Today, let’s focus in on distributed energy generation using small networks called “micro-grids,” which is a concept that energy planners and administrators have talked about – and perhaps dreamed about – for years, mainly due to the micro-grid’s potential impact on the energy paradigm shift, mentioned in a previous post.

Until recently, micro-grids weren’t feasible because the technologies needed to enable them weren’t commercially viable. Instead, the conventional form of power generation and distribution evolved around centralized power plants, transmission lines, and neighborhood power distribution centers (called substations), which delivered power directly to homes and buildings. As communities and businesses expanded, so did the centralized power infrastructure around them, placing ever-increasing dependency on large power grids and the need for the continuous capital improvements to grow and support them. 

A micro-grid flips the conventional energy distribution model on its head. Basically, it starts with energy being generated at the point of use – like from a solar panel or a microCHP (micro combined heat and power) fuel cell. This self-generated energy is typically connected to the local electrical utility grid so that any surplus power is fed back into the grid and credited against the user’s account for use at a later time, and at the same time, capturing much of the heat otherwise wasted at a grid’s centralized power plant. When multiple numbers of these self-generation systems are put together in a network, then a micro-grid is created, thereby eliminating dependency on the ever-increasing costs and unreliability of grid power and replacing it with electricity and heat produced on-site at a home, business, school, hospital or any other building in the network.

The greatest things about micro-grids are:

• They are cheaper to operate than traditional grid energy.
• They are more efficient and much cleaner that typical grid energy.
• They can operate independently when the grid fails or is interrupted.
• They can be managed as a network to redirect surplus power to meet total peak requirements.
• And they can serve as the energy backbone for building “smart growth” communities

The best news of all is that the technology is now available and being deployed in increasing numbers for individual building on-site energy generation. The next step is to connect them together to enable the creation of micro-grid networks. Next time, we’ll drill down into how microCHP systems are evolving as the backbone of these new energy networks, which hold the key to lower energy costs and greenhouse gas emissions.

All the best, Jon