Role of Microgrids in Maximizing the Efficiency of Power Infrastructure

Key takeaways:

• Evolution of microgrids
• Trend of grid modernization
• Emergence of virtual power plants
• Sustainability of microgrids

In the past few years, the energy landscape has evolved rapidly due to technological evolution, growing concerns regarding climate change, and rising adoption of renewable energy sources. One of the trending technologies in the power industry is the microgrid. It is a small version of the power grid that generates electricity independently for a localized area like a military base, hospital, university campus, and others.  

Microgrids provide dynamic solutions to multiple issues associated with the conventional power grid. The industry's growth is driven by increasing demand from remote areas and military bases, along with stringent government regulations aimed at reducing carbon footprints. According to a report published by Allied Market Research, the microgrid market is predicted to register an impressive CAGR of 14.9% by 2030. 

Microgrids minimize strain on the primary electric grid and offer backup power during blackouts caused by harsh weather conditions. This ensures a steady power supply for essential power loads. This ability is vital in remote areas prone to natural disasters or power outages. These technologies enable alterations to energy usage in terms of price signals by maintaining local energy loads and resources.  

Rising focus on grid modernization 

Grid operators and utilities prioritize microgrids and demand-side flexibility in grid modernization plans to assist in managing the intermittent nature and variability of renewable energy sources. Deeper and accelerated decarbonization of the supply side needs flexible infrastructure such as microgrids. These things guarantee the availability and reliability of the grid under harsh conditions.  

Furthermore, advanced AI and ML allow for more grid flexibility as they optimize, aggregate, and identify demand-side resources that result in efficient grid management. In addition, blockchain technology has the potential to create secure platforms with high transparency for peer-to-peer energy sharing and trading among microgrids. This encourages grid owners to participate and ensures equitable pricing for all stakeholders.  

A promising future of microgrids with virtual power plants 

Virtual power plants and microgrids play an important role in distributing essential energy services due to the growth of distribution energy resources (DER). These DER portfolios vary from optimizing wind and solar energy integration in developed markets to enhancing energy access in emerging economies. They can lower consumer energy bills, minimize greenhouse gas emissions, and enhance grid stability.  

Moreover, VPPs are projected to combine DERs like battery storage and rooftop solar panels in the future. A blend of VPPs with microgrids can help form significant collaborations to create a more sustainable and reliable electricity infrastructure while also giving immense economic benefits to customers. For instance, Resync, a Singaporean startup offers smart VPPs to create actionable insights to facilitate informed decisions. The platform tracks energy generation via connected assets in real time by using indoor air quality sensors and AI-based analytics. It also features asset optimization and energy forecasting with heatmap analysis to allow predictive maintenance. This solution enables microgrid operators to lower energy wastage while controlling carbon emissions. 

On the other hand, a Slovakian startup, Powerex provides a VPP platform that allows real-time access to the energy markets for connected energy assets. It also has AI-based forecasting and grid resilience that allows microgrids to monitor online assets like EV chargers, small hydro plants, biogas units, batteries, and others. 

Role of microgrids in maintaining sustainability

Microgrids provide energy solutions for communities and companies focusing on sustainability. They can incorporate renewable energy sources like hydroelectric, wind, and solar power. They also facilitate the electrification of transportation by offering charging infrastructure for EVs. This lowers fossil fuel dependency, which minimizes climate change and greenhouse gas emissions.  

Microgrids lower energy loss that arises during long-distance transmission by producing power equal to the consumption source. They can better maintain demand response by shifting the load to off-peak hours and reducing it during peak hours. This results in more efficient usage of generated power. Along with the environmental benefits of efficient and renewable energy supply, microgrids can upgrade local economies. This is expected to create job opportunities in the maintenance, operation, and construction industry. 

Schneider Electric launched a microgrid solution to offer clean power 

The leader in energy automation and management, Schneider Electric, launched Vilaya Flex, a microgrid solution in May 2024. The solution was particularly designed to facilitate the journey toward decarbonization. It can be maintained, operated, commissioned, ordered, and sized easily with excellent battery storage scalability. The solution also comprises a hybrid power unit along with battery storage and an energy control center to manage different energy sources into a smart power management system. 

Final words 

Summing up, microgrids play an important role in transforming the energy sector since they resolve the issues of traditional grids. Their ability to accommodate renewable energies reduces carbon emissions and maintains the integrity of grids in cases of disruption. Furthermore, the sophistication of AI, ML, and blockchain elements enhances the output of microgrid efficiency.  

For more details on technological evolution in the microgrid market, contact our experts today!

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