Are microgrids and smart grids the solution for our crumbling electricity network?
July 2021, by Nico van den Biggelaar - The energy transition is gaining momentum. Step by step, fossil fuels such as coal and nuclear energy are being exchanged for renewable solar and wind energy. Unfortunately, we do also run into bottlenecks, such as an electricity grid that cannot handle the growing amount of ‘green’ energy.
The problem of the electricity network
“Congestion” more or less sums up the current problem of the Dutch electricity grid. The capacity to transport electricity is insufficient at more than 250 locations. In those areas, consumers are faced with power shortages, and renewable energy producers such as solar parks are unable to completely dispose of the power they have generated.
In concrete terms, this means that a new distribution centre or a new factory building will be without a power connection, or that the expansion of a large bakery or the development of a hotel chain is on hold. These are only a few examples.
It is clear that the problem is major and it will remain that way for some time to come, because upgrading and expanding the grid simply costs a lot of time (3 to 7 years) and money. Until then, how can we solve the capacity problem as sustainably as possible?
The solution: microgrids and smart grids
The solution consists of microgrids and smart grids. These are self-contained energy networks that work in unison with or independently from the traditional energy network. Local, renewable energy sources are integrated in this and, depending on the situation, may or may not be linked to the traditional energy grid.
A microgrid is, as it were, a mini version of the regular energy grid. A smart grid is the smart brother of a microgrid thanks to the associated measurement and control system, which ensures the grid functions as sustainably and efficiently as possible. For example, this allows for available energy that is not yet needed to be sold at the right time.
The thing that makes microgrids and smart grids so special
Creating self-contained energy networks using existing assets, including gas engines, solar panels, emergency power systems and energy storage means such as batteries is, in itself, not that special. What makes both the microgrids and smart grids so special is the energy optimisation system developed by Pon Power, the Grid Controller.
Pon Power’s Grid Controller in practice
The assets within a grid continuously exchange information with each other via the Grid Controller. This Controller uses algorithms to calculate the most efficient thing to do at any given time. Think in terms of optimising to achieve as ‘green’ and quiet as possible, while at the same time taking into account reliability and costs.
The weighting of the information and the resulting actions differ from company to company, depending on the energy priorities of the consumer. For example, solar energy is often a priority, because it is renewable and free. So if there is a surplus, the use of (a) gas engine(s) is reduced in favour of solar panels.
In all cases, the result is tailor-made: the grid is set up in such a way that it exactly matches your business situation and requirements.
What is the difference between a microgrid and a smart grid?
The main difference between a microgrid and a smart grid can be found in the communication. In a microgrid, the components within the grid communicate with each other. In a smart grid, the components are connected to each other and to energy trading platforms on the internet.
Another difference is that a microgrid is intended for energy use, while with a smart grid you are also an energy supplier in addition to being a user. But what about if we have just established that there is congestion on the electricity grid? Then you don't want even more energy suppliers, do you?
The answer can be found in the link with the smart measurement and control system of the smart grids. As a result, the grid supplies energy when the electricity grid asks for it or provides space for it, and energy is stored when there is congestion.
When do you use which grid?
A microgrid is used for medium-sized sites. Examples include large bakeries and hotels. A relatively small grid is sufficient for sites like this. For example, a bakery can opt for a gas engine, solar panels and a battery pack. And a hotel could work with a gas engine, a battery pack and an emergency power system.
A smart grid is usually used for large sites, such as distribution centres and factory buildings, that are rented out by property owners. These types of sites require a large energy network, so the grid is made up of gas engines, many solar panels, a battery pack and an emergency power system.
The size of a smart grid and the fact that these types of large locations are often rented out make it interesting for the owners of distribution centers and factory halls to sell available energy to the network operators at certain times.
This is possible because energy surpluses are stored in the battery pack and the smart metering and control system is set up in such a way that these surpluses are sold to the grid operator automatically and at the right times. Read: when the grid can use it and a good price is paid for it.
Microgrids and smart grids serve well as temporary solutions
Grid operators are working hard on the energy grid of the future. In the coming years, however, we will continue to run up against the limits of the grid, because adapting and expanding the grid is a time-consuming process, whereas the demand for electricity continues to grow (for now). Especially companies that want to expand or build new buildings will be hampered by these limits.
Microgrids and smart grids are effective solutions for the interim period in which we now find ourselves. They also fit in well with another type of era we are in: a transition era, from fossil fuels to renewable energy. This is because the grids combine traditional energy generation (gas engines and a diesel emergency power system) with sustainable energy solutions (solar panels and energy storage means).
In fact, it wouldn’t surprise us if these grids continue to play an important role in the energy supply, even after the electricity grid has been upgraded. Developments are moving fast and more and more applications are being added. So who knows, we may still be using microgrids and smart grids in 5 to 10 years’ time for decentralised energy generation or for things we don’t even think about right now.
More info
Do you want to know more about these grids and how they work? Please feel free to contact me, Nico van den Biggelaar.
