With extreme weather conditions plaguing the nation and the world, businesses might naturally worry about their ability to keep the lights on and the doors open. While they can’t prevent hurricanes, wildfires, and snowstorms, some businesses are looking for more reliable options for power supply that can withstand outages on public grids.

Microgrids are gaining popularity as more organizations invest in onsite infrastructure like microgrids that serve as more than just emergency relief. So what is a microgrid, exactly, and which companies have bought into the promise of this emerging technology?

What Is a Microgrid?

A microgrid is essentially a small, localized power grid that’s independent from public grids. Microgrids are designed to generate electricity using a range of power supplies, such as natural gas, solar, batteries, and so on.

The overarching purpose of a microgrid is to provide backup power during outages so there’s no interruption to the business or community. However, they do have additional advantages, like versatility, sustainability, and potential cost savings. Here’s a look at the organizations leading the way when it comes to capitalizing on microgrids.

Groups Leading the Way

Microgrids are relatively new, but several businesses and entities are forging ahead with them, including:

• H-E-B
• Prologis and Performance Team
• Bimbo Bakeries
• Cummins
• ComEd
• U.S. Army
• Costco
• Horizon Power

H-E-B markets in Texas were among the earliest adopters of microgrids in 2016. At that point, they upgraded from diesel generators to natural gas microgrids manufactured and maintained by Enchanted Rock. 

This allowed them to remain open when major hurricanes knocked out power elsewhere. During Hurricane Beryl in July 2024, Enchanted Rock had 140 microgrids operating simultaneously. As Chief Commercial Officer Allen Schurr noted, “That was a record for us.”

Others are planning to follow suit. This year, ComEd also partnered with Enchanted Rock on the Bronzeville Community Microgrid project, set to be operational in 2025 and provide power for over 1,000 residents of Chicago, Illinois. The U.S. Army announced plans to install microgrids at every installation by 2035, with four operational as of this year.

Costco is building a rooftop solar microgrid for EV charging at their Mira Loma, California, location. Australia’s Horizon Power, in concert with the Western Australia government, has commissioned a renewable hydrogen microgrid in Denham that will power 20% of homes and businesses while offsetting 37,000 gallons of diesel fuel annually.

Other interesting microgrid projects include the following: 

• Prologis and Performance Team installed an electric vehicle charging depot microgrid for trucks near the ports of Los Angeles and Long Beach in California
• Bimbo Bakeries added microgrids to six facilities in California
• Power equipment manufacturer Cummins launched its microgrid-powered Power Integration Center in Findley, Minnesota

Benefits of Proactive Investment in Microgrids

The main benefit of microgrids is their reliability, particularly during power outages. In addition to keeping power flowing to users, they can reduce stress on public grids when demand is high. 

Systems that take advantage of green energy supplies like solar, wind, or water can improve sustainability and save money. They even have the potential to promote use when no emergency requires a backup power source.

Not all businesses can afford to install microgrids, and there are some concerns related to infrastructure and management. However, the long-term benefits of investment are undeniable. In time, the technologies and systems involved are likely to improve as more organizations invest in them.

To learn more, check out the original article by EnergyTech.