What is a Microgrid?

A microgrid is a small subset of the electricity grid that provides energy generation (ie. solar and wind) and storage (batteries) at a local level. A microgrid contains a control system to manage and balance the electricity usage, storage and generation to maintain a consistent supply) to customers or the owner of the microgrid.

There are several different forms of Microgrids, each with unique characteristics and applications that produce different benefits. These include grid-connected, off-grid islandable or grid-tied and campus/industrial commercial microgrids.

Grid-Connected Microgrids

Grid-connected microgrids are part of the main electricity network and cannot operate independently as back up supply during a power outage. This type of microgrid is most suitable for:

• Enhancing grid stability with renewable energy through a central control system
• Integrating renewable energy sources (like solar or wind) into the grid at a lower cost
• Supporting net zero targets or renewable energy supply
• Reducing energy demand and energy costs.

Off-Grid Microgrids (also known as Stand alone Power Systems or SAPS)

Off-grid microgrids are an independent power supply system which operates in isolation of the main electricity network. This type of microgrid is most suitable for:

• Customers at the end of long, remote powerlines
• Remote islands or areas with no grid access
• Military bases or research stations
• Mining operations or off-grid communities.

Find out more about what we're doing with Stand Alone Power Systems (SAPS)

Islandable (Grid-Tied) Microgrids

Islandable microgrids combine elements of both grid-connected and off-grid microgrids and can switch between the two modes as needed.

This type of microgrid is most suitable for:

• Regional, rural and remote communities with intermittent grid supply
• Industrial complexes looking to optimise energy costs and resilience
• Integrating more renewable energy sources while maintaining grid stability.

Essential Energy took part in a transdisciplinary microgrid research project referred to as SµRF (Southcoast Microgrid (µ-grid) Reliability Feasibility) with ANU, exploring ways to bolster the energy resilience through Community Microgrids. See our Community Microgrids webpage for information.

Campus/Industrial Commercial Microgrids

Campus or industrial commercial microgrids service small localised areas such as universities, hospitals, and corporate campuses.

This type of microgrid often includes distributed electricity generation (solar, cogeneration) and an energy storage solution (e.g. battery) and is generally most suitable for:

• Ensuring reliable power for critical facilities
• Reducing energy costs and carbon footprint
• Research and testing of new grid technologies.

Further information

Read more on Exploring microgrids in the Australian context - Battery Storage and Grid Integration Program