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The US electrical grid has been in place for decades, and by and large has been a dependable electricity distribution network. But as a result of decarbonisation of production, electrification of transport and extreme weather events, centralised production and distribution is no longer as reliable as it once was.
With grid dependability waning, many government institutions, businesses and communities are turning to microgrids to keep the power on.
A microgrid is an interconnected electrical system of multiple generation sources and controllable loads that can operate in parallel or independently from the utility grid to keep the power flowing during an outage. It provides a reliable solution for unexpected power loss and energy management by balancing energy demand, optimising energy usage, and reducing operating costs and carbon emissions. The generation sources are often referred to as distributed energy resources (DERs) that are decentralised assets controlled as an integrated system.
A microgrid is a DER system than can operate autonomously or “islanded” from the grid for maximum system resilience. Ultimately, microgrids are a grid within the grid designed to provide uninterrupted, reliable power in the event of a utility grid outage to keep the power on, no matter what.
A microgrid coordinates power generation assets that can either work with a utility provider to augment their production or operate autonomously to power critical operations. Often consisting of traditional fossil fuel generators as well as renewable sources such as wind, solar and energy storage, microgrids work to generate and optimise energy usage to provide resilient, efficient and sustainable electricity solutions.
Intelligent microgrid control systems are used to enable the various microgrid components and DER assets to operate in a coordinated way. You could think of the microgrid controller as the conductor of the DER orchestra.
A microgrid is as unique as the business, community or government institution that deploys it. The solution is never "one-size-fits-all"; by understanding an organisation's needs and wants, microgrid developers can identify the applications and assets needed to custom-engineer an appropriate solution.
Organisations typically fall within the spectrum of prioritising three goals: resilience, efficiency and sustainability. Of course, every customer would like to build a microgrid that "does it all." However, while benefits certainly overlap, building a solution that entirely satisfies all three objectives can be prohibitively costly.
The need for consistent, always-on power is a huge concern for many companies and residential communities. Cybersecurity threats and extreme weather events like wildfires, hurricanes and winter storms are affecting access to reliable power. Many states have awarded grants and passed disaster-response legislation to invest in microgrids and similar technologies to help reduce or eliminate power loss. More than ever, our global energy and infrastructure must be able to withstand extreme conditions. Our lives, communities and businesses depend on it.
Additionally, remote communities and developing nations are exploring microgrids for resilient energy as well as to lessen their dependence on fossil fuels, especially oil and diesel. Resilience is about bolstering critical operations and the ability to recover quickly from a crisis. Microgrids can play a key role in providing a more resilient energy infrastructure and are an investment in business continuity.
Many governments, corporations and institutions look to microgrids for financial benefits. These benefits are achieved by two main methods: cost avoidance and external monetisation. Cost avoidance can take many forms, such as maximising freely produced energy from renewable sources like solar and wind. When energy storage is added to renewable sources, it enables the freely produced power to be a dispatchable resource. That free power can then be made use of during times of high utility grid energy costs to reduce peak demand charges, providing utility bill savings. External monetisation occurs by participating in demand response programmes or by selling energy and frequency regulation services to a third party such as an independent system operator (ISO) or virtual power plant (VPP).
Organisations around the world have established environmental, social and governance (ESG) goals. These goals very often contain milestones or pledges to reaching a carbon-neutral operations footprint by a given date. Microgrids can be a significant tool in reaching decarbonisation goals while providing stakeholder value through energy cost savings and operational resiliency. A common challenge in powering business operations from renewable sources such as solar or wind is their intermittent nature. The sun isn’t always shinning or the wind blowing. The rise of affordable battery energy storage systems (BESS) has made popular a control technique known as renewable firming. Microgrids using a combination of renewable sources and BESS store excess energy during times of peak generation and discharge it when renewable sources are not producing or producing less than required to support the load.
Microgrid clients have one thing in common: the need for reliable power. But reliability means different things to different customers. Eaton helps customers understand the ins and outs of power alternatives via its microgrid at the Eaton Experience Center, a premier demonstration and testing facility. Here clients can explore ways to access renewable energy, profit from excess supply and even operate off 100% internal power… with no grid support whatsoever.
As the energy transition advances, we're helping companies and communities around the world to simplify their energy systems and safely transition to a low-carbon future.
