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The Future of Energy: How Microgrids Benefit Businesses

Written by Neil Cowan | Aug 6, 2024 2:35:09 PM

The Future of Energy: How Microgrids Benefit Businesses

Adopting a microgrid offers valuable advantages for businesses, such as improved reliability, resilience, and environmental sustainability. Because unplanned downtime is a cost businesses strive to avoid, many are recognizing the benefits of generating and storing their own energy as a backup against power outages. 

Let’s examine the world of microgrids and the benefits of using modern independent energy systems.

What Is a Microgrid?

According to Microgrid Knowledge, “A microgrid is a self-sufficient energy system that serves a discrete geographic footprint.” Microgrids often cover a university campus, business site, or small community. They typically include several components, such as: 

  • Distributed energy sources (DES) such as solar panels
  • A battery energy storage system (BESS)
  • A software management system.  

While a microgrid is often linked to the public grid, it’s capable of operating independently, able to provide power even when there’s an outage caused by a natural disaster or other interruption. 

Microgrids are becoming an increasingly attractive benefit as the energy world faces more disruptions due to heavy loads on an aging grid or inclement weather as a result of climate change.

And unlike traditional backup power, today’s microgrids are intelligent, with a computer managing energy storage, generators, and systems. Software can strategically balance resources based on pre-set priorities for the microgrid — for example, achieving minimum environmental impact or the lowest possible energy costs.

With smart microgrid systems, businesses can maximize energy reliability and resilience in several important ways. 

4 Advantages of Microgrids for Businesses

Adopting a microgrid energy model can maximize your business’s resources and minimize costly downtime due to power outages outside your control. Here are a few of the main advantages:

 
Improve energy resilience and reliability.

Power outages can wreak havoc on businesses, taking operations offline and causing costly delays and losses. A microgrid’s capability to operate independently from the main grid will keep your facilities up and running during emergencies such as natural disasters and brownouts, allowing you to maintain business continuity when the surrounding grid is struggling.

Optimize energy use and save on costs.

When equipped with the right software and controller, a microgrid can optimize energy usage — even to the point of evaluating whether it’s more cost-effective to use DERs or tap into the main grid at a particular moment. And while setting up DERs such as wind turbines or solar panels involves an up-front expense, these elements pay for themselves over time as they allow you to generate your own energy — and reduce your reliance on public sources of power.


Make progress toward your sustainability goals.

Many DERs are also greener sources of power, so increasing your use of wind, solar, or geothermal energy can help your company document its carbon footprint reductions and reach ESG goals.


Improve power quality at your facilities.

Many industrial companies, such as manufacturers using robotics on the factory floor, require an uninterrupted flow of clean, conditioned power. Today’s microgrids manage voltage and frequency fluctuation concerns, making it easier to achieve no-blip service.

 
Businesses using microgrids

Here are a few real-life examples of businesses successfully utilizing microgrids:

Setting Up a Microgrid

Setting up a microgrid can be a complicated and time-consuming process. If you choose to build the solution yourself, you are likely to run into challenges around engineering a successful setup, navigating regulatory requirements from local authorities, and footing the costs of building out the infrastructure. Here’s a brief overview of the steps involved in setting up a microgrid:

  1. Needs assessment
    Start with a feasibility study that looks at your company’s current energy usage needs, projected growth, and budget concerns, and identify potential areas of energy savings. Use this report to determine whether the return on your investment in a microgrid is worth the time and expense of creating one.

  2. Goal setting and system design
    Next, you’ll create a list of clearly defined goals and priorities. For example, are you primarily concerned with reducing your carbon footprint — or is reducing energy costs more important to your organization? From there, partner with engineers to design a microgrid system, either from scratch or based on existing software and solutions. To avoid pitfalls, make sure you seek expert guidance throughout the process.

  3. Approvals and permitting
    Many governments have placed regulations on the introduction of microgrids, so find out how and where to seek necessary permits and approvals. If you’re planning to connect the microgrid to the main grid, you will need to seek out an interconnection agreement in the U.S. — a bottlenecked process that can take up to two years to complete.

  4. Construction and operation
    Once you’ve funded the project, microgrid components such as generation units, batteries, and control software can be installed and brought online. Make sure you have a plan in place for ongoing operation, taking maintenance expenses into account.

While the benefits are numerous, another limitation to consider is that microgrids are not without some drawbacks, the main one being that they are limited in scope, serving only an immediate geographical area.

Traditional Microgrid vs. R3Di® System

While microgrids are a great idea for many businesses, they can be difficult to create and manage. The R3Di® System provides all the benefits of a traditional microgrid in a turnkey solution. Here are some advantages of choosing R3Di® instead of building your own microgrid:

  • Bypass the costly and time-consuming engineering stage.
    Building a microgrid from scratch requires in-house or contracted engineers to create the plans and ensure the components will work together seamlessly. With R3Di®, the system is pre-designed and all customized engineering is included in the cost of the system.

  • Avoid waiting for an interconnection agreement.
    Navigating the regulatory aspects of a traditional microgrid can be confusing. With R3Di®, e2 Companies handles everything from EPA compliance to ongoing emissions monitoring — and because it can connect directly to public utilities, there’s no need to seek an interconnection agreement, a process that can take two years or more.

  • Ensure optimal energy efficiency and cost savings.
    R3Di® continuously monitors energy assets, weather, and market conditions via e2’s Grid Response Optimization of Virtual Energy (Grove365) software, allowing your business to optimize energy usage. 
  • Faster, More Powerful Response. With 3.5C vs. 1C discharge current, the R3Di® system will absorb a high range of load profiles in the event of a utility failure, enabling full-facility backup as opposed to only emergency circuits.
  • Smaller Footprint. More power in a smaller package. The R3Di® system packs a punch with a smaller footprint than most microgrids, and no interior building space is required. This means more megawatts per unit area for your business and saving valuable space for mission critical applications.
  • Longer Lifespan. The lithium iron phosphate (LiFePO4) batteries in the R3Di® system maintain a higher state of charge (SOC) during charge/discharge cycles. In addition, these batteries are rated for up to 6000 cycles, contributing to an estimated 4-5x increase in lifespan over traditional microgrid systems with lead-acid batteries. 

R3Di® System: A Turnkey Solution 

Choosing a turnkey solution instead of building a traditional microgrid allows you to get the system online much sooner — and makes it easier and more cost-effective to implement and maintain.

R3Di®is a utility-grade, onsite power generation system that delivers conditioned, uninterrupted power to end users. R3Di® relies on a self-contained, turnkey power platform installed without requiring an interconnection agreement or costly public utility upgrades. 

It’s capable of providing instantaneous full-load pickup in the event of an outage and sustaining power during long-duration blackouts. Relying on safe and sustainable lithium iron phosphate (LiFePO4) battery chemistry for energy storage, R3Di® can store and provide up to 1 MW of power and includes a natural gas generator for additional support.

With Grove365, you’ll be empowered to uncover savings with the help of our energy management team. We’ll use historical data and advanced analytics to predict peak demand times — so you can avoid increased charges. 

And we work with a large supplier network to secure the most competitive rates and terms based on your company’s needs. In an expanding partnership with Keyfive, we also provide AI-driven monitoring and power dispatching.

Our team works closely with regulatory agencies using time-saving means such as automated notifications and efficient testing to limit manual processes and paperwork around compliance. Our compliance services include:

  • Comprehensive permitting
  • EMS audits
  • Diesel Oxidation Catalyst (DOC)
  • Three-Way Catalyst (TWC)
  • Selective Catalytic Reduction (SCR)
  • Diesel Particulate Filter (DPF)
  • Continuous Parametric Monitoring System (CPMS)

AI’s Role in the Future of Microgrids 

As municipalities seek to modernize power grids and fold in more renewable energy sources, microgrids will play a key role in locally balancing supply and demand issues. Governments are recognizing the advantages of microgrids — especially in the push toward carbon-neutral energy production — and implementing new funding streams and faster, easier permitting processes to encourage microgrid adoption. 

Artificial intelligence (AI) is expected to play an increasing role in operating microgrid software and regulating local power grids. AI algorithms can process and analyze enormous data sets quickly and easily, considering factors such as weather and energy usage patterns and offering new insights to optimize power distribution. 

AI can also detect and diagnose maintenance issues in equipment across the grid, helping utilities — and microgrid managers — to address service issues proactively instead of finding out there’s a problem when the system goes down.

Ready to implement a turnkey microgrid solution that improves power reliability and quality while optimizing energy costs? Schedule a consultation today.

References

What You Should Know About Microgrids (Energy Tech)

What is a microgrid? (Microgrid Knowledge)

Interconnection delays and costs are the biggest barrier for utility-scale renewables, say developers (Microgrid Knowledge)

IKEA Microgrid Goes Live (Microgrid Knowledge)

Apple now globally powered by 100 percent renewable energy (Apple)

First glimpse into how the US government will allot energy resilience money (Microgrid Knowledge)