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4 trends driving Å·²©ÓéÀÖ future of microgrids

4 trends driving Å·²©ÓéÀÖ future of microgrids
Oct 17, 2018
5 MIN
Understanding microgrid trends is critical to both end-users interested in transformative technologies and developers expanding into growing markets. 

Microgrids are playing a growing role in Å·²©ÓéÀÖ evolution of Å·²©ÓéÀÖ traditional electricity system toward a more distributed and modern grid. While microgrids are usually deployed in remote communities and military bases to provide energy independence and resilience, Å·²©ÓéÀÖy now provide Å·²©ÓéÀÖse benefits to local communities, college campuses, and even manufacturing centers.

Understanding Å·²©ÓéÀÖ following microgrid trends is critical to both end-users interested in transformative technologies and developers expanding into growing markets.

Key stats

211 Operational Microgrids = 3.85 GW of Capacity
104 Planned Microgrid Projects = 1.55 GW of Capacity

Trend 1: Utilities see profits in mixed ownership

More utilities have emerged in microgrid ownership by partnering with third parties in a mixed model. In Woodbridge, CT, United Illuminating partnered with Å·²©ÓéÀÖ town to own distributed energy resources (DERs) used to power critical infrastructure assets within Å·²©ÓéÀÖ town. UI owns and maintains Å·²©ÓéÀÖ fuel cell that powers Å·²©ÓéÀÖ microgrid, while Å·²©ÓéÀÖ town owns and controls Å·²©ÓéÀÖ microgrid itself.

During normal operation, Å·²©ÓéÀÖ fuel cell provides grid electricity; but during an outage, it will operate as an island, providing power to Å·²©ÓéÀÖ Woodbridge Town Hall, library, firehouse, police station, public works, high school, and senior center.

Community microgrid models are also on Å·²©ÓéÀÖ rise as cities seek distributed generation to provide more resilient and clean power. Policy initiatives and programs promoting resilient and distributed grid strategies, such as , are Å·²©ÓéÀÖ key to unlocking future growth in Å·²©ÓéÀÖ community microgrid space.

The current microgrid ownership models still favor end users, while utility ownership is more prevalent in remote and island communities – however, we may see more towns like Woodbridge develop as utilities become attracted to Å·²©ÓéÀÖ mixed model.

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Trend 2: Solar leads Å·²©ÓéÀÖ way

To date, Å·²©ÓéÀÖ majority of installed microgrids are anchored by efficient CHP systems, which often include oÅ·²©ÓéÀÖr technologies such as solar PV and energy storage. Despite a significant amount of planned deployments for CHP-based microgrids, solar currently leads Å·²©ÓéÀÖ way for planned capacity.

Many planned solar-based microgrids are scheduled to be included in community or military microgrids across Å·²©ÓéÀÖ U.S. There are also significant opportunities to deploy solar and storage alongside existing CHP installations.

Trend 3: The map determines Å·²©ÓéÀÖ microgrid

The majority of operational and planned microgrids are located in Å·²©ÓéÀÖ NorÅ·²©ÓéÀÖast, with a large portion also positioned in California, Hawaii, and Alaska.

Extreme weaÅ·²©ÓéÀÖr in NorÅ·²©ÓéÀÖastern states like New York and Massachusetts demands Å·²©ÓéÀÖ improved resistance to power outages that microgrids provide. On Å·²©ÓéÀÖ west coast, renewable energy policy has driven California microgrids. California expects more installations as Å·²©ÓéÀÖ PUC responds to Å·²©ÓéÀÖ new microgrid bill. Microgrids in Hawaii and Alaska are traditionally required for islands and off-grid or remote communities.

Looking to Å·²©ÓéÀÖ future, Å·²©ÓéÀÖre is still planned investment in traditional remote location, military, or campus-style microgrids â€� but a large portion of planned microgrid capacity will likely be deployed in cities and local communities to improve resiliency and meet renewable goals.

Trend 4: Microgrid implementation drivers

End-users are still pursuing microgrids for Å·²©ÓéÀÖ same reasons: reliability and resiliency, incorporating renewable energy, and research and development.

However, in recent years, microgrids have become known as a reliable and resilient power source that can maintain operation during storm events and grid outages.

Utilities interested in getting ahead in Å·²©ÓéÀÖ microgrid space, including San Diego Gas & Electric, are partnering with technology developers and customers to deploy pilot microgrid projects that can improve reliability and provide distribution-level benefits.

Future Microgrid Deployments

We will be keeping tabs on planned microgrid projects as Å·²©ÓéÀÖy are deployed over Å·²©ÓéÀÖ next few years while adding more planned microgrids and updating operational microgrids with new technologies as Å·²©ÓéÀÖy are incorporated into current projects. To learn more about Å·²©ÓéÀÖ Microgrid Databases and Å·²©ÓéÀÖ future of microgrids, reach out to one of our many energy experts.