What is a Microgrid Load Controller, and What Can It Do for Your Business?

In our last post “What is a Microgrid?” we discussed that microgrids come in different variations but noted they all have in common a single goal: the provision of reliable electricity supply. Some microgrids serve isolated communities, but increasingly they are now found embedded within larger power grids in populated communities. Just as is the case in a larger utility grid, supply and demand must always be in balance. In this post, we will focus on the demand (or load) side of the equation, and how advanced microgrid software can help you manage costs.

?The essential function is survival

When the utility grid goes down, a responsive microgrid immediately swings into “Go mode,” bringing up required supply resources while also curtailing non-essential demand to create a new supply-demand equilibrium. That response is necessary in order for a facility to continue operating.?

?There’s surviving, and then there’s thriving

It’s one thing to survive a grid outage event and ensure mission continuity. However, a well-designed and engineered microgrid can do much more than partition off from the failed grid and hunker down for a given duration. State-of-the-art microgrids can also oversee the entire customer electricity ecosystem during normal hours of operation and optimize end-use consumption, thus managing exposure to costs.

?The majority of costs on your utility bill are concentrated in two key areas: energy and demand. Energy is defined as the total consumption over a billing period (measured in kilowatt-hours), while demand is determined by the highest level of instantaneous consumption occurring over a specific interval (usually 15, 30, or 60 minutes) during that same billing period. Load controllers within smart microgrid systems constantly monitor exposure to both energy and demand and take subsequent actions to minimize costs.

?Optimizing efficiencies

Microgrid load controllers may include specific modules managing each aspect of consumption. A cloud-based Energy Management System (EMS) generally optimizes for efficiency by evaluating total usage, as well as relevant ambient information that affects the operating environment, such as temperature and humidity. The EMS then looks for ways to increase operating efficiencies (if prices are time-differentiated by Time-of-Use rates during different periods during the day, it may be programmed to optimize for those costs as well). That’s easier said than done, as the system must connect to, and communicate with, a potentially large variety of devices from numerous manufacturers. Creating the interoperability among those various devices and communications protocols - so that they can all “talk to each other” - can represent a big challenge.

?Managing peak demand

An advanced and fully integrated microgrid may also have a Peak Management System that evaluates each device’s contribution to peak demand and directs operational changes based upon utility cost structures. In some utility markets, demand charges may represent as much as 30% to 60% of the entire bill, so continuous remote monitoring and management of peak consumption can have a significant impact on the bottom line. In a typical building or other type of facility, various loads may come on without any consideration as to what else may be consuming power at the same time. That level of independent “anarchy” often drives unnecessarily high spikes in consumption.

? Independent loads can be coordinated and managed

HVAC Managed Loads LinkedIn?

That peak can be brought under control by evaluating each of the separate loads and schedules, constantly determining which ones can be manipulated - either phased in, cut back, or shifted to another time period – and taking action accordingly.

?A typical example might be a case where air conditioning (AC) load may coincide with demand driven by other energy-consuming devices. The controller will determine which end-uses are flexible and make changes based on a series of trade-offs. For example, it may determine whether equipment operating schedules can be shifted, or temperature setpoints can be temporarily raised to reduce AC load.

?Integrating that level of intelligence into the equation is like bringing a conductor to an orchestra. We’ve all heard what it sounds like when each player is tuning up the respective instruments when the orchestra is warming up – it’s just uncoordinated noise.?But when the director steps up on the stage with a baton in hand, something quite different results.

Managing load intelligently – music to one’s ears

This complex task involves forecasting (for example, what temperature and humidity are expected during the remainder of the day) and the inclusion of numerous variables and preferences to make the decisions that lead to desired outcomes. Not surprisingly, the most advanced controllers typically include self-learning software and artificial intelligence.

?Keeping the facility operator in the loop

While this orchestration takes place continuously without human intervention, the facility operator remains in the loop. That individual is able to see what’s going on in real-time while also accessing various customized reports including budget information, projected future usage, and verification of savings.?State-of-the-art microgrid software will also provide equipment alerts, based on schedules, or detected anomalies (for example, unexpectedly high energy consumption in a chiller relative to its output). This often allows operators to fix or replace equipment before it breaks, which could result in higher replacement costs or downtime.

Reliable and economical

When we developed our solution at SolMicrogrid, we started with the premise of reliability as the critical offer our customers needed. But we knew that the ability to manage costs was also important. So, we specifically built the solutions-set described above into our offering. After all, why settle for just reliability when you can have both a reliable and more cost-effective solution?

?Action items:?

?1.?????Evaluate the exposure or your operations to power outages, both in terms of frequency and economic costs?

2.?????Evaluate your energy and demand costs and review your equipment operating schedules

3.?????Consider the potential for microgrids in both providing reliability and lower operating costs?

?Economically yours,??

?Matt Ward and Joyce Bone – Founders, SolMicroGrid?

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