Energy Investment Microgrid

Are microgrids a good investment?

Microgrids that incorporate renewable energy resources can have environmental benefits in terms of reduced greenhouse gas emissions and air pollutants. In some cases, microgrids can sell power back to the grid during normal operations. Depending on the complexity, microgrids can have high upfront capital costs.

What are microgrids & how do they work?

One way to achieve this is through the use of microgrids, which are small-scale power systems that can operate independently from the traditional grid. They allow communities, businesses, and even households to generate, store, and distribute their own energy, reducing dependence on fossil fuels and the traditional power grid.

How can a microgrid reduce energy costs?

To reduce energy costs, a facility with a microgrid can leverage a BESS to store power from variable renewable energy (VRE) sources, such as solar or wind, and then substitute the stored energy for utility power when utility rates are highest in an attempt to arbitrage.

Are microgrids sustainable?

Today, however, projects are increasingly leveraging more sustainable resources like solar power and energy storage. Microgrids can run on renewables, natural gas-fueled combustion turbines, or emerging sources such as fuel cells or even small modular nuclear reactors, when they become commercially available.

Can a microgrid be used for energy storage?

The Inflation Reduction Act incentivizes large-scale battery storage projects. And California regulations now require energy storage for newly constructed commercial buildings. The same microgrid-based BESS can serve either or both of these use cases.

Why do utilities need microgrids?

Utilities and grid operators will prioritize integrating demand-side flexibility and microgrids into grid modernization plans to aid in managing the variability and intermittent nature of renewable energy sources. Accelerated, deeper decarbonization of the supply side requires flexible infrastructure like microgrids.