Page 22 - NBIZ October 2021

Microgrids for Resilience chanted Rocks microgrids at H-E-B
2
As the number and frequency Figure 2 grocery stores .
of electricity outages continues to Energy by Fuel for 2021 Microgrids can also lessen overall
increase, companies are looking for emissions. Although Texas is a leader
options to ensure the power stays on in wind power generation resources
when the next grid outage occurs. and the second -largest in solar
Many businesses are looking to resources, natural gas and coal still
microgrid technologies as a solution. make up a significant portion of grid
Microgrids are onsite power systems generation (Figure 2). Deploying a
that can be made up of a variety of microgrid with solar, storage, and
generation resources including solar, combined heat and power will have
storage, combined heat and power a lower carbon emission profile than
(CHP), and/or natural gas gener- the existing Texas grid emissions.
ators. The combination of power Although microgrids can lessen
systems, along with appropriate energy costs and reduce emissions,
controls such as black start capabili- a primary consideration remains
ty, allow facilities to stay operational their ability to limit the impacts of
before, during, and after major grid outages. However, resilience
power outage events. comes at a cost for the end-user that
Although microgrids can be a ERCOT Generation Mix is not easy to recover with the energy
solution to offset power outage risk, savings generated, typically result-
their upfront costs may lessen their ing in paybacks around ten years or
desirability. Microgrids' capabilities down the power provided based on more. A key factor in increasing the
to mitigate extreme weather are reg- demand. This allows the end-user to number of microgrids deployed is to
ularly considered but usually deemed purchase electricity from the grid consider their resilience benefit in the
as not cost-effective due to lower grid when prices are low and to ramp economic balance and the likelihood
energy prices. up the microgrid and use its power of grid disturbances.
Microgrids need to be considered when grid prices increase, particu- The total cost of business disrup-
in a more holistic sense. The benefits larly during the peak summer heat, tions due to extreme weather events
of these systems over time include or in the case of Winter Storm Uri, needs to be understood and properly
improved electric reliability and during peak cold events. Several assessed. This assessment is done by
increased resilience by lessening success stories exist of microgrids evaluating the likelihood and intensi-
the likelihood of power outages and taking advantage of the pricing vol- ty of extreme weather events. Down-
disruption to business operations. atility of the ERCOT market through scaled global climate model outputs
Beyond resilience microgrids can also providing incremental capacity or can help companies better forecast
help lower energy costs. For example, participating in demand response extreme weather events, particularly
microgrid systems can ramp up and programs. A good example is En- extreme heat and precipitation. Most

Figure 3
8-Step Resilience Planning Framework

22 NBIZ ■ October 2021