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This paper presents a hybrid AC/DC micro grid concept to directly integrate DC/AC renewable sources and loads to DC/AC links respectively. The hybrid grid eliminates multiple DC-AC-DC&AC-DC-AC conversions in an individual AC&DC grid. The hybrid grid increases system efficiency, eliminates the embedded AC/DC and DC/DC converters in various home, office and industry facilities which can reduce size and cost of those facilities. The basic architecture of the hybrid grid is introduced in this paper. Different operation modes of the hybrid grid are discussed. The various control algorithms are investigated and proposed to harness the maximum power from various renewable sources, to store energy surplus during low peak loads, to eliminate unbalance problem in AC link, to maintain voltage stability and smooth power transfer between AC and DC links under various generation and load conditions. A prototype of the hybrid grid under construction is presented. Some simulation and test results are presented.