May. 6, 2024
If you need a backup power source at your facility, microgrids are a common solution that can also help save on energy costs and reduce your carbon footprint. But what are the pluses and minuses with different types of microgrids, and is a microgrid worth the investment over a simple backup power solution? PowerSecure experts have the answers to your microgrid questions.
What are hybrid microgrids?
Hybrid microgrids, also known as advanced microgrids, are decentralized energy systems that utilize distributed energy resources (DERs). Like simple microgrids, hybrid microgrids allow the power system to separate from the surrounding grid (i.e., “islanding”), continuing power supply from on-site DERs when grid supply is interrupted. Unlike simple microgrids, however, hybrids feature more than one generation resource and often include renewables and/or energy storage. For example, a hybrid microgrid may pair diesel power generators with renewable energy resources like solar panels, wind turbines, or even gas-fired engines supplied with methane derived from pig manure. Having a diversity of resources gives hybrid microgrids an advantage in resiliency over their simpler counterparts.
What are the top 3 advantages of hybrid microgrids?
If you’re deciding whether a hybrid microgrid is worth the investment, it’s important to know how this distributed energy solution can benefit you. Some of the top advantages of hybrid microgrids include:
Increased energy resiliency: Most grid power outages occur due to problems on the local utility’s distribution system. Customer-level data from the Energy Information Administration shows a 20% increase the number of outages a typical US consumer can expect per year between 2013 and 2022, but it also shows an increase of just under 22% in average outage duration over the same period. So, blackouts are becoming both longer and more frequent.
Microgrids offer the best defense against loss of power supply, but with a basic microgrid, you’re reliant only one source of backup power). A hybrid microgrid diversifies backup power sources so that if one fails (e.g., a diesel genset only runs when it has fuel), another kicks in to maintain power. During normal operations it’s also possible for the asset owner to run their microgrid when local utility rates make it advantageous to do so, thus saving energy costs.
Reduced carbon footprint: Hybrid microgrids’ flexibility allows for easy integration of renewable energy resources and energy storage, which can significantly lower your facility’s carbon footprint. As noted above, during normal operations, you can offset some of the facility’s demand with wind and solar generation. During a grid failure, these green energy sources can take the place of carbon-emitting resources such as diesel generators. Energy storage devices can also play a role in maximizing the contribution of renewables in a hybrid microgrid both in day-to-day operations and during grid outages.
New revenue streams: Like a simple microgrid, a hybrid microgrid can, depending on the capacity of its generation resource(s), produce a surplus of power in certain instances. Many electricity markets allow customers with such resources to sell unused power back to the grid either via net metering programs or through an open exchange. In some cases, these so-called ancillary services can be quite lucrative for the asset owner. This can speed cost recovery of the initial investment and also provide a new stream of ongoing revenue, both of which build the microgrid business case.
What are some potential challenges with hybrid microgrids?
Despite their numerous benefits, hybrid microgrids might not be the right choice for every organization.
Higher initial investment: Since hybrid microgrids are more complex than basic microgrids, they typically cost more to install. As a result, companies with limited capital may choose to start with a basic microgrid before upgrading at a later date.
Advanced capabilities, more complexity: An advanced microgrid delivers its full potential if it isn’t properly managed. That’s why many users elect to forego the real-time management of the microgrid and work with a partner who can monitor the system and ensure it’s delivering the most value to the organization at all times.
Increased management and maintenance requirements: With a basic microgrid, you’ll only need to maintain and repair a single power source. In contrast, advanced microgrids have more complicated management and upkeep requirements with their multiple distributed energy resources. Having the right management and maintenance team is essential, whether internally staffed or by a third-party service provider.
PowerSecure can help
At PowerSecure, we’re committed to making the design, installation, operation, and maintenance of microgrids of any size as easy as possible. Learn more about our hybrid microgrid solutions at our website and please contact us to speak with one of our experts.