When the grid is in crisis, like Britain‘s summer blackout, microgrids can help to react to unexpected demand peaks. Microgrids can empower the user, but what’s the benefit to the larger electricity grid?

This would not be a problem if the business is running on its own micro generation. Known as demand side response, in companies attached to the national grid can be asked to reduce their energy consumption. This is particularly important for organisations that need a high level of energy reliability, such as data centres or hospitals.įor these businesses, a microgrids ability to operate independently from the larger grid – sometimes referred to as island mode – is invaluable.īusinesses owning their own generation assets can also benefit from improved energy security compared to being reliant on the larger grid. In fact, microgrids are estimated to save between 21 and 30% on current energy costs, while reducing peak power requirements. The popularity of microgrids can be largely correlated with their potential to lower electricity prices for businesses. However, the potential applications of microgrids spread much further.Īccording to a report by Navigant Research, there are 4,475 identified microgrid projects in proposal, planning and deployed stages, in a variety of different applications.ĭon’t believe the hype? You should. Historically, microgrids were associated with remote power supply – providing electricity to developing nations or extremely rural locations. Alan Binning explains how microgrids could help could help to keep Britain’s lights onīritain experienced its biggest blackout in more than a decade this summer due to two power plant outages, leaving almost a million homes across the country in the dark.īecause of this, the energy watchdog and the government have raised concerns about the grid’s ability to cope with changing energy needs and demands.Ī microgrid is a small-scale power grid that can operate independently or collaboratively with other areas of the grid.Ĭombining a range of generation sources with energy storage and intelligent load management, microgrids are hailed as the solution to providing reliable, economic and environmentally friendly power supply.

Future of gas engines and micro grids