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Category: Microgrid Benefits

Microgrid Benefits

From ARUP’s 5 Minute Guide to Microgrids


  • Conversion loss savings
  • Lower carbon cost
  • Reduced peak power costs
  • Reduced capacity charges
  • Increased CHP balance
  • Network capex avoidance
  • Lower network redundancy
  • Energy price arbitrage
  • Optimised own supply use
  • Negawatt market
  • Operational reserve market
  • Reduced fossil fuel use
  • Auxiliary market services
  • Choose lowest cost energy
  • Power factor services


  • Consistent secure power
  • Protection of critical loads
  • Secure non-essential supply
  • Controlled power quality
  • Reduced blackout risk
  • Increased supply reliability
  • Reduced CO2 intensity
  • Continued productivity
  • CSR and education benefits
  • Consumer engagement
  • Employee engagement
  • Supply independence
  • Reduced outage impact
  • Optimised existing system
  • Remote site availability
  • Absorption chiller level load
  • Visibility of energy use

Built much closer to end-users, if not on-site, and equipped with combined heat and power (CHP) technology, microgrids are typically more efficient than centralized power generation and distribution systems. Often making use of renewable energy resources, they’re also emissions-free, or at least significantly less polluting, than traditional fossil fuel-fired power generation.  

More frequent and longer lasting power outages due to more frequent and extreme weather events and aging power infrastructure are also fueling interest and investment in microgrid technology and deployments. Boosting infrastructure spending, in turn, means more jobs and rising personal income.

Furthermore, growth in residential solar PV installations has driven growth and the emergence of power ¨prosumers.¨ That, in turn, is resulting in growing public interest in, and calls on government leaders, to institute industry and market reforms that support power production at the homeowner scale, such as net metering.

Adding to these benefits is microgrids’ flexibility in terms of use. This extends across: primary or quick-start back-up generation, emergency recovery, load shifting, peak shaving and ancillary grid services, such as frequency and voltage regulation.

Though small, highly fragmented and posing numerous challenges to developers, the North American microgrid market is growing fast, Navigant highlights in its ¨Multi-client Microgrid Study.¨

At present, campus/institutional microgrids account for the largest segment of the market. Growth is expected to accelerate in the utility microgrid segment as states continue to enact policy and regulatory reforms in order to meet power infrastructure needs.

Similarly, community microgrids are also growing rapidly in order to enhance grid resiliency in the face of climate change, as well as realize associated social and environmental advantages and benefits.

The microgrid benefits everyone by creating cleaner, more resilient communities.  The bulk power system can also benefit from microgrid flexibility.

Microgrids without Subsidy? Check Out the C&I Market

Microgrids often need some form of policy support. This is especially so for microgrids that are deployed for a public purpose, such as community resilience. ...

Microgrid 2.0 and Aging U.S. Grid Infrastructure

“Microgrid 2.0 deployments are going to eclipse those done in the old way simply because of the economic benefits, which are in addition to improved resiliency ...

San Francisco, Los Angeles Outages Highlight Growing Risks, Rising Costs of Aging Power Infrastructure

The threats and costs associated with aging power grid infrastructure are rising, challenges that can be met by emerging "Microgrid 2.0" technology and ...

Denver Solar-Storage Microgrid to Deliver Multiple Service Streams, Benefits Today

Project partners Panasonic, Xcel Energy and Younicos lay out the stream of benefits expected from Peña Station NEXT, a 382-acre, sustainabie transit-oriented ...

New Secretary of Defense James Mattis Supports Solar Military Microgrids To ‘Remove Tether of Fuel’

As Coalition Forces stormed Baghdad in 2003, the commanders knew they had a significant Achilles heel. They didn't know how long they had to defeat Saddam's ...

Self-Driving Batteries, Virtual Microgrids, and Other Uber-like Future Energy Models

This new slideshare from Professor Damien Ernst describes microgrids, V2G (Vehicle To Grid), autonomous vehicle energy delivery, and other futuristic ...

Biggest Drivers Of US Electric Grid Transformation According to DOE

According to the 2nd Quadrennial Energy Review, here the key trends shaping the electricity sector today.  It also reads as a list of opportunities for ...

An Off-Grid Vision for 2025 With Solar, Storage, Efficiency, and Autonomous EVs

The year is 2025 and like most of your neighbors, your house is not connected to the electric grid.  During the summer, it is almost completely powered by the ...

Tesla-SolarCity Swoops In On Nascent Island Microgrid Market

Successive news announcements makes it clear that Tesla-SolarCity has had its eyes on island solar-storage microgrids for quite some time.

Borrego Springs Microgrid: From Proof of Concept to Project Development Showcase

Created as a result of grid outage, Borrego Springs' "solar plust storage" microgrid has evolved from a "proof of concept" to the town's primary source of ...

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