Feel free to jump to the next section if you are already familiar with this concept.
A microgrid is an energy distribution network that relies on local means of producing electricity. It is designed to operate independently or in synchronization with the national grid within a defined area.
It is necessary to ensure electricity production and distribution to enable areas or buildings to secure their economic activity and benefit from reliable energy. It is also an opportunity to profit from clean distributed and renewable energy.
A microgrid can be typically composed of renewable energy sources, BESS, utility grid (when available), diesel generators, or gensets.
Depending on the grid availability two types of sites emerge; Off-grid and Grid-tied ones.
In grid-tied applications, the national DSO needs to reduce the intermittency of solar production. The battery can be seen as an alternative to provide further services for this national entity.
In off-grid applications such as; cities, islands, or mining, electricity comes mainly from thermal plants. However, fuel prices are high and uncertain due to oil price variation, logistics, and security costs. A local energy provision can be seen as a solution to solve this fuel dependency. Thus, energy suppliers tend to add solar plus storage systems to the existing gensets. We will focus on such a site in this article.
If you want to dive deeper into the microgrid topics, here are two articles that might interest you:
“What is a solar hybrid microgrid?”
“What is a solar hybrid system?”