I had excessive hopes for microgrids this yr. The associated fee has fallen, out-of-the-box options are extra widespread and companies and houses perceive the expense of shedding energy. All indicators pointed to this being the yr of the microgrid. 

But right here we’re, initially of the brand new hearth season, and we’re simply launching applications and soliciting proposals designed so as to add extra resilience. What occurred?

For one factor, regulation strikes slowly. The California Public Utilities Fee fast-tracked a rule-making course of in September to assist speed up the deployment of microgrids. With that course of nonetheless underway, the regulator issued a short-term motion to deploy microgrids in mid-June. You recognize, only a few weeks earlier than the beginning of this hearth season. 

It’s additionally powerful for main utilities to gear up new applied sciences — they usually’re juggling quite a bit: clear power targets; COVID-19 problems; and in some circumstances, chapter. Pacific Gasoline and Electrical, California’s largest utility and the originator of 2018’s lethal Camp Hearth, is just not on observe to make sure clear power reliability. As a substitute, the utility is planning to deploy cell diesel mills. This stop-gap measure is low-tech and soiled — however it ought to maintain sections of communities on-line in a method that deployments of customer-sited power belongings wouldn’t.

To make issues worse, the coronavirus is slowing the deployment of microgrids. Shelter-in-place orders have delayed allowing, development and interconnection of recent initiatives. The primary half of the yr was the slowest interval for microgrid deployments in 4 years, in line with an evaluation by Wooden Mackenzie. 

Rushing up microgrid deployments 

Though 2020 has hit some hiccups (to place it mildly), California is well-positioned to see extra microgrids quickly. 

Utilities are mandated to extend power reliability whereas assembly clear power necessities, and repair suppliers are motivated to safe main utility contracts.

The state can also be working to deal with key obstacles to speed up deployment for customer-sited power initiatives, in line with Wooden Mackenzie microgrid analyst Isaac Maze-Rothstein. 

As a result of modular microgrid parts are all constructed primarily in manufacturing facility, the development timelines — and complete system prices — will be considerably decreased.


Packages such because the California Public Utilities’ Self-Technology Incentive Program encourage extra clients to put in power storage at residence, and California’s SB 1339 goals to streamline interconnections, which is able to assist convey extra microgrids on-line and maintain prices low. Moreover, extra out-of-the-box microgrid options are coming, simplifying the entire course of. 

“We’re seeing the emergence of modular microgrids over the past yr,” Maze-Rothstein mentioned in an e mail. “As a result of the parts are all constructed primarily in manufacturing facility, the development timelines — and complete system prices — will be considerably decreased.” Examples embrace Scale Microgrid Options, Gridscape Options, Prompt On and BlockEnergy.

The worth of resilience 

A rising physique of analysis is working to quantify the price of inaction. 

We all know outages — from excessive climate, pure disasters, bodily assaults and cyber assaults — have gotten extra frequent. And so they’re costly. Climate-related outages alone value Individuals $18 billion to $33 billion annually between 2003 and 2012, in line with the Division of Power. One among final yr’s deliberate outages in California value the native economic system an estimated $1.eight billion.

On the identical time, the applied sciences that may maintain the lights on are maturing — and offering a possible new income. As power belongings grow to be extra interconnected and grid operators search for added flexibility, power asset deployments look more and more economically engaging.

Evaluation from Rocky Mountain Institute modeled the economics of solar-plus-storage programs for the roughly 1 million clients affected by final yr’s deliberate energy shutoffs in California. It discovered that these clients would have loved a mixed web good thing about $1.four billion, a calculation that takes under consideration the worth of the power belongings’ contribution to the grid. 

In a separate report, RMI confirmed the falling value of batteries coupled with higher power administration applied sciences typically make the payback interval of solar-plus-storage shorter than photo voltaic alone. 

The calculations present the investments pay again sooner for industrial clients, because the financial impacts of shuttering companies are simpler to quantify.

This text is customized from GreenBiz’s e-newsletter Power Weekly, operating Thursdays. Subscribe right here.

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