Microgrids have come a long way since Thomas Edison flipped the switch at the Pearl Street Station in 1882, marking the beginning of the world’s first permanent power plant. From small, local grids to the interconnected grid we know today, the evolution of the grid has been remarkable. But in recent years, there has been a resurgence of interest in smaller grids known as microgrids.
The concept of microgrids dates back to 2002 when researchers at the University of Wisconsin-Madison coined the term. A microgrid is defined as a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that can operate independently or in conjunction with the larger power grid. This flexibility allows microgrids to provide both resilience and reliability benefits, along with the traditional advantages of distributed energy resources like lower emissions and reduced utility bills.
Microgrids can vary in size and complexity, serving anything from a single building to an entire community. For example, Fire Station 1 in Portland, Oregon, recently added solar PV, batteries, and a microgrid controller to reduce diesel usage, save costs, and minimize emissions. On Kodiak Island, Alaska, a microgrid integrating wind, storage, and hydropower has enabled the island to nearly eliminate diesel consumption while lowering utility rates for residents.
Despite the clear benefits of microgrids, there are challenges to establishing them. Cost is a significant barrier, with infrastructure costs adding up to 38% beyond the cost of the distributed energy resources themselves. Larger, grid-connected microgrids face technological and policy challenges, including coordinating multiple energy sources and navigating utility regulations.
Progress is being made, however, with some states like Maine and Michigan updating utility regulations to make it easier to establish microgrids. As more states adopt policies supporting microgrids, communities will have greater access to the benefits of resilience, cost-savings, pollution reduction, and energy independence.
Microgrids represent a modern evolution of the grid, combining the self-reliance of local grids with the intelligence and cleanliness of modern technology. As we look towards a more connected future, microgrids will play a crucial role in shaping the energy landscape of tomorrow.
