What are microgrids?

What are microgrids?

Microgrids are electricity networks that operate on community scale, rather than regional or national power networks. They allow interconnected households to collectively access and use renewable energy technologies for electricity generation. They implement small-scale renewable energy technologies, such as solar panels and wind turbines, to generate energy. They often use batteries to store surplus power, which is important because the means of energy generation is weather dependent.

Some microgrids are installed by communities that live in populated areas such as cities. This kind of microgrid typically has a connection to the local electricity network. They generate some of their own electricity but can also consume electricity from the main grid. They can operate self-sufficiently and are able to disconnect if there is a local power cut. They can also sell surplus energy they produce back to the main grid.

Other microgrids are in remote locations and have to generate all the power they use.

Microgrids are usually equipped with ‘smart software’ which performs the following tasks: monitoring the amount of energy the solar panels or wind turbines are generating, monitoring the level of charge in the batteries, monitoring use of energy by the members of the microgrid, modulating the load that is placed on the microgrid resources based on factors such as price and efficiency of the local network, disconnecting from the local network if there is a power cut, and allowing surplus energy to be sold back to the main power grid company. 

Where are microgrids located and what benefits do they bring?

Microgrids have been implemented in markedly contrasting contexts, for example, in undeveloped remote villages in India and in progressive communities in cities in Germany. A nanogrid brought to Kudagon Village in Odisha, India, has brought many benefits to residents. For example, they no longer have to depend on sunlight to complete their chores, children can study at night with electric lights and streetlights provide protection from snakes and let people socialise in the street in the evenings. The Solarsiedlung am Schlierberg (the “solar settlement at Schlierberg”) is a 59-home housing community that produces more power than it consumes through integrated photovoltaics. It won an award for “Germany’s Most Beautiful Housing Community'' in 2006.

Microgrids are answering the problem of electrification in remote communities which cannot connect to main electricity networks. One island that has implemented a renewable microgrid is l’île de Sein, a French island eight kilometres off the coast of Brittany. Residents formed a collective in 2013 called Ile de Sein Energies with the objective of bringing clean and renewable energy to the island. In 2017, the operation and control of the island’s microgrid, which was previously based on a single diesel fuel plant, was completely changed by new distributed energy resources architecture, including photovoltaic and wind generation, a lithium-ion energy storage system, and an energy management system. In the Himalayas, Global Himalayan Expedition has been electrifying villages at altitudes of around 14,000 feet, which are cut off by snow for much of the year.

There are over 600 microgrids in the US, which provide an independent supply of electricity when power is unavailable from the main grid (due to a power cut).

Who is leading microgrid development?

The multinational French energy company ENGIE is regarded as the leader in microgrid services. US companies like Schneider Electric, also a huge player in microgrid services, have stated that standardising microgrids will accelerate the energy transition. Many players are entering the microgrid market, and are being recognised for achievements in implementing microgrids in both undeveloped and developed settings.