Transforming the power distribution economy
Here’s why the clean energy transition and tackling the challenges of today’s power grid depends on microgrids.
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Transforming the power distribution economy
Here’s why the clean energy transition and tackling the challenges of today’s power grid depends on microgrids.
As the world grapples with the increasing threat of climate change, the need for clean energy has never been more urgent. Yet, demand for always-on electricity is intensifying—and the U.S.’s aging electric grid is unable to consistently meet expectations. Currently, two-thirds of the U.S. electric grid is under threat due to extreme electricity demand and weather. In today’s increasingly electrified world, the challenge lies in maintaining the reliability of the power supply while shifting to greener alternatives.
“You don’t have to be a scientist anymore to understand that things are changing,” says Thomas McAndrew, founder and CEO for Enchanted Rock, an industry leader in electrical resiliency-as-a-service that powers companies, critical infrastructure, and communities to ensure operational continuity. “We have to find a path to clean energy.”
The most significant hurdle facing the clean energy transition is the intermittency of renewable energy sources, such as solar and wind, according to McAndrew. Research shows that there will be significant shortages of clean, reliable power supply to keep up with the corporate demand, which is critical for keeping businesses running, even during blackouts. Yet, existing diesel-powered backups are expensive and harmful to the environment.
“The question we are trying to answer is how do we ensure that the grid stays reliable?” says McAndrew. “The biggest challenge now is being able to stabilize these intermittent resources and continue along the decarbonization path.”
Microgrids: Supporting industries and resilience
While certain industries mandate emergency backup systems for safety, most don’t—due to perceived cost and complexity—and businesses are then forced to succumb to outages. When it comes to keeping businesses powered, microgrids are one viable solution. These self-sufficient energy systems use on-site energy sources to provide a constant, reliable power supply immune to the issues affecting the broader electrical grid. They can generate and store energy locally, which can help with efficiency, reliability, and resiliency.
“Enterprises nationwide are increasingly recognizing the value of always-on electricity—and are acutely aware of the physical, financial, and reputational hazards they face if the power goes out,” says McAndrew. “We are reimagining the way companies ensure business continuity in the face of grid failure.”
Enchanted Rock’s microgrids are natural gas–powered and fully managed by the Houston-based company. Its team of experts designs, installs, operates, and maintains the systems. As a result, customers benefit from a seamless service that ensures continuous power supply, even during grid instability or severe weather events.
“We can basically turn on our microgrids and respond to crises in a matter of seconds,” says McAndrew. “We fill the gap and provide stability by supplying what we call grid stability services and quick response capacity.”
In 2022, Microsoft partnered with Enchanted Rock to develop California’s largest renewable microgrid to ensure the resiliency of the technology company’s data center. The project, powered by renewable natural gas, will outperform current California Air Resources Board emissions requirements for distributed generation, the most stringent in the world, while delivering higher reliability than other backup power systems. This ambitious undertaking will help the technology company reach its goal of becoming carbon negative by 2030.
“We are making electrical resilience more accessible than it’s ever been,” says McAndrew. “Our customers can outsource everything to us. We built a natural gas microgrid commission to operate [these projects] over long periods of time, and we brought the price point down to a level that’s made the transition affordable.”
The road ahead
An increasing number of businesses are turning to microgrids to boost electric reliability, green their energy supplies, lower costs, improve efficiency, and better serve customers. A 2020 survey found that 44% of businesses said they are considering microgrids. But as the push toward clean energy continues, customer education and innovation remains critical for the widespread adoption of this technology and ultimately reaching net zero.
“We are making a lot of progress,” says McAndrew. “We have to transition away from fossil fuels; we have to retire these older plants; we have to bring on a lot more renewable energy. It’s a big task. I think we are moving in the right direction. We are making progress, but there is a lot to be done.”