![]() “peaker” plants, substations, transmission lines, energy storage or other infrastructure). In this manner, microgrids may support system reliability, improve system efficiency, and help delay or avoid investment in new electric capacity (e.g. When sited strategically within the electricity system, microgrids help reduce or manage electricity demand and alleviate grid congestion, thereby lowering electricity prices and reducing peak power requirements. Microgrids can improve local management of power supply and demand, which can help defer costly investments by utilities in new power generation.When power is generated close to the end users, it becomes economically feasible to use this heat energy productively, such as heating water or space in nearby homes and businesses, reducing greenhouse gas emissions. Since microgrid electricity is generated next to where it will be used (also known as distributed generation), line losses are minimized and less power is required to meet the same level of demand.Also, when electricity is generated from certain centralized power sources (e.g., fossil fuels and nuclear power) a great deal of heat energy is created and typically released – unused – into the atmosphere. from a centralized power station), line losses occur, requiring additional generation to ensure that far away demand is met. Microgrids can make use of on-site energy that would otherwise be lost through transmission lines and heat that would otherwise be lost up the smokestack. When power has to travel long distances (e.g.They can also use energy storage and the batteries in electric vehicles to balance production and usage within the microgrid. local energy management system) can balance generation from non-controllable renewable power sources, such as solar, with distributed, controllable generation, such as natural gas-fueled combustion turbines. Microgrids offer the opportunity to deploy more zero-emission electricity sources, thereby reducing greenhouse gas emissions. The microgrid manager (e.g.Microgrids have several benefits to the environment, to utility operators, and to customers. A microgrid connected to a macrogrid has greater flexibility since the macrogrid functions as an additional resource. Connection type: An off-grid system does not connect to the macrogrid and thus must be a sufficient power source for its customer.Community microgrids can also serve general purpose needs by providing power to displace or supplement service from the macrogrid on a day-to-day basis. A “community microgrid” serves a public purpose, such as powering police and fire stations, cell towers, and pumping city water and wastewater during emergencies. Load types and functions: A general purpose microgrid provides or supplements the services customers might otherwise receive from the macrogrid.Microgrids commonly range in size from 100 kilowatts (kW) to multiple megawatts (MW). Number of customers: Microgrids can serve a single building, multiple customers in a limited geographic area, or customers across an entire community.Several variations (and combinations) of microgrids are possible: While single-user and campus microgrids, such as those that serve an industrial site or military base, have existed for decades, many cities are now interested in systems that can better integrate generation resources and load, serve multiple users, and/or meet environmental or emergency response objectives. Microgrids can also be the main electricity source for a hospital, university, or neighborhood. They can power critical facilities after a weather- or security-related outage affects the broader grid. Microgrids can run on renewables, natural gas-fueled combustion turbines, or emerging sources such as fuel cells or even small modular nuclear reactors, when they become commercially available. Today, however, projects are increasingly leveraging more sustainable resources like solar power and energy storage. Historically, microgrids generated power using fossil fuel-fired combined heat and power (CHP) and reciprocating engine generators. high-voltage) transmission system, sometimes referred to as the “macrogrid.” Since the energy (power and heat) are created close to where they are used, microgrids are a form of distributed generation. Microgrids are relatively small, controllable power systems composed of one or more generation units connected to nearby users that can be operated with, or independently from, the local bulk (i.e.
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