Microgrids are localized grids that can detach from the traditional grid and operate independently. They can serve as a grid resource while also improving grid resilience and helping mitigate grid disturbances to maximize system response and recovery. They enable the integration of rising deployments of distributed energy resources, including renewables like solar, resulting in a more flexible and efficient electric grid. Furthermore, the use of local energy sources helps reduce energy losses in distribution and transmission, further accelerating the efficiency of the electric delivery system.
According to a report published by Allied Market Research, the global microgrids market is estimated to garner the highest revenue by 2030 and is projected to portray a noteworthy CAGR throughout the forecast period. The market for microgrids is driven by factors such as the rapid adoption of software to control and manage distributed energy resources with integrated load and weather forecasting across various end-user segments, including industrial, healthcare, government, and commercial. Other factors propelling the market growth comprise a rise in demand for secure and reliable power supply in industrial and commercial sectors, combined with government initiatives to decrease the carbon footprint, and an increase in the demand for reliable electric devices for the aerospace and military industries.
Here are 3 types of microgrids that are revolutionizing the industry:
Nested Microgrids:
These systems, also defined as networked microgrids, comprise numerous separate microgrids and/or DERs assembled on the same utility grid circuit and serve a large geographical area. A supervisory control system manages and optimizes these networked microgrids to coordinate and operate each grid-connected microgrid at different tiers of the hierarchy.
Examples: Closed-loop self-healing (new utility adaptive protection schemes), community microgrids
Remote Microgrids:
These microgrids are known as off-grid microgrids. They are operated in island mode and physically isolated from the utility grid because of the absence of affordable and available T&D infrastructure. Renewables, like solar and wind, typically offer a more environmentally sustainable and cost-effective DER (Distributed Energy Resources) solution to the microgrid operator in these remote situations. Furthermore, several remote microgrids are looking into battery energy storage systems as backup power sources instead of traditional generators.
Grid-Connected Microgrids:
These microgrids are flexible, as they can detach into island mode and reconnect back to the principal grid as per the requirement. The utility grid is physically connected to these microgrids via a switching mechanism at the PCC (Point of Common Coupling). They illustrate the economic viability of medical complexes, military bases, commercial buildings, educational campuses, public safety facilities, industrial facilities, and agriculture farms while serving a relatively small geographical area.
As per the International Energy Agency, around 860 million individuals across the world did not have access to electricity. 87% of them are from rural or remote areas. Instead of expensive traditional grid extensions, microgrids have the potential to be a feasible alternative for rural electrification. The frontrunners in this domain are implementing growth strategies like agreements, product launches, mergers and acquisitions, new product development, partnerships, and product approval.
For instance, BOND Civil & Utility Construction collaborated with GE renewable energy’s Grid Solutions for an EPC (engineering, procurement, and construction) contract from Empire Offshore Wind in March 2022, to plan New York’s first-ever offshore wind farm. On the other hand, in May 2022, Siemens unveiled its grid software suite to manage the complexity of the grid systems. Siemens has already taken significant measures to enhance its offering for smart meter data management, such as incorporating a cloud-native option and increasing task efficiency by up to 85% by redefining the customer experience. The suite is the best option for both new stakeholders and established energy players, enabling them to be agile, flexible, and fast when dealing with current and future challenges.