperation with local operators or NGOs to enter the market by adopting the business models of "transferring after construction" or "selling services".