Microgrids are inherently decentralized, meaning they create, store, and distribute energy locally. Using renewable energy sources inherently reduces your carbon footprint from energy, following the decarbonization trend. They can also “island,” or operate independently from the grid, in cases such as extreme weather, damage to the main grid, etc.Įlectricity in a microgrid is generated from renewable energy sources such as solar and wind and excess energy can be stored in a battery energy storage system. Most often, microgrids connect to the main grid. What are microgrids? They are localized energy production and distribution networks that either operate on their own or supply energy directly to the main grid. Microgrids are a logical energy management solution for decarbonization, decentralization, and digitalization. Microgrids as the future of energy management And, as more devices enter our lives, the potential for better, more actionable data only increases. For example, by looking at data from a commercial building with a photovoltaic system, a facility manager can determine whether it makes sense to store some of the excess energy on-site using a backup battery or sell it back to the utility.Įmerging digital technologies enable more efficient, reliable, and sustainable operations. When power generation equipment becomes intelligent with software that analyzes and responds to data in real-time, it can result in more efficient operations. One last energy megatrend, digitization, uses data to enable flexible decision-making for energy production, consumption, and management. To ensure a continuous power supply, communities, businesses, and even homeowners are now investing in technologies such as wind and solar power and batteries, which enable localized on-site energy generation, storage, and consumption. Unfortunately, climate change, aging infrastructure, and rising populations will only continue to add pressure to utilities. We all saw the impacts of long-term outages in California: facilities, businesses, and homeowners suffered. Although most power utilities define a power outage as five or more minutes with zero current, even a second-long voltage disruption can shut down manufacturing lines, sensitive electronic devices, and electrical power systems. Outages of any length are costly and disruptive. So, when power is disrupted along the main grid, everyone is impacted. This shift is leading to decentralization: a revolution in how we generate, store, move, and consume energy.Įlectricity isn’t just a convenience anymore it’s a necessity. Second, those concerned with energy reliability, such as business owners, local governments in disaster-prone regions, and critical facility managers are now seeking control over their energy. Also, renewable energy generation is now cost-competitive and more accessible than ever before. Why is this happening? People, companies, and governments are committing to carbon neutrality because they see climate change as the defining challenge of our time. coal-fired and nuclear electricity generation through the 2020s and beyond. The Annual Energy Outlook 2020 reports that renewables are the fastest-growing source of electricity generation in the U.S. Energy Information Administration, fossil fuels and nuclear energy generate 82 percent of our electricity. Where we’re going: decarbonization, decentralization, digitalizationĭecarbonization, the reduction of greenhouse gas emissions, is the first energy megatrend we expect to see over the next decade.Īccording to the U.S. In this post, I explore these three energy megatrends and discuss how microgrids are the logical solution to usher in this new energy era. And these conversations are prompting a focus on decarbonization, decentralization, and digitalization to enhance energy reliability and efficiency. Recent wildfires in California, tornadoes in Tennessee, and the spread of COVID-19 around the world are playing a large role in these discussions. Today, conversations around climate change, renewable energy, and responsible energy consumption are happening on the ground and in the boardroom. As Aamir Paul, Schneider Electric Country President, U.S., likes to point out, our grid is so old, even Thomas Edison would recognize it.īut the tide is turning. I believe we can expect a revolution in energy in the coming years reminiscent of the electricity boom of the 1920s.Ĭonsider this: The way we create, distribute, and consume energy is surprisingly similar to the way it was a century prior. I’m not talking about a resurgence in flappers and jazz.
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