In addition, the SGA predicts that the cost per megawatt for campus/institutional networks will decline about 15% by 2015, making microgrids economically viable for smaller institutions including colleges, hospitals and military/police facilities. The SGA also expects that well over half of the microgrid market will come from North America over the next decade. One reason for this is that some large US universities have had primitive microgrids in place for some time now, so the concept is well-established. In fact, microgrid companies, still finding their footing, have already turned to campuses – where research and interested residents could help refine the concept. Existing microgrids are serving about 322 megawatts to institutional campuses, and this number is predicted to soar as high as 1.2 gigawatts by 2015 if the right policies are implemented. If the technology can be proven in these locales, it might have a better shot at residential deployment – with whole neighborhoods operating on the same microgrid. In addition, the growing demand for power quality in North America will be more economically provided by microgrids than by installing more generating capacity. In addition, the SGA believes that the US will experience robust military microgrid growth as part of the military’s Energy Surety and Net Zero Carbon Footprint program.

Currently, the technological immaturity of the microgrid concept has resulted in a high value being placed on certain specialized microgrid-related products and services. Although microgrids are still considered novel concepts by some in the energy industry,   they have several distinct advantages over traditional grid generated electricity. Microgrids are more suitable for the integration of renewable energy systems like rooftop solar panels, waste heat generators and fuel cells. Also, on a smaller scale, it is easier to track not only how much energy is actually being produced from these sources, but also how it is being used and distributed for more consistent service. Since microgrids operate on their own, without being connected into one of the larger national grids, there are less likely to be disruptions due to peak demand or excessive power loads. They are easier to repair and easier to automate with demand response or conservation programs. Perhaps the biggest advantage, however, is that microgrids can store enough energy to keep power flowing during blackouts or other disruptions. This makes them ideal for emergency services, hospitals, and the military — which has taken a deep interest in the microgrid concept of late. Microgrids could be an ideal solution for military bases.

Right now, the majority of the approximately 455 megawatts being circulated in microgrids is still generated by traditional coal and natural gas operations – but this will probably change rapidly. The SGA has identified a number of specialist microgrid firms as successfully playing to this opportunity. These include: Balance Energy, BPL Global, Encorp, NSEE, Pareto Energy, Valence Energy and Viridity Energy. According to the SGA, specific offerings that the microgrid market is especially looking for from such firms are automation of power resources, energy management, modeling and energy simulations, demand/response management and energy trading platforms. In other words, the opportunities in the growing microgrid market are similar to those found in the smart grid as a whole, including smart meters with sophisticated communication capabilities to monitor energy usage and allow residential and business consumers to make informed choices about how much energy to use. Smart meters include a microcontroller with onboard Analog-to-Digital Conversion (ADC) and Digital-to-Analog Conversion (DAC), a sense component for both voltage and current, an ac-dc power converter, battery back-up, and wireless or wired communication capability.  

Provided by Richard Ruiz Jr., Research Analyst, Darnell Group

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