9/17/2023 0 Comments Micro grids in remote villages![]() ![]() ![]() ![]() This is becoming known in modern day vernacular as Storage as a Service (SaaS). Energy services companies have also developed creative financing strategies where the assets can be “leased” by facilities or communities, thus offloading the risk of capital deployment and performance guarantees. The reality is that recent evolution of the battery market-mainly fueled by the electric vehicle market, which requires these same battery modules-has driven down the price of grid-scale battery storage to the point where they now make commercial sense in some applications, even without government subsidies. The classic example, which made headlines early in 2017, was a series of battery energy storage projects in California that eliminated the need to rebuild the Aliso Canyon gas peaker plant (a peaker power plant generally only runs when there is a high demand for energy). There are some examples of this in the US, where a 48 MWh battery energy storage system was installed on the Island of Nantucket, Massachusetts, to defer construction of an underwater transmission line, or where a 2 MW / 8 MWh battery was installed in Arizona to defer construction of a 20-mile transmission line. Microgrids can be a way to accelerate the local delivery of power to communities that wish to reap the economic benefits of this fast-moving energy economy. In addition, traditional transmission and distribution asset lifespans can be 40 years or more and may not be conducive to the fast-moving renewable energy sector, which needs to react quickly to government incentives and climate change programs. Utilities plan their distribution and transmission supplies based on load forecasts of known (and historical) community growth. It also may eliminate the need to run additional transmission or distribution lines to the community. During our presentation at Smart Energy 2018, we noted that the installation of a microgrid could defer or eliminate the need to increase substation capacities. ![]()
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