Why microgrids are big news

As the world continues its march towards a greener future, businesses, communities, and individuals alike are all increasingly turning towards renewable energy sources to power their operations. What is most interesting, though, is how many of them are taking the pro-active position of researching, selecting, and implementing their preferred solutions without the assistance of traditional players in the space. 

Leading the way are the big box retailers. It is, perhaps, no surprise. After all, their sprawling rooftops present vast untapped potential for solar energy generation. So much so, that a report by Environment America Research & Policy Center suggests that the rooftops of the big box stores and shopping centres in America have the potential to generate 84.4 terawatt-hours (TWh) of solar electricity each year. This is enough to power almost eight million homes. 

Impressive numbers

Retail giant Walmart has become a poster child for the movement. The retail behemoth is said to have more than 780 million combined square feet of rooftop space throughout its estate that can be used for solar energy systems, and a large proportion now is. In fact, the company currently has over 600 on and off-site projects in operation or under development and earlier this year it further committed to add 10 GW of clean energy capacity by the end of 2030. These are impressive numbers.

Since setting up its own microgrids, Walmart has become so successful at generating its own renewable energy that it now sells off the excess supply. As Vishal Kapadia, senior vice president, energy transformation at Walmart explains: “The role we play in our communities provides us with a tremendous opportunity to help people transition to clean energy in a way that also helps them save money and live better.” 

Under intense pressure

It is not just retailers such as Walmart that are seeing the benefits of running their own bespoke microgrids. Another key sector where they have become popular is data centres. Data centres are well known to be big energy consumers. In fact, they devour around 2% of the world’s electricity currently. This is only going to increase as their need for more computing power and storage is rising even higher with the emergence of artificial intelligence (AI) technologies. Because of this, data centres are under intense pressure to operate more efficiently and minimise their environmental impact. 

As energy consumption of data centres grows exponentially, adoption of locally managed microgrids is helping operators take more control of their power supply. Microgrids not only provide them with the ability to minimise the impact of regional power outages and disruptions, but helps them to transition away from traditional backup sources such as diesel generators. 

Technology advancements

The move towards microgrids is as much about regaining control as lowering costs. A microgrid can empower a business to not only control when they take energy off the grid but ensure they can push excess energy back to the grid when it provides the best returns.

Technology advancement is proving to be an important catalyst. The latest AI-backed software platforms can analyse huge amount of data in record time, so that businesses are able to forecast demand, scheduling, and position reporting effectively. Modern distributed energy resource management systems (DERMs) can also help ensure a microgrid works optimally by ensuring energy is correctly balanced throughout the grid.

Improvements to battery technology have also played a part. Modern lithium-ion batteries have far better energy density than in the past, allowing for longer-lasting batteries in smaller, lighter packages. Additionally, many new battery technologies are quickly changing the game. Lithium-Sulfur, Sodium-Ion, Ion-Air and Zinc base batteries are all currently being researched and developed in order to compete with more traditional, Lithium-ion batteries in terms of cost, sustainability, and efficiency.  

A step further

We are even seeing the theory of the microgrid go a step further, with businesses or communities often joining forces to create a Virtual Power Plant (VPP) that integrates multiple distributed energy resources and operate collectively as if it was a single, unified power plant. They are now seen everywhere from the Scottish Inner Hebrides to Adelaide in Australia. To work effectively though, VPPs need to be coordinated using advanced software platforms so that energy production, storage, and consumption is optimised in real-time.

VPPs, such as those offered by Tesla, have the same benefits as private micro grids – grid reliability, integration of renewables, cost-effectiveness, and energy efficiencies – but are often multiplied due to economies of scale. As such, I see no reason for their adoption and implementation to slow down. 

 

Good for all

Microgrids will be crucial to move us towards a more decentralised, renewable-based energy system and support the aging grid. The good news is that costs of set up are coming down all the time, eliminating one historic barrier and opening the process up to smaller and smaller companies. Yet, setting up a microgrid is not an uncomplicated process. Batteries can still be expensive. Plus, a business needs to have the available space to house the solar array in the first place. Weather, location, and other variables like regulation can also come into play to hamper progress. 

However, the benefits generally outweigh the risks. Becoming one’s own energy supplier can be an attractive prospect for any business and is something I’d expect to see more and more of in the future. This is a good thing. Putting solar panels on the likes of superstores and data centres is good for businesses, good for electricity customers, good for the grid, and good for the environment. 

Craig Tropea

Craig Tropea, Strategic Account Manager, POWWR

With more than 20 years in the energy sector, Tropea brings a wealth of experience to POWWR and its clients by advancing their business via the application of software and consultative services. Formerly serving as VP of Sales & Marketing at Customized Energy Solutions, his expertise spans sales, marketing, client management, contract negotiation, and strategic planning, making him a key asset in driving business growth. Tropea also excels at building strong client relationships, collaborating on problem-solving, and delivering software and consulting solutions on a global scale.

Data-Sharing Done Right: Finding the Best Business Approach

Bart Koek • 20th November 2024

To ensure data is not only available, but also accessible to those that need it, businesses recognise that it is vital to focus on collecting, sorting and governing all the data in their organisation. But what happens when data also needs to be accessed and shared across the business? That is where organisations discover a...

Nova: The Ultimate AI-Powered Martech Solution for Boosting Sales, Marketing...

Erin Lanahan • 19th November 2024

Discover how Nova, the AI-powered engine behind Launched, revolutionises Martech by automating sales and marketing tasks, enhancing personalisation, and delivering unmatched ROI. With advanced intent data integration, revenue attribution, and real-time insights, Nova empowers businesses to scale, streamline operations, and outperform competitors like 6Sense and 11x.ai. Experience the future of Martech with Nova’s transformative AI...

How E-commerce Marketers Can Win Black Friday

Sue Azari • 11th November 2024

As new global eCommerce players expand their influence across both European and US markets, traditional brands are navigating a rapidly shifting landscape. These fast-growing Asian platforms have gained traction by offering ultra-low prices, rapid product turnarounds, heavy investment in paid user acquisition, and leveraging viral social media trends to create demand almost in real-time. This...

Why microgrids are big news

Craig Tropea • 31st October 2024

As the world continues its march towards a greener future, businesses, communities, and individuals alike are all increasingly turning towards renewable energy sources to power their operations. What is most interesting, though, is how many of them are taking the pro-active position of researching, selecting, and implementing their preferred solutions without the assistance of traditional...

Is automation the silver bullet for customer retention?

Carter Busse • 22nd October 2024

CX innovation has accelerated rapidly since 2020, as business and consumer expectations evolved dramatically during the Covid-19 pandemic. Now, finding the best way to engage and respond to customers has become a top business priority and a key business challenge. Not only do customers expect the highest standard, but companies are prioritising superb CX to...

Automated Testing Tools and Their Impact on Software Quality

Natalia Yanchii • 09th October 2024

Test automation refers to using specialized software tools and frameworks to automate the execution of test cases, thereby reducing the time and effort required for manual testing. This approach ensures that automation tests run quickly and consistently, allowing development teams to identify and resolve defects more effectively. Test automation provides greater accuracy by eliminating human...