Blizzard of Weather and Aging Utility Infrastructure Inspires Plan for AI-Enabled Microgrid in Western New York

To help the county address these challenges, e2Companies will commission a 2-MW microgrid at the public works building in the next six weeks or so, said James Richmond, co-owner, CEO and president at e2Companies. It will lower capacity charges, reduce utility costs and provide resilience and reliability, he said.

​Erie County paid for the microgrid and will recoup the investment through lower costs. Along with achieving reliability and resilience, the county will avoid buying a new diesel backup generator to replace the rented generators the county uses during storms.

By avoiding diesel generators, Erie County won’t have to figure out how to fill a diesel tank–especially during a snowstorm. Most emergency diesel units have only 12 to 24 hours of fuel.

“They've eliminated that issue and can run the microgrid for weeks or months,” Richmond said.

A 40% investment tax credit helped pay for the microgrid

When it purchased the microgrid, Erie County received a 40% investment tax credit for the energy storage system from the so-called One Big Beautiful Bill Act.  The project qualified for the credit because most components of the storage system and its infrastructure were manufactured in the U.S.

The microgrid includes rooftop solar and e2Companies’ R3Di system. Called a “virtual utility,” it’s a microgrid-in-a-box that can integrate many different types of energy resources and can be both grid-connected and off-grid. In this case, the unit will be fueled by natural gas, along with solar.

Also included in the project will be 15 EV charging stations. e2Companies will eliminate peak charges by using the microgrid’s two batteries during peak hours.

Using the batteries to flatten the load and avoid demand and capacity charges is expected to improve efficiency for the Erie County facility by 35%, Richmond said.

Artificial intelligence monitors and predicts building load and grid conditions

The microgrid’s energy management system uses artificial intelligence (AI) to monitor and predict building load and grid conditions, and to adapt to weather conditions.

As a registered curtilament service provider, e2Companies gain access to information about grid conditions.

“We know the supply side. We know the equipment that's sitting on site, whether it's wind, solar or gas engines,” Richmond said. “We know the power profiles, what it can produce.”

The company also has access to weather forecasts, as well as hour-ahead, two-hour-ahead and week-ahead predictions of power needs.

AI uses that information to select from a number of different operating options, including the most efficient or reliable–whichever is needed at the time. For example, at night, efficiency may not be as important because the load is low, Richmond said.

How the microgrid flattens the load

But during the day, when load and utility prices are high, the system uses its batteries to provide power and reduce grid demand.

That’s how the system lowers or avoids capacity charges. It flattens the building’s load profile and eliminates demand spikes, Richmond said.

With this system, e2 designs for average load rather than peak load, reducing the microgrid's size. With its batteries and inverter, the system can temporarily provide power during peak conditions, reducing equipment needs and lowering up-front costs.

The Erie County Department of Public Works will be able to participate in grid services programs, including voltage frequency regulation and load curtailment, Richmond said.

Bring on the Buffalo blizzards

The Erie County Department of Public Works’ microgrid means the county will be prepared for the next big blizzard, avoiding outages and allowing the department to continue managing and maintaining roads and bridges. It will also help the department meet sustainability goals for over 50 of its facilities in Western New York.

“The microgrid is an upgrade that helps the county avoid being dependent on the old utility infrastructure,” Richmond said.