The Business Case for Microgrids and Distributed Energy Resources
At one time, microgrids were only deployed in remote locations not served by the utility grid, or at mission-critical facilities such as military bases or hospitals. But thanks to several positive economic trends, microgrids employing distributed energy resources are now a cost-effective solution for many business and government organizations.
In fact, the trends around technology and energy supply mean the costs to build and operate distributed energy resources are rapidly decreasing. All signs point to increasingly advantageous economic conditions for microgrid owners for years to come.
But these trends are only one reason why microgrids make good economic sense. When the central grid experiences a power outage, a microgrid offers always-on power to reduce or avoid opportunity costs.
Microgrids offer price advantage by giving you the opportunity to power your operation with low-cost clean fuel sources – and to avoid the sometimes significant expense of power outages. They also increase your power quality. Poor power quality, which can cause a range of problems from flickering of lights to early burn-out of motors, costs the US economy $15 billion per year.
- ● Businesses lose minimal inventory or commerce
- ● Research facilities can protect temperature-sensitive work
- ● Continuous processes such as oil and gas production face no interruption
- ● Data centers and cell phone towers continue up time
- ● Governments can maintain emergency services to protect lives
- ● Communities are spared the wage and revenue losses that come with prolonged outages