TAKING CONTROL IN THE ENERGY TRILEMMA – THE GROWING DEMAND FOR MICROGRIDS

Microgrids have long been an energy solution for remote areas, where connectivity to the Grid proves impossible or prohibitively expensive. But, as the UK moves to a more distributed energy model, the shift to renewable power generation and the urgent need for reliable and affordable energy make a compelling case for microgrid investment for an ever-growing range of sectors: from manufacturing, defence and data centres to healthcare, transport, and the wider public sector.

Local, independent, and smart –these are the three key characteristics of a microgrid, and highly pertinent in this energy crisis. A localised network, whereby power is generated and distributed locally rather than across the centralised Grid, removes transmission losses and leads to lower energy usage, reduced carbon emissions and cost savings. Functioning independently from the Grid, a microgrid provides the power resilience that is vital during a blackout or disruption to Grid supply.

Smart AI energy management technology enables seamless switching between local and centralised supply, meaning that facilities are protected against power disruption and can manage their energy in real-time, with all relevant data available to ensure optimum efficiency.

Combining on-site generation with Battery Energy Storage (BESS) and intelligent energy management software can mean a complex project and each microgrid will be bespoke, given different customer priorities and scenarios. However, Powerstar are seeing an increasing number of clients look to this technology to help them address business-critical issues and negotiate the competing agendas of the Energy Trilemma.

Security: Battery Energy Storage (BESS) technology sits at the heart of a microgrid and, as a more efficient option than a traditional Uninterruptible Power Supply (UPS), it can provide site-wide instantaneous power in the event of any disruption to Grid supply. Where a microgrid includes renewable assets, usually solar PV or wind turbines, having multiple sources of energy available in addition to the Grid supply allows for greater flexibility, further enhancing power resilience. Crucially, a well-designed microgrid can operate completely independently of the Grid, in island mode. Once in island mode, the microgrid can support operations indefinitely, utilising the power generated on-site and stored in the BESS. Where even the slightest disruption to energy supply can have devastating effects on a business – through downtime, wastage and scrappage, loss of data or damage to sensitive equipment – a microgrid with BESS offers significant protection and can mean an affordable payback period.

Affordability: The combined assets of BESS, on-site power generation and intelligent energy management software offer major improvements in energy efficiency, with the associated cost savings. Depending on power requirements, a site may be able to generate all the power it needs from solar or wind. But, since most sites will still require Grid power, the control system can automate the energy management process in real-time, ensuring that the site is always using the cheapest energy source available. The BESS provides the flexibility to store energy generated onsite for use when needed, and to draw down Grid energy when at its cheapest for use at peak times. Localised energy reduces transmission losses by anywhere between 8 and 15%, while grid service contracts offer an increasingly important new revenue stream, whereby excess energy generated on-site or drawn from the Grid can be stored in the BESS and supplied to the Grid when required.

Sustainability: Improved energy efficiency, with intelligent energy management control, offers sitewide asset management enabling the best use of energy sources, whether generated on-site or drawn from the Grid. While affordability and power resilience are critical issues, the challenge of achieving Net Zero is equally vital for businesses and organisations across the UK. Here, Electric Vehicle (EV) charging and the issue of Scope 2 emissions are significantly assisted by smart microgrid technology.

The growth of the EV market and increasing demand for rapid charging infrastructure present major issues for UK business. The significant increase in power demand required risks exceeding agreed supply capacity. The cost of a new grid connection is prohibitively expensive for many companies and even if granted is likely to have a long lead time for implementation. But it may even be a non-starter. If a local Distribution Network Operator deems that such a request could put too much strain on the network, it may well turn down the application rather than risk localised disruption due to overloaded infrastructure. The independence of a microgrid allows for on-site EV charging, through on-site power generation and battery storage, circumventing the need for additional Grid power. Here, the BESS can be charged off-peak – reducing costs – while also maximising any on-site power generation and then used to buffer rapid EV charging when needed, avoiding any extra demand on the Grid.

Looking to Net Zero targets, Scope 2 emissions – those associated with energy generation and purchase – make up a third of total global greenhouse gas emissions. A microgrid, facilitating the most effective use of clean and green energy, helps eliminate a significant proportion of carbon emissions. Even where the reliance on Grid supply might make up the bulk of a company’s energy demand, BESS technology can help mitigate the worst aspects of carbon usage. The carbon intensity of Grid power changes depending on the time of day, the level of demand and – where renewables make up an increasing part of the energy mix – weather conditions. As a general rule, though, electricity is less carbon-intensive during the night. Installing a BESS as part of a microgrid, enables low carbon energy to be purchased and stored overnight, then discharged during the day, cutting carbon emissions while also reducing costs.

The energy crisis is likely to be with us for at least a year, with some predicting that next winter will be more severe than the last and with little in the way of clear, on-going government support for business. Even as this crisis eases, though, the Energy Trilemma is a long-term issue. Providing greater power resilience and more affordable energy, a microgrid helps companies achieve Net Zero targets, lowering emissions and enabling more flexible use of renewables to support initiatives such as EV charging. With unprecedented pressures on energy managers, microgrid technology offers a clear solution to both short- and long-term issues.

To find out more about Powerstar’s smart microgrid technology, contact: www.powerstar.com Tel: 0333 230 1327 Email: info@powerstar.com