Why Should Utilities Embrace Microgrids?

Whether you like it or not, the microgrid industry is expanding. According to Navigant Research, microgrid capacity that is planned, under construction, or already in operation is at 3.8 gigawatts all over the world.

Utilities historically have not favoured microgrids because they represent independence from the grid, the rice bowl of utilities. But with increasingly frequent freakstorms and earthquakes that can leave thousands stranded without electricity for months, if utilities do not integrate microgrids into their businesses, their customers will, and at the utilities’ loss.

It actually benefits utilities to shift towards incorporating microgrids too. If microgrids are deployed, there is no necessity for baseload generators any more, and thus prevents the situation of having idle storage facilities waiting for a disaster to occur. On the whole, microgrids are more reliable and stable if used in conjunction with the grid, and to the utilities’ gain.

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