In this podcast, the host discusses the concept of microgrids and their components, including the challenges faced in the market. They explore the value of combining solar power with energy storage and the evolution of the microgrid market in response to regulatory changes. The use of fossil-based generators for resilience in microgrids is also discussed. The speakers express interest in exploring the economics and demand for microgrids in the future.
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Quick takeaways
Microgrids provide a solution for maintaining fleet operations during power outages and grid disruptions.
Standardizing microgrids and simplifying the acquisition process are crucial for widespread adoption and accessibility.
Deep dives
The Importance of Resilience in Microgrid Adoption
One of the main considerations when adopting microgrids for converting traditional internal combustion vehicles to electric vehicles is resilience. The concern arises from potential power outages and the need for the fleet to continue operating. As weather events and concerns about grid reliability increase, the demand for microgrids grows. Rising retail electricity prices, falling distributed generation prices, falling energy storage prices, and grid interconnection problems are additional drivers for microgrid adoption. The American inclination towards self-sufficiency also contributes to the growth of microgrids.
Defining Microgrids and Their Key Components
A microgrid is a distributed energy resource that can island, meaning it can operate independently from the main grid during grid disruptions. Key components of microgrids include solar, storage, switchgear, and dispatchable generation assets. Solar panels, be it rooftop, ground mount, or carport, provide renewable energy generation. Storage, which is a prominent component, contributes to economic value and grid participation. Switchgear acts as the nerve center, optimizing energy production, storage, dispatch, and utilization. Dispatchable generation assets, such as gas or hydrogen generators, provide backup power during grid disruptions.
Challenges and Progress in Microgrid Standardization
While efforts to standardize microgrids are underway, each project still requires customization. Steps have been taken to simplify the acquisition of microgrids, including streamlining financing and developing user-friendly contracts. However, switchgear integration remains a complex aspect of microgrid implementation. The industry aims to make the purchasing process as straightforward as buying air conditioning units, but that is still a long-term goal. The ultimate objective is to make microgrids easily accessible for the majority of customers and eliminate unnecessary soft costs.
Obstacles and Opportunities for Microgrid Market Growth
The microgrid market faces several obstacles, including the undervaluation of resilience in society. While the need for microgrids is becoming increasingly apparent, the focus on resilience remains insufficient. To drive market growth, a broader understanding of the value of resilience is necessary. Furthermore, the current tax credit structure tends to favor utility-scale assets over distributed energy resources and microgrids. This inequity may hinder the expansion of microgrids. Efforts to address these obstacles include increasing public awareness and advocacy for a level playing field, as well as exploring new technologies and financing options.
We want your climatetech questions for Shayle’s Ask Me Anything episode! Email questions to us at catalyst@latitudemedia.com. You can also tag us on Twitter or LinkedIn with the hashtag #AskCatalyst. Or you can leave us a voicemail at 919-808-5832.
The electrification gauntlet is this: The more we electrify, the more we ask of the grid. New demands on the grid are coming right as it’s facing some of its biggest challenges, like interconnection delays, transmission congestion, and extreme weather.
But there’s a way to take some of the strain off the grid when it doesn’t deliver what you need – Build your own! Microgrids, as they’re called, are electrical networks that can function independent of the larger grid.
So how do they scale? And what counts as a microgrid, anyway?
In this episode, Shayle talks to Tim Hade, co-founder and chief development officer at Scale Microgrids. (Scale was a launch sponsor of Latitude Media, which co-produces this show. This interview is independent of that sponsorship and was scheduled prior to Scale becoming a sponsor).
Tim and Shayle talk about the state of the microgrid market. They discuss topics like:
Why microgrid switchgear is a major bottleneck right now
Whether the Chinese supply chain for microgrid parts will bounce back, or new manufacturing will spring up in Europe and the U.S. to replace it
The effort to standardize microgrids to increase adoption
Recommended Resources:
Canary: Puerto Rico’s first community-led microgrid is ready to launch
Canary: A giant solar microgrid is coming to New York City’s JFK airport
Sign up for Latitude Media’s Frontier Forum on January 29, featuring Crux CEO Alfred Johnson, who will break down the budding market for clean energy tax credits. We’ll dissect current transactions and pricing, compare buyer and seller expectations, and look at where the market is headed in 2024.
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