WINTER EDITION ENGINE ROOM 03 SPOTLIGHT ON MICROGRIDS Global energy storage for microgrid power capacity is expected to grow by over 1,200% in the next decade. Driven by: the desire to improve the resilience of the power supply, the need to expand reliable electricity service to new areas, rising electricity prices, innovations in business models, and financing. SOURCE: NAVIGANT RESEARCH* 238.4 MW 3,291.8 MW Microgrids are a very important energy supply solution in Australia. In particular, they provide a smart option for remote communities, those on the fringe of the grid due to vast distances, and to support extremes in temperatures and the increasing number of unexpected weather events. All these elements place highly variable loads on our grid systems. There are now more options for energy distribution via solar, wave, wind, waste and energy storage projects; and in a hybrid microgrid, renewable sources of energy can account for any percentage of the load depending on conditions. Excess energy produced by renewables is stored for stabilisation as well as for use during unfavourable conditions. In addition, Cat® gensets supplement the system by powering the microgrid when other energy is unable to be produced. Although not essential for their operation, the integration of renewable generation into microgrids highlights the benefits of an energy storage system. For example, when a microgrid is in a grid-connected mode and connected to an energy storage system, it has the ability to assist with demand charges through peak shaving. While microgrids are in their early stages in Australia, EPSA and Cat® are proud to be part of hybrid microgrid solutions that incorporate renewable resources and in combination with traditional power generation. These initiatives result in lower electricity costs for industries, businesses and communities. *Navigant Research, Market Data: Energy Storage for Microgrids.