The market for microgrids

Resilience

Microgrids are increasingly seen as a vital solution to enhance resilience in energy systems. Tim Hade argues that society undervalues resilience, a critical factor as our grid faces threats from extreme weather and increased electrification 1. He emphasizes the inevitability of major grid failures, highlighting the need for microgrids to mitigate potential disasters 2.

A catastrophic grid failure is going to happen. And when that catastrophic grid failure happens, the question is going to be, why didn't we think about resilience more?

--- Tim Hade

The deployment of microgrids could significantly expand if resilience is prioritized, potentially transforming how energy is managed and distributed 2.

   

Economics

Economic factors play a crucial role in the adoption of microgrids, particularly in valuing resilience. Shayle Kann notes that the value of resilience varies among customers, with higher importance for critical facilities like hospitals compared to others 3. The integration of storage solutions has become economically viable, reducing the incremental cost of making systems islandable 4.

Once you're at that point where economically, actually you do want storage anyway, then the incremental cost to turn that whole behind the meter system into a micro grid that can island is not that big.

--- Shayle Kann

This economic shift is pivotal in unlocking the potential of microgrids, making them more accessible and appealing to a broader range of users 4.