Microgrid Technology: Powering a Sustainable Future

Currently, approximately 789 million people worldwide lack access to electricity, and countless others suffer from an unreliable energy supply. This dire situation is further aggravated by soaring fuel prices, pushing millions into energy poverty and forcing households to make agonizing choices between heating and nourishment.

Simultaneously, our planet is grappling with the urgent crisis of escalating carbon emissions, rapidly warming the atmosphere. It is widely acknowledged that burning fossil fuels for energy remains one of the primary contributors to this predicament.

While many individuals contemplate off-grid living as a potential solution, it is essential to explore more localized alternatives.

In response to these challenges, our Real Action series convenes esteemed experts to tackle real-life problems and develop innovative solutions. In our latest installment, Real Action: Green, Local Energy, our panel of experts strives to answer a crucial question: How can we make renewable and resilient energy accessible to all?

With this goal in mind, our team of Real Action experts envisions a future empowered by microgrid technology.

What is a microgrid?

A microgrid refers to a self-contained energy system that utilizes renewable energy sources, energy storage through batteries, and generators to generate power. These self-sufficient grids can either operate in conjunction with the national power grid or function independently, offering communities access to sustainable and resilient energy supplies.

Incorporating cutting-edge technologies like 5G connectivity, Internet of Things (IoT) systems, and artificial intelligence (AI) allows us to seamlessly connect, monitor, and manage renewable energy sources, resulting in a more efficient, dependable, and sustainable microgrid infrastructure.

Addressing climate change and resolving the issue of fuel poverty are both pressing matters. It is crucial to detach economic viability from fossil fuels to tackle climate change and put an end to fuel poverty. Given the dramatic rise in electricity prices, decoupling economic dependence on fossil fuels becomes a pivotal aspect of addressing climate change and eliminating fuel poverty.

Microgrid defined by three key characteristics

A microgrid is local

A microgrid is a localized energy system that generates electricity for nearby customers, distinguishing it from the traditional centralized grids that have supplied most of our electricity for the past century. Unlike central grids that transmit electricity over long distances through transmission and distribution lines, microgrids generate power in close proximity to the end users they serve. This approach eliminates the inefficiencies associated with long-distance power delivery, where a significant portion of electricity, typically around 8% to 15%, dissipates during transit. Microgrids achieve efficiency by housing generators within or near the buildings they serve, including rooftop solar panels as a source of power generation.

A microgrid is independent

A microgrid is an independent energy system that has the capability to disconnect from the central power grid and operate autonomously. This feature, known as islanding capability, enables the microgrid to provide electricity to its customers during power grid outages caused by storms or other emergencies. The central power grid in the United States is particularly susceptible to outages due to its extensive size and interconnectedness, with over 5.7 million miles of transmission and distribution lines. The Northeast Blackout of 2003 serves as a painful reminder of the grid’s vulnerability, as a single tree falling on a power line resulted in widespread power loss across multiple states, even reaching into Canada. By employing islanding capability, microgrids can avoid being affected by such cascading grid failures.

Although microgrids have the ability to operate independently, in most cases, they remain connected to the central power grid. This connection is maintained unless the microgrid is situated in a remote area lacking a central grid or one that is unreliable. When the central grid functions normally, microgrids and the central grid establish a symbiotic relationship, as explained below.

A microgrid is intelligent

A microgrid is characterized by its intelligence, particularly in advanced systems. The intelligence stems from the microgrid controller, which serves as the central brain of the system. This controller efficiently manages various components such as generators, batteries, and nearby building energy systems with a high degree of sophistication. Its primary role is to coordinate multiple resources in order to fulfill the energy objectives established by the microgrid’s customers. These objectives can range from achieving the lowest prices and utilizing clean energy to ensuring reliable electricity supply.

Similar to a conductor guiding musicians, the microgrid controller optimizes the use of its resources by increasing or decreasing their utilization, either individually or in combination, to achieve maximum effectiveness. As a software-based system, the controller offers flexibility in managing energy supply through various methods. For instance, it can monitor real-time changes in power prices on the central grid, which fluctuate based on electricity supply and demand. If electricity prices are low at a certain point, the controller may choose to purchase power from the central grid instead of relying on energy generated by its own solar panels. Consequently, the microgrid’s solar panels can charge its battery systems. Conversely, during periods when grid power becomes expensive, the microgrid may discharge its batteries instead of using power from the grid.

In addition to solar panels, microgrids can incorporate other energy resources, such as combined heat and power, wind power, reciprocating engine generators, and fuel cells. The integration of these resources adds further complexity and nuance to the microgrid’s operations.

By leveraging complex algorithms, the microgrid’s resources work collaboratively to create a synergistic effect that surpasses the capabilities of each individual component. This orchestration occurs autonomously and in near real-time, without requiring human intervention. The microgrid’s intelligent capabilities enable it to optimize system performance and achieve a level of efficiency that would be unattainable by any single resource on its own.