Energy Systems

Install a Microgrid

What Is It?

Siemens, Inc.

Microgrids are small-scale power networks capable of operating in conjunction with the larger grid and/or working separately, known as islanding. In a macrogrid, utilities supply extensive areas and municipalities with power distributed from a series of generators. Microgrids operate similarly, but on a local scale; they provide a series of customer loads with power from distributed generators cited within the microgrid. These grids can allow for competitive pricing relative to the grid, increased energy efficiency, and resiliency in the case of a power outage. They are helpful in areas prone to flooding or large storms when the larger grid system goes down.

By reducing the distance between providers and consumers, microgrids cut down on energy loss, which saves money and reduces emissions. Because of the increased efficiency, microgrids can be more economically viable for both energy producers and consumers.

Benefits

  • Increased resiliency in the case of an emergency: the microgrid is capable of islanding and continuing to provide power to its customers.
  • Creates safe havens in the event of a larger-scale power outage.
  • More energy-efficient; reduces the need to transport electricity over a long distance which leads to energy loss. This also means lower costs, since transportation and storage costs associated with the larger grid are often lowered.
  • Excess power can be sold back to the macrogrid.
  • Economically viable with a short payback time.
  • Pricing can be competitive with grid power, making it cheaper for microgrid customers.
  • On campuses such as hospitals or colleges, microgrids are a tried and true alternative energy model.

Drawbacks

  • Legal challenges do exist for multi-user microgrids, and vary substantially by state and energy market.
  • Not always a better environmental choice. Environmental benefits depend on the type of fuel used for generation.
  • Requires new electric infrastructure, which is difficult to establish in areas with highly developed electric grids.
  • High initial cost.
  • Uncertainty of revenue in public setting, as they have not been extensively tested in multi-user applications.

Regulatory Impacts and Requirements

Potential regulatory touchpoints in Boston and Massachusetts include:

  • Inspectional Service Department
  • Local Utilities
  • Building Code/Permit
  • Stretch Energy Code
  • Fire Department
  • Zoning Board of Appeals

Financing Options, Incentives, and Rebates

News

Resources

Project Examples

A Sample of Providers

Search Toolkits

Flooding and Sea Level Rise