What Is a Microgrid?
A microgrid is a small-scale, local energy system that can disconnect from the traditional utility grid and operate independently. The ability to work autonomously means a microgrid can serve as a sophisticated backup power system during grid repairs or other emergencies that lead to widespread power outages. Without large infrastructure to maintain or repair, a microgrid is effectively hardened against storms or natural disasters.
Microgrid technology can also integrate distributed energy resources (DERs) into the grid, including renewable energy sources. Since wind and solar power generation can vary with weather and time of day, it’s useful to be able to draw power when they’re available but also have other options when they’re not.
Benefits of a Microgrid
Microgrids enable operators to use lower-cost and/or cleaner energy sources while retaining or improving supply resiliency. This potential for supporting mission-critical operations using clean, sustainable energy makes them an attractive option for those with unique situations or stringent reliability requirements.
Broadly, the benefits of a microgrid to the various types of organizations that own and operate them include:
- Lower costs: Local energy generation and consumption can lower energy costs. Microgrid technology can dynamically decide when to draw from local power generation or the primary grid based on variable utility pricing.
- Resilient and reliable energy: Microgrids offer enhanced grid resiliency. In the event of a grid failure, microgrids can operate independently. Local generation and distribution allow for a reliable and resilient power supply during times of crisis.
- Simpler renewable energy integration: Microgrids allow for the integration of renewable energy sources like solar and wind power. This integration allows microgrid owners to reduce their carbon footprint and contribute to a more sustainable future.
- Improved energy management: Microgrid operators can integrate advanced, AI-enabled energy management systems that help manage supply and demand and optimize efficiency in near-real time.
Challenges of Deploying Microgrids
One of the most common challenges in all types of microgrids is the cost of deployment and ongoing operation. The requirement of installing and integrating numerous systems can negatively impact a project’s return on investment (ROI). Also, the continuous need for maintenance and updates to information technology (IT) and operational technology (OT) systems can add to operational expenses. A common, flexible, and scalable compute platform to support microgrid technology can help control costs, optimize performance, and provide agility for future needs.
Another microgrid challenge is that renewable energy sources such as wind and solar create instability in the grid, which can raise operational expenses. To help solve this problem, edge computing technologies are driving the digitalization of microgrid assets to help industry suppliers better meet customer needs. These digitalized assets make it easier for utilities to collect more data and run predictive analytics that help them reduce costs and stay profitable.
Microgrid Components
Like a traditional grid, energy generation is the heart of a microgrid system. This can range from diesel generators and batteries to power generated by renewable resources such as solar panels, wind farms, and fuel cells.
The point of common coupling (PCC) is where a microgrid connects to the main grid. In connected mode, the two systems operate in parallel, with the PCC maintaining equal voltage levels in both. The PCC can also allow the microgrid to import and export electricity from the parent grid in response to appropriate price signals, using energy storage mechanisms such as batteries.
If there is a problem with the main grid, a switch can disconnect the grids either manually or automatically. In island mode, the microgrid can still provide enough power to serve critical customer loads, even if the main grid is offline. The machine learning capability of AI software helps to continuously optimize the process.
Microgrid Digital Transformation
Innovations, including virtualization and AI, can be applied to microgrid equipment to help make the grid smarter, safer, more secure, and more reliable, all while potentially lowering customer costs. As part of IT/OT convergence, microgrid technology is increasingly moving away from fixed-function devices to embrace software-defined infrastructure running on commercial, off-the-shelf hardware.
Smart meters and sensors embedded in power lines can help prevent power outages, while other monitoring and predictive maintenance solutions for transformers and pumps can help reduce risk and cost. Substation automation is a great example of the impact of technology on energy infrastructure and microgrids.
Microgrid Software
From a software perspective, microgrid control and automation platforms enable power resource management, grid connectivity, load shaping, and grid support services. For microgrid owners, these tools facilitate the ability to adjust power distribution based on near-real-time data analytics. Standardization can help streamline control loops to enable a seamless transition to renewables or between grid-connected and island modes. AI can also enable dynamic and predictive capabilities, including real-time visibility, intelligent optimization, and proactive troubleshooting.
Examples of Microgrids
Where are microgrids most useful? It depends on the situation and scale. A campus microgrid serves a single user, such as a university, hospital, prison, or industrial facility. Community and district microgrids serve multiple customers. Both are fully integrated into the local energy grid. At the other end of the scale, a nanogrid can supply power to a single building. Some of the most common types of microgrids include:
- Campus microgrids that power small clusters of buildings such as a university or business complex.
- Community or district microgrids that deliver power to specific areas or municipalities.
- Remote or island microgrids that provide power for geographically isolated areas.
- Industrial microgrids that ensure power for manufacturing operations.
- Hybrid microgrids that combine multiple energy sources, both renewable and traditional.
- Critical infrastructure microgrids that provide uninterrupted power to locations such as military bases.
Off-Grid vs. On-Grid Microgrids
Off-grid systems are entirely disconnected from local utility networks, making them useful at remote sites, islands, or other places where economic or technical issues make a PCC impossible. On the other hand, on-grid systems are those that are connected to the local utility network but have the ability to operate independently when needed.
The Future of Microgrids
As microgrid technology evolves, organizations across the industry are working to lower implementation time and cost with the help of AI and edge computing. Over time, as more and more microgrids connect to the local utility network, these systems will be instrumental in integrating renewable energy sources and contributing to overall grid sustainability. Increased real-time analytics capabilities will also allow for new levels of automation and flexibility to potentially help drive down costs for both operators and end customers.