Prolonged Heat Waves Further the Case for Microgrid Standardization

With many parts of the US experiencing extremely high temperatures throughout June and July, regional power grids are feeling the strain. In May, the North American Electric Reliability Corporation (NERC) issued an announcement stating that two-thirds of North America is at risk of supply shortfalls because of extreme heat waves. NERC found that resources are adequate for normal summer demand, but if temperatures spike, seven areas may face supply shortages during higher demand levels. The summer heat wave has not been limited to the US, with parts of Europe, China, and North Africa also experiencing extreme heat waves throughout July. In fact, Earth broke the record for the hottest day recorded 4 days in a row during the first full week of July.

Microgrids Expand Demand Response Capabilities

Customers in all business segments have been increasingly investigating microgrids to not only enhance energy resilience but also reduce utility costs and pursue broader sustainability goals. In extreme heat waves, grid operators often put out calls for customers, especially large energy users, to shed load during peak periods. For some consumers, this may mean moving processes to off-peak periods or adjusting certain building system settings during potentially the hottest part of the day. Microgrids offer consumers the opportunity to disconnect from the larger utility grid, allowing them to maintain the same level of comfort and productivity by relying on power generated and stored onsite—while simultaneously helping reduce strain on the larger utility grid that often arises during heat waves from increased cooling demand, and lowering the likelihood that grid operators will need to enact rolling blackouts to maintain stability.

Some Microgrid Companies Look to Standardization for Growth

Microgrids are complex projects that combine, integrate, and optimize multiple distributed energy resources (DER) via an advanced software controller platform. Because of the complexity and cost, these projects can take years to fully design, install, interconnect, and get operational. To help mitigate these issues, some microgrid integrators are looking to adjust their business models and solution offerings to streamline development and reduce deployment time. Companies like BoxPower, Scale Microgrid Solutions, and Block Energy provide multi-DER standardized microgrid systems. Other companies like Enchanted Rock and PowerSecure offer single-DER standardized solutions. Earlier this year, Schneider Electric, a microgrid developer that has historically focused on custom systems, announced its new standardized microgrid offering for small to midsize commercial buildings.

Standardizing projects does not mean each project is the same; rather, it means using standardized components and system designs. This generally means the components are independent of suppliers and have already been lab or field tested and certified based on agreed-upon testing specifications. In standardizing, developers and integrators are aiming to reduce the burden associated with interconnection studies, one of the major hurdles in getting microgrids online. Shifting from developing highly customized solutions for each customer to a more standardized solution also cuts down on the time, money, and engineering effort required to design and install a system for each customer, without sacrificing the customer’s needs. Standardization will help further reduce market barriers, allowing more customer facilities across all business segments to explore and ultimately deploy microgrid solutions comprised of onsite renewables, energy storage, and backup generation.