A Global Push for Standardized Microgrid Solutions

Abstract

This report provides an in-depth examination of the efforts to standardize microgrid technologies across the globe. It highlights the significant roles played by key US-based and international organizations in driving these efforts, focusing on the development of universally applicable standards and innovative solutions within the microgrid sector. The study aims to elucidate the strategies, challenges, and collaborations that are shaping the future of microgrid deployments, culminating in strategic recommendations to foster further innovation and standardization in this vital area of energy systems.

Introduction

Microgrids represent a transformative approach within the energy sector, characterized by their ability to provide localized grid stability, energy security, and efficient integration of renewable sources. The push towards standardization is vital to achieve economies of scale, interoperability across different regions and systems, and the broader adoption necessary for global sustainability goals. This report collates and analyzes the contributions and initiatives of pivotal organizations spearheading these standardization efforts.

Aside from the technological elements outlined below, we can not lose sight of economies of scale. For instance:

Standardization facilitates the mass production of microgrid components. With standardized technologies, manufacturers can produce parts in larger quantities, which reduces the cost per unit due to economies of scale. This makes smaller installations more affordable as the components like inverters, solar panels, and batteries become cheaper.

Standardization leads to simplified design processes where pre-configured setups can be replicated easily. For small-scale projects, this means less complexity in integrating components, reduced labor costs, and shorter project timelines. The plug-and-play nature of standardized components also reduces the need for specialized skills during installation, further driving down costs.

Standardized components ensure interoperability between different manufacturers’ products, which is crucial for the modular nature of microgrids. This compatibility allows for easier and more cost-effective maintenance and upgrades, which is particularly beneficial for smaller installations that might not have the same access to resources as larger grids.

Standardization can lead to greater confidence among investors and financiers due to the reduced technical risks associated with standardized systems. For small-scale installations, this could mean better access to financing options at lower interest rates, reducing the overall cost of deployment.

Standardized microgrids are likely to meet regulatory requirements more easily, speeding up the approval and permitting processes. For smaller installations, navigating regulatory landscapes can be a significant barrier, and standardization helps streamline these processes, reducing bureaucratic delays and associated costs.

Comprehensive Review of US-based Standardization Efforts

Organizations within the United States have been instrumental in pioneering standardization initiatives for microgrid technologies. The IEEE has developed numerous standards that address the control systems, interconnection, and interoperability of microgrids. Similarly, entities like the National Renewable Energy Laboratory (NREL) and the Department of Energy (DOE) have fostered research and development to support these standards, focusing on cybersecurity, system performance, and modular microgrid deployments.

The United States has been a leader in microgrid standardization, primarily through the contributions of institutions and standards bodies:

• IEEE (Institute of Electrical and Electronics Engineers): A cornerstone in the development of microgrid-related standards, IEEE has facilitated numerous guidelines that address system controls, interconnection, and interoperability of microgrids. These include standards like IEEE 1547, which outlines the interconnection of distributed resources with electric power systems, and IEEE 2030, which provides guidelines for smart grid interoperability.
• California Smart Inverters: California’s phased implementation of smart inverter functionality addresses power quality issues including issues caused by independent and intermittent renewable energy sources. Recommendations from California’s Smart Inverter Working Group (SIWG) enable smart inverters to improve power quality. Inverters can be harnessed to improve power quality including rapidly changing production caused by clouds moving over solar PV sites. Previously per IEEE 1547, inverters were required to disconnect from the grid when power quality issues arose. Recent changes in IEEE 1547-2018 and the corresponding aligned state interconnection requirements now require smart inverters to sense grid conditions and respond accordingly. Smart inverters can positively impact the utility grid, or at the minimum leave the grid unaffected. Smart inverters are also capable of receiving signals from the utility to support the utility’s distribution system.
• Department of Energy (DOE): The DOE supports the standardization and deployment of microgrids through various programs and initiatives that focus on enhancing cybersecurity measures, optimizing system performance, and reducing costs through modular microgrid development.
• US standards for Smart Grid: The IEEE 2030™ series of standards provides a roadmap of best practices for combining current and future power, communications, and information technologies. With a focus on sustainability, the standards define the integration protocols for DER operations and smart-grid interoperability.
• National Renewable Energy Laboratory (NREL): NREL plays a crucial role in the research and development of microgrid technologies, focusing on system validation, performance testing, and the integration of renewable energy resources into existing grid infrastructures.
• Schneider Electric: A leader in energy management and automation, Schneider Electric has developed the EcoStruxure platform, which supports the deployment of scalable and flexible microgrid solutions, thereby driving forward the commercialization and standardization of these technologies. Schneider Electric's EcoStruxure Microgrid Flex offers an example of standardized microgrid design that includes a range of components such as battery storage, solar PV inverters, and fuel-cell generators, managed through both on-site software and cloud-based platforms. This system is tailored for varied use cases from commercial enterprises to off-grid scenarios, enhancing energy resilience and cost efficiency.
• Other Examples: Similarly, other companies like BoxPower and Scale Microgrid Solutions both emphasize modularity and rapid deployment in their standard designs. BoxPower utilizes a container-based system that integrates solar power, batteries, inverters, and optionally backup generators, designed for quick setup and easy relocation. This system is particularly beneficial in remote or emergency response scenarios where quick energy deployment is crucial. On the other hand, Scale’s Rapid Response Modular Microgrid (R2M2) includes similar components but is designed for even quicker commissioning, claiming a setup time significantly less than the industry average. These standardized, pre-tested systems reduce engineering and project times, thus improving ROI for energy projects.

US application examples:

Military and Temporary Housing Applications

The U.S. Department of Defense has adopted a standardized approach for the design and deployment of secure and resilient microgrids across its installations worldwide. This approach focuses on repeatability and efficiency, crucial for enhancing energy reliability during extended outages and for sustaining critical operations​ (XENDEE)​. For example, The U.S. Department of Defense (DoD) needed to develop a standardized method to guide rapid and repeatable modeling and design of secure and resilient DoD microgrids globally.

This would provide enhanced energy reliability and enable DoD installations to safely ride-out prolonged utility power outages and sustain mission critical operations, using renewable energy resources and storage in an integrated microgrid system.

A point solution was key to implementing this strategy. And the solution satisfied the DoD’s requirement for a standard approach to microgrids.

Clean Coalition’s DignityMoves Santa Maria Solar Microgrid

The Clean Coalition's project with the DignityMoves Santa Maria site highlights a unique application of standardization in temporary housing settings. The project aims to provide reliable, renewable energy to pop-up housing units through a standardized Solar Microgrid. Key aspects include the integration of rooftop solar panels and energy storage solutions that are designed to be relocatable, matching the mobility of the housing units themselves. This approach ensures that the microgrid components can be reused and moved to new sites as necessary, maximizing sustainability and cost-effectiveness. The project also involves a detailed assessment of solar generation potential and energy storage needs to ensure that the microgrid meets the net-zero energy goals and supports critical to discretionary loads during outages​ (Clean Coalition)​.

Extrapolating a Standard Microgrid Design based on US-examples

Drawing from these examples, a standard microgrid design suitable for most instances would likely include:

• Modular and pre-engineered components for easy scalability and rapid deployment.
• Microgrids are deployable on site, or remotely. Remote microgrids arrive as containerize solutions, easily deployed and managed locally.
• Integration of renewable energy sources with storage solutions to ensure reliability and support for various load demands.
• Smart management systems that utilize AI and data analytics for optimizing performance and predictive maintenance.
• Flexibility to adapt to both grid-connected and off-grid scenarios, supporting a range of applications from commercial to military and temporary housing.

Such a design would not only cater to a wide array of energy needs but also contribute to the broader goals of energy security, economic savings, and environmental sustainability. By leveraging standardized designs, the microgrid industry can accelerate deployment, reduce costs, and broaden the adoption of renewable energy solutions.

Contributions of International Organizations

Globally, several non-US organizations have significantly impacted microgrid standardization. The International Electrotechnical Commission (IEC) has been central in formulating global standards that enhance microgrid functionality and integration. Other notable contributions come from ABB, which has leveraged its technologies and expertise in power and automation technologies to advance smart grid and microgrid solutions at its facilities, including the Experience Center in Italy.

Internationally, the efforts to standardize microgrids are equally vigorous, with significant contributions from:

• The United Nations and multilateral development banks

The UN and multilateral development banks are actively engaged in promoting and standardizing microgrid implementations to improve energy access and sustainability worldwide. Here’s an overview of their efforts:

• United Nations Development Program (UNDP)

The UNDP, through initiatives like the Africa Mini grids Program (AMP), focuses on expanding energy access via renewable energy Mini grids, specifically targeting sub-Saharan Africa where a significant portion of the population lacks electricity. This program aims to mobilize private sector investment and accelerate the adoption of solar-battery Mini grids by leveraging falling hardware costs and innovative business models. The AMP operates in 21 African countries, providing technical assistance to develop the Mini grid market with a strong emphasis on reducing costs through digitalization, policy and regulation support, and innovative financing​ (UNDP)​.

• Sustainable Energy for All (SEforALL)

SEforALL collaborates closely with the UN to accelerate the progress toward Sustainable Development Goal 7 (SDG7), which aims for affordable, reliable, sustainable, and modern energy for all. They engage in various initiatives, one of which includes installing solar PV and battery systems in healthcare facilities in Sierra Leone to enhance electricity reliability. SEforALL’s strategy involves partnering with governments, the private sector, and financial institutions to develop and implement energy transition plans that cater to both universal energy access and climate goals​ (Sustainable Energy for All | SEforALL)​.

These organizations are working diligently to address energy challenges through standardized and scalable microgrid solutions, focusing on sustainability, resilience, and broader accessibility to clean energy. Their efforts are crucial in areas with limited infrastructure and where energy access can significantly impact economic and social development.

• International Electrotechnical Commission (IEC)

The IEC is instrumental in formulating international standards that facilitate the deployment and integration of microgrid technologies globally. Their standards ensure that microgrid systems are compatible, reliable, and efficient, regardless of their geographic location.

• ABB

A global leader in power and automation technologies, ABB has been actively involved in developing microgrid solutions that enhance grid reliability and incorporate renewable energy sources effectively. Their work includes the development of advanced control systems and integration frameworks that adhere to global standards.

• Standardization Administration of China (SAC)

SAC has been proactive in its international engagement, influencing the development of global standards through its participation in both the IEC and ISO. Their efforts are particularly focused on new energy technologies and intelligent manufacturing systems related to microgrid applications.

• Multilateral development banks (MDBs)

Multilateral development banks (MDBs) play a crucial role in accelerating the deployment of microgrids and other decentralized renewable energy systems globally, especially in developing countries. Here's a detailed overview of their contributions:

1. Role of MDBs in Renewable Energy and Microgrids: MDBs like the World Bank, African Development Bank (AfDB), and Asian Development Bank (ADB) are key in promoting energy access. These institutions focus on integrating decentralized renewable energy solutions, such as microgrids, to rapidly provide energy access in underserved areas. This approach is recognized as vital for achieving the United Nations Sustainable Development Goal 7 (SDG7), which targets universal energy access by 2030​ (Microgrid Media)​.
2. Challenges and Strategic Actions by MDBs: Despite the strategic importance of decentralized systems, MDBs face several challenges in scaling up their implementation. One significant hurdle is the high initial cost and perceived risk of microgrid projects, which can deter investment. To overcome this, MDBs have been encouraged to develop risk mitigation instruments, such as guarantees that can help attract private investments by reducing perceived risks​ (IADB Publications)​. Unfortunately, nothing is certain in technology deployment in developing regions. The biggest risk in transporting safe and secure microgrid solutions is the willingness of the incumbent electoral base to solve a “social-good” solution. Many times, to overcome political hegemony issues, solutions providers have to pay an “entry fee” to participate. If that fee is too high, the economics of providing the solution is not viable.
3. Climate Finance and MDB Collaboration: At forums like COP28, the pivotal role of MDBs in mobilizing climate finance was emphasized, particularly for developing countries that are most vulnerable to climate change impacts. There is a strong call for MDBs to integrate climate considerations into all funding decisions to ensure that projects funded not only promote economic growth but also contribute to climate resilience and low carbon development​ (Carbon Trust)​.
4. Bundling Projects for Impact: A practical approach adopted by MDBs includes bundling similar projects to create efficiencies and attract investment. This involves combining several small projects into a single portfolio to reduce costs and streamline project implementation. Such strategies have been shown to enhance the attractiveness of microgrids to investors by demonstrating successful models and reducing variability in project outcomes​ (NREL)​.

These efforts are part of a broader shift within MDBs from traditional large-scale infrastructure projects to more flexible, scalable, and sustainable energy solutions that can better meet the urgent needs of energy-poor regions. This transition supports not only energy access but also broader developmental and environmental goals set by the global community.

Emerging Technologies and Global Alliances

The integration of emerging technologies such as advanced metering infrastructure, broadband over power lines (BPL), and blockchain into microgrid systems is revolutionizing their potential applications. Companies like Corinex are at the forefront of integrating these technologies to enhance the functionality and efficiency of microgrids. Such technologies facilitate better energy management, grid resilience, and the incorporation of renewable energy sources.

Policy and Regulatory Framework

The development of microgrid technologies is heavily influenced by governmental policies and regulatory frameworks. These policies determine the feasibility and scalability of microgrid solutions by setting standards for interconnectivity, safety, and environmental compliance. Effective policy frameworks are essential for fostering an environment that supports innovation and standardizes best practices across the industry.

Creating a standardized microgrid design that can be widely adopted involves addressing several key components and challenges. Here's a simplified breakdown of what such a design might include, along with the elements needed to achieve standardization:

Simplified Standardized Microgrid Design

1. Modular Components: Use pre-engineered and modular components such as solar panels, batteries, and controllers that can be easily scaled and adapted to different energy needs and site conditions.
2. Smart Management Systems: Incorporate advanced energy management systems that use AI and data analytics to optimize energy production, distribution, and storage, ensuring efficiency and reliability.
3. Interoperability: Design systems that are compatible with various technologies and manufacturers, allowing for integration with existing infrastructure and other renewable sources.
4. Plug-and-Play Capability: Develop microgrids with plug-and-play capabilities that simplify installation and maintenance, reducing the need for specialized skills and equipment.
5. Robust Standards and Protocols: Establish clear technical standards and safety protocols that ensure consistent quality and performance across different installations.

What is Needed to Achieve a Standard Design

1. Collaborative Frameworks: Encourage collaboration between governments, industry, and academia to develop and agree on universal standards and certifications that define the quality, safety, and performance of microgrid components.
2. Innovation in Financing: Develop new financing models that can support the upfront costs of standardized microgrids, making them more accessible to different communities and markets.
3. Regulatory Support: Implement supportive policies and regulations that facilitate the deployment of microgrids, including standards for interconnection with the main grid and tariffs for renewable energy.
4. Pilot Projects and Case Studies: Increase the number of pilot projects to test and refine standardized designs in various contexts, gathering data to demonstrate their efficacy and adaptability.
5. Training and Capacity Building: Provide training programs to build local capacities in designing, installing, managing, and maintaining microgrid systems, ensuring sustainability and local ownership.

By addressing these areas, the path towards a truly standardized microgrid design can be clearer, making renewable energy more accessible and effective in contributing to global energy goals.

Active organizations at the forefront of standardizing microgrid design

The Australian Microgrid Centre of Excellence (AMCOE) is a not-for-profit organization that operates an education and showcase facility providing resources towards the development and implementation of reliable, economic and sustainable energy solutions. It acts as a center of activity and coordination for the many organizations (public, private, commercial, non-profit, and academic) in the Indo-Pacific region, and headquartered in Perth, Western Australia.

AMCOE is the first of several regional smart energy centers to be proposed by government and industry that help create the standards, technologies, jobs and skilled workforce that will renew this industry’s economy around a clean, reliable and emission-free energy future.

As reported in the introduction, a number of firms have become bell-weather attractants to the standards discussion. We have done our best to enumerate the largest contributors in this space as follows. Key organizations actively leading the efforts in microgrid standardization, each contributing unique expertise and resources to enhance the scalability and deployment of microgrids globally:

1. IEEE (Institute of Electrical and Electronics Engineers): IEEE has been fundamental in developing standards for microgrids, collaborating on various standards that address everything from system control to interconnection with the grid. Their work includes standards like IEEE 1547 for interconnection and IEEE 2030 for smart grid interoperability​ (Energy.gov)​​ (NREL)​.
2. Schneider Electric: As a major player in energy management and automation, Schneider Electric has been pivotal in driving microgrid standardization through their EcoStruxure platform and various microgrid solutions. They also offer training and certification for microgrid technology, fostering a skilled workforce to support this growing industry​ (SE Blog)​​ (AlphaStruxure)​​ (Power Systems Technology)​.
3. ABB: Based in Switzerland, ABB is actively engaged in the digital transformation of energy management, focusing on microgrids as part of their broader smart power solutions. They operate an Experience Center in Italy that showcases their latest innovations in microgrid technology and digitalization​ (Thomson Reuters: Clarifying the complex)​.
4. Department of Energy (DOE): The U.S. DOE supports microgrid standardization through its research and development programs. They work on projects that address the deployment of modular and zero-emission microgrids, aiming to reduce costs and enhance resilience across various communities​ (Energy.gov)​​ (Energy.gov)​.
5. NREL (National Renewable Energy Laboratory): NREL plays a critical role in advancing microgrid technologies and standards, especially in terms of cybersecurity and system performance. They engage in detailed analysis and support for developing standards that enhance the security and functionality of microgrids and their components​ (NREL)​.
6. AlphaStruxure: A joint venture between Schneider Electric and Carlyle, AlphaStruxure focuses on Energy as a Service (EaaS), designing and maintaining microgrids that ensure long-term resilience, reliability, and cost-effectiveness. Their model is significant for setting benchmarks in microgrid performance and sustainability​ (AlphaStruxure)​.
7. Microgrid Resources Coalition (MRC): MRC is a consortium that advocates for policy changes and fair market conditions to facilitate microgrid deployment. They focus on education, policy advocacy, and creating a level playing field for microgrid technologies​ (Microgrid Resources)​.
8. IEC (International Electrotechnical Commission): The IEC is pivotal in setting international standards for all electrical, electronic, and related technologies. They are actively involved in creating technical specifications for microgrids, particularly focused on off-grid energy access, which is critical for developing robust and reliable microgrid systems worldwide.
9. Corinex: Based in Vancouver, Canada, Corinex is engaged in standardization through its membership in the G3-PLC Alliance. The company works on integrating broadband over power lines (BPL) technology to improve grid resilience and facilitate the standardization necessary for efficient and sustainable electricity distribution. Their efforts include participation in international standardization bodies and fostering industry collaboration to enhance smart grid communication technologies.
10. SAC (Standardization Administration of China): SAC plays a significant role in international standardization. They participate in governance at major international standardization organizations like ISO and IEC. SAC's involvement extends to developing international standards, particularly in new energy and smart manufacturing sectors, which include technologies essential for microgrids.

These organizations are at the forefront of promoting and implementing standardized microgrid solutions that are adaptable across various regions and needs, driving forward the integration of renewable energy systems and enhancing grid resilience worldwide.

Conclusion and Recommendations for Action

The continued advancement of microgrid technologies requires a coordinated approach that involves standardizing practices, enhancing international cooperation, and embracing innovative financing and business models. To accelerate the adoption and effectiveness of microgrids, it is recommended that:

• Stakeholders increase investments in research and development focused on overcoming technological and economic barriers.
• International bodies and national governments enhance regulatory frameworks to support the integration of microgrids with existing power systems.
• Collaborative efforts be strengthened among key players in the industry to foster knowledge exchange and joint ventures that enhance technological and operational efficiencies.

Closing Remarks

This report underscores the critical need for a unified approach to microgrid standardization, highlighting the essential roles of technological advancements and regulatory frameworks in achieving global energy sustainability goals. Through continued collaboration and innovation, microgrids can significantly contribute to the resilience and sustainability of global energy systems, marking a pivotal step towards a more sustainable energy future.