1. The definition of microgrid
A microgrid is a set of interconnected loads and energy resources distributed within well-defined electrical boundaries that act as a single controllable entity for the grid. A microgrid can be connected and disconnected from the grid, enabling it to operate in grid-tied or islanded mode. The description includes three requirements: 1. The part of the distribution system that contains the microgrid can be distinguished from the rest of the system; 2. The resources connected to the microgrid are controlled in coordination with each other, rather than remote resources; 3. Whether Microgrids can operate whether connected to a larger grid or not. The definition does not say anything about the scale of distributed energy sources or the types of technologies that can or should be used.
2. Microgrids are used in remote and rural areas
Currently, more than a billion people in developing and less developed countries have no access to reliable electricity—or none at all. Often, the limited electricity available is generated using expensive diesel fuel. Especially for rural areas of these countries, electricity is a key resource for meeting basic human needs, and microgrids may be the best way to provide it. Remote microgrids that combine clean generation and storage, in some cases facilitated by innovative mobile payment platforms, could provide a lifeline for these people, allow children to study at night, allow healthcare systems to provide reliable services, and allow entrepreneurs to improve their livelihood. These remote microgrids are taking advantage of the same advancements in power electronics, information and communication technologies, and distributed energy that are driving changes in industrialized nations’ grids, making it possible for developing countries to make the same leap into the world of smart microgrids. Mobile communications allow them to connect with each other and with the outside world without building an extensive landline network.
So-called “hybrid” microgrids containing renewable energy, often as add-ons to diesel generator systems, have shown great potential to diversify power generation and reduce microgrid operating costs in island communities that depend on expensive imported oil. Power generation and remote locations away from existing power infrastructure. Remote microgrids do not require a one-size-fits-all system design approach; through careful resource assessment and knowledge of demand profiles, projects can be optimized to suit local conditions. However, careful attention needs to be paid to the impact of resource variability on service levels and the level of maintenance required to keep the system running or restore service in the event of a generator failure.