Understanding microgrids; their impact and

integration in a complex energy environment.

Introduction
As the world surges towards decarbonization and decentralization, “Renewable power is an economical, practical
microgrids are standing out as a potential solution to some of the
challenges facing everyone from governmental and regulatory solution for a growing number of locations and
authorities, to energy suppliers, grid operators and customers. In fact, energy needs, and islands that have traditionally
microgrids are considered to be a secure, affordable, sustainable and relied on fossil fuels can easily transition to
low carbon option in many specific localized applications [1].
microgrids powered by solar and storage today.”
By their nature, microgrids support energy self-reliance and enable
resilience against severe weather events, incorporate multiple - SOLARCITY ON MICROGRIDS
distributed energy resources either traditional or renewable, and allow
local communities to increasingly take control of their energy future.
For decision makers and planners in today’s energy sector, the huge
transition period will increasingly include microgrids to deal with a range
“The Clean Energy for EU Islands Initiative aims at
of economic and environmental factors, technological breakthroughs accelerating clean energy transition by helping
and legislation changes. islands reduce their dependency on energy
So, what are the trade-offs between several key priorities, such as imports and making better use of locally available
cost effectiveness, supply resiliency, efficiency, decarbonization and
commercial opportunity? renewable energy sources. It will also promote
Detailed technical and economic analysis is required as part of the
modern and innovative energy systems and help
scoping, design planning and operational maintenance of such systems. islanders reduce greenhouse gas emissions.”
Though PLEXOS has typically been applied to the study of larger national
or continental scale energy systems to date, it has more than enough - EUROPEAN COMMISSION
modeling flexibility to be applied to systems at any scale, large or small.
This document outlines some of the typical characteristics of microgrids,
lists some example projects from around the world, and discusses the
detailed technical and operational characteristics that can be integrated
within the state of the art PLEXOS modeling tool to aid local energy
system decision making and analytics.

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Configuration Technology
Technologies
There are few ‘typical structure’ definitions of a microgrid, as they can be applicable
with a range of constituent technologies, energy vectors and design topologies.

Controllable Load Renewables

UTILITY GRID PCC

Gas Engine
INDUSTRIAL HYDRO POWER
STORAGE

Microgrid BIO GAS

COMMERCIAL WIND POWER

ELECTRIC VEHICLES NATURAL GAS

RESIDENTIAL DIESEL ENGINE SOLAR POWER

Figure 1

Some of the possible components are listed in Figure 1 and Figure 2 on the following page. Common characteristics of a microgrid include that they are
typically small in scale with peak power demand, e.g. ranging from tens of KWs up to tens of MWs, that they are usually able to operate independently
from the main power grid or in synchronization with it, and that they generally have a rather small/localized geographical/spatial footprint.
They can incorporate multiple Distributed Energy Resources (DERs) that usually feed electricity as the main energy supply component, but can also
incorporate links to gas networks, thermal energy and water supply elements. There can also be tangential connections to the transport sector, via
electric or even hydrogen vehicles.

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 Renewable energy Non-renewables
Renewable energy (e.g. wind turbines, solar PV, micro hydro, Small scale conventional energy sources (including fuel cells, diesel or
geothermal, biomass gasification, biogas) that can provide local gas turbine engines) that provide back up power and stable levels of
supply and reduce carbon-dioxide emissions voltage and frequency control inertia to the system [2].

Distributed Energy Resource Components

Energy storage
Controllable loads
Energy storage performing multiple functions, such as power quality
improvement through frequency and voltage control, smoothing the Controllable loads (demand response and demand shifting)
output of renewable energy sources, providing backup power for enabling a flexible way of consumption for domestic,
the system and playing a crucial role in cost optimization [3]. commercial and industrial users.

Figure 2

Distribution
Where available, a Point of Common Coupling (PCC) is used to provide the microgrid with connectivity to a larger scale main grid. When the PCC is
temporarily or permanently unavailable, they become isolated microgrids, which is the default setup in the case of geographically remote sites. PCC
connectivity is managed through either conventional AC switchgear in conjunction with power electronic converter controls [4].
Based on the characteristics of the electricity distribution system, microgrids can be classified into AC, DC or hybrid microgrids (those that combine
elements of AC and DC technology that are controlled separately).
AC microgrids can present different distribution types: single phase, three phase without neutral and three phase with neutral.
In DC microgrids, there are three main types of distribution: monopolar, bipolar and homopolar. Since there is no reactive power element of a DC system,
DC distribution can present some advantages, such as reduction of the reactive power losses and an increased utilization of the capacity of the electrical
lines [4]. However, this is perhaps at the cost of technical control and protection design complexity when compared to a traditional AC solution.
Full DC distribution systems have only been used for limited applications so far, such as telecommunication systems, vehicles, ships and traction systems
[4]. Hybrid AC/DC microgrids can be seen as a beneficial compromise to facilitate the connection of various AC and DC power sources and load demands
with the power system in order to minimize installation and operational costs [5].

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Monitoring and Control
Certain microgrid management strategies gain commercial benefit
from maximizing the use of their indigenous renewables or other
local generation capacity and selling energy back to the grid at times
of suitable price differential. However, they can also independently
decouple from the main grid if unexpected outages are caused by
severe weather or natural disasters.
For those that are forced to be independent and isolated by virtue of
their circumstances and operational needs, for example geographically
remote sites or off-limits military camps [1], then the objective is solely
to manage the supply and demand resources locally available to best
effect.
In any case, a key element required for such a system is a fast,
responsive and highly functional techno-economic control
management system, to coordinate the dispatch decisions and monitor
the technical integrity of the system across timeframes ranging from
sub-seconds to a daily or weekly basis.
Given the smaller size of microgrids, their lower inertia, the power
electronic characteristics of many renewable supply sources and
the limited smoothing of demand spikes across a wider customer
base, there can be significant stability control, security and power
quality challenges inherent in most applications. It is important that
these technical challenges are quantified and understood, that
suitable control systems are put in place to manage them, and that
their implications for constraint on economic operability are properly
captured in any modeling and control framework.
“Mars will be the ultimate microgrid. With no centralized power sources,
communities will one day rely on decentralized energy systems.”
- SIEMENS, MICROGRID ON MARS
There are many parameters in a microgrid that must be continuously
supervised by means of a monitoring system, such as voltage,
frequency and power quality. Both AC and DC microgrids can have
a mixture of hierarchical and decentralized control systems that carry
out such tasks, generally comprising three levels: primary control,
secondary control and tertiary control.
Primary control is often applied in a decentralized manner to require
individual elements of the system to be automatically robust to both
short-term frequency and voltage disturbances. Voltage control can be
implemented in two modes: PQ mode and voltage control mode. In
PQ mode, the active and reactive power of distributed energy sources
is regulated with regard to the pre-set reference points, whereas in
voltage control mode, the distributed energy sources operate as
voltage-controlled sources where the reference voltage is determined
by droop characteristics [6].The secondary and tertiary controllers are
the main supporters of coordinated microgrid operation.
The function of the secondary control is to help the microgrid achieve
global controllability by restoring the frequency and amplitude
deviations produced by the primary control. Often a Microgrid Central
Controller (MGCC) is used.
The MGCC may also include tertiary control. Tertiary control ensures
economic optimization, based on energy supply and demand trends
over a longer timeframe.
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Industry Case Examples
With a range of flexible configurations possible, microgrids already
have applications in university campus demonstration sites, providing
backup power for critical infrastructure, facilitating diverse industrial
and retail commercial operations, powering island systems and other
geographically remote sites. In the more distant future, they could also
potentially support life on other planets.
The following sections outline some examples of successful projects that
have already been implemented to date around the world.

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M I L I TA RY M I C R O G R I D S
The 8000 acre training base of US Marine Corps Recruit Depot from
Parris Island, South Carolina has recently deployed a 10 MW Ameresco
microgrid project that features energy efficiency and renewable
generation and is designed to withstand storms and earthquakes. The
goal of the project is to make such a nationally critical facility capable of
operating off-grid for up to 14 days.
Renewable microgrids also offer a route to curb military use of
petroleum. The US Department of Defence is one of the largest
consumers of petroleum in the world. Navigant Research estimates that
the military could save $8-$20 billion over the next 20 years by shifting
from a reliance on backup diesel generators to large-scale microgrids.
On Parris Island, the military is expected to save $6.9 million in annual
utility and operational costs as a result of the energy system redesign,
which includes:
• Replacement of a power plant with 3.5 MW of combined heat and
power and three diesel backup generators
• 20,000 solar PV modules, installed at carport and ground-mount sites,
which provide 5.5 MW. The solar panels provide shelter for more than
500 parking spaces
• Batteries totaling 4 MW / 8 MWh
• Intelligent microgrid controls to assure power supply in the event of
central grid outages and project is projected to reduce utility energy
demand by 75%, and water consumption by 25% [7].

Parris Island, South Carolina

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ISLAND MICROGRIDS
La Graciosa the unique biosphere reserve from the Canary Islands,
Spain, called “the intelligent energy island”, saves about 35% of
total energy after the implementation of a microgrid that includes
an estimated 1,500kWh from a photovoltaic system and around
500kWh from a hybrid energy storage system.
Dependent on the energy supply from the Lanzarote island, through
a submarine cable, the community of La Graciosa set its objective
to ensure local energy autonomy, maximize RES penetration and La Graciosa, Province Las Palmas, Spain
minimize fossil fuel needs to satisfy the electricity demand from
households, commercial and public services on the island [8].
Another crucial motivational example of an island microgrid initiative,
is the case of Puerto Rico which decided to fund development of
renewable energy resources, microgrids and energy storage as a
way to recover from Hurricane Maria which hit the island in 2017 and
caused one of the largest and most sustained electricity blackouts in
US history and killed more than 3,000 people.
At its completion the grid system may be composed of eight mini
grids with up to 1,100 MW installed battery storage. The plan also
calls for the creation of smaller microgrids within the mini grids,
particularly in remote areas of the island not easily served by storm
damage susceptible transmission lines [9].

Puerto Rico

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I N D U S T RY M I C R O G R I D
Located at Gold Fields’ Agnew Mine in Northern Goldfields, Western
Australia, a microgrid implemented by global energy group EDL
combines 18 MW of wind power with 16 MW of baseload natural gas
generation, 4 MW of solar and 13 MW/4 MWh-based energy storage.
The hybrid microgrid comes with expectations of reducing energy costs,
enhancing energy reliability and resiliency and reducing the mining
facility’s carbon and overall environmental footprint.
Under construction, the hybrid microgrid is expected to meet on average
55-65% of the gold mine’s annual energy needs while instantaneously
meeting nearly all its energy requirements some of the time.
A battery system is customized to deliver high rates of power for short
durations to meet the mine site’s energy load profile. In addition, it will
make use of dynamic load shedding, renewable resource forecasting
and load management to maximize renewable energy while maintaining
system security, according to the project partners [10].
Located in a rural site Themar Al Emarat, in the United Arab Emirates (UAE),
is a new hydroponic farm facility that has water availability, but no large-
scale electric grid access. Key to the farm’s success is the ability to cool
and chill water for cultivating perishable crops for local consumption.
Energy consumption accounts for the majority of long-term operational
costs.
The solution: a 5.94 MW isolated microgrid.
Scheduled to begin operation in late 2019, the off-grid microgrid
includes 23,000 solar photovoltaic modules that will generate as much as
2.7 MW. Another 2.34 MW will come from five CAT 3412 diesel generator
sets. Other core components include bi-directional power electronic
inverters and a 286 kWh/250 kW grid stability module incorporated in a
CAT battery system.
The project also uses a Cat Master Microgrid Controller, which will
autonomously manage the microgrid system, making use of Cat Connect
Remote Asset Monitoring for real-time data collection and off-site
monitoring of system performance data [11].

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REMOTE COMMUNITY MICROGRID
With support from foreign development organizations, Yuma Micro
Power has installed 51 off-grid micro power plants in rural Myanmar
towns and villages and plans to deliver another 200 by the end of 2019.
They combine solar PV, battery energy storage and diesel generators
for back-up power, all governed by intelligent microgrid control and
management software.
It’s estimated that more than 60% of Myanmar’s population lacks access
to modern electricity services. Some 4 million reportedly lack any access
to electricity, according to international development agency statistics.
Community microgrids co-locate energy generation and consumption,
which adds to power system efficiency gains and lowers costs. The
decentralized model comes with other advantages that includes
enhanced energy reliability, resilience and security and lower greenhouse
gas emissions.
For rural electrification the company builds micro power plants that may
range anywhere from 15 kW — the size for a completed rural community
pilot project — to an anticipated 500 kW of generation capacity.
In addition to its 2019 goal of rolling out 200 microgrids, Yoma Micro
Power has yet more ambitious, longer term goals. It’s aiming to deploy
some 2,000-community solar microgrids across Myanmar by 2022. It is
anticipated that Myanmar can leapfrog a generation of centralized power
and move directly to a low-carbon decentralized system [12].

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U N I V E R S I T Y/ C O L L E G E M I C R O G R I D

Some Nigerian Universities will soon disconnect from the national

grid with off-grid microgrids, as part of a national program to bring
microgrids to dozens of universities.
A subsidiary of Greece’s Mytilineos, METKA Power West Africa is
providing engineering, procurement and construction (EPC) for phase
one of the four Energizing Education projects. The company was
awarded a contract by Nigeria’s federal government in April 2018.
Consisting of solar power, battery storage and back-up diesel-
power, the microgrids are designed to provide uninterrupted power
that meets the universities’ electricity needs. The projects also entail
construction of training centers to educate students at Nigerian
universities about renewable and distributed energy. Taken together,
the generation capacity of the four campus microgrids totals 7.5 MW.
Two are already powering street lighting [13].

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CRITICAL INFRASTRUCTURE
Alaska’s challenges — cold weather and the high cost of delivered energy
— are part of the reason the state is a model of innovative microgrid
development, with the largest number of microgrids in the US at present,
at 122.
Alaska’s innovation began as a response to its lack of centralized power
systems. Its electric power infrastructure was created using microgrids.
In fact, in the larger Circumpolar Arctic region, 1.5 million people are
served by microgrids in areas that aren’t connected to power grids. The
area includes Alaska, Greenland, the Canadian Arctic and large portions of
the Russian Arctic.
“Renewable energy has supported the fundamental infrastructure
necessary for economic growth and the ability for towns to provide basic
services such as public safety and health, lighting, and — most important
of all — heat,” said a white paper from Navigant Research [14].
Partners HealthCare, a medical network in New England, is moving
forward with plans to install 4.1 MW of Bloom Energy fuel cells this year
across its footprint of medical, healthcare, administrative and data center
facilities in Massachusetts.
Power outages have not impacted Partners’ ability to operate to date, but
Massachusetts suffered more than 100 power grid outages in 2017 lasting
a total of 55 hours, according to the Eaton Blackout Tracker.
Another important factor that healthcare institutions are trying to address
is ‘decarbonization’. Facilities including solar, CHP/cogeneration, energy
storage and fuel cells will provide the opportunity through a variety of
factors, including sustainability benefits, resiliency and cost savings to
powering medical facilities with clean, reliable and affordable energy.”
The fuel cells use natural gas and therefore produce less carbon dioxide
than utility grid power. They also can run on renewable fuels like biogas
and produce virtually no criteria air pollutants (e.g. regulations capping
emissions of organic particulate matter).
Adding to the benefits, the fuel-cell systems use little water in normal
operation [15].

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Challenges Answered with PLEXOS
Incorporating long-term (LT) investment planning, medium-term (MT) energy, fuel, maintenance and emissions modeling, and
short-term (ST) operational simulation capabilities, PLEXOS has the capability to integrate in one single software platform all
the analytical requirements for the economic study of microgrids, and furthermore the market context to perform this complex
analysis across multiple simultaneous electric power, heat water and gas energy vectors.
The platform is designed for full user customization and accuracy across numerous technical constraints and modeling
uncertainties.
The models can be customized with a limitless collection of microgrid network nodes, modeling scenarios, customized
constraints, conditional variables, physical elements, simulation horizon, duration of the simulation period and model resolution.
PLEXOS uses formal mathematical optimization to convert the properties and behaviors of a physical energy system model the
user has created into a mathematical problem statement that finds the best course of decision action from a range of available
options. PLEXOS also gives you transparency across the mathematical formulation so you can trace in-depth how any solutions
were produced.
Underneath it all, you can feel confident that the algorithms perform this complex analysis simultaneously across multiple
energy sectors such as electricity, heat, water and gas, so you can focus on making changes to the system model, experiment
with alternative scenarios and variables, and interpret the detailed results.
Some typical applications and advantages of PLEXOS modeling for microgrids are listed in the following categories.

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S H O R T-T E R M P L A N N I N G A P P L I C AT I O N S F O R M I C R O G R I D S
• Track the supply and demand balance characteristics with timeframe
granularity from 1 second to 1 hour, and timeframe horizon up to 1 week
ahead
• Create optimal dispatch decisions for conventional units such as diesel and
balance the fluctuations in solar and wind resources
• Model the characteristics of battery storage in detail, with estimation of
their cycle-based degradation of power and energy storage capability
• Assess the economic value proposition from demand response and
demand shifting from individual buildings or customer groups in the
microgrid network
• Use a market model of the external grid source to make optimal decisions
for the import/export of energy from grids where PCC capability exists
• Apply stochastic optimization to minimize the ‘expected’ costs or maximize
the ‘expected’ profits, based on short-term statistics of wind and solar PV
availability
• Track the flow of energy on the microgrid network components so that
they are not overloaded and can remain within safe operational limits, and
that dispatch can be modified accordingly
• Use the PLEXOS platform’s customization capability to add and model any
external EV demand or hydrogen fuel production/supply limits and/or
end-use constraints on any demand side response available capability
M E D I U M -T E R M P L A N N I N G A P P L I C AT I O N S F O R M I C R O G R I D S
• Develop optimal maintenance schedules for all plant on the microgrid so
that repair windows are ideally spaced with respect to customer demand
peaks and technical crew constraints, over a 1-year horizon
• Decompose annual budgets for fuel and emissions limits to optimal weekly
or monthly breakdowns based on the best available forecasts for supply
and demand trends in the microgrid
• Assess reliability levels for customer demand service on the local system
L O N G -T E R M P L A N N I N G A P P L I C AT I O N S F O R M I C R O G R I D S
• Apply advanced optimization to decide the least-cost timing, type and
amount of investment in new supply resources, as well as the optimal
end-of life retirement schedule for existing supplies
• Assess the topology design of the microgrid network and how its
constraints may need to be upgraded in the long-term over the next
few decades
• Model the capital investment and operational costs (accounting also
for depreciation costs), provide respective NPV estimates of the
microgrid’s net value at any timeframe horizon
• Plan to meet the microgrid peak and annual energy demand growth
forecasts in a reliable manner, capturing the time varying effects of
variable renewables, and the energy limits of battery storage
• Consider long-term modeling of uncertainty (e.g. in demand growth,
fuel prices, technology costs etc.) in the microgrid development
with the use of multiple planning scenarios that can be furthermore
assessed employing multiple computing resources and parallel
processing
E N G I N E E R I N G & T E C H N I C A L A P P L I C AT I O N S F O R M I C R O G R I D S
• Model short-term power variation swings from supply and demand
on the microgrid, so that frequency stability can be maintained using
regulation capability of back-up resources and battery storage
• Use the interface between PLEXOS and engineering software tools
such as PSS/E to carry out detailed engineering technical assessments
on load flow, voltage & system stability and network constraints,
which can be then ‘soft-linked’ back to PLEXOS to accordingly modify
optimum dispatch decisions.
• Interface and integrate PLEXOS economic assessments with other tools
and energy management systems’ components through a broad range
of APIs, e.g. Python, VBA, R and other such tools
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Conclusion
From serving the needs of island communities focusing on decentralized, renewable and local energy, to the increasing requirements for
businesses and communities to plan for their own resiliency in the face of supply disruption risks and/or costs, microgrids can offer suitable
alternatives to conventional grid solutions in certain applications. While it is unlikely that they will fully eliminate the need for the traditional
centralized large scale grids, as the economies of scale and national level energy trends of such will predominate for the foreseeable future,
it is assured that smaller scale decentralized grids can play an increasing role to complement the main conventional grid. The integration of
microgrids, as functional power supply/demand entities across multiple energy vectors and a range of timeframes, requires the simulation of
multiple different scenarios and detailed techno-economic analysis to determine the optimal designs both for a long-term perspective and a
near-term operational scheduling perspective. The PLEXOS integrated energy systems simulation platform has the functionality to address the
modeling and analytical study of such systems.

Is a microgrid in your future?

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