Microgrids are known for their flexibility and resilience, but that doesn’t mean that any Distributed Energy Resource (DER) can be used to power a microgrid effectively. While microgrids can integrate various DERs, not all of them offer the same level of performance, reliability, and cost-effectiveness.
Where Does this Myth Come From?
Some people assume that just because a microgrid can incorporate a certain Distributed Energy Resource (DER), it should. However, many microgrid customers are not optimizing their energy mix, which leads to unnecessary costs or inefficiencies. While microgrids are highly customizable, not all configurations are equally reliable or cost-effective.
The reality is that different DERs vary in factors like energy output, storage capabilities, cost, and sustainability. Choosing the wrong combination can lead to higher operational expenses, lower system efficiency, missed emission reporting goals or reduced resilience during outages.
A Review of Distributed Energy Resources
Before diving into how to choose the right DERs, let’s explore some of the most common options and their roles in microgrids.
Solar Photovoltaic (PV) Systems
- Generates power from the sunlight.
- Best suited for locations with ample sunlight and space for panel installation.
- Often paired with energy storage systems to ensure reliability.
Wind Turbines
- Generate energy from wind energy.
- Effective in high-wind areas, but intermittent and typically require backup storage or supplemental energy sources.
Energy Storage Systems (Batteries)
- Stores excess energy generated.
- Ensures a steady power supply, especially during peak demand, grid outages, or when renewable options are not feasible.
Combined Heat and Power (CHP) Units
- Simultaneously produce electricity and usable heat, increasing overall efficiency.
- Ideal for facilities with high heating or cooling demands, such as hospitals and industrial sites.
Reciprocating Engines (Diesel & Natural Gas Generators)
- Generates energy from a fuel source such as diesel, natural gas or hydrogenated vegetable oil (HVO).
- Varying levels of emissions reporting depending on types of generator or fuel source.
Fuel Cells
- Generate energy using hydrogen or natural gas fuel sources.
- A low emissions option that is highly efficient while also lowering noise contamination.
- A more expensive option that requires a consistent fuel supply for efficient operation and is ideal for steady, baseload generation.
Hydropower Schemes
- Generates energy from flowing water.
- Location-dependent and less common for microgrids unless near a consistent water source.
Geothermal Energy Resources
- Generates energy by harnessing heat from the Earth.
- Works well for facilities near geothermal hotspots but limited by geographic feasibility.
What to Consider When Choosing Distributed Energy Resources for a Microgrid
While microgrids can integrate multiple DERs, choosing the right mix depends on geography, load demand, cost constraints, and resilience requirements.
Choosing the right DERs requires careful evaluation of your specific energy needs. Here are some key factors to consider:
1. Assess Energy Demand & Load Profile
- What are your peak energy demand and load profile?
2. Evaluate Location & Climate
- Is there ample sunlight for solar?
- Does your area have reliable wind conditions?
- Are geothermal or hydropower resources accessible?
- What climate conditions need to be considered?
3. Balance Cost-Effectiveness & Performance
- What are your greenhouse gas or environmental goals?
- What are your short- and long-term goals?
4. Understand Regulatory
- What is needed for compliance with local emissions regulations?
5. Incentive Considerations
- What utility incentives or demand response programs would qualify?
6. Consider System Scalability & Future Growth
- Can the microgrid expand easily if your energy needs grow?
The best solution is the one that meets your needs and maximizes efficiency. Hybrid solutions or a single generator with renewable fuels can offer a better benefit-to-resilience ratio, but it is important to work with a microgrid provider that can design a microgrid tailored to your needs.
While microgrids offer remarkable flexibility and resilience, it's essential to choose the right mix of Distributed Energy Resources (DERs) to optimize: performance, economic benefit potential, reliability, emissions reporting and cost-effectiveness. Understanding each DER's unique benefits and limitations, and considering factors like energy demand, location, and regulatory requirements can ensure your microgrid is tailored to your specific needs. By making informed choices, you can maximize efficiency and long-term savings, turning the myth of "any DER will do" into a well-strategized reality of the “right DERs for you.”
Let PowerSecure’s team of experts help you design a customized energy strategy tailored to your facility’s specific needs. Contact us today to learn how we can help optimize your microgrid with the best Distributed Energy Resources.