Now is a good time to talk about Micro-grids

Now’s a good time to talk about Micro-grids

Hurricane Sandy has dealt a harsh blow to the northeast in loss of human life, property, infrastructure and sustained damage to the centralized electricity grid. In the wake of the devastation it is important that the northeast population familiarize themselves with Micro-grids and renewable energy parks. Understanding what they are and how they have been successfully employed is the first step.

A Micro-grid is a distributed power supply providing electricity for a small number of ratepayers.

A renewable power source is one generating from a renewable clean and limitless energy source like the sun or wind.

In their simplest forms, Renewable Micro-grids are local area networks built with a combination of solar PV, geothermal and wind energy. These micro-grids can be supplemented with some natural gas and biomass energy production. They are generally connected to the centralized grid but can operate independently in the case of an outage. Many states and countries have already illuminated a clear path to the successful use of micro-grids and renewable energy.

Distributed Micro-grids in commercial and open space settings in places like Westport CT could provide a long-term secure source for maintaining supply chains, safety, and security in the event of natural disasters.   

Close to home, Sikorsky is a stellar example of a progressive American company with respect to renewable energy. Sikorsky is its’ own Micro-grid with over 10 megawatts of renewable energy installed on their site in Stratford, CT. Renewable energy powers 85% of their 2 million square foot campus. As a side note, Sikorsky is also close to completion the worlds first zero gas helicopter. Now, that is awesome!

We should expect our legislators to look for successes which to follow. Germany, Vermont, Mass and California are a few examples of enacted laws with proven success in the renewable space. Germany derives 40% of their power from renewable sources showing a clear understanding of scarcity and security dynamics as well as environmental impact. Your local legislature should be encouraged to look to replicate the success of the structures in place in these environments. Regulation has been holding development of renewable energy parks back until recent years. But,.

The trend is your friend. Microgrids are expected to increase production 5 fold over the next 6 years from about 1GW to 6GW of energy production representing $4 billion in energy revenue. Grid tied renewable energy installations are seeing good growth numbers as well.  

Many people ask me how these projects can work economically speaking. They can be funded a number of ways from community or business sponsorships to public and private investor partnerships. Based on the current CT laws, sponsorship by the largest commercial property owners may be the best model, where local residences can also be included within the Micro-grid. Building owners can sign long term power purchase agreements with their tenants and homeowners and receive the federal tax credit as well (30% of installation cost). As stand alone private investments, renewable energy parks should be able to conservatively deliver 4-7% returns over long time frames (6-25 years). These advancements to our energy supply need to happen so I am confident they will. My hope is that our community, Fairfield County, CT takes up the reigns and begins the necessary march towards a distributed clean and locally owned energy supply.

To address security, safety, and environmental balance, renewable micro-grids are a necessary part of the solution.  

For more informations on Future Bright’s efforts with renewable energy investments, email ken@kencoulson.com