Skyrocketing energy costs, climate concerns, and a desire for greater resilience are driving a revolution in how we power our homes and businesses, as Alex Howison, Development Director at Eclipse Power Optimise, explains
Soaring energy costs, anxiety about supply in the face of world events and a rapid increase in extreme weather events have sparked something of a revolution in how we think about energy. We used to take electricity for granted, barely giving it a second thought. Burning fossil fuels to heat our homes and power our businesses was a no-brainer. Until suddenly the costs became rather higher than we were comfortable with, both in terms of financial cost and the harm it’s causing to the planet.
Cue renewable energy and the realisation that; ‘hey, I could become part of the solution rather than the problem’. Extending this to its natural conclusion has become; ‘hey, why don’t I generate the electricity I need to power my home, business, campus, data centre, energy-consumer of choice?’
Here’s where microgrids and private networks step in. Essentially, we are talking about localised energy generation. Instead of taking its electricity from a centralised system, a development project, business or a community looks to unlock the benefits of generating energy close to the specific area where it will be used.
Until relatively recently, they’ve tended to provide a resilient power source for isolated communities where they reduce vulnerability from grid disruptions and extreme weather. Places like the Isles of Scilly and the Orkney Islands have developed tidal and wind generation assets to integrate into their microgrids. The appeal of microgrids and private networks that combine energy generation and storage assets is now spreading to community and standalone projects and developments around the country.
Behind the meter – not off-grid
Microgrids provide reliable sources of power and can be operated independently of the grid, but they aren’t all entirely ‘off-grid’ – the ‘Good Life’ scenario. Most will have a physical connection to the grid to enable excess power to be stored and exported back to the grid when it’s needed, or to draw smaller amounts of energy from the grid than would normally be needed, when required.
As unlicenced networks, they deliver the best of both worlds, operating independently and alongside the main grid. And, because they use energy generated from localised renewable sources, they provide energy security and resilience, while reducing carbon emissions.
Lower connection costs and shorter lead times
Constraints in connecting to the national grid have long been a barrier for energising projects. The length of the connections queue has exasperated developers and is a priority for the National Energy System Operator, prompting a raft of reforms to the connections process. In response, smart developers have looked at the option of creating microgrids that operate ‘behind the meter’, which can involve community batteries, solar arrays and other assets working together to meet a site’s needs with as little interaction with the grid as possible.
As microgrids enable projects to offset their demand from the grid with onsite generation, they can balance energy resources to reduce their impact on the grid. For projects that are waiting for connection to the grid, this can add up to an earlier connection date and lower connection costs.
Adjusting the size of the required connection can reduce both the cost and the lead time to energise a project. A microgrid or private network of generation and storage assets behind the meter reduces the power demand from the grid. The result is a faster and cheaper path to connecting to the grid.
For example, using a private network to provide, say, 20MW can reduce a residential or commercial and industrial project’s 30 MW grid connection to 10 MW – rapidly shortening the time it takes to get an efficient, low-cost, reliable energy connection for projects.
More collaboration. More freedom. Less friction
While it is certainly possible and feasible to take control of your energy production and consumption, it is, as you might expect, massively complex. It’s not something that you’d want to do without help.
There are complex technical, governance and safety standards to navigate and multiple moving parts involved in establishing microgrids and private networks. Knowing where to start and who to engage calls for expertise, experience and an in-depth understanding of the complexities involved. It’s vital to approach any such projects with an open and collaborative stance. No two microgrids are the same, nor are the stakeholders you need to get on board.
The good news is that this is in direct contrast to the more closed-off and siloed approach that you typically see in the energy industry. In fact, across the board, microgrids and private networks offer more freedom than traditional distribution network operator and transmission owner networks.
Rather than being forced to operate within a rigid system, microgrid customers can achieve flexible, customised solutions that meet their specific needs. This customer-centric focus is a welcome relief from the network-centric approach of traditional energy providers and hopefully is a sign of things to come within the rapidly changing sector.
Commercial benefits all round
Another advantage for potential microgrid customers is the opportunity to share ownership and investment in the energy assets and infrastructure with partners. Setting up or working with an energy service company means that multiple parties can align incentives and spread risks, rather than a single party owning and operating the infrastructure.
An experienced partner will add valuable expertise to streamline the adoption, operation and maintenance processes of a microgrid. For example, by introducing advanced network management systems that monitor and control the microgrid in real-time to optimise performance and ensure a reliable delivery of energy.
The same ethos can be applied to larger scale commercial developments, where industrial and commercial customers can pair with grid-scale generation within a private network, behind a higher voltage connection to the grid. Whether you’re building a data centre, commercial centre or industrial hub, private networks enable the same acceleration in connections, reduction in costs and opportunity to tap into long-term revenue streams through shared ownership options.
Let’s solve energy
It’s encouraging that microgrids and private networks have gained greater exposure. In general, people have become more aware of the need for energy security.
Greater media attention and public focus on energy and power issues recently has heightened awareness of the need to ‘solve energy’. This has created a perfect opportunity to explore innovative, alternative solutions like microgrids and private networks.
Localised energy is becoming a reality for all kinds of developments and projects adopting private networks and microgrids. We’re seeing more low-cost and reliable residential, industrial and commercial and data centre projects unblock.
