A microgrid is a group of interconnected loads and distributed energy resources that can operate connected or disconnected from the main power grid. Microgrids provide benefits like reducing outage effects, optimizing demand and costs, integrating distributed resources, and improving asset management. They are well-suited for locations that experience frequent outages and have potential distributed energy resources like solar, enabling independence from the main grid during emergencies. The document discusses factors to consider for microgrid location and implementation, citing examples in Massachusetts.