By Liam Johnson: Senior Energy and Carbon Analyst, Salix
Community microgrids are little known outside the world of energy, yet they are a fundamental mechanism in improving the way we consume energy and have the potential to decarbonise the grid one small community at a time.
A microgrid is a small-scale, local-power-based system that provides greater efficiency, reliability and sustainability when distributing energy. Microgrids can be independent of the main grid (off-grid) or incorporated and controlled by it (on-grid). Microgrids can range in size from a single home to a local community and normally contain a diverse range of renewable energy generators.
Microgrids can be operated independently of the grid and can provide reliable sources of power. They can also be a more resilient power source, allowing more isolated communities within the UK greater energy independence, and reducing vulnerability from extreme weather and wider grid disruptions. Examples of isolated communities include the Isles of Scilly who have removed damaging fossil fuel generators for cleaner wind and solar power, and the Orkney Islands who have harnessed tidal and wind power and integrated them into its microgrid. Paving the way for more energy-secure communities.
Microgrids are also more energy efficient than traditional grid infrastructure, this is because, with a microgrid, the community or building is able to reduce energy costs and lower carbon emissions by incorporating a combination of renewable energy sources and fuel storage solutions. This balance between distribution and storage means the introduction of microgrids are low impact making them more favourable in on-grid (connected to the grid) areas with limited capacity for connection.
A study by the UK Energy Research Centre also looked at the growing trend of Grassroots Innovations, of which microgrids are a part. According to the UK Energy Research Centre, there are roughly 3,000 community energy projects in the UK, the majority of which are fed by grassroots initiatives that help to create the localised, sustainable development of energy policy for the community. Microgrids offer the chance to give people control of their energy supply and enable choice of greener and cleaner power sources.
A notable example of this is the Brighton and Hove Energy Service which was created in 2013 and was initially set up to focus on investing in small-scale and local energy projects, such as microgrids. However, due to the unique nature of the service being run by and for the community, its responsibility goes beyond providing electricity or heat, instead also focusing on occupants’ needs for a brighter, warmer and liveable home. In the past few years, the service has installed a wide range of solar PV, LED and undertaken energy-saving surveys across 500 properties, according to a report released by UK Energy Research Centre. Post-project monitoring has revealed that Brighton and Hove Energy Service projects have saved building occupants more than £42,000 in savings, according to UK Energy Research Centre data. This has enabled Brighton and Hove Energy Service to support those struggling with increased energy costs.
A big part of the success of Brighton and Hove Energy Service was community fund-raising, if there is lack of initial investment this can setback the implementation of microgrids. In communities with limited financial investment from local authorities and businesses limited funding threatens to stifle any incentive to get projects off the ground. Microgrids can be a costly investment, especially if adapting newer technologies to be compatible with older, national grid infrastructure, creating headaches for designers, making planning, building and operating challenging.
Aside from integrating older and newer infrastructure, there are limitations on the size of these grids which are limited by their economies of scale. To set up something which is widespread it would take cross-partnership communication between energy providers, communities and regulatory bodies. The community would also need to internally train or bring in expertise to set up and run the microgrid, due to the unique circumstances of each site, every area will have specific issues and challenges when implementing.
Despite this however, these projects can be made possible through funding programmes such as the Public Sector Decarbonisation Scheme, through which Salix has supported a variety of wide-scale decarbonisation, from individual buildings to entire university campuses. Cranfield University is a good example, who’s top-down approach to decarbonisation has been supported by Salix and created the opportunity to work with local businesses such as Nissan and Luton airport.
Microgrids in the UK are just one piece of the puzzle on the path to achieving net zero emissions. They have the potential to change how consumers interact with energy. However, their growth presents new challenges that can be addressed through investment in innovation, leading to job creation in crucial sectors of the economy.
Liam Johnson is Senior Energy and Carbon Analyst at Salix. Salix’s role is to support the UK government in driving the transition to a low carbon future and meet challenging net zero targets. We deliver and administer grant and loan funding on behalf of the Department for Energy Security and Net Zero, the Department for Education and the Scottish and Welsh governments. This is delivered across the public sector as well as housing.
This article appeared in the September 2024 issue of Energy Manager magazine. Subscribe here.