Microgrids: A key player in sustainable energy management

In recent years, Alberta’s renewable energy initiatives have made headlines as the province transitions from its oil-dominated past towards becoming a frontrunner in renewable energy production. Alberta has a non-regulated energy market. While in the past, this has led to mass oil and gas extraction, now it’s opening doors for renewable energy companies in Alberta to develop innovative solutions. Among these solutions, microgrids are emerging as a pivotal player in energy management, offering businesses a resilient and efficient alternative to fossil fuel energy systems.

Understanding microgrids

Microgrids are localized energy generation units that are connected to supply energy to a local area or business operation. Just as a tree utilizes hundreds or thousands of individual leaves to feed the main trunk, microgrids connect many small units to create a powerful energy supply.

They can operate independently or be connected to the main power grid. Unlike many large-scale energy production plants, microgrids integrate various energy sources, often renewable energy like solar and wind. Because these sources can be variable, microgrids rely on energy storage systems such as lithium-ion batteries. This hybrid setup allows microgrids to provide continuous power even during grid outages or slow production times. This makes them an attractive option for businesses that require reliable energy, especially in remote areas.

A microgrid consists of three main components:

1. Distributed energy resources (DERs): These are small-scale units of local energy generation, such as solar arrays, wind turbines, and combined heat and power systems.
2. Batteries: Microgrids need to store excess energy generated by DERs for use when production is low.
3. Control systems: Advanced software and hardware that manage the distribution of energy within the microgrid, creating a balanced and efficient operation.

How microgrids work

Microgrids operate by a simple principle step-by-step process. In microgrids, the energy is captured and distributed locally. To accomplish this, the system follows these four steps:

1. Energy generation: The microgrid’s DERs generate electricity. For example, solar panels produce electricity during daylight hours, while wind turbines generate power when the wind blows.
2. Energy storage: Any extra energy generated is stored in batteries. The grid can then continue to provide energy at night or during calm or cloudy weather when the DERs aren’t actively running.
3. Energy distribution: The control system intelligently distributes the generated and stored energy to meet the demand of the connected loads. This system can prioritize critical operations and optimize energy use. The beauty of a microgrid is that although a single renewable energy source may not be 100% reliable, many connected together can support each other to generate a steady supply.
4. Grid independence: The microgrid can connect or disconnect from the main grid if necessary. This backup ensures that operations receive a continuous power supply.

Benefits of microgrids for business owners

For business owners in Alberta or elsewhere in Canada or the USA, investing in a microgrid offers several compelling benefits:

1. Sustainability: Microgrids help businesses reduce their carbon footprint by generating largely renewable energy. They decrease companies’ reliance on the grid powered by fossil fuels, aligning with global sustainability goals and enhancing the company’s corporate social responsibility profile.
2. Energy independence: A microgrid allows businesses to gain greater control over their energy supply. Microgrids reduce dependence on external energy providers, insulating businesses from fluctuating energy prices.
3. Scalability and flexibility: Energy management consultants can tailor a microgrid to the specific energy needs of a business. Microgrids are also inherently scalable as more DER’s can almost always be added. This flexibility makes them a versatile solution for businesses of all sizes and growth trajectories.

Montana first nation microgrid project

In September 2023, the Canadian government announced an investment of $175 million in 12 clean energy projects across Alberta, including the Montana First Nation. The Montana First Nation is using the money to explore consolidating its electric distribution infrastructure into a microgrid.

This project will enhance energy reliability for the Montana First Nation and advance Canada’s reconciliation efforts with indigenous peoples by enabling these communities to control their energy supplies. It is an example of how microgrids allow businesses or groups to act sustainably and independently.

Conclusion

As leaders continue to embrace renewable energy, microgrids stand out as powerful technology for sustainable energy management. For business owners, investing in a microgrid offers not only a path to energy independence but also a solution for enhancing sustainability. With renewable energy companies driving innovation in this field, now is the perfect time for businesses to explore the potential of microgrids and position themselves at the cutting edge of the green energy revolution.