After the Storm: How Microgrids Keep Communities Open for Business

Written by Aaron Studwell for Industrial Info Resources (Sugar Land, Texas)

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Summary

Microgrids make grid systems more flexible and capable of absorbing the shock of the next hurricane, major wildfire outbreak or ice storm.

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More Than a Backup Generator

When the large-scale electrical grid fails after hurricanes, wildfires or ice-laden winter storms, microgrids can operate on an "island," generating and managing local power until bulk transmission is restored. That combination of local generation, intelligent controls and storage is what makes a microgrid more than a backup generator; it's a miniature power system that can operate both connected to and independent from the main grid, lowering emissions and costs in blue-sky times and supplying critical loads when everything else goes dark.

Industrial Info is tracking 110 microgrid-related projects in the U.S., worth $4.5 billion, across a wide range of industries. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can view the project reports.

Recent events underscore these stakes. In late October, Hurricane Melissa decimated Jamaica's infrastructure; eastern Cuba and southern Haiti were also impacted. Melissa was the strongest hurricane to strike Jamaica in recorded history, knocking out power to hundreds of thousands and severing access to essential services. Jamaican Prime Minister Andrew Holness has said that this catastrophe caused damage to homes and key infrastructure roughly equivalent to 28% to 32% of last year's gross domestic product, equating to US$5.6 billion to US$6.4 billion.

Holness and the Jamaican government estimates that the country's short-term economic output could decline by 8% to 13%. These impacts serve as a harsh reminder that on their own, centralized systems leave communities exposed to a single point of failure.

Microgrids, by contrast, distribute risks. When properly sited, a hospital, water plant, grocery distribution hub and communications center can keep the lights on, along with refrigeration, pumps and routers, which in turn speeds humanitarian response and economic recovery.

In areas prone to landfall hurricanes, solar-plus-battery microgrids have become the backbone of resilience hubs--churches, schools and community centers equipped to provide cooling, device charging, refrigeration for medicines, and information when the grid is out. According to the Rocky Mountain Institute, a non-profit organization focused on clean energy solutions, configuration of power generation and storage have been implemented across the U.S. Southeast and could be first stage of community resilience networks.

After Hurricane Helene (2024) flooded western North Carolina and isolated towns for days, distributed solar and batteries provided lifelines to some regions, while it was notable that they were missing from others. Duke Energy's (Charlotte, North Carolina) Hot Springs microgrid and other microgrids maintained some local service, while roads and transmission corridors were compromised. This outcome highlights microgrids' efficacy, prompting larger questions about how many such systems should be embedded in utility resilience plans.

Those lessons translate into policy and dollars: North Carolina has since funded a "beehive microgrids" model, permanent hubs plus portable units, to seed resilience across vulnerable communities. This initiative is a resilience-oriented program that includes two mobile "beehive" microgrid hubs, which are large shipping-container-style units with solar panels and battery storage, which will be deployed across the state. Additionally, there are 24 permanent stationary microgrids across six affected counties.

These mobile units are intended to function not only during acute emergencies (providing power, communications, water treatment or refrigeration), but also under "blue sky" conditions for community resilience and grid support. What remains is site selection, ownership and operations models, with full deployment expected by mid-2027.

Similarly, areas susceptible to wildfires experience similar risks, and microgrids can be a solution in these regions. To avoid sparking blazes, utilities increasingly use public safety power shutoffs that de-energize long rural lines during red-flag wind events. Community microgrids can keep towns powered during these preventive outages, using renewables and storage to maintain essential loads.

The same architecture pays off in winter: during ice storms or Arctic outbreaks, batteries smooth generator performance, prioritize heating loads and manage fuel demand, while controls stagger starts to avoid cold-load pickup surges that can trip systems as feeders re-energize. Researchers at National Renewable Energy Laboratories point out that microgrids, especially when coordinated regionally, can become building blocks for a more resilient grid during high-stress events.

Microgrids are not a cure-all, as they require upfront capital, careful asset sizing and ongoing operations and maintenance. Facilities need space for solar, safe sites for batteries or engines, and interconnection agreements. Fuel logistics can impact design, implementation and operations. A diesel-only design offers a solution, but it risks running dry if roads are blocked. Hybrid systems--comprising solar, storage and limited high-efficiency generation--offer longer endurance and cleaner operations, though they may be limited by weather conditions.

Despite those hurdles, the practical advantages are compelling. A grocery distribution warehouse with a solar-battery-generator microgrid can keep cold chains intact after a hurricane; a coastal water utility can maintain pressure and treatment through a blackout, preventing boil-water advisories; a cell-tower cluster or public safety complex can stay online even when backhaul power fails. Research conducted by the Rocky Mountain Institute shows that well-designed systems ride through faults and then resynchronize smoothly, minimizing downtime and damage.

The blueprint is clear: identify critical loads, right-size hybrid resources, and embed these projects in broader utility and emergency plans. Microgrids don't replace the grid; they make them more flexible, capable of absorbing the shock of the next hurricane, the next major wildfire outbreak or the next ice storm.

Key Takeaways

• Microgrids can operate on an "island," generating and managing local power until bulk transmission is restored.
• In areas prone to landfall hurricanes, solar-plus-battery microgrids have become the backbone of resilience hubs.
• Microgrids can provide power, communications, water treatment or refrigeration in times of emergencies.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).