Understanding Microgrid Due Diligence

The U.S. energy storage capacity is expected to nearly double by the end of 2024! This significant growth is driven by the expansion of large-scale battery storage systems, which enhance the integration of renewable energy sources and improve grid reliability. Microgrids are at the forefront of this transformation, leveraging advanced storage technologies to provide flexible and resilient energy solutions, ensuring a continuous power supply to millions of homes and businesses. Microgrid due diligence is crucial for developers, EPCs, and project stakeholders. It ensures these systems' feasibility, efficiency, and reliability, helping to mitigate risks and optimize performance in increasingly complex energy landscapes.

What Is a Microgrid?

A microgrid is a cluster of electricity sources and loads that normally operates connected to the traditional grid but can disconnect and function autonomously as needed. Microgrids are becoming an increasingly important part of the grid, especially as we work to integrate more renewable energy onto the system.

Microgrids can provide several benefits, including improved grid stability and resilience, reduced greenhouse gas emissions, and lower electricity costs. But before you set up a microgrid, it’s important to do your microgrid due diligence. Here are five steps to keep in mind.

Step 1

The first step in conducting microgrid due diligence is to understand the purpose of the microgrid. What do you hope to achieve by setting up a microgrid? Resiliency? Emissions reduction? Cost savings? Once you know the purpose, you can better determine which microgrid configuration will work best for you.

Step 2

Identify and assess all potential microgrid sites. Not every location is suitable for a microgrid. You’ll need to consider factors like topography, grid connection, permits, and community support when choosing a site.

Step 3

Perform a feasibility study. A microgrid feasibility study will help you understand the technical and economic viability of your project. It’ll also give you a better understanding of the costs and benefits associated with setting up a microgrid.

Step 4

Develop a business plan. A microgrid business plan should outline the revenue model, cost structure, and financial feasibility of the project. It’s important to have a clear understanding of the costs and benefits before moving forward with a microgrid project.

Step 5

Choose the right technology. There are a variety of microgrid technologies available, and it’s important to choose the right one for your needs. You’ll need to consider factors like cost, efficiency, reliability, and compatibility when selecting a microgrid technology.

Microgrids are becoming an increasingly important part of the grid, and there are a number of things you need to consider before setting one up. By conducting the complete microgrid due diligence process, you can set up a microgrid that meets your needs and achieves your goals. At Pure Power Engineering, our team of power engineering experts excels in designing and implementing microgrid projects. For more information on our services please visit www.PurePower.com or email info@PurePower.com.