We have been fortunate in the U.S., especially compared to other nations. We gripe about many things, but electricity is pretty much steady and reliable. Unlike in some developing nations, it is rare that electricity is not delivered.

This may be changing. As we are getting out of our recession and technology grows and becomes more affordable, people and businesses are using more and more electricity: bigger, flat-screen TVs, more sophisticated smart phones, gadgets, etc. that do more things and thus need more electricity and have the battery charged more often. But the infrastructure needed to produce and transport this additional electricity right to our homes and businesses is expensive and needs upgrading. There is a growing risk – especially during the peak demand season, such as during hot summer workdays – that there will be electricity shortages and brownouts. What can we do to lessen the risk?

This is part one of ideas to ensure our electric security. Other ideas will be presented soon. Microgrids are catching on as a way to avert power outages and to allow greater local control of energy management. Having one’s own local or regional power plant was once considered laughable and unaffordable for any company or municipality. Of course, when the U.S. became electrified this was indeed the model, and to this day some old local utilities still exist. Large grid systems became more economical with help from government to encourage electrification of sparsely populated areas. But now technology is making microgrids affordable and economically beneficial in some cases for a series of companies or a portion of a whole municipality. And now with many large utilities acknowledging that they cannot keep up with the growing demand for electricity unless they can raise billions in infrastructure upgrades and politicians concerned about the reaction of ratepayers to the resulting steep rise in costs, a number of states have developed incentive programs to study and build microgrids.

Microgrids can be used as a backup to traditional grid electricity supply for peak demand periods only, reducing the risk of an electric failure. This is why many utilities actually favor these “competitors”, and therefore, some states are encouraging this, too. But if an entity is investing in a microgrid, it is certainly not going to want it to stay idle, but to operate continually, with the main grid acting as a backup if it needs to go down.

Microgrids became possible thanks to the improvement in technology and affordability of combined heat and power (CHP or “co-generation”), particularly thermal efficiency of 80% of fuel combusted producing and using both steam and electricity. If one or a group of entities can use both electricity and steam 24/7, then a CHP locally may be cost-effective, particularly as there is less loss in transporting energy long distances. Another factor that helped drive microgrid viability is renewable energy. With the drop in the cost of solar and wind energy, some new microgrids are incorporating these technologies in conjunction with fuel combustion. Also, improvements in storage technology (batteries) have helped, too.

Finally, a microgrid can go beyond just a reliable energy source for a group of users, but an information asset, as well. The need to coordinate microgrid operation with demand for steam and electricity makes them an effective energy manager for buildings and regions. Real-time data collected can indicate needs which the buildings can use to reduce peak demand or become more energy efficient, reducing costs even more.

More states and utilities are offering incentives for microgrids. Plan on one or a group of users who can use electricity and steam 24/7 and have a feasibility study performed of whether a microgrid is possible and what the costs and economic benefits may be.

CCES can manage the evaluation of your short- and long-term energy (thermal and electricity) needs. We can help you become more energy efficient and provide suggestions to widen your choices, giving you more control of your energy supply and cost. Contact us today at 914-584-6720 or at karell@CCESworld.com.