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What is a microgrid?

A microgrid is a self-contained electrical network that allows you to generate your own electricity on-site and use it when you need it most. A microgrid is thus a type of distributed energy resource. You can operate microgrids while connected to the utility grid or in disconnected “island” mode.

When the grid goes down or electricity prices peak, microgrids respond.

There are three main benefits of microgrids:

  • Keep your facility’s power on during grid outages
  • Store electricity and sell it back to the grid during peak demand
  • Integrate on-site renewables such as wind and solar

How do microgrids work?

A microgrid co-locates electricity generation and consumption. Unlike the utility grid, which generates electricity in a centralized power plant and then distributes it along hundreds of miles of transmission lines, a microgrid generates electricity on-site.

For electricity generation, microgrids typically use some combination of back-up diesel generators and renewables such as solar panels. Microgrids can incorporate battery systems to store electricity and deploy it during outages or when grid demand spikes.

Intelligent software controls can automatically switch the facility between the utility grid and the microgrid based on factors such as power reliability and cost efficiency.

Learn about EcoStruxure™ Microgrid Advisor

Products and software for microgrids

Energy Control Centre

EcoStruxure Microgrid Advisor

EcoStruxure Microgrid Operation- Fuel Saver

Solar panel

Discover prosumer-based energy management

Businesses today are becoming energy prosumers with the ability to produce, consume, and control their own energy.

image of solar panels with city in the background

Making solar smarter

Learn how microgrids enable businesses to automatically make choices that provide economic and energy resilience benefits.

What is energy-as-a-service?

Energy-as-a-service (EaaS) is a financing model for microgrids that allows you to avoid upfront costs. Similar to a software-as-a-service model, with EaaS you avoid capital expenditures and instead pay only for ongoing service.

Schneider Electric and our strategic partner, the Carlyle Group, have joined forces to create AlphaStruxure, a venture that is solving the world’s most complex energy challenges. AlphaStruxure will finance, build, and maintain your microgrid.

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