T&D World Perspective: How Microgrids Help Utility Companies Balance Electricity Supply and Demand

Sept. 3, 2024
A utility perspective from T&D World: Severe weather, electric vehicles, scorching heat, aging infrastructure, and an influx of new data centers and factories are all making power delivery a complex balancing act..

Many power utilities, facing a historic challenge to beef up power generation, transmission and distribution infrastructure in the era of massive data center and industrial electrification growth, are slowly and yet perceptibly shifting to considering microgrids as an alternative to centralized and expensive power plant investment.

T&D World, the industry magazine covering electric transmission and distribution for the past 75+ years, focused a recent story on how microgrids can give utilities a reliable, sustainable and efficient distributed energy resource. The contributed story was authored by Brian Nelson, renewable segment leader of ABB’s Renewables Division, part of the ABB Electrification Business.

West Coast utility Pacific Gas & Electric recently announced plans for six new remote microgrids to be built this year, while cooperatives and municipal utilities are installing localized, on-site power to bolster reliability and backup for critical services such as water plants.

Electricity also is not a fuel resource like gasoline or diesel which can simply be stored away; it must stay at a safe, functional frequency in a balance between generation supply and customer demand. Microgrids can help ensure that peak demand and other load challenges don’t overwhelm the overall grid.

From Brian Nelson’s story for T&D World:

“For industries with high energy demands, such as factories, microgrids further serve as demand buffers. For example, a new titanium mill in West Virginia is using a solar powered microgrid with battery storage to provide 70% of the facility’s power needs. By isolating high-demand facilities, microgrids mitigate their impact on the larger grid and ultimately improve grid stability.

“By smoothing out demand peaks and valleys, microgrids contribute to a more balanced and stable energy system while simultaneously helping utility companies work towards sustainability goals.”

Microgrids have proven their worth as disaster-resistant tools for key infrastructure and commercial operations, such as several utilities and business operations have learned positively in Texas following recent Gulf storms. Alluding to those types of case studies of microgrids performing under pressure, Nelson writes:

“Microgrids play an important role in providing power during hurricanes, storms, and other severe weather events. If the utility’s primary power source or power lines go out during a hurricane, a community microgrid can be turned on to ensure everything from refrigerators and HVAC systems to lights and CPAP machines continue to function. They can also ensure critical infrastructure like hospitals and fire stations have the electricity they need to provide essential services.”

T&D World Live, the publication’s annual event, will be Oct. 1-3 at the Hilton Atlanta. T&D World and Microgrid Knowledge are both of the Energy Group at Endeavor Business Media.

Click here to read the full story on “How Microgrids Help Utility Companies Balance Electricity Supply and Demand.”

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