Are Microgrids the Future for Utilities?

on September 17, 2018

There’s currently a lot of talk about how we support environmental legislation while balancing a grid under pressure, not to mention how to meet future energy demands. In answering those questions, there are many different solutions being discussed and explored.

In areas such as North and South America specifically, frequent severe weather incidents that bring down grid power for weeks and months, such as last year’s Hurricane Irma and the more immediate Hurricane Florence, require much more direct and immediate solutions.

And this is where the use of a decentralized grid or microgrids are now not only being trialled for critical backup power, but for some more remote communities, used as mainstream primary power too. For the modern utility business, these solutions are very different, but increasingly viewed as very compelling business models – and for me, they’re really exciting too.

The compromise for many, though, has been the continued reliance on polluting and un-environmental diesel generator technology to support these projects. However, there’s now a 100 percent clean, weather independent solution that’s not only ready to replace diesel generators, but also provide a host of other benefits too – the modern fuel cell.

What is a microgrid?

If you’re unfamiliar with the microgrid concept, according to the US Department of Energy: “A microgrid is a local energy grid with control capability, which means it can disconnect from the traditional grid and operate autonomously. A microgrid can be powered by distributed generators, batteries, and/or renewable resources like solar panels. Depending on how it’s fuelled and how its requirements are managed, a microgrid might run indefinitely.”

Essentially, a microgrid can backup the grid, or crucially, operate independently. This makes them hugely attractive to local communities wishing to take control of their power generation, as well as rural communities looking for robust and independent electricity supply.

In the continued global shift to renewable energy generation to counter climate change, microgrids enable communities large and small to improve local energy delivery by leveraging the best of green technologies.

Very often, various renewable technologies such as wind turbines and solar panels can be placed within residential buildings, alongside a battery to provide an alternative power source to the grid – not only providing environmental benefits, but also increasing energy efficiency and cost-savings. However, the performance of renewables is subject to variable weather conditions, which frustrates their ability to provide 100 per cent reliability.

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Fractal Energy Storage ConsultantsAre Microgrids the Future for Utilities?