Microgrids: A sustainable solution make energy grids more resilient

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  Quantumrun Foresight
• January 15, 2022

Insight summary

Microgrids, decentralized energy solutions serving small communities or buildings, offer a pathway to sustainable, flexible, and accessible energy. Their adoption could lead to significant cost savings and increased energy security for consumers, more reliable energy sources for businesses, and a reduction in fossil fuel reliance for governments. Furthermore, the wider implications of microgrids could include changes in job demand, urban planning, legislation, energy pricing, and public health.

Microgrids context

Microgrids have the potential to be a decentralized, self-sustaining solution where specific microgrids only serve a small community, a town, or even a building that can't rely on the national or state electricity grid or does not have sufficient access to it. Once established, microgrids could have the potential to enable sustainable, flexible, and accessible energy solutions. 

The need to transition to carbon-neutral energy sources has become a central and widely adopted goal by governments and businesses worldwide. As such, solutions on how to ensure that energy generated from renewables is distributed efficiently as the base level—to homes, universities, and businesses, etc.—are key. Several countries in the US, Europe, Sub-Saharan Africa, and Asia have already conducted studies on how microgrids could operate and where efficiencies can be created.

According to a report by an energy systems company based in the Netherlands, it's crucial that, as a society, we transition our linear carbon-based economy into a circular, renewable-based one. In this report, which was funded by the Dutch government, Metabolic assessed the potential for Smart Integrated Decentralized Energy, also known as SIDE systems. These systems are a sustainable and flexible subset of microgrids that could help in transitioning towards the adoption of renewable energy. 

Disruptive impact

For consumers, the ability to generate and manage their own power supply could lead to substantial cost savings and increased energy security. This feature could be particularly beneficial in remote or rural areas where access to the main power grid is limited or unreliable. In establishing several best practices on how the SIDE system could work, the report by Metabolic found that in the most optimal case of its four scenarios, the result could be a techno-economically feasible system that is nearly completely (89 percent) self-sufficient.

For businesses, the adoption of microgrids could provide a more reliable and efficient energy source, reducing the risk of power outages and the associated costs. Furthermore, it could allow businesses to better control their energy usage, leading to significant reductions in their carbon footprint. This feature could be particularly appealing to businesses seeking to enhance their environmental credentials and meet increasingly stringent sustainability targets.

At the governmental level, the widespread adoption of microgrids could help to reduce reliance on fossil fuels and contribute to the transition towards a more sustainable and resilient energy system. This strategy could also stimulate economic growth by creating new jobs in the renewable energy sector. Furthermore, it could help governments to meet their climate change commitments and improve energy access for their citizens, particularly in remote or underserved areas.

Implications of microgrids

Wider implications of microgrids may include:

• Increased demand for skilled workers in renewable energy technologies.
• Communities becoming energy producers and not just consumers, fostering a sense of ownership and independence.
• Reduced strain on national power grids leading to fewer power outages and improved energy security.
• A change in urban planning, with the design of buildings and communities increasingly incorporating renewable energy sources and microgrid technologies.
• New legislation and regulations as governments seek to manage this new form of energy production and distribution.
• A shift in energy pricing as the cost of renewable energy continues to decrease and becomes more competitive with traditional energy sources.
• Greater energy equity, with remote or underserved communities gaining improved access to reliable and affordable energy.
• Individuals becoming more aware of their energy usage and its impact on the environment.
• A decrease in health issues related to air pollution as reliance on fossil fuels for energy production decreases.

Questions to consider

• Could microgrids aid in the adoption of sustainable and flexible renewable energy infrastructure? 
• Would incorporating a SIDE system or other form of microgrid system enhance the sustainability of the energy network in your city, town, or community?