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Microgrids explained
What is a microgrid?
A microgrid is a self-contained electrical network that can operate either connected to the utility grid or in an independent “island” mode. This capability allows you to generate your own electricity on-site and use it as needed. By incorporating distributed energy resources (DER), a microgrid can help save on energy costs by sending excess electricity back to the grid during peak demand. This not only improves reliability but also optimizes energy management.
How do microgrids work?
Microgrids utilize battery systems to store electricity generated on-site, offering a more efficient alternative to traditional power systems. They can deliver stored electricity during outages or when demand on the grid surges. These microgrids typically combine backup diesel generators with renewable energy sources, such as solar panels.
Who benefits from a microgrid?
Microgrids can now be used in remote areas with limited or no energy access. Various organizations, including municipal governments, airports, military bases, nature preserves, and vertical farms, can benefit from microgrids.
What does a microgrid cost?
The cost of microgrids varies based on their complexity and size. Microgrids operate under both the OpEx model in the EaaS framework and the CapEx model, depending on applicable local government policies.
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