There is a new way of thinking about smart grid design and construction referred to as a microgrid. A well designed microgrid produces enough energy to meet the power needs of the users within the microgrid. A microgrid can be a prison, army base, city, university, or other local requirement. A smart microgrid is the most efficient and economic way to manage and deliver electricity to a local user base. Economic and environmental benefits to smart grid users is maximized while minimizing energy loss through transmission over long distances. Other savings are achieved through smart use of power and more distributed generation.