After a lot of attention of few years ago, it seems to me that microgrids are seeing a resurgence of interest in the electric utility world.
This month, the California Public Utilities Commission announced $200 million for utilities to invest in multi-customer microgrids. The state's Big Three utilities benefited the most, with Pacific Gas & Electric taking about $80 million, Southern California Edison receiving about $83 million, and San Diego Gas & Electric receiving about $18 million. PG&E's VP of engineering said he expects "several additional large-scale, community microgrids" to be deployed throughout northern and central California over the next several years.
Of course, when it comes to microgrids in the U.S., California has long been a leader. Recently, however, microgrids have been picking up wins across the U.S. Puerto Rico was devastated by hurricanes at the end of the 2010s, but the real disaster occurred in the hurricane's wake: thousands left without power, or running water, especially in rural mountainous communities. The lack of power left hospitals without critical resources, leading to the deaths of thousands. Now, that island state is looking toward microgrids as a critical piece to protecting its residents during future natural disasters.
The U.S. DOE also recently invested nearly $20 million to help Colorado develop. microgrids, and the U.S. military is deploying microgrids on its domestic and foreign bases to not only decrease carbon emissions but to assure resilience in cases of power emergencies. It plans to have microgrids on every base by 2035. The flexibility and independence offered by microgrids are something the military, especially, cannot turn away from.
In a recent interview with Microgrid Knowledge, Bobbie Dillow-Walsh , VP of commercial development and sales at Block Energy, said the company is seeing a surge in microgrid orders from across the U.S. Dillow-Walsh attributes this to U.S. President Joe Biden's Inflation Reduction Act, which offers a 30% investment tax credit on microgrid purchases and installations as they offer a route out of fossil fuel dependence. This kind of financial help has made the steep cost of microgrids more manageable at the utility level and beyond. John F. Kennedy Airport in New York City is working to install a microgrid to help it avoid costly power outages at its Terminal 1. In Maryland, a small municipality turned to microgrids to back up its public transit bus depot.
The desire for microgrids is only going to grow, and although costs are falling for deployment, government incentives will be critical to expanding their use. As climate change raises the likelihood of damaging and devastating storms throughout the U.S., microgrids could soon become a central part of the country's energy resilience. As I mentioned before, it's already becoming a critical part of the country's military resilience.