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Released August 23, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Microgrid projects are on the upswing, as power users look to curb brownouts and blackouts, reduce costs and enhance security.

The U.S. has focused on what can be done to minimize damage caused by natural disasters to infrastructure, governmental entities and businesses. Efforts are underway to reduce the costs of lost time and production caused by blackouts and brownouts, and to cut the cost of power generation within industrial sectors. In addition to all that, cities and counties are looking for ways to insure safety and security by keeping services and first responders online.

As such, microgrid integration is playing a larger role. Among others, the federal government, namely the U.S. Department of Defense, is looking to implement microgrids. Microgrid components are also being used to generate onsite power not only for hospitals and municipalities, but also for colleges and data centers.

Generally speaking, a microgrid is a small network of electricity users with a local source of supply that is usually attached to a centralized national grid, but is able to function independently.

There are four types of microgrids. First are campus environment, or institution microgrids, which call for the integration of onsite generation to be coupled with loads that are co-located in a campus, industrial park, town center or institutional setting. These usually are connected to the main grid. These types of microgrids usually generate between 3 megawatts (MW) and 35 MW, depending on the number of assets that are coupled or connected.

The next microgrid classification is remote "off-grid." These grids have no true attachment to any transmission or distribution system from the outside. These are usually seen in countries like Nigeria, India, Congo or regional designations such as Alaska or Yukon, where there are great distances between established generation assets and villages or townships.

The third form is military base microgrids. These are used to generate power for military facilities within the U.S. and across the globe, even in hostile locations. The microgrids offer an extra layer of security and protection for the military.

The fourth and final type has two parts, including commercial and industrial configurations. In commercial configurations, a series of commercial facilities integrate within a region, with capabilities of roughly 300 kilowatts or even less, all the way up to 20 MW. The second type involves industrial processing complexes, such as the one in Deer Park, Texas, where power losses can have severe consequences.

There are variations of these microgrids around the world. In the U.S., an increase in spending is being seen. Currently, the U.S. has about 180 microgrids that generate 2 gigawatts. Power generation via microgrids is forecast to increase to about 5 gigawatts by 2020-2021. The microgrid market is expanding by leaps and bounds. It was estimated to be $900 million as of last December, and is projected to reach $3.5 billion by 2021.

And with utilities now looking at microgrids as a source of additional generation, the dispatch applications are quite exciting for them. Microgrids have caused an increase in the utilization and installation of reciprocating internal combustion units, as well as smaller gas turbines being used in a combined heat and power scenario. Microgrids also integrate renewable energy sources and energy storage applications. In 2016, there were about 10-15 MW of solar generation that had been integrated within microgrids. Energy storage is another cornerstone of microgrid integration.

Depending on its size, a microgrid can run in the lower generation range of about $250,000, up to $100 million and more, depending on the integration demands, and generation assets that need to be installed or integrated. Integration of assets is a major factor because microgrids typically are not grassroot, or greenfield, projects.

Microgrids are relatively new to Industrial Info's tracking system, but new projects are being incorporated into the database. Industrial Info is currently tracking about $3 billion in U.S. microgrid project activity. Examples include the Parris Island project in South Carolina, the Groton Naval Submarine base project and the Newark, New Jersey, Transit Authority project.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
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