For facilities located in states or real-time operating systems that rely primarily on fossil fuels, Kunkel says a microgrid focusing on on-site renewable power generation can help reduce the operational carbon footprint.
“Green energy is only approximately 30 percent of the overall grid power supplied on an annual basis – as electrification and expansion of data centers are increasing power demand, this makes green power even harder to access,” Kunkel says. “Rather than waiting for the grid to green, microgrid campuses can advance their own sustainability goals within their operational footprint. However, in order to rely on intermittent renewable energy while increasing reliability, there needs to be a significant emphasis on long-duration energy storage solutions.”
Microgrids can be a part of a broader resilience strategy tailored for each building’s needs. These measures help projects respond to today’s heavier storms, flooding and extreme heat, LaHiff says. They also safeguard occupants and assets with backup systems, resilient site design and emergency plans that minimize downtime and reduce recovery costs.
“Incorporating microgrid technology can further strengthen a project’s resilience, reduce a building’s reliance on local combustion-based equipment and aid in the transition toward building electrification,” LaHiff says. “When paired with on-site renewables and energy storage, a building can move toward 100 percent renewable energy operation and achieve carbon reduction targets.”
Not every facility is a strong candidate for microgrids, so what is the decision-making framework that should be involved in determining the appropriateness of microgrids for a facility?
As Kunkel explains, microgrids certainly are not a one-size-fits-all solution. For facilities with historically high reliability on the grid with some traditional on-site backup systems (e.g., batteries or diesel generators) and with limited risk of business disruption from outages (e.g., no one expects to go to the spa/gym during a large-scale power outage, but they would like to have access to groceries), a microgrid is unlikely to be cost-effective.
“If reliability and resilience are the primary drivers, the microgrid’s on-site power generation, energy storage sizing and redundancy must meet or exceed the reliability of the grid,” Kunkel says. “In some cases, this might be easy to achieve and in others it may be more difficult. A risk-based approach may determine whether the likelihood and impact of outage events justify the investment.”
Kunkel says the following factors are important in evaluating if a microgrid is appropriate:
“Each facility has different operational objectives, design needs, and cost considerations,” Kunkel says. “There is a rigorous framework to follow to really understand the design needs and estimated cost associated with implementing a microgrid. Therefore, before committing to a microgrid, a techno-economic assessment should be conducted.”
LaHiff says it’s important to understand that each project has different needs and goals, depending on the organization and location of the project, among other factors.
“In the new LEED v5, all projects are required to complete the Climate Resilience Assessment prerequisite,” LaHiff says. “The assessment evaluates current and future hazards, promoting awareness, clarifying risks, reducing vulnerabilities and encouraging long-term safety and sustainability. This is an important step that can guide a project team’s decision about implementing microgrids. LEED v5 also provides guidance for teams to pursue grid-interactive strategies, renewable energy generation and energy-efficient operation.”
For those projects that could be good candidates, LaHiff says there are numerous factors to consider. First, determine the critical nature of the building both during blue sky (normal operations) and dark sky operations.
Existing mission critical facilities previously equipped with onsite power generation can evaluate microgrid enhancements to provide advantages during normal operation. For non-critical infrastructure, does the ability to maintain operations during an outage “unlock” a new function the facility can now provide? Can a school or community center now become an area of refuge, aid center and asset for the community? In these cases, microgrids may play a role in enhancing the building’s value and purpose.
In all cases, review the existing energy costs and volatility of grid-sourced energy. Does the addition of on-site power generation and storage provide an opportunity to hedge against utility rate reliability and costs?
Is there ample room for potential equipment? Can the building support the installation of new equipment? Are there planned renovations that could offer opportunities to install microgrid equipment while minimizing disruption to the building? Are there regulatory barriers for microgrids, electrical islanding or energy storage?
Are there plans for additional load in the future that can be served or enhanced by microgrids and related equipment?
Miller suggests that a critical, yet common challenge is interoperability –meaning, getting all the components of a microgrid system to work in harmony can be difficult.
“One way some teams try to minimize these challenges is to single-source the microgrid controller along with distributed energy resource assets like batteries, solar inverters, and electric vehicle chargers –to acquire them all from a single manufacturer,” Miller says.
Because buildings are responsible for nearly one-third of energy consumption in the United States, implementing strategies that reduce the strain on our grids is critical to creating more resilient communities.
“As buildings integrate more systems and building automation becomes more intelligent, there is increasing opportunity for equipment to work in unison to optimize building performance,” LaHiff says. “Microgrids will continue to be a key strategy for teams to improve resilience, continuity of operations and utility price stability.”
LaHiff suggests facilities of all types should evaluate the benefits of microgrids. Depending on the building type and function, microgrids may include different technology or sizing equipment.
“However, the outcomes are consistent; microgrids enhance resilience, improve cost savings, and provide building flexibility,” LaHiff says. “The ability to maintain continuity of operations is important to businesses and critical infrastructure. Enhanced building resilience and reliability is also an increasing differentiator for consumers across a variety of competitive markets.”
While the focus is often on large facilities, microgrids also hold potential for smaller, remote facilities or individual businesses that seek energy independence.
“While initial investment can be a barrier for some right now, increasing volume, standardization, and business growth, are resulting in project and equipment cost reductions while central utility rates are increasing, leading to a gradual but increasing adoption rate in all scales,” Patterson says. “The role of microgrids is set to expand as they become an essential component of modern energy strategies.”
Maura Keller is a freelance writer based in Plymouth, Minnesota.
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