top of page

What are microgrids?

A microgrid is a small-scale power grid that can run by itself or in cooperation with other small power grids. Distributed, dispersed, decentralized, district, or embedded energy generation are terms used to describe the use of microgrids.

One or more types of distributed energy (solar panels, wind turbines, combined heat and power plants, and generators) are used in microgrids to generate power. In addition, a lot of more recent microgrids have energy storage, usually in the form of batteries. Additionally, several now have stations for charging electric cars.

The microgrid, which is connected to surrounding structures, gives its users access to power as well as possible heat and cooling through the use of sophisticated software and control systems.

Microgrid is defined by three main key characteristics

1. Microgrids are local

First, since it produces energy for neighbors, this is a type of local energy. This sets microgrids apart from the massive, centrally located grids that have supplied the majority of our electricity for the past century. Transmission and distribution lines used by central grids transport electricity from power stations over great distances. Power transmission from a distance is inefficient because some of the electricity, up to 8% to 15%, loses energy while being transported. The generators in a microgrid are located near or inside the buildings they service, or in the case of solar panels, on the roof, to overcome this inefficiency.

2. A microgrid is Independent

A microgrid can detach from the main grid and run independently, too. When a storm or other tragedy knocks out the electricity grid, its islanding capability enables it to keep its clients powered up. Because of its enormous size and interconnectedness—more than 5.7 million miles of transmission and distribution lines—the central grid in the US is particularly vulnerable to disruptions. Inconveniently, we discovered during the so-called Northeast Blackout of 2003 that a single tree falling on a power line can cut off electricity in multiple states and even over international borders into Canada. A microgrid can avoid such spiraling grid failures through islanding.

3. A microgrid is smart.

Third, a microgrid, particularly one with sophisticated technologies, is intelligent. The microgrid controller, the system's brain, which controls the generators, batteries, and neighboring building energy systems with a high level of sophistication, is where this intelligence originates. In order to achieve the energy targets defined by the microgrid's consumers, the controller coordinates a variety of resources. Lowest pricing, the cleanest energy, the best power reliability, or some other goal could be what they're aiming for. Similar to how a conductor might ask different artists to heighten, reduce, or cease playing their instruments for maximum effect, the controller accomplishes similar aims by increasing or lowering utilization of any of the microgrid's resources, or combinations of those resources.

Microgrid characteristics and advantages

According to their characteristics, small networks provide several advantages:

Small networks' capacity to generate independently of the main network lessens the effects of total or unexpected partial blackouts in specific regions, as was the case in the United States in 2003 when there was a total power outage in the country's north and east as well as portions of the Canadian province of Ontario.

Small networks assist in enhancing the infrastructure's dependability and flexibility as a source of distributed energy resources.

High efficiency is a feature of using local energy sources since tiny networks relieve the central network's load, particularly during peak hours.


The efficiency of small networks' implementation on the ground is determined by the problems they confront, which are frequently legal, regulatory, or financial, despite the benefits and needs that they provide for the global energy sector. Another difficulty resulting from the low inertia characteristic of small networks due to the limited use of heavy machinery that contains rotating parts is the need to balance generation and loads as any sudden increase in loads may cause instability in the network as a result of the rapid decrease in frequency within the network. which allows short-term energy storage to keep grid stability.

The contribution of small networks to support the environment

Small grids contribute to supporting environmental sustainability, as they provide the opportunity to generate energy from clean sources such as solar energy, which reduces carbon dioxide emissions resulting from combustion processes to generate energy from conventional sources. The mini grids also provide an opportunity for consumers to reuse the heat generated from power generation using traditional sources such as fossil fuels to heat water and spaces, thus reducing greenhouse gas emissions to the atmosphere.


bottom of page