This paper proposes a novel micro-grid structure, which can operate fully-autonomously with inherent seamless switching. It can operate independently in both grid-connected and islanded mode as a self-governed entity without relying on the utility grid. An AC/DC/AC converter is employed as the interface between the micro-grid and the utility grid, which enables the two entities to have different voltages in grid-connected mode. Seamless switching between operation modes can be achieved naturally. The micro-grid is regulated to exchange predefined amount of power with the utility grid in grid-connected mode. This will benefit the power dispatching algorithm of the power system. The predefined power is estimated based on power forecasting of local renewable generations and loads with consideration of the Sate of Charge (SOC) of the battery, and is updated and broadcasted every certain period. A small scale AC micro-grid with a rotating generator, battery storage and solar arrays etc. is built for investigation. Matlab/Simulink results are provided to validate the robustness and flexibility of proposed micro-grid and its operation strategy.