What are Microgrids and Why are They Becoming So Popular?

As the name suggests, microgrids are small-scale electrical networks that operate independently, or in tandem with, large-scale electrical supplies. While many national and regional electrical grids are now powered in part by renewable energy, the majority still depend on nuclear and fossil fuels to deliver the bulk of their power. Conversely, microgrids make heavy use of renewables such as natural gas to generate energy for use within a specific building or development. This enables them to power their systems and operate without adding to the demands of the wider electrical network.

On-site energy production and storage can enable a new development to become self-sufficient and help fill in the gaps that can arise on overstretched electrical grids.

As part of their pledge to honor the 2016 Paris Agreement on climate change, cities around the world are passing legislation to make all new public buildings and developments emission-free.

The use of microgrids can contribute significantly to achieving these requirements while better insulating large urban areas from potential power failures or blackouts. Excess energy generated on small-scale systems can bed stored on site for use at a later date or be fed back into wider power grids when necessary.

While legislation is one step, private enterprise is also getting onboard with microgrids and localized energy production. Pursuing clear environmental benefits and reduced operating costs, developers are beginning to integrate systems from forward-thinking manufacturers and technology entrepreneurs alike.

One such manufacturer is Enchanted Rock, a US-based company that delivers cost-effective, utility grade trouble-free backup power as a service based on clean natural gas-powered microgrids. Natural gas is delivered via underground pipelines that are separate from the electric grid and is up to 75%-80% cheaper than diesel. It is also more environmentally friendly than diesel generating half of the carbon emissions and only 1% of the common air pollutants.

Energy market analyst Pike Research estimates that microgrid power generation has now increased fivefold from 2012 levels, and with an increasing array of innovations coming to market, we could see entire cities and urban areas powered very differently in the years ahead.