Increased renewable energy
The world is moving toward a new era of energy generation and consumption. Most corporations and organizations have environmental initiatives in place to reduce their carbon footprint. Governments are moving in the same direction, with green incentives and stringent federal, regional and local regulations. The shift towards renewable energy sources such as solar, wind and biogas—essential components in a microgrid—will only continue to grow.
Power diversification
There are many things that can interrupt the flow of power. No energy source is 100% reliable and foolproof. Whether it’s caused by a storm or natural disaster, outages can strike at any time. Smart contingency plans must be in place when a power grid goes down, or when a generator set runs out of fuel. It pays to have options available locally—such as a microgrid—to generate power. Having diverse power options at your command are also advantageous if primary energy costs or peak demand rates rise dramatically. With a mix of energy sources available, you can choose a more costeffective solution if the price of diesel fuel or natural gas gets too high.
Energy efficiency
Many microgrids use a combined heat and power (CHP) module, which has the ability to produce both electric energy and heat energy from the same fuel, thereby nearly doubling overall efficiency. By lowering fuel consumption, a microgrid can reduce overall operating costs while ensuring the availability of reserve power. However, every site is unique and may have different costs or revenue streams. Determining whether a microgrid will be a cost-effective source of power for your specific needs requires careful data gathering and computer-based analysis. These calculations will reveal whether there is sufficient payback potential. The chart above is an example of a microgrid that features a CHP module. With an initial investment of $2.1 million, the system will pay for itself in only three years. After that period, considerable revenue can be generated.
Emission reduction
Different technologies have different impacts on the environment. Large sites may have permitting issues that limit NOx or particulate matter emissions from diesel-powered generator sets. If you reach the run-time limit and need extra capacity, you may need to utilize a gas-powered generator set, renewable energy source and/or battery storage.
Gas-powered generator sets face different challenges. Traditionally, waste gas was flared to reduce emissions. Today, many energy consumers are looking for new ways to use gas more efficiently. CHP modules provide one of the most economical ways for sites such as sewage plants to utilize waste energy to generate electricity and thermal energy, while also controlling methane emissions. It is important to note that these parameters apply more to non-attainment regions where air quality standards are more stringent.
Power security
Concerns about power quality in the grid have led to an increased demand for new solutions. And for good reason. Major regional blackouts can cause billions of dollars in economic losses. Rolling blackouts are becoming more common. Many power grids, such as in North America, are outdated as investments in this infrastructure have been lacking. However, as more variable sources (such as windmills) are added to these grids, the risk of instability grows. As the coal industry slows down, traditional plants that keep electricity flowing are disappearing. With a microgrid on site, an energy user can avoid power interruptions by seamlessly switching over to a diverse mix of alternative energy sources that don’t rely on the grid.
