Microgrids For Businesses: Everything You Need To Know

In today’s rapidly changing energy landscape, microgrids are becoming an increasingly popular solution for businesses seeking to improve their power resiliency and reduce their reliance on the traditional grid. By generating their own power and integrating renewable energy resources, microgrids offer businesses greater control over their energy supply and can provide a backup system in the event of a power outage. This article will explore the benefits of these grids for businesses, and highlight the ways in which microgrids are providing a sustainable, cost-effective, and reliable source of power for businesses across the globe.

What is a Microgrid?

A microgrid is a self-contained power system that can operate independently or in parallel with the utility grid.

It typically consists of renewable energy generators, such as solar panels and wind turbines, energy storage systems, and a control system that manages the balance between supply and demand. Microgrids can also incorporate distributed energy resources, such as electric vehicles and battery systems, to increase their resiliency and sustainability.

What are the benefits of Microgrids?

Microgrids offer several benefits for businesses in the UK, ranging from improved energy resiliency to cost savings and sustainability gains.

Here are some of the key benefits that businesses in the UK can expect from implementing microgrids:

1. Improved energy resiliency: Microgrids offer businesses a more reliable source of power and can provide a backup system in the event of a power outage. In the UK, where extreme weather events are becoming more frequent, microgrids can help businesses maintain operations during power outages, which can improve their resiliency and reduce the risk of lost revenue.
2. Cost savings: Microgrids can help businesses save on energy costs by generating their own power and reducing their reliance on the utility grid. By integrating renewable energy resources, such as solar panels and wind turbines, businesses can reduce their dependence on fossil fuels and save on energy costs in the long run.
3. Increased energy efficiency: Microgrids can help businesses achieve greater energy efficiency by balancing the supply and demand of energy. This can reduce energy waste and lower energy costs, which can help businesses improve their bottom line.
4. Sustainability gains: Microgrids can help businesses achieve their sustainability goals by reducing their carbon emissions and integrating renewable energy resources into their power mix. This can help businesses reduce their environmental footprint and improve their reputation among customers and stakeholders.
5. Enhanced revenue streams: Microgrids can help businesses generate additional revenue by participating in demand response programs, selling excess energy back to the grid, and offering energy-as-a-service (EaaS) solutions to other businesses in the community. This can create new revenue streams and improve the financial viability of microgrid projects.
6. Energy independence: Microgrids can offer businesses greater control over their energy supply, which can improve their energy independence and reduce their reliance on external sources of power. This can provide businesses with greater control over their energy costs and reduce their exposure to energy price volatility.

What are some Microgrid business models?

There are several business models for operating a microgrid, including energy-as-a-service and power purchase agreements. These models allow businesses to build and operate a microgrid without upfront costs, and provide a predictable and stable source of energy for the long term.

1. Energy-as-a-service (EaaS) model: Under this model, a third-party company owns and operates the microgrid, and businesses pay a monthly fee for access to the energy produced by the microgrid. This model can be attractive for businesses that want to benefit from the resiliency and sustainability gains of microgrids, but do not want to take on the capital expenses of building and operating their own microgrid.
2. Utility-owned model: In this model, the utility company owns and operates the microgrid, and businesses pay a monthly fee for access to the energy produced by the microgrid. This model can be attractive for businesses that want to benefit from the reliability and resiliency of a microgrid, but do not want to take on the capital expenses of building and operating their own microgrid.
3. Independent power producer (IPP) model: Under this model, an independent company owns and operates the microgrid and sells energy to businesses in the area. This model can be attractive for businesses that want to access renewable energy sources, but do not have the capital to build and operate their own microgrid.
4. Community microgrid model: In this model, multiple businesses in a community pool their resources to build and operate a shared microgrid. This model can be attractive for businesses that want to share the costs of building and operating a microgrid, while also benefiting from the resiliency and sustainability gains of a microgrid.
5. Build-own-operate-transfer (BOOT) model: Under this model, a third-party company builds, owns, and operates the microgrid for a set period of time before transferring ownership to the business. This model can be attractive for businesses that want to benefit from the resiliency and sustainability gains of a microgrid, but do not have the capital to invest upfront.

Why are microgrids the future of energy management?

Microgrids are becoming a significant trend in energy management due to several key factors.

Firstly, microgrids can operate independently or in conjunction with the larger power grid, making them more reliable and resilient. They can provide electricity to critical facilities such as hospitals, data centers, and military bases in the event of a grid outage or natural disaster. This makes them an ideal solution for reducing the risk of power disruptions caused by extreme weather events or other external factors.

Secondly, microgrids offer greater efficiency than traditional centralized power systems. They can incorporate a variety of distributed energy resources, such as solar panels, wind turbines, and energy storage, which can be used to match energy supply and demand more closely. This reduces energy waste and lowers costs. As a result, microgrids can be designed to operate with greater efficiency than traditional centralized power systems.

Thirdly, microgrids offer a platform for integrating renewable energy resources into the grid. They enable local communities and businesses to generate their own electricity from renewable sources, reducing their dependence on fossil fuels and decreasing carbon emissions. This makes them a more sustainable way to manage energy and provides an opportunity for individuals and businesses to make a positive impact on the environment.

Finally, microgrids are typically equipped with advanced energy management systems that enable operators to monitor and control energy usage in real-time. This allows for more effective load balancing and optimization of energy resources, which can help to reduce costs and increase the reliability and resilience of the grid.

Defining how microgrids will serve your sustainability goals

Here are some ways that microgrids can serve your sustainability goals in the UK:

1. Reduced carbon emissions: By integrating renewable energy resources, such as solar panels and wind turbines, microgrids can help businesses reduce their reliance on fossil fuels and decrease their carbon emissions. This is particularly important in the UK, where the government has set a target to achieve net-zero emissions by 2050.
2. Improved energy efficiency: Microgrids can help businesses achieve energy efficiency by balancing the supply and demand of energy. By generating their own energy and reducing their reliance on the utility grid, businesses can reduce energy waste and save on energy costs.
3. Energy resiliency: Microgrids offer a resilient solution to power generation and distribution. In the event of an outage, a microgrid can provide a backup system that ensures continued power supply. This is particularly important in the UK, where extreme weather events are becoming more frequent and causing power outages.
4. Reduced energy costs: By generating their own energy and reducing their reliance on the utility grid, businesses can save on energy costs. This is particularly beneficial for businesses in the UK, where energy costs are among the highest in Europe.
5. Demand response participation: Microgrids can be connected to the utility grid and participate in demand response programs, allowing businesses to sell excess energy back to the grid and earn revenue. This not only helps businesses reduce energy costs, but also contributes to a more sustainable and resilient energy system.

Schneider Electric, a leading provider of energy management and automation solutions, offers a range of microgrid solutions to help businesses in the UK build and operate microgrids. Their EcoStruxure™ Microgrid is an advanced microgrid solution that leverages digital solutions and control technology to optimize energy production and consumption, and achieve sustainability goals.