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Generally it’s a small-scale version of the centralized electricity system. They achieve specific local goals, such as reliability, carbon emission reduction, diversification of energy sources, and cost reduction, established by the community being served. Like the bulk power grid, smart Microgrids generate, distribute, and regulate the flow of electricity to consumers, but do so locally. Smart Microgrids are an ideal way to integrate renewable resources on the community level and allow for customer participation in the electricity enterprise.
To understand how a microgrid works, you first have to understand how the grid works.
The grid connects homes, businesses and other buildings to central power sources, which allow us to use appliances, heating/cooling systems and electronics. But this interconnectedness means that when part of the grid needs to be repaired, everyone is affected.
This is where a Microgrid can help. A Microgrid generally operates while connected to the grid, but importantly, it can break off and operate on its own using local energy generation in times of crisis like storms or power outages, or for other reasons.
A Microgrid can be powered by distributed generators, batteries, and/or renewable resources like solar panels. Depending on how it’s fueled and how its requirements are managed, a Microgrid might run indefinitely.
A Microgrid connects to the grid at a point of common coupling that maintains voltage at the same level as the main grid unless there is some sort of problem on the grid or other reason to disconnect. A switch can separate the microgrid from the main grid automatically or manually, and it then functions as an island.
A Microgrid not only provides backup for the grid in case of emergencies, but can also be used to cut costs, or connect to a local resource that is too small or unreliable for traditional grid use. A microgrid allows communities to be more energy independent and, in some cases, more environmentally friendly.
A Microgrid comes in a variety of designs and sizes. A Microgrid can power a single facility like small village. Or it can power a larger area, for example factory or town, where a Microgrid can be a part of a larger goal to create an entire district that produces the same amount of energy it consumes.
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