With 2019’s new electric generating capacity coming mainly from renewables and natural gas, researchers and engineers are pouring more resources into researching and developing systems for maximizing the use of eco-friendly energy. Of the almost 24 GW of new capacity additions, the U.S. Energy Information Administration estimates 46% will come from wind energy and 18% will come from photovoltaics. Microgrid technology makes using those new sources of green energy a practical reality by bolstering energy supplies.
However, many people aren’t sure what a microgrid is, if their business/entity might need one, and – if so – how to go about purchasing one.
Whether your business has gone solar already or you’re still wondering if solar energy is the right move for your organization, getting to know the inner workings of the microgrid system can make you a smarter energy buyer – especially while we as a nation continue to push more aggressively toward renewable energy and stabilizing energy availability.
What Is a Microgrid?
A microgrid is a small, localized version of the energy grid at large. To better understand what’s up with the “micro” version, let’s take a look at the energy grid itself.
The energy grid is the network of energy generators (which includes coal, natural gas, and renewable sources), transmission lines, and distribution lines that connect to the end-user. This network is subject to numerous challenges, such as congestion, downtime due to repairs and upgrades, and price volatility from a changing fuel stack i.e. think the increasing number of coal-based generation plants closing/retiring, to name just a few.
Microgrids have recently emerged as a strategy for combating some of the challenges associated with being grid-tied. Microgrids allow connected energy users to disconnect from the larger energy grid and operate independently, as needed.
The majority of the time, a microgrid will remain connected to the larger grid. However, if there’s a power outage, temporary price spike, or maintenance issue on the main grid, a microgrid allows those connected to it to tap into the energy they generate on site.
To power a microgrid locally, you’ll need your own form of power generation. While some people use diesel generators, more and more energy consumers are turning to green forms of distributed generation like solar panels and local battery storage to power their microgrids.
Not only does this system provide stability in an unpredictable energy market, it can also reduce energy costs if you’re generating your own power and need a place to store any excess you generate for use in low-production times.
This versatility and self-reliance is what makes microgrids an attractive option for healthcare facilities, large institutions, and communities.
Microgrids for Businesses & Institutions
For some businesses and organizations, a power outage is simply not an option. From universities to hospitals to corporate offices, microgrid systems are popping up around the country.
In 2017, Tyler Technologies – a software company with a large corporate campus located in Plano, Texas – became one of the first companies in North Texas to make use of a microgrid. Thanks to solar panels installed on the roofs of the company’s north and south buildings and a storage system set up on-site, Tyler Technologies is able to operate with power independently for hours at a time if there’s a power outage on the public grid.
In 2018, the Kaiser Permanente hospital in Richmond, California, became the first to establish a microgrid fueled by renewable energy. The microgrid not only allows the hospital system to continue to serve patients without interruption during a power outage or a brownout, but also it is saving the facility incredible sums of money thanks to on-site energy generation and storage.
As greater numbers of corporations adopt environmentally-friendly principles and practices, the microgrid system is becoming increasingly popular. Furthermore, advancements in technology are making microgrids a more viable option for businesses of all sizes.
Microgrids for Communities
Microgrids are also being developed for use with individual communities. For instance, in Brooklyn, New York, the Brooklyn Microgrid is allowing members of the community to generate, share, and store energy within their own neighborhood. The microgrid system connects “prosumers” – households or businesses that are generating energy through renewable sources – with consumers who need energy.
The Brooklyn Microgrid also supports EV charging stations that can be used to charge electric vehicles. The entire microgrid uses a distribution system that manages energy use, load balancing, and demand response. In all, individuals connected to the Brooklyn Microgrid are benefiting from more efficient, sustainable, and affordable energy generation, distribution, and use as a united community.
As the United States heads more toward renewable energy sources, microgrid technologies will become increasingly important. If you’re wondering if a microgrid is a right move for your business, consult with a trusted energy advisor. Now may be the perfect time to make the upgrade.
