“Microgrid” is a common buzz word in clean energy – we hear it a lot but the interpretation of microgrids varies so I thought it made sense to explain on a simple level what they are and why their appeal is growing.
A key feature of microgrids is their ability to support the demand for independence and resiliency of the existing grid system. As we’ve repeatedly seen, our over-reliance on the existing power grid as well as the limitations of its aging infrastructure pose a substantial risk to the industrial, commercial, residential, and governmental sectors who need a steady and dependable supply of electricity.
In the event of a widespread power grid outage, those depending on the grid can face costly and long-term system outages. Luckily, microgrids present a solution to this problem, allowing for sustained access to electricity as well as likely reducing energy costs for both consumers and businesses. Let’s explore a bit further.
What is a microgrid?
A microgrid is a small network of electricity users with a local source of power that is usually attached to the larger grid system, but is able to function independently. Basically, it’s a mini version of the larger grid, but it’s smarter, cleaner, more efficient, and tailored to meet specific needs. Those needs might be of an entire community, a business park, a college campus, a manufacturing facility, or a military base.
All energy grids draw on energy resources. For the national grid, these sources are typically large fossil-fuel or nuclear power plants, solar panel or wind turbine farms, or hydroelectric plants, controlled by one centralized authority. Thousands of homes and businesses are connected on the grid, drawing power from the same sources.
This type of system depends on its size to maintain stability, but it can still fail during storms, natural disasters, and other crises. When these events happen, everything that is connected to that grid goes down, too, sometimes for extended periods of time. Such losses can be devastating, costing billions in financial losses and, even worse, the loss of lives.
A microgrid operates on the same principles as our centralized power grid, but on a smaller scale. There are still energy sources connected to a central control point, but the geographic region covered is much smaller, only connecting a small community or even just a few buildings.
The energy sources in a microgrid, typically referred to as Distributed Energy Resources, or DERs, could be generators, batteries, or various renewable energy resources, like solar panels or wind turbines. Depending on the setup, some microgrids can run indefinitely without access to the larger grid.
Most microgrids are not entirely isolated from the greater energy grid. When the grid is functioning normally, most microgrids operate as a part of it—but when the grid goes down or if the power supplied is not consistent enough for machinery or other functions, they can run autonomously using their local DERs and control mechanisms.
This capability allows for continued energy generation and distribution within the localized area when there is a broader system failure.
Key benefits of microgrids
The primary benefits of using a microgrid include:
- Simpler organization
- Integration of renewable energy sources
- Ability to operate independently while maintaining benefits of grid connection
- Segmentation in the event of grid failure
- Smoothing of power to ensure no interruptions
- Cost savings through peak shaving and selling excess power
- Breaking the larger system down into microgrids enables a simpler organization system. Each microgrid can operate independently using its own control mechanism while maintaining the benefits of an interconnected grid system.
While the rise of renewable energy has been beneficial for many reasons, it also presents a number of challenges. As resources like solar grids and wind farms proliferate, it becomes increasingly difficult to control the sprawling system from a single centralized authority.
In addition to facilitating control of grid resources, the segmentation offered by microgrids enhances the resiliency of the entire power grid system. When there are multiple autonomous systems, a fault in one section of the grid does not necessarily impact the entire network. Instead, a failure remains localized while the surrounding regions continue to operate normally.
Microgrids also include energy storage as a feature – this spare power enables them to function continuously even in adverse conditions and if their DERs are not generating power. Like our larger power grid, energy storage allows microgrids to better capitalize on renewables without any negative impact from their cyclical nature of supplying power (i.e., nighttime for solar and still times for wind). Battery storage allows the microgrid to store excess power generated by renewables during times of high generation and then use that power when needed to supplement. This need may occur when renewables are not producing power, as noted above, or during times of high consumption when grid-supplied power is more expensive. A function called “Peak Shaving” shifts grid use to stored power, saving costs by not paying for energy when the price is at a premium. Alternatively, excess energy can be put back onto the main grid, becoming a source of revenue and offsetting energy costs.
Dynapower’s microgrid energy storage systems
Microgrids provide many advantages over the traditional, centralized power grid system. For over a decade, Dynapower has provided energy storage inverters to resorts, governments, manufacturers, island communities and more to facilitate the construction and increase the resiliency of their microgrid systems.
Whether you need an entirely new energy infrastructure system, or you want to integrate new renewable storage sources into an existing one, you can trust our experienced engineers to tailor a solution for any size microgrid project.
