Energy plays a crucial role in both driving and addressing the climate crisis. In the digital age, customers are increasingly seeking innovative solutions like distributed energy resources management systems to cut down on energy consumption and combat climate change. On a global scale, key concerns within the energy industry include improving energy storage, diversifying renewable energy sources, and ramping up renewable generation.
The shift toward decentralized energy systems is accelerating, largely due to the growing role of renewable energy. According to a recent IEA report, the addition of renewable energy capacity to global systems surged by 50% in 2023, reaching nearly 510 gigawatts (GW). This surge is a promising sign for sustainable energy’s future, with expectations that demand for decentralized power systems will rise in response to the rapid expansion of renewable sources, particularly solar and wind power.
Microgrids are further emerging as a crucial component in this transition from centralized to decentralized energy systems. Although their current adoption is relatively modest, microgrids signify a significant change in energy distribution, offering enhanced flexibility and resilience.
In parallel, the International Energy Agency (IEA) forecasts that investments in smart grids will more than double by 2030, particularly in developing nations, as the world strives for Net Zero Emissions by 2050.
Microgrids also offer opportunities for grid modernization and energy optimization, integrating various energy resources, optimizing usage, and dynamically balancing supply and demand. This adaptability allows microgrids to incorporate intermittent renewable energy sources like wind and solar while ensuring grid stability and reliability. Consequently, this capability reassures stakeholders about the energy system’s dependability.
What are Microgrids, and How do they Improve Energy Reliability?
Microgrids are localized, small-scale energy systems that can operate independently or in coordination with the larger energy grid. Their key feature is the ability to rapidly and autonomously disconnect from the main power grid during planned outages, natural disasters, or grid failures. This resilience makes microgrids invaluable for critical infrastructure such as data centers, hospitals, emergency services, military bases, manufacturing facilities, and entire communities.
In a microgrid, batteries function as energy storage, complemented by distributed energy resources (DER) like solar panels or wind turbines and managed by an intelligent controller. This controller, serving as the system’s central nervous system, utilizes advanced algorithms to optimize the use of energy resources and storage. Intelligent software, often driven by machine learning, determines the best strategies for utilizing grid energy or storing it, aiming to reduce demand costs or ensure electric reliability.
In focus, the rising global population and technological advancements, which increase electricity demand, are putting pressure on centralized energy grids. The growing reliance on intermittent renewable energy sources is leading to more frequent power outages and disruptions. Microgrids address this issue by distributing control and allowing flexible connections to or disconnections from the larger grid.Â
For instance, a microgrid can purchase additional energy from the main grid when its supply is insufficient or supply excess energy back to the grid when its demand is low. Additionally, during broader grid outages, microgrids can continue operating in isolation mode, ensuring a reliable energy supply.
Moreover, microgrids can be designed in various configurations and are currently being tested at demonstration sites on university campuses. They are capable of powering isolated systems and remote locations, supporting diverse industrial and commercial operations, and providing backup power for essential infrastructure.
How Microgrids & IoT are Shaping the Future of Climate Resilience
The latest IPCC report on climate adaptation highlights the escalating severity of climate-induced disasters. Despite efforts to cut greenhouse gas emissions, the frequency of these disasters is expected to rise, underscoring the need for more resilient and sustainable energy infrastructure.Â
Microgrids, with their capability to operate independently during grid outages, provide a robust solution to these challenges. They play a crucial role in swiftly setting up temporary infrastructure and ensuring the continuity of critical services during disaster relief efforts.
Microgrids further represent a key strategy for addressing the dual challenges of natural disasters and the increasing demand for energy resilience. They support the rapid deployment of temporary facilities, such as field hospitals and mobile command centers, which are vital in the early stages of disaster response. By offering a reliable source of electricity, microgrids help maintain essential services and support disaster relief operations.
Additionally, they promote the use of renewable energy sources, thereby mitigating the impacts of climate change. Given the rising frequency and intensity of natural disasters, businesses, governments, and communities must invest in the development and deployment of microgrids to ensure a more resilient and sustainable future.
At the forefront of this energy transformation is the Internet of Things (IoT), which provides unprecedented levels of data collection, analysis, and control through a network of interconnected devices and sensors. According to a report by the International Renewable Energy Agency (IRENA), IoT-enabled decentralized energy systems could reduce carbon emissions by up to 47% by 2050 compared to centralized grids.
The integration of IoT into decentralized energy grids offers numerous advantages for both consumers and utilities. This technology can revolutionize electricity production and consumption, enhancing grid resilience, optimizing energy management, improving demand-side response accuracy, and reducing operational costs. The future of energy, driven by IoT, holds prominent possibilities with substantial benefits for all stakeholders.
Moreover, the deregulation and decentralization of the energy market have led to the rise of prosumers—entities that both produce and consume energy, often from renewable sources. Peer-to-peer (P2P) energy trading within a microgrid further enables direct energy exchanges between peers without intermediaries. Blockchain energy trading technology safeguards these P2P transactions from malicious attacks. As a result, peer-to-peer energy trading (P2P) within microgrids or local energy systems (LES) is emerging as a promising solution where prosumers and consumers can trade energy directly with each other.
Microgrids in Action: From Military Bases to Remote Communities
Microgrids inherently support energy self-reliance and enhance resilience against extreme weather events. By integrating a mix of conventional and renewable energy sources, they empower local communities with greater control over their energy futures. Following this, microgrids are being deployed in remote areas disconnected from the traditional grid to provide reliable electricity. They are also being developed to enhance the efficiency, resilience, and reliability of power supplies in ports, office buildings, college campuses, and military bases, allowing these organizations to generate their energy.
In this regard, military bases are leading the charge in microgrid adoption, setting an example for other sectors. Installations such as Yokota Air Base in Japan, Tyndall Air Force Base in Florida, and Marine Corps Air Station Miramar in California have integrated microgrids, allowing them to operate independently on a mix of renewable and non-renewable energy sources for up to 21 days.
Additionally, at the US Marine Corps Recruit Depot in Parris Island, South Carolina, a recently installed 10 MW microgrid project by Ameresco is designed to withstand earthquakes and storms. This project ensures that the 8,000-acre training base can operate off-grid for up to 14 days, showcasing the vital role microgrids play in maintaining operational readiness for critical national facilities.
In the rural United Arab Emirates (UAE) region of Themar Al Emarat, microgrids power a hydroponic farm producing nearly six tonnes of mushrooms daily, contributing to the country’s sustainability goals. The farm, located in an extremely arid climate, relies on a 5.94 MW off-grid microgrid, which includes 23,000 solar photovoltaic cells with a maximum output of 2.7 MW and is supported by substantial cooling systems. The project utilizes a CAT Master Microgrid Controller for autonomous microgrid system management, real-time data collection, and off-site performance monitoring.
In Myanmar, Yuma Micro Power has also established 51 off-grid micropower plants in rural towns and villages, funded by international development organizations. These microgrids combine solar photovoltaic cells, battery energy storage, and backup diesel generators, all managed by advanced microgrid control and management software. By co-locating energy production and consumption, these community-owned microgrids reduce costs, improve efficiency, and enhance energy security, resilience, and reliability while also lowering greenhouse gas emissions.
Moreover, Alaska is making significant strides in microgrid development, driven by its unique challenges, including a harsh climate and high energy costs. The absence of centralized power systems has spurred innovation, with microgrids providing power to 1.5 million people across the broader Circumpolar Arctic region, including Alaska, Greenland, the Canadian Arctic, and parts of the Russian Arctic.
Therefore, in various contexts, microgrids offer a viable alternative to traditional grid solutions. They address the needs of island communities that prioritize decentralized, renewable, and local energy and help businesses and communities prepare for supply disruptions, enhancing their resilience and reducing costs.
Economic & Operational Benefits of Modern Microgrid Solutions
In the future electrical system, where numerous dispersed devices are estimated to coexist, microgrids will play a critical role. Historically, microgrids have been used in a limited range of applications. However, with ongoing research and industry advancements, microgrids have the potential to transition from being costly novelties to becoming standard solutions that utilities routinely deploy.
To manage the variability and intermittent nature of renewable energy sources, grid operators and utilities are expected to prioritize the integration of demand-side flexibility and microgrids into their grid modernization strategies. In parallel, distributed energy resources, such as rooftop solar panels and battery storage, are being integrated into virtual power plants (VPPs). As these technologies converge, the distinctions between microgrids and VPPs will obscure, creating synergies that enhance the sustainability and reliability of the electrical infrastructure while also generating financial benefits for the grid and its users.
Currently, the high upfront installation and maintenance costs of microgrids make them inaccessible to many communities and organizations. However, the emergence of microgrid-as-a-service (MaaS) models addresses this challenge by allowing users to pay only for the energy they consume, eliminating the need for substantial capital investments. This approach makes microgrids more accessible, particularly in underserved areas, and provides microgrid providers with a stable revenue stream.
Traditional methods of inspection, monitoring, and maintenance can be costly and time-consuming in remote locations. To overcome these challenges, startups are developing remote asset monitoring systems that utilize real-time data and analytics to detect potential issues and optimize performance. By employing IoT sensors and machine learning algorithms, these systems enable preventative maintenance and fault detection, reducing the likelihood of system outages and enhancing overall reliability.
By 2035, microgrids are expected to become essential components of the energy delivery system, contributing to affordability, decarbonization, and resilience. As the integration and aggregation of distributed energy resources become more prevalent, microgrids will increasingly facilitate the transition toward a more flexible and distributed energy architecture in a safe and socially equitable manner.
Microgrids are at the forefront of the transition to a reliable and sustainable energy infrastructure. Advances in sustainable energy harvesting and storage have reduced the reliance on centralized mega-power plants, making decentralized energy systems, such as microgrids, increasingly viable. As society adapts to climate change and the evolving energy landscape, microgrids offer a scalable and sustainable solution that maintains energy availability without compromising efficiency.
By Rasika Kambli