Most microgrids are not off-grid islands. They are grid-connected. The grid connected microgrid market is the largest segment, enabling economic and reliability benefits.

Operational Modes

The [LSI keyword: grid connected microgrid market] operates in two modes. Grid-connected mode (normal): the microgrid is synchronized to the utility grid. It may import power, export power, or be "net zero". The grid connected microgrid market for "net zero" operation (generating as much as it consumes over a year) is common. Island mode (emergency): when the grid fails, the microgrid disconnects (using a static transfer switch) and operates independently. The grid connected microgrid market for "islanding" capability is a key feature. The grid connected microgrid market for "seamless" transition (less than 100 milliseconds) is required for sensitive loads (data centers, semiconductor fabs). The grid connected microgrid market for "black start" capability (starting up without grid power) is needed for islanding.

The grid connected microgrid market for "peak shaving" (reducing power draw from the grid during expensive peak hours) is common. The grid connected microgrid market for "demand charge" reduction (using batteries to shave the highest 15-minute peak) can save significant money. The grid connected microgrid market for "arbitrage" (charging the battery when electricity is cheap, discharging when it is expensive) is used in time-of-use (TOU) rate structures. The grid connected microgrid market for "export" (selling excess solar power to the grid) is limited by net metering rules.

Grid Services

The grid connected microgrid market can also provide services to the utility. Frequency regulation: the microgrid can rapidly adjust its generation or load to help maintain grid frequency. The grid connected microgrid market for "fast" frequency response is a revenue stream. Voltage support: the microgrid can absorb or inject reactive power to support grid voltage. The grid connected microgrid market for "ancillary services" is growing. The grid connected microgrid market for "demand response" (reducing load when requested by the utility) is well-established. As the grid connected microgrid market continues to evolve, the focus will be on "aggregated" microgrids (many small microgrids acting as a virtual power plant – VPP), on "transactive" energy (microgrids buying and selling energy in real time), and on "interconnection" standards (IEEE 1547). The grid connected microgrid market is not just about backup power; it is about optimizing energy costs and supporting the grid.

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