Microgrid Controllers
Overview
Microgrid controllers are key components that enable the formation of microgrids from localized energy resources, which may include generators, solar panels, wind turbines, and energy storage systems. These controllers enable microgrids to function independently or alongside the bulk power grid. This allows the microgrid to support the bulk system during contingencies, provide local power during outages, and optimize the integration of DERs. They are used in remote communities, critical facilities, and facilities focused on sustainability. Advancements in storage technologies and the application of AI for control and operation are contributing to the advancement of microgrid controllers. Key enabling technologies are intelligent electronic devices that manage functions such as adaptive relay settings, local generation control, and islanding control, ensuring efficient microgrid operation.
Benefits of Microgrids
Below are several major grid challenges that microgrids can be deployed to address:
- DER Integration: Microgrid controllers are essential for effectively integrating distributed energy resources (DERs) into the energy system, managing their operation, and ensuring they contribute to overall grid stability and reliability.
- Outage Mitigation: Microgrid controllers can facilitate faster fault detection and system restoration, allowing for quick recovery from outages and enhancing grid resilience. They enable localized control that can expedite restoration efforts.
- Intermittent Generation: Microgrid controllers are well-suited for integrating renewable energy sources, such as solar and wind, by managing variability and ensuring a stable energy supply, thus addressing challenges associated with intermittent generation.
Technology Readiness Level (TRL): 8
Microgrids have existed for quite some time in remote areas and have become increasingly popular in grid-tied systems. However, the controllers for forming a microgrid continue to be refined and the technology is not yet ubiquitous meaning that it sits at a TRL of 8.
Value Proposition
Delivered Cost
High Risk
The cost for Microgrids is projected to be, on average, $2-5 million per megawatt installed. These costs increase with application complexity. Microgrids will create redundancy (when installed where larger grid infrastructure already exists) with diseconomies of scale, which increases costs for existing rate payers.
Functionality Performance
Low Risk
Grid resiliency is not a pressing issue broadly in the US. Improved grid performance will be seen as positive, but this technology solves a less pressing problem faced by the grid.
Ease of Use/Complexity
Medium Risk
Microgrids will be very similar to large grid infrastructure and therefore be able to be staffed by similar workers without added training or specialization.
Market Acceptance
Demand Maturity/Market Openness
Medium Risk
There is some interest in improving grid stability by moving to microgrids, but the barriers of cost appear to be the limiting factor. The DOE has a Microgrid program strategy to address limitations and move adoption forward, but it will take years for this to materialize.
Market Size
Medium Risk
In the status quo the market size is small, as the technology becomes more cost effective and standardized it could grow substantially. Hypothetically the entire grid could be made up of a series of microgrids, but that is dependent on several factors.
Downstream Value Chain
Medium Risk
Microgrids may undercut the revenue streams of utilities by breaking up the natural monopolies they operate within. This could disrupt how energy is priced, raise questions in who pays (and how much is paid) for transmission, etc.
Resource Maturity
Capital Flow
Medium Risk
There is growing interest, but substantial capital is still needed to drive this technology down the learning curve and to overcome cost hurdles. This will likely require both govt. and private funding sources.
Project Development, Integration, and Management
Low Risk
Given microgrid projects are similar to larger grid projects, but at a smaller scale, many of the technologies have established track records of successful deployment. It is also possible that smaller projects tend to have less issues with respect to project management and execution.
Infrastructure
High Risk
Broad adoption would require a substantial amount of new grid resources where existing resources already exist. While some existing resources could be used, this would involve large investments upfront.
Manufacturing and Supply Chain
Medium Risk
Some of the technologies used in microgrids have established supply chains, while others are newer technologies which will require new supply chains or adjustments to existing supply chains. Specifically, technologies that enable flexibility and real time monitoring and response will require supply chain buildout.
Materials Sourcing
Medium Risk
Many of the materials for the technologies involved are imported from countries (such as China) where there geopolitical risk is higher.
Workforce
Low Risk
The existing workforces from grid deployment could also deploy microgrids. It possible some scaleup is necessary but that scale up shouldn’t require significant resources and be easy to scale (i.e., the existing workforce pipelines may just have to produce more students without changing the training significantly).
License to Operate
Regulatory Environment
Medium Risk
Microgrids may require disrupting the existing model of larger grids managed by companies with natural monopolies, it’s possible that changes to regulation and standards are necessary. It is also possible that these changes could cause delays. This may require coordinating with multiple regulators which is usually time consuming.
Policy Environment
Medium Risk
Policy intervention is likely needed from the standpoint of how microgrids will impact energy markets from a pricing and a supply/distribution standpoint. However the desire to improve grid resiliency aligns well with policy positions.
Permitting and Siting
Medium Risk
The challenges faced by large grids will be similar to the those faced by microgrids. The challenges of overlapping jurisdictions will persist, the permitting and siting process. However, the more this happens, the faster the process will become.
Environmental & Safety
Medium Risk
Any of the risks posed by microgrids will be technology specific (it will vary based on which technologies are deployed). Given most of these technologies are already deployed this will not be a new issue and therefore a path to management is highly likely.
Community Perception
Low Risk
Generally, it should be expected for increased resiliency to be viewed positively by the public, but the costs associated with it (driven from the redundancy it creates) will potential create resistance.
Case Studies & Implementation
Brooklyn Microgrid (New York, USA)
The Brooklyn Microgrid is a community-based initiative in Brooklyn, New York, that utilizes blockchain technology to create a peer-to-peer energy trading platform. This microgrid allows residents and businesses with solar panels to sell excess energy to their neighbors, promoting local energy resilience and sustainability. The project aims to enhance grid reliability, reduce carbon emissions, and empower local communities by providing a decentralized energy solution.
Reference:
Brooklyn Microgrid | Community Powered Energy
University of California, San Diego (UCSD) Microgrid (California, USA)
The UCSD microgrid is one of the largest and most advanced microgrids in the United States, serving the entire university campus. It integrates a variety of distributed energy resources, including a 2.8 MW fuel cell, 2.5 MW of solar PV, a 30 MW co-generation plant, and 2.5 MW/5 MWh of battery storage. The microgrid provides over 85% of the campus’s annual electricity needs and enhances energy security and sustainability. It also serves as a living laboratory for research and development in microgrid technology and renewable energy integration.
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