Energy IQ: What is a microgrid and how microgrids work

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Whether it is through homeowners that install rooftop solar panels or businesses that invest in wind farms, more of us will access electricity through decentralized technologies than direct connection to the grid by the mid-2020s, according to Bloomberg NEF. While most of us translate this outlook to simply implementing more solar panels and wind turbines, that is only half the story. Decentralization has much more profound impacts in our society, including presenting consumers and businesses a choice. A choice to decide how to source their energy needs. Decentralized technologies help enable that consumer choice.

Microgrids are a key part of these decentralized technologies. The term Microgrid can be intimidating, because it may mean different things to different people, so let’s break it down and highlight some of the benefits.

Let’s cover four common questions and answers about living on microgrids to boost your energy IQ.

No. #1: What is a microgrid?

Microgrid basicsA microgrid is a local energy system capable of producing, (potentially storing) and distributing energy to the facilities within the network. Microgrids can be made up of several different assets, also called distributed energy resources (DERs). Commonly used DERs to generate power are solar photovoltaics (PV), wind turbines and power generators. Energy storage systems, intelligent controls and management software are other elements of the system that provide further functionality to the microgrid. Microgrids can be connected to the centralized grid or completely off-grid and self-sustaining. With the obvious need for continuous, reliable power, healthcare facilities can be good applications for grid-connected microgrids. Remote mining sites that need a lot of energy, can be great applications for off-grid microgrids. 

No. #2: What is the difference between microgrids and centralized generation?

The difference can be summed up in two words;  Proximity and resiliency.

Microgrids are near facilities they power. On the other hand, electricity, in centralized power generation, is produced in central power plants that could be hundreds to thousands of miles away from facilities being powered. This proximity of microgrids reduces losses in energy transmission and the significant cost of installing new transmission and distribution networks.

Most microgrids deliver improved energy resiliency through redundant DERs, a combination of solar PV, natural gas or diesel power generators and energy storage systems. Depending upon the microgrid design, facilities can still be powered even if any of these DERs fail. In comparison, a failure in a power plant could put businesses in the dark.

No. #3: How does a microgrid work?

Intelligent controls and management software are at the core of microgrids. Many control systems can track the energy needs of the facility and determine how to supply the needed energy. These control systems consider and evaluate factors such as cost, fuel supply, weather and energy load required to decide which DERs to utilize.

As mentioned, microgrids can be made up of many different assets, these control systems are the key element to manage dispatching the best asset based on these factors. Finally, some microgrids also feature energy storage systems to capture the energy produced at one time for use later.

No. #4: Why do we need microgrids?

Sustainability

As more businesses focus on sustainability and deploy renewable energy sources such as solar PV, microgrids come to help by integrating these renewable sources into the energy infrastructure. These renewable sources become a physical part of the microgrid and the intelligent controls manage their utilization.

Economics

Microgrids feature intelligent controls that can help businesses save money and improve economics. These systems can monitor the cost of energy from different DERs and utilities, then make choices on activating the lowest cost option. They also maximize the contribution of different sources. For example, when the wind isn’t blowing, the energy storage system can be activated to utilize the energy stored from when it was blowing to meet the load. Microgrids also help businesses participate in demand response and demand charge management programs to lower their costs.

Resiliency

Microgrids improve the resiliency of the local energy infrastructure by adding redundant DERs, which provide energy to the businesses. For a grid-tied microgrid, this means local DERs, ranging from solar PV to power generators, can continue to power the businesses and facilities during a utility outage.

Cummins involvement in microgrids

Cummins is a leading provider of diesel and natural gas power generators, digital solutions and control systems; and has partnered with businesses ranging from greenhouses to healthcare facilities in their efforts to build microgrids. Recently, Cummins’ investments in energy storage and advanced microgrid control technologies has boosted its capability to provide critical microgrid components and deliver complete microgrids tailored for each business’ unique needs.

Microgrids will continue to play a key role in our energy future. Businesses can evaluate the relevancy of microgrids per their unique needs as a part of their broader energy management strategy.

Sign up below for Energy IQ to periodically receive relevant insights and trends about energy management. To learn more about distributed generation solutions Cummins offers, visit our webpage.

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Aytek Yuksel - Cummins Inc

Aytek Yuksel

Aytek Yuksel is the Content Marketing Leader for Cummins Inc., with a focus on Power Systems markets. Aytek joined the Company in 2008. Since then, he has worked in several marketing roles and now brings you the learnings from our key markets ranging from industrial to residential markets. Aytek lives in Minneapolis, Minnesota with his wife and two kids.

Cummins Custompaks are being used for water management as Thailand struggles with its water crisis

CustomPak on site

Water crisis

Sixty Cummins Inc. CustomPaks are in service in Thailand as part of a critical water management plan aimed at easing the country’s water crisis – a crisis that has caused enormous economic and social damage and stirred conflict among communities.

Over the past several decades, Thailand has continually faced water problems caused by severe drought. Water reserves in dams and reservoirs are insufficient while water resources are often contaminated with toxins caused by urban communities and the industrial and agricultural sectors.

Severe flooding is a threat, too, at a time when the realities of climate change are hanging over the country.

As a result, the allocation of precious water resources, which must be shared among various stakeholders including new and existing industry, large and small agriculture, and cities and villages has become a flashpoint.

Kittithanapat Engineering Co. (KTP), has been involved in the water management system since 1996, working closely with authorities such as the Royal Irrigation Department, Department of Water Resources, Bangkok Metropolitan Authority and others.

CustomPaks on site

600 hp CustomPaks

To help KTP meet its often urgent requirements, Cummins DKSH (Thailand) has recently supplied 60 Australian-built CustomPaks – 45 powered by Cummins’ X15 engine rated at 600 hp, and 15 powered by the QSL9 rated at 325 hp. These fully self-contained powerpacks are emissions certified to Tier 3.

The CustomPaks are coupled to hydraulically-driven, large-volume submersible water pumps sourced by KTP from US company Moving Water Industries (MWI); KTP is the exclusive distributor in Thailand for these MWI Hydroflo pumps.

Prior to Cummins’ involvement, KTP was using another diesel engine brand but service support wasn’t up to the standard required.

Long-serving KTP engineer Kittisak Thanasoot says Cummins DKSH’s reputation for technical and aftersales support along with the reliability of the Cummins product were a key reason behind KTP’s decision to specify the CustomPaks for the Royal Irrigation Department.

The ability of Cummins DKSH to respond to short delivery times was also important.

“Supplying large quantities of high horsepower diesel engines for emergency situations such as flash flooding can be a challenge for KTP,” says Kittisak Thanasoot.

“Responding to the needs of the government agencies to manage such problems in a timely manner and with least impact on communities, KTP has found the answer in our partnership with Cummins DKSH.”

Power, pride and passion

Parked semi truck

The switch back to Cummins power has been beneficial for iconic New Zealand company Uhlenberg Haulage. It's all about whole-of-life costs.

Uhlenberg Haulage is closing in on 60 years in business, having been founded in 1966 by Mike and Carol Uhlenberg.

Based in Eltham, Taranaki, in New Zealand’s North Island, the operation is today owned and operated by their sons Chris, Daryl and Tony Uhlenberg.

Describing the Uhlenbergs as “old school family truckies”, Daryl talks about the company’s time-honored journey with a definite tone of pride, especially the work of his parents in laying the foundations for what is today an iconic fleet in its own right.

Cummins Inc. made its debut in the Uhlenberg fleet in 1971 with an NH250 powering a second-hand Kenworth K923 used in logging. A second Kenworth, a new W924 with a Cummins NTC335, followed soon after hauling an LPG tanker.

The Uhlenberg operation today comprises 40 prime movers and a variety of trailing gear to cater for the myriad of a jobs the fleet is involved in.

A number of Peterbilts feature in the fleet although Kenworth is now the brand of choice with six new units to be delivered over the next 12 months to cater for business growth.

Cummins’ X15 Euro 5 engine rated at 550 or 600 hp is the preferred power specification, with 18 red engines currently in the fleet.

Uhlenberg family in front of truck

Whole-of-life support

“The switch to Cummins has been a very good experience for us. We have nothing but praise for the Cummins organization,” says Daryl.

“The whole-of-life picture is the key thing for us and we’ve got that nailed with the support we get from Cummins – parts availability, scheduled maintenance, life expectancy and in-frame rebuilds.

“So the red engines turn up, we run them to life, which is 900,000 to 1.2 million kilometers, and then Cummins does an in-frame overhaul in a timely manner. If there’s an issue, parts and support are close by.

“The support we get from Cummins Palmerston North is fantastic, second to none.”

Daryl recently looked under a Kenworth that was in the workshop for a service and was surprised to see no oil leaking from the one-million-kilometer X15. “I remember when I was a fitter we had to wear a raincoat when working under a truck,” he jokes.

Fuel agnostic

Acknowledging that the push to decarbonize is now “very real”, Daryl likes the idea of Cummins’ fuel agnostic concept where one base internal combustion engine, optimized to run on diesel, can also be customized to run on ultra-low and zero-carbon fuels like renewable natural gas and hydrogen.

“My father was a pioneer of linehaul trucking in New Zealand and he always embraced new technology. He was never scared of it,” he says.

“I tend to be a little more cautious but I can see where a 500 hp natural gas or hydrogen engine would work for us in short haul applications,” he admits. “We’re certainly willing to look closely at these alternative fuel technologies when suitable infrastructure is in place.”

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