Microgrids are localized energy systems that can disconnect from the traditional grid to operate autonomously. The ability of microgrid systems to disconnect (or “island”) from the traditional grid presents benefits of energy independence and flexibility, and, depending on the way they are designed, can be sustainable and cost-effective. Microgrids fill a niche that traditional grids struggle to fill, such as being designed with specific needs in mind and retaining reliable power during extreme weather events, cyber attacks, or other grid shutdown events.
On the day to day, microgrids can improve grid resilience while lowering electric bills. The “islanding” ability of microgrids ensures uninterrupted electric service when the rest of the grid may be interrupted. Furthermore, the proximity of microgrids to their customers eliminates the need for transmission lines, which charge costly fees and lose hard-earned electricity over long distances. The better resilience, efficiency, and cost-effectiveness of microgrids prove especially vital for vulnerable populations, who experience more service interruptions while paying disproportionately more out of pocket. In Boston, the bottom quarter of low-income households spend nearly a fifth (19 percent) of their income on energy bills. The autonomy of the microgrid allows for communities to implement renewable generation, such as community solar, which can improve the sustainability of their energy diet.
Microgrids demonstrate significant promise to improve the reliability, sustainability, and cost-effectiveness of electricity provision to communities of all types, finding niches in the gaps that traditional grid infrastructure struggles to fill. To learn more about microgrids and their benefits, drawbacks, and barriers to implementation, check out Applied Economic Clinic’s policy brief.
