Over the last year-and-a-half or so, we’ve published quite a few articles that focused on new technologies or market trends we think you should keep an eye on. When the Internet of Things (IoT) discussion exploded on the scene, we tried to cut through the hype and tell you what effect all of the new sensors, software, networking equipment, and data processing/storage equipment being developed and installed would have on your electrical design or construction business. We’ve also discussed the moves being made by architects, building owners, and property managers to make their new and existing buildings “smart” — and how that might open up new opportunities for you in the future. We’ve even reviewed the growing interest in and adoption of “green” renewable power and energy storage technologies across the residential, commercial, industrial, and electric utility sectors. This month, we turn our attention to the subject of microgrids.
As defined by the U.S. Department of Energy Microgrid Exchange Group, “A microgrid is a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode.”
Solving the Skilled Labor Shortage
As noted in a recent GTM Research report, an emerging shift away from single-entity owned and operated projects is greatly improving microgrid project economics in the United States. A key driver of recent growth for the U.S. microgrid market, multi-stakeholder ownership models arose from a surge in regulated utility interest to co-develop microgrids as a “non-wires” alternative to capital infrastructure investments. In September 2016, a report by Research and Markets forecasted the global microgrid market would grow at a CAGR of 13.67% from 2016 to 2020.
Microgrids offer a number of advantages to electric utilities and their customers, such as improved reliability of power supply, reduced energy use, and better voltage control/stability. Many of the microgrid pilot installations I’ve read about incorporate a number of different power generation/supply/storage technologies in their design. These include: solar photovoltaic systems, wind power systems, fuel cells, microturbines, natural gas- and diesel-powered generators, battery banks, thermal storage systems, and combined heat and power systems.
But instead of focusing our editorial efforts strictly on the technical aspects of these systems, I thought it would be more valuable if we discussed the interrelationship of smart buildings and microgrids. This approach allows us to paint a broader view of the power delivery systems being designed, installed, and operated today by all of the players in the market on both sides of the meter. So read this month’s cover story, “Microgrids Gain Momentum,” written by freelance writer Tom Zind and gain a better understanding of microgrid trends and opportunities.
