As advancements are made in the availability of small renewable generation power storage technologies, nations are starting to see a trend towards more distributed power and generation. As times change, changes must also be made to the ways in which we consume and distribute power. Distributed microgrids represent the ability for communities to cooperate in the distribution of power within neighborhoods. This thesis explores the structure of neighborhood scale distributed microgrids, defining the features and components needed to provide for accurate simulation. Techniques are developed for the integration of non-homogeneous microgrid systems to allow for smart grid-edge trading between units and microgrids. Exploration is conducted on the features required for an interactive system allowing the design and modelling of individual microgrid components and of neighborhood-scale microgrids, including the design of per-unit smart control schemes, and a proof of concept implementation is created allowing for simulation of non-homogeneous neighborhood scale fractal microgrids with arbitrary complexity. Sample cases are presented in order to demonstrate the effectiveness of the tool. The presented sample cases serve to demonstrate the effectiveness of small non-homogeneous microgrids, including those involving third party storage leasing services, and analysis is performed on the expected economic impacts of these types of systems.