If you think the term microgrid is still a bit fuzzy, you’ll be even more puzzled when it comes to the term nanogrids. While it’s safe to say that nanogrids are smaller than microgrids, there is a major disagreement as to whether nanogrids will scare the hell out of utilities or if they are actually already well-established and can flourish within the current regulatory environment.
The Navigant Research definition of a nanogrid is: “A small electrical domain connected to the grid of no greater than 100 kilowatts and limited to a single building structure or primary load, or a network of off-grid loads not exceeding 5 kW, both categories representing devices capable of islanding and/or energy self-sufficiency through some level of intelligent distributed energy resource management or controls.”
The basic concept behind the nanogrid is simple: small is beautiful. Nanogrids are modular building blocks for energy services for current applications that range from emergency power for commercial building to the provision of basic electricity services for people living in extreme poverty. Nanogrids typically serve a single building or a single load. Because of their simplicity, the technology requirements for nanogrids are less complex (in most cases) than either microgrids or the utility-dominated smart grid.
Tiny Grids, Big Business
Ironically, nanogrids are big business. While microgrids (as described in Navigant Research’s report, Microgrids) exhibit exponential growth and share synergistic properties with many nanogrid segments, substantial deployments of nanogrids are already in place, as they actually face less technical and regulatory barriers than their microgrid counterparts. For example, Navigant Research’s Nanogrids report finds that the market is already worth $37.7 billion today and it represents capacity almost 10 times larger than the projected size of the current microgrid market.
Lawrence Berkeley National Laboratory (LBNL) asserts that nanogrids never encompass any forms of distributed generation and never interact with the larger utility grid ‑ two criteria that Navigant Research takes issue with. By that definition, every laptop, every car (even if powered by an internal combustion engine), and every universal serial bus (USB) drive is a nanogrid.
The business case for nanogrids echoes many of the same arguments used on behalf of microgrids. These small, modular, and flexible distribution networks are the antithesis of the economies of scale that have guided energy resource planning over much of the past century.
Here to Stay
Nanogrids take the notion of a bottom-up energy paradigm to extreme heights. Yet, one could argue they are less disruptive than microgrids in one very important way. Since nanogrids are confined to single buildings or single loads, they avoid many of the regulatory challenges that stand in the way of power-sharing microgrids, such as prohibitions regarding non-utilities sending power over public rights-of-way. In the developing world, nanogrids are often the only pathway to universal energy access, as dispersed residences often preclude networking. One could also take a contrarian view. For example, nanogrids foster a more radical shift to direct current (DC) power than microgrids, since their small scale can accommodate low-voltage networking.
Either way, nanogrids are already here to stay. New forms of distribution networking are clearly on the rise, whether one wants to call such platforms a nanogrid, a microgrid, or something else.
Tags: Distributed Generation, Microgrids, Nanogrids, Policy & Regulation, Smart Energy Program
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