How microgrids reshape the power system

In this blog, we will explore how microgrids fit into the smart grid technology landscape and their ability to reshape power systems, integrate renewable energy, and create a more sustainable future. We will then discuss the path forward for widespread deployment of these innovative solutions.

Limitations of traditional power grids

Figure 1 (Source: Freepik)

In the evolving energy ecosystem, traditional centralized large-scale power grids have many limitations. These systems provide power in one direction, usually fossil fuel or nuclear power, transmitted over long distances via high-voltage lines. While these systems can effectively transmit power, they lack the flexibility and efficiency required for sustainable development. Limited communication capabilities affect real-time monitoring and optimization, while the lack of energy storage facilities poses challenges to integrating renewable energy with unstable power generation. Moreover, the operation of traditional power grids is entirely based on demand, with little control over consumption patterns, so there is the possibility of peak overload.

Figure 3 (Source: freepik)

Smart grids are a major leap forward in managing large energy systems. However, the sheer size of a smart grid can create challenges in terms of complexity and cost, especially for dispersed populations. Also, integrating volatile renewable energy sources can disrupt the delicate balance of supply and demand in large grids, requiring additional infrastructure upgrades to ensure a stable supply of electricity.

Microgrids are a compelling solution that provides a more decentralized way to generate and supply electricity. Unlike large smart grids, microgrids are independent power systems that operate locally. The combination of power generation facilities and power loads in the local area can be connected to the traditional centralized power grid (macrogrid) or disconnected and operate autonomously in "island mode".

This localized structure makes it ideal for powering remote areas, enabling independent, efficient, and reliable energy use. In addition, microgrids reduce energy losses during long-distance transmission and distribution by generating electricity close to the load. Microgrids can combine various energy sources for power generation, including renewable energy such as solar and wind power, combined heat and power (CHP) systems, batteries, and other forms of energy storage. This hybrid model can continue to provide power when the main grid is out of power, improve energy efficiency, and even reduce costs.

Microgrids are used in a variety of scenarios, from industrial complexes, military bases, and university campuses to rural and remote areas. Microgrids are particularly important in areas where the main grid is unreliable or where energy security and quality are required. For remote or isolated communities, microgrids provide a path to energy independence and economic development, reducing or even eliminating dependence on expensive and often unreliable energy imports. In addition, in areas where there is currently no grid infrastructure, microgrids are a viable and cost-effective electrification solution that provides electricity to support local education, healthcare, and economic activities.

Another important application of microgrids is as a backup power source for critical infrastructure. Hospitals, police stations, and airports require uninterrupted power to provide basic services. Microgrids can serve as reliable backup power sources, equipped with batteries or generators, and seamlessly connect when the main power grid is interrupted, ensuring that critical facilities can still operate normally when the main power grid fails.

Renewable energy offers a clean, sustainable future, but its dependence on the weather can lead to fluctuations in energy supply. Wind farms need backup power when the wind is calm, and solar panels need backup power when the sun is not shining.

Battery energy storage systems (BESS) can fill this gap. These systems collect excess electricity generated during peak wind or sunshine hours and store it for use during low-production periods. Microgrids can use BESS to store renewable energy sources such as solar, wind, and tidal power. This approach can provide more reliable clean energy and reduce the pressure on the main grid, especially during peak demand, thereby enhancing the resilience of the grid. In addition, these battery systems enable microgrids to operate autonomously when the main grid loses power, helping to ensure the continuity of critical services even during large-scale power outages.

What makes microgrids even more promising is that they can be put in the right places to harness a variety of different types of energy, which can then be used locally to improve energy efficiency.

For example, building 3,000 more houses on a hill, extending transmission lines, building substations on the hill, and deciding which existing substations can take on the load are all expensive and time-consuming tasks. Microgrids are much smarter. They are like miniature grids that generate electricity locally and are managed within the community. Microgrids can be monitored more effectively through remote terminal units (RTUs) and supervisory control and data acquisition (SCADA) systems, and safety is also improved due to localized control.

Since microgrids can operate autonomously, they are less dependent on the main grid and the potential risks are minimized. However, the technology and operation strategies behind microgrids are very complex, involving advanced power electronics, control systems and energy management solutions to ensure that power generation is optimized and resources are used efficiently, whether in networked or islanded mode.

Microgrids also offer exciting opportunities to leverage innovative solutions such as solar tiles. The house is already there, so there is no need to build infrastructure or find a location for a large solar farm. Widespread deployment of microgrids will bring huge potential for sustainable power supply, turning rooftops into micro power plants without the need to add infrastructure for solar panels.

There is growing interest in community microgrids. Some existing examples involve communities or apartment buildings collaborating on solar installations and energy sharing. Microgrids can help lower electricity bills by improving energy efficiency and allowing consumers to generate their own electricity, reducing the need to buy electricity from the grid. Each new house with solar tiles can serve as a community microgrid, sharing excess energy, improving supply resilience, and creating a more autonomous power system.

Figure 4 (Source: freepik)

Looking ahead, microgrids can become the cornerstone of a more distributed and resilient energy system. Integrating a variety of renewable energy sources and advanced energy management systems can enable cleaner and more reliable electricity supply, thereby supporting humanity's efforts to combat climate change.

In the future, microgrids will be able to interact seamlessly with a smarter, more responsive main grid. This interconnected ecosystem will enable real-time balancing of energy supply and demand, further optimizing the use of renewable resources and minimizing reliance on traditional power plants. In short, microgrids are a versatile and promising approach to power generation and supply that is closely tied to global goals such as sustainable development, ecological restoration, and economic development.

The views and opinions expressed in this article are those of the author alone and do not reflect or represent the companies with which the author is associated.