As the world’s demand for energy grows, microgrids are going to become increasingly important — but what are they and why do they matter?
The U.S. Department of Energy (DOE) describes them as localized grids that are able to disconnect from traditional ones and operate autonomously.
This ability to operate independently from a larger grid makes them invaluable tools when the latter, for whatever reason, fail. As the DOE puts it, microgrids can “help mitigate grid disturbances to strengthen grid resilience.”
The issue of access to power is an important one. According to the International Energy Agency (IEA), 1.2 billion people do not have access to electricity. In rural communities, where electricity access can be difficult, microgrids can also prove to be very important.
San Francisco-based Dynamic Energy Networks owns and operates microgrids and distributed energy resources. “The excitement around internet technology and internet innovation enables these microgrids to be deployed faster and transform the electricity markets,” Karen Morgan, its president and CEO, told CNBC in an interview broadcast this week.
Morgan highlighted their importance in a changing world. “We can’t rely on the infrastructure of today, so we have to… think about the opportunity to be independent of the grid whenever we can,” she said.
“We’ve had, in the United States, several incidences of security breaches in the utility markets,” Morgan added.
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