"A microgrid is a collection of small generators for a collection of users in close proximity," explained Dr Markvart, whose research appears in the Royal Academy of Engineering's Ingenia magazine.
"It supplies heat through the household, but you already have cables in the ground, so it is easy to construct an electricity network. Then you create some sort of control network."
That network could be made into a smart grid using more sophisticated software and grid computing technologies.
As an analogy, the microgrids could work like peer-to-peer file-sharing technologies, such as BitTorrents, where demand is split up and shared around the network of "users".
Microgrids could exist as stand alone power networks within small communities, or be owned and operated by existing power suppliers.
Campaign groups such as the Green Alliance have been pushing for micropower generation technologies, such as micro-CHP (combined heat and power) boilers - a vital part of microgrids - mini-wind turbines and photovoltaic (PV) solar arrays.
Micro-CHP units work by turning heat which would normally escape through flues into electricity. Homeowners then sell any surplus electricity back to the national grid.
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