How microgrid energy solutions can create cheaper, more reliable power

By: Jeremy Cook

How Microgrid Energy Solutions Can Create Cheaper, More Reliable Power

Microgrids are small networks of energy generation and storage facilities, spread between a limited number of local users. Normally, microgrids are linked to the larger grid. When necessary, they must be able to work in an “islanded” state, entirely cut off from regional grid power.

A permanent backup generator or solar/battery storage bank could be considered a form of personal microgrid if it can function independently, but here we’ll consider microgrids in a networked capacity. Note that not all supplemental power sources (such as solar) can function off-grid, and therefore wouldn’t meet either definition unless properly set up.

Hurricane Ian Knocks Out Power: A Microgrid Energy Alternative?

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In late September 2022, hurricane Ian left a path of destruction across Florida, resulting in a temporary (but lengthy in some cases) loss of power. Even parts of South Carolina were affected after the storm’s brief trip over the Atlantic, once again exposing our fragility in the face of nature, as well as that of the power grid.

As with all hurricanes, there was a rush for small generators to power lights, refrigerators, and fans. These can provide a partial solution but are largely incapable of powering Florida’s most precious commodity, the central A/C unit. A select few people, however, don’t have the same kind of power anxiety when the grid goes out: those who have backup power generators permanently installed on their houses. Others may have newer technologies that integrate solar and battery systems, or even electric vehicles, to enable off-grid operations. Unfortunately, either option can be prohibitively expensive for something that you’ll use on an infrequent basis.

The current options are to rely on the omnipresent power grid to supply all your needs or create total self-sufficiency. The microgrid concept presents a third possibility in the form of small-scale communal electrical power. In addition to resilience against outages, microgrids allow for the integration of renewables and local generation that can reduce ongoing power costs.

How Microgrids Work

Microgrids, by their very nature, are designed to work with a variety of power input sources, intelligently balancing loads between the most efficient and cost-effective methods of generation. When the overall grid power goes out, the local microgrid takes over, supplying at least a limited amount of electricity to its customers. While localized events could damage a microgrid, they’re not susceptible to the widespread interruptions that may cause power interruptions from afar.

At the same time, the vast majority of the grid does work correctly most of the time in developed countries. Unlike pure backup systems, microgrid energy solutions can be configured to optimize power usage even when the larger grid is functioning perfectly. Microgrids can take advantage of on-site renewable energy generation and local storage for backup, and they can help shift the time when power is obtained versus when it’s used.

For example, if a simple microgrid has a solar array, backup batteries, and a generator, in the day it may use solar panels to provide most of its customers power needs, with the regional power grid making up for any shortfalls. At night, the regional grid could provide a greater proportion of power, and even charge batteries if energy rates are reduced. These batteries could then be partially discharged during the day when energy may be more expensive, and generators can run as needed, perhaps for testing and maintenance purposes.

A microgrid system can therefore help offset its cost in the form of energy savings in normal times, and help communities prepare for larger power failures. A solar microgrid system can even sell power to the utility if there is a “bumper crop” of sunlight or other renewables, or if battery discharge at certain times makes sense. Depending on the user’s needs, a microgrid may be set up to emphasize rock-solid resiliency (e.g. a hospital or military base) or for efficiency (e.g. a college campus).

Short-Range Benefits

A short hop from power generation to storage or point of use has obvious benefits in the form of resiliency. Likewise, power transmission over long distances leads to losses via escaping heat in the lines. By reducing this distance, such losses and inconsistencies can be minimized.

Additionally, grid power comes largely in the form of alternating current (AC), which has to be converted into direct current (DC) for many uses, with accompanying losses. Solar panels produce DC power natively, and batteries store DC power. In theory, a microgrid could be set up to supply this type of energy without the typical AC-to-DC conversion, leading to greater efficiencies.

Finally, while housing and administering such equipment can be burdensome, consider that there may be ancillary benefits of such a setup. Covered parking under solar panels is one fantastic usage already seen in some places, and perhaps communities will adopt other measures to make renewable equipment useful, or even beautiful, in other ways. One could imagine a functional art piece made out of solar panels that greets visitors to a business park, college, or neighborhood, or any number of other concepts yet to be considered.

The Microgrid Future

What does the future of energy generation look like? One can see the vast benefits of a robust system of power generation that’s able to reduce transmission losses while first using renewables, then temporary backup batteries, and finally fossil fuel-powered generation for longer term support. Perhaps we may also see the proliferation of DC power with no AC conversion from solar panels and batteries.

At the same time, what if technologies like fusion or deep-geothermal are actually realized, providing near-limitless power from more centralized sources? A centralized system would be even more prone to disruptions that could be even more serious and long-lasting. The flexibility of the microgrid concept means that they could be adapted to nearly any scenario.

However microgrids develop, Arrow stands ready to help innovators fulfill their component needs. The future is bright as we use our resources to power our homes and buildings in a more efficient and reliable manner.


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