Is it more economical for microgrids to build around the grid or wait for the grid to catch up?
That’s one of the ideas I’ve been pondering since talking with Xendee’s Michael Stadler in this Energy Changemakers podcast conversation leading up to the June 8-10 University Week, a free virtual gathering focused on the latest market and technical influences shaping microgrids.
Stadler and I talked about where the microgrid market is headed and why industry stakeholders need to work together to capitalize on the opportunity.
There has been so much change.
Microgrids continue to bring resilience to communities, businesses and military installations. But data centers are creating a new and different kind of opportunity. Their need for power is unprecedented, and they’re seeking it at a speed utilities often can’t match. That puts microgrids squarely in the conversation.
What’s striking is the scale. Not long ago, many microgrid projects were measured in hundreds of kilowatts. Today, developers are discussing projects in the hundreds of megawatts, sometimes approaching a gigawatt.
Also striking is that some data center microgrids — even large ones — are being planned without a grid connection.
Stadler worries that the rush to build could lead to shortsighted decisions. He argues that long-term planning matters, particularly when it comes to technology choices, efficiency and how these systems evolve over time.
Meanwhile, utilities face a choice: view microgrids as competition or treat them as grid assets. This is especially true where microgrids begin to cost less than major grid upgrades.
“At some point, utilities will have to make a decision if they’re part of this game or not,” Stadler says.
Xendee chose a good time to launch University Week. The industry needs a non-commercial place to come together and figure out this new landscape. Developers, technology providers, financiers, researchers and utilities all have a stake in where the market goes next.
“If we don’t work together, we will have a challenge here,” he says.
