In order to find relief from high energy rates, improve sustainability and decrease the risk of power outages, Connecticut businesses can look to microgrids, which are a growing trend throughout the state.
As opposed to the traditional electrical grid that delivers power across large regions — which in CT’s case involves power lines overseen by one organization throughout New England — microgrids deliver power on a scale as small as one user, with distributed generation assets located nearby. Microgrids also connect to the main power grid, so users can switch between the two as needed.
Wesleyan University — A Case Study in Microgrid Effectiveness
Over the past few years, Connecticut has rolled out a program to spur more microgrids by offering tens of millions of dollars in grants throughout the state, starting with a project at Wesleyan University in 2014.
With over $600,000 from a state grant, Wesleyan installed a $4.1 million on-campus, natural gas-powered generator system to provide electricity for an athletic center, according to the Hartford Courant. The system is even able to transfer the heat it generates as steam to then heat the athletic center, which all together saves the university an estimated $300,000 per year in energy costs.
Since the initial project launch, Wesleyan has expanded its efforts, such as by adding over 4,000 solar panels to its microgrid this past fall, which will power about 5% of the campus, reports the Courant. The university now produces about 85% of the power it consumes on-campus.
Why Businesses Need Microgrids Too
Organizations throughout the state can look at Wesleyan as an example of how they can benefit from microgrids.
In addition to saving the university money over time, the microgrid can also keep the university functioning in the event of an emergency, such as a natural disaster affecting the main power grid.
Since power lines are so interconnected across large regions, what happens in another state could ultimately end up affecting what happens in CT, so the microgrid offers some insurance that operations will not be interrupted. This factor can be very valuable for businesses that cannot afford any downtime, such as a hospital.
Plus, Wesleyan’s system exemplifies how microgrids can use a variety of power generation assets in combination, as is the case with their use of natural gas generators and solar panels. Thus, businesses that create less carbon emissions, for example, can use more renewable distributed generation assets, while those looking primarily to reduce energy costs can choose the most affordable option — or find some balance between sustainability and affordability.
Using EAS to Get the Most out of Microgrids
For businesses that do decide to install microgrids, even if it’s a small project that grows in power production capacity over time, they can turn to energy analytics software (EAS) to maximize the benefits they derive from these systems.
EAS allows organizations to better understand the cost and greenhouse gas emissions behind energy consumption, so they can know when it makes the most economical and environmental sense to switch between the main grid and their microgrid.
For example, a company that uses batteries to store energy could use EAS insights to see when costs from their utilities are most likely to spike, and at that time they can best capitalize on the cost savings of utilizing their microgrid.
While not every organization can receive state funding to help jumpstart these projects, it could still be a prudent investment, considering CT energy rates are among the highest in the nation, and the state’s energy policy is focusing on improving sustainability. So, by starting to look into microgrids now, businesses can create better alignment between their energy strategy and public policy while at the same time gaining more control over their own energy.
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