There is a new way of planning for smart grid design and engineering called a microgrid. A well engineered microgrid generates an adequate amount of energy to meet the power requirements of the end users within the microgrid. A microgrid could be a prison, army base, community, university or college, or other local requirement. An intelligent microgrid is the most efficient and economic way to manage and supply energy to any local user base. Economic and climatic advantages to smart grid users is increased while minimizing energy loss through transmission over long distances. Further cost benefits are attained through intelligent use of electrical power and more distributed electrical generation.

Increased revenue: Being able to manage electrical energy use in a real-time model allows utilities to save electrical energy by controlling demand response, pricing response, voltage support, capacity support, and spinning reserve which can result in substantial revenue growth. Next generation smart microgrids equally support revenue streams from distributed electricity production, plug-in electric motor vehicle loads and renewable energy carbon credits.

Reduce costs: Smart microgrids are more dependable and can help consumers and companies in the US save approximately $150 billion per year in costs lost due to electrical power blackouts. Neighborhood generation can minimize peak power costs and the microgrid enables consumers to procure energy in real-time at substantially lower costs. Local energy production is much more efficient and reduces transmission losses, particularly when power rates have reached their highest.

Decreases carbon footprint: A local power power generator can be wind or natural gas powered. Often microgrids can recapture waste heat from the natural gas for various other uses for example heating facilities, cooling or even refrigeration (by way of absorption chilling), domestic hot water and sterilization. Smart microgrids have the flexibility necessary to use numerous energy sources like wind and solar. These types of efficiencies all contribute to a lower carbon dioxide footprint

Economic benefits: Microgrids can supply new job creation at the local level and new business ventures for businessmen. Enhanced local investment through microgrid investment capital and local expenditures on grid equipment and integration of other smart technologies all contribute to local economic growth.

Greater stability: Local power production and storage allow portions of the grid as well as essential services to operate independent of the larger grid when necessary and thus solve blackouts. Innovative technology can automatically repair and even predict electrical power disruptions. Microgrids can also feed the larger power grid when power demand together with cost are highest by providing power from renewable methods.

Can easily embrace future changes: One of the biggest benefits of smart microgrids is the fact that they are far better positioned than the centralized grid to interact with the known and unknown requirements of the future. As compared with being forced to wait for power companies to build centralized power plants, microgrids can augment the overall power supply quickly and economically through relatively small local power generators such as solar panels and wind generators.

In conclusion, smart microgrid technology empowers consumers, promotes future electrical energy breakthroughs and activates entrepreneurial free-market investment.

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