Navigant Research Blog

Plug-and-Play Microgrids, Here and Now

Peter Asmus — September 22, 2016

Power Line Test EquipmentOne of the primary challenges facing the microgrid market today is the perception that each project is unique and therefore requires significant customized engineering. In fact, dozens of microgrids never seem to make it past the feasibility analysis phase due in part to this predicament.

While it is true that very few microgrids are exactly alike and therefore the idea of cookie-cutter configurations seems next to impossible, there are vendors now offering products and services that are moving the market much closer to a plug-and-play paradigm.

Case in point: Tecogen. The company manufactures the InVerde, a small natural gas engine often deployed as a modular 100 kW combined heat and power (CHP) unit that comes embedded with the Consortium for Electric Reliability Technology Solutions (CERTS) islanding software. String a few of these CHP units together (as the Sacramento Municipal Utility District has done) and presto—you now have a simple microgrid. The inverter that comes with the InVerde technology enables islanding and can support multiple generators on the same microgrid, each one acting autonomously to maintain power quality by responding to load changes, managing voltage sag, and regulating current.

Energy Ecosystem

Navigant Research does not consider a single InVerde unit a microgrid, since it is powering up a single building and is only 100 kW in size. We would instead categorize such systems as nanogrids. However, even multiple InVerde units are not considered microgrids by some entities, among them the New York State Smart Grid Consortium. Regardless of what one calls such systems, nanogrid, microgrid, or whatever else, they do represent part of a new Energy Cloud 2.0 distributed energy resources (DER) ecosystem.

The argument that Tecogen is not a microgrid market maker is being challenged by a new product offering, the InVerde e+, which allows for the integration of both energy storage and solar PV (or small wind) into a single controllable entity by virtue of direct current (DC) bus. With this recent upgrade, Tecogen’s claim to enabling truly plug-and-play microgrids seems quite valid—and even more compelling.

In the United States, CHP (and the ability to create thermal energy) is key to the economic value proposition for microgrids. In fact, the ideal resource mix for a microgrid in the United States today is CHP, solar PV, and a lithium ion battery. If sized strategically, this microgrid configuration can be cheaper than utility costs in California and much of the East Coast today.

Tecogen’s InVerde units boast an impressive list of features, among them emissions equivalent to that of a fuel cell, 33% electrical efficiency (and 81% total energy efficiency), and the lowest installation costs of any comparable technology in its class. The biggest surprise? The cost of microgrid controls—embedded in each CHP unit—is zero.

Marketplace Gains

Even before the recent new offering, Tecogen had made impressive gains in the marketplace. It ranked fourth in terms of total installed microgrid projects globally in the latest version of Navigant Research’s Microgrid Deployment Tracker. In last year’s Leaderboard report ranking microgrid developers/integrators that offered their own controls platform, the company ranked fifth.

Tecogen is not the only vendor moving the market toward plug-and-play and interoperability. Spirae and Blue Pillar have made important strides in this direction from an independent controls perspective. In addition, Duke Energy’s Coalition of the Willing is also moving forward to develop a common interoperability framework for microgrids, focused on so-called Open Field Message Bus (Open FMB) communication standards.

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