The current grids are old and approaching or at obsolete. We should consider micro grids. It would make the critical infrastructure much more resilient overall.
How Microgrids Can Keep America’s Lights On
The world is currently suffering an energy crisis driven by high temperatures, the war in Ukraine, and a removal of baseload power generation. States like California have faced rolling blackouts and calls from the state for citizens to not charge their electric vehicles. To address this issue, states should adopt the use of microgrids to increase power generation and provide in times of emergency.
Most states have a monopoly power company that serves a geographic area such as Entergy in parts of Louisiana or PG&E in California. Outside of a lack of competition for consumers, much of the current grid infrastructure has been pushed to a breaking point by recent spikes in energy demands. Microgrids operate outside this structure, providing energy —usually in the form of renewables or clean energy sources —to the small subset of the population or industrial zones that is not connected to the larger power company. Microgrids provide choice to consumers and increase power generation for the state and country as a whole which can be tapped into by the local grid in times of need.
Building more microgrids can address America’s current and future power crisis in two ways. First, customers of the microgrid won’t rely on the main power grid to power their homes or charge their vehicles. Large industries that can reduce their costs which will attract jobs and economic value to the local area. This can mean more consistent power during seasons of high demand, and possibly lower prices. It will also be used as a way to improve resiliency from cyberattacks or natural disasters.
Most importantly microgrids increase the total amount of energy generated, making them a key resource in times of high energy demand. Rather than asking people to only cool their house to 78 degrees or to avoid charging their vehicles, microgrids can supply more power to the main grid, increasing availability while demand is high.
As the Department of Energy wrote about microgrids, “A microgrid not only provides backup for the grid in case of emergencies, but can also be used to cut costs, or connect to a local resource that is too small or unreliable for traditional grid use.”
With all these benefits, why are there only roughly 450 microgrids across the United States?
Foremost, the economic feasibility of establishing a solid microgrid industry proves difficult due to the nature of microgrid energy production. Because the grids continue to generate power even in times of low demand (for example, in the middle of the night) grids might generate more power than customers need, leaving potential grid companies with excess power they cannot sell. This makes the economics of running a microgrid difficult.
Additionally, government regulations surrounding connecting a microgrid to the main power grid are often unclear, and the process would be costly. However, the combination of Bitcoin mining and sensible government reforms can address these issues.
Typically, microgrids have needed to sell back their excess power back to the main power grid in times of high demand to remain profitable. But Bitcoin mining has a constant need of energy and is capable of purchasing any excess generation. Bitcoin miners are an extremely reliable customer for the energy generated from the microgrid which means microgrids are no longer reliant on selling their excess power back to the grid. Bitcoin mining as a customer on a microgrid also means the microgrid doesn’t need a grid interconnect before they can begin operating.