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MGK Report Microgrids Data Center Energy
MGK Report Microgrids Data Center Energy
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Introduction
Data center power consumption has requirements, power efficiency, density, Consider this:
increased with the industry’s rapid delivery, and improved economics? ▶▶ Changing Legislation Is Helping
growth. As a result, data center and Transition to a Sustainable,
Microgrids and related smart grid
business leaders are tasked with delivering Low-Carbon Future
technologies offer the answer. As self-
much more power capacity while still A recent California state carbon tax
sufficient energy systems, microgrids are
retaining optimal efficiency levels. (AB32), the first program in the country
capable of serving discrete geographic
A recent U.S. Department of Energy report to take a comprehensive, long-term
footprints. These locations and
indicates that U.S. data centers’ energy approach to address climate change,
geographies include college campuses,
consumption has been steadily rising since is driving data centers to install on-site
hospital complexes, business centers, renewable generation for economic and
2000. Today’s connected world and heavy
or entire neighborhoods. environmental reasons. At the same
reliance on data center solutions are
a significant indication that this pattern time, some parts of California are now
mandating cleaner backup generators.
of growth is not slowing down.
Market strategies ▶▶ The Need for More Power Sources
This leads to some big questions: Will your
existing architecture support emerging
are built around the Peak demand for power, especially
during extremely hot or cold days,
power requirements, new data center capabilities of data continues to strain grid resources,
applications, and higher levels of density? spiking power prices—a situation
What about reliability? In a world where
center facilities. at times exacerbated by the addition
outages and downtime cost more than Changes around of intermittent renewable energy on
ever before, what are you doing to support the grid.
emerging power needs? Finally, how do governance, uptime ▶▶ New Requirements around
you keep these critical systems operating classification, Sustainability
more resiliently? Many organizations are trying to green
When it comes to resiliency, studies by
economics, and even their energy supply through bilateral
renewable contracts or green tariffs.
the Institute of Electrical and Electronics weather patterns ▶▶ Critical Uptime and Resiliency
Engineers (IEEE), the National Renewable
Energy Laboratory (NREL), and others
all impact facility The latest Tier 4 Uptime Institute
classification of on-site power
show that emergency diesel generators power delivery. generation means data centers need
tend to fail. In some cases, the average to be rated for prime power delivery.
downtime of these generators can be as
However, a microgrid is more than a ▶▶ Rise of the Superstorms and
high as 478.0 hours per failure. Is that Environment Impacts
something you can afford? Microgrids collection of energy resources. Advanced
microgrids are differentiated by their As superstorms and other severe
offer a much higher level of resiliency, weather disasters become more frequent
and they are better for the environment. ability to island from the central grid
during a power outage and activate and intense, the grid is prone to lengthy
Additionally, they offer better economics. outages. Many companies do not want
energy resources, all of which are done
To support critical data center (and even to be left without power if, for example,
intelligently without human intervention.
edge computing) operations, reliable wildfire threats cause power shutoffs.
Further, by leveraging data analytics and
power delivery is an absolute requirement. even machine learning, modern microgrids ▶▶ Living on the Edge
The rapid growth of these power-dense Distributed computing, like edge, is
support new security capabilities, simplify
facilities combined with the existing taking data center infrastructure where
overall energy management, and power
it is never been able to live before.
strain on the electric grid means that the data center autonomously.
In those sparse areas, reliable and
data centers need additional strategies
The industry is shifting to microgrid economical power delivery is often
to increase resiliency and decrease
solutions to support an ever-changing a challenge.
downtime. The challenge there is that
market that is more reliant on both the data This report will look at the convergence
some diesel generators come with serious
center and the power that feeds it. Market of the emerging microgrid market with
flaws, such as testing limitations and
strategies are built around the capabilities the mission-critical data center market.
higher-than-preferred failure rates.
of data center facilities. Changes around We’ll examine real approaches to
So, how do you keep up with the pace governance, uptime classification, mission-critical data center microgrids
of demand? How can you ensure that economics, and even weather patterns that are being adopted by multiple
your data center supports business all impact facility power delivery. end-users already.
Chapter 1
The Data Center and the Environment – We Can All Get Along
Today, the data center industry
consumes about as much power as
the entire global airline industry.
And, based on research from
the field, these levels of energy
consumption will only continue
to increase. Research studies
estimate that ongoing power costs
are growing at least 10% per year
due to cost per kilowatt-hour (kWh)
increases and underlying demand.
This power increase is especially
true for high-power density servers.
Approximately 10% of data center
operating expenditure (OPEX) is
power, and that number is likely
to increase to 15% of data center
OPEX within five years.
As more organizations place their
new IT systems into the data center
(colocation, hyperscale and private/
enterprise), energy efficiency and
procuring data center power are Image source: GENI.org
extremely important. And, they are
essential for multiple reasons. First,
data center administrators are working
in remote areas. Often, in rural areas, Look for the location with power stations,
hard to cut costs, but it is not always
working with reliable power solutions can substations, and electrical feeds to the
easy. Those same administrators are also
be a challenge. Moreover, environmental facility as well as redundancy throughout
working overtime to minimize fragmented
conditions in these locations, such as the delivery system. Also, research recent
management overhead and improve
storms, fallen trees, high winds, or intense area outages to understand the time-
infrastructure efficiency.
heat, do not help, either. Organizations to-repair for the utility provider. When
Consider this: need ways to support critical, ongoing working with critical infrastructure, it’s
operations at the edge and beyond. essential to understand the age of the
A recent report by the Natural Resources
equipment as well as the security and
Defense Council indicates that data center Before we go on, let’s examine today’s
redundancy metrics of the local power
electricity consumption is projected power grids and delivery systems.
grid. Take time to understand the regional
to increase to roughly 140 billion kWh
Power grid solutions and general power utilities, their capabilities and how
annually in 2020, the equivalent annual
that ties into the data center provider and
output of 50 power plants, costing power availability power source you are selecting.
American businesses $13 billion annually
When you are building edge, critical
in electricity.
infrastructure, or data center solutions,
But it is not just at the core data center it’s essential to understand the regional
locations where energy consumption power grid infrastructure. Just because
is increasing. Organizations are also a geographic area has access to ample
investing in distributed computing and power does not mean that the energy can
edge environments to support more users always be delivered to the data center.
and more use cases. These hyperscale data Further, it does not always mean you will
centers are commonly sited where power have multiple sources of reliable power
is the least expensive, which is frequently for a particular site.
In emergencies, there must be a plan for Operable Utility-Scale Generating Units as of November 2019
your redundancy and power availability.
Looking at the chart to the right, notice
areas with significant power sources
versus those areas that are poorly covered.
As the digital economy picks up steam,
there will be more initiatives to get more
people to connect into the cloud. And
these new clients of the cloud will require
reliable power sources. So, if you are in a
rural region and you only have one power
source, how are you managing redundancy
and efficiency? How can you ensure the
effective delivery of stable power to the
edge and beyond?
Or, maybe you’re in an urban area, and
you’re having some issues finding reliable,
redundant energy sources for your core or Circle area proportional to capacity (MW)
edge deployments. And, if these are critical
systems, such as healthcare, what can you 1 100 300 500 700
Unfortunately, extreme
weather events are becoming
more frequent, more intense, and more events with losses exceeding $1 billion (CPI-adjusted), and the yearly average
expensive. According to NOAA, in 2019, each across the U.S. The 1980-2019 of the most recent five years (2015-2019)
there were 14 weather and climate disaster annual average is 6.5 $1 billion events is 13.8 events (CPI-adjusted).
Ranking All 50 U.S. States by Number of Blackouts: 2017 Severe weather is one of the biggest
causes of power outages in the U.S., and
WA
Climate Central reports that weather-
VT NH
111
MT ND
11 21 related power outages are on the rise.
38
OR
17
MN In its analysis of 28 years of U.S. power
85 56
ID SD WI
83
NY MA outage data, Climate Central shows a
65 18 MI 165 RI 112
WY
17 155 PA
CT 13 tenfold increase in major power outages
IA 64
NE
NV 51
47
IL IN OH
134
DE
NJ
64
between the mid-1980s and 2012.
46 UT 158 6
CA 44 C9 71 69
438 94 KS MO KY WV VA
96
MD/DC
36
To combat these outages, organizations,
69 55 33 36
TN
NC governments, and regional power
OK 126
AZ
61
NM 67 AR 52 SC suppliers should look for reliable,
33 28 59
MS AL GA
56
alternative solutions, such as microgrids,
38 42
TX
192
LA to ensure their critical infrastructure stays
54
up and running. The U.S. Department
FL
79 of Energy (DOE) Office of Electricity
AK
19 already has a comprehensive portfolio of
201 and up activities that focus on the development
101 – 200 and implementation of microgrids
HI
19 51 – 100 to further improve the reliability and
25 – 50 resiliency of the grid. These microgrids
10 – 24
help communities better prepare for
0–9
Image source: Eaton future weather events and keep the
nation moving toward cleaner energy
strategies.
According to the Office of Electricity, the
In its analysis of 28 years of U.S. power outage data, microgrid program goals are to develop
scalable microgrid systems capable of
Climate Central shows a tenfold increase in major reducing the outage time of required
power outages between the mid-1980s and 2012. loads by more than 98% at a cost
comparable to nonintegrated baseline
solutions, while reducing emissions by
more than 20% and improving system
energy efficiencies by more than 20%
by 2020.
Extreme Weather is Causing More Major Power Outages
(major = at least 50,000 customers affected) The private sector is already adopting
microgrid solutions to help offset power
150
storms and severe weather requirements, create more resilient
systems, and improve the delivery of
cold weather and ice storms
120 essential services. However, not
hurricanes and tropical storms every microgrid is built the same. And,
tornadoes if you believe that microgrids are simply
Number of outages
30
Chapter 2
Why a Microgrid is So Much More than Just Backup Generation
We defined microgrids a bit earlier, but just United States Transmission Grid
as a refresher:
As a self-sufficient energy system,
microgrids are capable of serving discrete
geographic footprints. These locations and
geographies include college campuses,
hospital complexes, business centers or
entire neighborhoods.
If you look at the U.S. power grid, you will
see that it’s pretty big and sometimes
complicated.
According to the Environmental
Protection Agency (EPA), the electrical
power transmission grid in the U.S. is kV
115
made up of over 7,300 power plants. The 138
architecture includes nearly 160,000 miles 161
230
of high-voltage power lines, millions of 345
500
miles of low-voltage power lines, and
distribution transformers, connecting
Image source: FEMA
145 million customers throughout the
country. It is often referred to as the
A fundamental feature of a microgrid
largest operating machine in the world. Microgrids are smart, more
is its ability to island — meaning it can
Our primary grids bring electricity—along capable than a simple generator disconnect from the central grid and
with all of its comforts and conveniences— Rob Thornton, president and CEO of the operate independently and then reconnect
to everyone connected to it. It is great 105-year-old International District Energy and work in parallel with the grid.
until it breaks. Unfortunately, it breaks Association, often says that microgrids Whenever there is a significant storm or
too often. The grid is aging, exposed, and are “more than diesel generators with other natural weather event that has the
overcrowded, causing it to be especially an extension cord.” In other words, a potential to cause an outage on the power
volatile. Because it is all connected, a microgrid is not just a backup generation grid, the microgrid islands and activates
single down wire will disable and bring mechanism but should be a robust,
down another, creating a domino effect its on-site power generators. When
24/7/365 asset. Also, an advanced
that results in a massive outage. This the power outage ends, the microgrid
microgrid may provide grid and energy
power outage can then spread for miles, reconnects to the grid.
management services.
sometimes over several states. A microgrid controller gives the microgrid
Consider this list of microgrid capabilities:
When these all-too-common grid failures its islanding capability. Also known as the
▶▶ Produce on-site generation and,
occur, microgrids have the potential in some cases, thermal energy central brain of the system, the controller
to keep the lights on while offering ▶▶ Sell capacity, energy, and ancillary can manage the generators, batteries,
additional vital benefits. With that in services to the grid and participate and nearby building energy systems
mind, it is essential to look at what makes in demand response—activities that with a high degree of sophistication. The
a microgrid so different. create a potential revenue stream for controller meets the goals established by
the asset owner the microgrid’s customers by increasing
▶▶ Optimize energy resources to priorities or decreasing the use of any of the
set by the host microgrid’s resources—or combinations
▶▶ Manage load to reduce energy waste of resources. Therefore, an “on-demand”
and achieve superior efficiency power intelligence can be leveraged.
Microgrid adoption is
growing fast Annual Total Microgrid Power Capacity and Implementation
In general, the pace of microgrid installation Spending by Region, World Markets: 2019 – 2028
has picked up and is expected to grow
25,000 North America Europe $45,000
dramatically as distributed energy prices
Asia Pacific Latin America
drop and worries heighten about electric Middle East & Africa Total Spending
$40,000
reliability. In fact, Guidehouse Insights 20,000 $35,000
forecasts a $39.4 billion microgrid market
by 2028. $30,000
15,000
($ Millions)
Guidehouse expects global microgrid $25,000
(MW)
capacity to reach 20 GW by 2028, up from
$20,000
under 5 GW in 2020. The research firm sees 10,000
North America and Asia as the centers $15,000
of growth.
$10,000
5,000
There has already been a lot of adoption
$5,000
around a variety of use cases. You can even
find a 400-kW solar microgrid on Alcatraz 0 $0
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Island! According to the DOE, the island is
equipped with a solar-diesel hybrid power Image source: Guidehouse Insights
system that most visitors probably would
not notice. Its solar array sits on top of
the main prison building. It connects to a In addition to Alcatraz Island, there are Without reliable backup power, some
battery bank and power inverters that help several real-world use cases of microgrids California schools would have to pack
power the island, instead of relying solely impacting the way critical power services their research into a refrigerated truck
are being delivered. and transport it to remote facilities to
on diesel generators.
▶▶ Universities and colleges keep samples viable. Microgrids remove
College campuses are significant this challenge entirely.
users of microgrids. For colleges, this ▶▶ Cities
type of design makes a lot of sense. Cities are increasingly installing
First, the natural composition of a microgrids for “critical facilities,” such
college campus is a perfect set up for as hospitals, emergency shelters, police
microgrids because campuses already stations, and grocery stores—places
have many buildings close together. For that need electricity in a crisis. These
another, campuses often have research are called community microgrids.
facilities and campus housing for which
▶▶ Businesses
power reliability is crucial. For example,
In a digital economy, an outage or
The University of Texas at Austin houses
any extended downtime is very costly.
what is often described as one of the
Image source: Department of Energy And that cost only continues to rise.
most integrated and largest microgrids
According to a research study, the
in the United States. The university is
known for its premier research facilities, average cost of IT downtime is $5,600
which demand high quality, reliable per minute but can be as much as
power. The microgrid has saved the $540,000 per hour.
campus energy and money, and it has Many organizations have realized the
delivered with 99.9998% reliability over high cost of power outages and taken
the last 40 years. proactive action. For example, H-E-B,
Several universities in California also a Texas-based grocery chain with more
have microgrids or are considering their than 370 stores in the U.S. and Mexico
installation. In cases of emergency, such and $23 billion in annual sales, invested
Image source: Department of Energy as the California wildfires, universities in a microgrid project to protect them
are at risk of losing power to crucial from costly outages. H-E-B’s microgrids
research facilities, which could result in have saved them from several outages,
dozens of years worth of research and including those caused by Hurricane
experiments lost or destroyed. Harvey in August 2017.
H-E-B uses microgrids that utilize a 24/7 by the Uptime Institute, nearly one-third ▶▶ Shifting to green operations
Microgrid Network Operations Center of all data centers had an outage during In today’s world, going green is
(MNOC) to monitor the electric grid. As the study period. The study further essential. Microgrids can actively
Harvey made landfall on the Gulf Coast, noted that there was a year-over-year leverage a wide array of green power
the MNOC islanded H-E-B’s microgrids increase in disruptions occurring within technologies, including solar, wind, fuel
from Houston’s primary power grid, the data center. However, the increase cells, renewable natural gas, combined
and the stores received power from was not due to a computer virus or heat and power (CHP) plants, and
Enchanted Rock’s on-site generator malware attack. energy storage technologies. Even
system. Eighteen H-E-B stores received natural gas generators have far lower
full-facility backup for five consecutive Designed to work in emissions than traditional diesel
days during the storm, which enabled backup generators.
uninterrupted service to their grateful tandem with the grid, Microgrids also can intelligently
customers.
or in an island fashion, integrate renewable energy into the
▶▶ Healthcare energy mix. These microgrids are
Healthcare facilities require constant microgrids ensure you capable of seamlessly balancing the
power to perform life-saving tasks
and keep critical services running.
don’t incur million- variable output of renewable energy
with conventional generation assets.
Although hospitals are required to dollar outage costs Furthermore, new types of advanced
have a form of emergency generation, microgrids can be programmed to
many hospitals are looking to
while keeping your achieve specific sustainability goals.
microgrids to back up their entire critical infrastructure These sustainability goals include
facility rather than just certain critical the use of the lowest carbon resources
areas needed for compliance. running efficiently. to the maximum extent possible.
▶▶ Military ▶▶ Improving cybersecurity
Instead, the top cause of downtime
Not surprisingly, the military was an Cybersecurity is a big reason that the
was, in fact, power outages. And these
early adopter of microgrids on U.S. military and others are deploying
outages are costly. Around one-third
bases to ensure mission resiliency. microgrids. A massive ransomware
of all reported outages cost more
They also use remote microgrids in attack in May 2017 heightened
than $250,000, with many exceeding
places like Afghanistan. When operating worldwide concern about cybersecurity.
$1 million.
in rural or remote theaters, reliable Affecting 150 nations, the malware
power is critical for forward operating To resolve these outage issues, infected hundreds of thousands of
bases. Microgrids deliver reliable, green microgrids are specifically deployed businesses and institutions from British
electricity to soldiers in remote spots to ensure the highest possible levels hospitals to FedExTM in the U.S.
24/7, 365 days a year. of resiliency. Designed to work in As for now, the U.S. power grid has not
These are just some examples of the tandem with the grid or in an island been the target of a cyberattack that
growing trend of microgrids being fashion, microgrids ensure you do not causes loss of power. Still, many experts
used to promote resiliency in a variety incur million-dollar outage costs while are concerned about its vulnerability
of industries. keeping your critical infrastructure and are taking proactive measures.
running efficiently. Microgrids can alleviate the effects
The additional benefits ▶▶ Reducing energy costs of cyberattacks because of their ability
of adopting a microgrid Through the efficient management to island. In cases of an attack, facilities
architecture of energy supply, microgrids not can completely disconnect from the grid
only reduce costs, but they also can and ensure that they are still connected
Again, these microgrid users are not only generate revenue. Think of areas where to reliable power sources.
trying to maintain uptime, but also make electricity costs are high, for example,
an impact on cost while creating greener the Northeast and California come to
and cleaner options. Drivers for microgrid mind. In those locations, microgrids can
adoption include: provide energy at a lower price than
▶▶ Designing the highest possible levels the grid. By providing ancillary services
of resiliency to the central grid, microgrids can also
In an era of critical workloads, ensuring earn revenue. Ancillary services provide
maximum possible uptime is vital. support functions for the grid, such as
According to survey results released frequency control and spinning reserve.
Chapter 3
How Microgrids Introduce New Data Center Economics
Data centers are increasing in number
across the U.S. and around the globe.
They are the new industrial factory of
the modern digital economy and require through the American Recovery and
a massive amount of power to support Reinvestment Act, has reduced the
their high-tech operations. Data centers island’s fuel consumption by 45% since
are located in every state, but the largest its 2012 installation. It also saves more
hyperscale data centers are sited where than 25,000 gallons of diesel fuel a
power is the least expensive. However, year in the process—proving historic
low-cost power does not ensure highly preservation and renewable integration
reliable power, so the standard data center is possible.
design includes backup power systems
that can carry the facility, computing and Switching gears to edge environments,
infrastructure loads without interruption data center locations and rural
during a power outage. infrastructure deployments, you can
quickly see how these economics and
These backup power supplies are typically Image source: U.S. Department of Energy benefits apply to a variety of use cases.
large arrays of diesel generators connected
in parallel strings to create maximum The University of Texas at Austin
With the Alcatraz Island example, you
resiliency when coupled with battery- microgrid, as another example, has
can probably imagine that it’s not easy
based uninterruptible power supplies effectively delivered 99.9998% reliability
to power that island. If you look back at
(UPS). However, diesel generators present over the last 40 years. With that in mind,
history to understand the massive costs
a handful of challenges to data center let’s talk about economics. While some
it took to run the prison, you’ll quickly
operators. For example, they have high microgrids sell power or services to the
see that a big reason why the prison
emissions, which makes environmental grid, UT Austin does not. This is because
closed in 1963, after only 29 years of
permitting and reporting burdensome. its energy plant is sized to be net-zero,
operation, was because of power.
Additionally, they are expensive to own to produce only what it needs.
To power the location, the National
because of the high upfront cost and Park Service ferried up to 2,000 gallons The university holds a 25-MW standby
ongoing operations and maintenance of diesel fuel a week to Alcatraz for its contract with the local utility for
costs. They also sit idle for most of the year electric generators. back-up power if equipment fails, at
and do not provide grid services, which the cost of about $1 million annually,
makes them an expensive drag on both the Today, Alcatraz Island is equipped with
a small portion of the plant’s $50 million
balance sheet and income statement of a solar-diesel hybrid power system
annual operating budget. Other than
the data center operators. where the solar panels connect to a
that, UT Austin operates with autonomy
battery bank and power inverters that
These generators are an essential from the central grid.
help power the island instead of relying
component in mitigating operational solely on diesel generators. In microgrid So why is reliable and continuously
risk in the data center. Still, they lack the systems, generators can easily be available energy important for
higher level of resiliency as well as other coupled with renewables, such as solar UT Austin? Eighty percent of the
key benefits that a microgrid system offers. power, to meet environmental goals campus space is dedicated to research
With all of this in mind, let’s take a few while ensuring the needed resiliency. valued at about $500 million. That’s
minutes to break some legacy paradigms How have microgrids changed the certainly not something the school
around economics and the overall cost of economics of a location that gets more would want to lose during a power
today’s microgrid solutions. than 1.5 million visitors a year? This outage.
$7.1 million project, funded initially
Overcoming common economic generation it leverages. Nanogrids, for ▶▶ Rising utility rates
myths surrounding microgrids example, can cost in the tens of thousands Utility rates have risen historically,
of dollars, while a highly sophisticated so it’s reasonable to expect your costs
The first challenge we often hear about is urban microgrid in Cleveland has an to rise. Microgrids can offset those
that microgrids are expensive to deploy estimated $100 million price tag. For data cost increases.
and maintain. The reality is that it depends centers, an advanced microgrid should ▶▶ Providing assured on-site power
on a variety of factors, and with innovative cost less than an equivalent diesel supply in a variety of use cases
business models, it can be significantly back-up plant. If you are in a rural or remote location,
cheaper than traditional alternatives. finding reliable sources of power can
It is crucial to consider the total cost of an be a challenge. Even in urban areas,
outage, in dollars, lost time, reputational With microgrid-as- staying resilient and maintaining
damage, and so on, and then compare a-service offerings, uptime becomes more challenging
because of severe weather and aging
it to the price of a resiliency microgrid
system. For example, a Stanford University customers pay for their grid infrastructure. It’s essential to
understand what an outage costs
climate and energy expert estimated that microgrid service in for you and where a microgrid
a 48-hour outage to 800,000 California
customers in October 2019 cost about a budgeted manner, makes sense.
▶▶ Improving power efficiency
$2.5 billion. Just a 30-minute interruption
could cost a medium or large business
much as they do if they As compute density increases, you have
or factory more than $15,000. A microgrid buy it from a utility, to look at the economics of power.
can help companies save this money, That means working with power most
which makes working with microgrids
except they have efficiently and doing your best to reduce
that much more attractive. the added benefit of energy waste. The UT Austin example
points to a microgrid architecture
Additionally, microgrid costs have been backup power during that is sized to be net-zero, to produce
falling in recent years. This is primarily
due to a decline in cost of the kind of grid outages. only what it needs, therefore never
wasting resources. Equally important,
supply assets used by many contemporary
an advanced microgrid can manage the
microgrids. Falling prices due to load for maximum efficiency. Portions
To further help with costs, government
standardization and for renewable energy of your facility may require less power
grants and other clean energy incentives
and battery storage heavily influenced at certain times. Air conditioning, for
can drive down customer costs. California,
a 30% decline in microgrid costs from example, can be reduced in offices not
Connecticut, Maryland, Massachusetts,
2014 to 2018, according to Peter Asmus, in use.
New Jersey, and New York are among the
research director for Guidehouse.
states that give grants for microgrids or ▶▶ Leveraging better pricing
Another misconception is that you might resiliency projects. On the federal level, Microgrids give you options. You can
need to pay for everything upfront. In tax credits for renewable energy can be leverage on-site power sources or you
some cases, this is true. However, with applied to microgrid projects that use can purchase grid power, depending on
microgrid-as-a-service (also called the applicable forms of generation. which offers the best pricing as electricity
energy-as-a-service) offerings, contracts costs change throughout the day.
require little or no upfront capital paid by Key microgrid economic and ▶▶ Improving power quality
microgrid customers. Instead, customers deployment considerations Data centers are sensitive to
pay for their microgrid service in a fluctuations in power quality.
When working with microgrid solutions,
budgeted manner, much as they do if they A microgrid helps maintain steady
consider the following:
buy it from a utility, except they have the voltage and frequency.
▶▶ Tightening reserve margins
added benefit of backup power during grid
Texas has recently seen a narrowing If you are still concerned about one of
outages. A third party owns the project and
of its reserve—the cushion between the economic considerations above, take
takes the operational and financial risk.
supply and demand margins—as power the time to understand your use case and
It is important to note that microgrids vary plants retire. This has caused a spike in where microgrids can make an impact.
dramatically in size and complexity and, wholesale power costs when demand Additionally, microgrid partners can
more importantly, purpose, which creates for electricity is high. While the problem support potential users in understanding
a wide cost variance. The cost of your may be unique to the state right now, their use case and how an efficient and
design depends on where and why the it offers a warning about the risk of clean microgrid can help.
microgrid is built and what kind of power being grid-dependent.
Chapter 4
What’s New? The Microgrid is a Lot More Efficient — and Effortless to Run
Advanced microgrid controllers leverage machine Microgrids and next-generation
generators can get along nicely
learning and data-driven solutions to track real-time
When it comes to greener and cleaner
changes in the power prices on the central grid. power, many leading organizations have
actively committed to reducing emissions
Smart is the new normal as we enter and grid. If energy prices are low at any point, and running more optimally. However,
expand in a digital era. Driven by data, a solar + storage microgrid may choose working with traditional legacy backup
autonomous systems, and more demand to buy power from the primary grid to generators can pose some environmental
around the data center and edge solutions, charge its battery systems. Then, as grid efficiency challenges. As it relates to
leaders in the space need smarter options power becomes pricey later in the day, environmental performance, most
to help them go from reactive to predictive the microgrid may sell services to the data center operators are in a class by
and prescriptive. grid or discharge its batteries rather than themselves. Their focus on improved
use grid power. energy efficiency inside the data center
Modern microgrids are more has achieved tremendous improvement
Because microgrids are intelligent, in the last decade, and the decarbonizing
intelligent than ever before
software-driven solutions, the data they of energy supplies is unsurpassed by any
Advanced microgrids are smart – they produce can be leveraged to influence other industry.
have sophisticated software and controls. end-user power decisions. Additionally,
Among other things, this intelligence microgrid providers can capture this data However, the diesel generator fleets at
allows them to island from the primary to ensure that the microgrids are operating most data centers run counter to these
grid. That means when they see trouble optimally. They can use predictive achievements. Although some new,
on the primary grid beginning to occur, analytics around the information that’s modern Tier-4 generators use low sulfur
microgrids can separate and protect being gathered to forecast issues, power diesel and additional pollution controls,
themselves. They stop relying on the grid’s they are not emission-free. Diesel fuel is
requirements and maintenance cycles.
power plants and instead rely only on their higher carbon-emitting, higher particulate-
In some service models, you never have
own. But they can also work intelligently emitting, and higher VOC and NOx-
to touch the microgrid once it goes
in unison. emitting when compared to natural gas.
in. Governed by software and smarter
When everything is working right, the microgrid controller systems, today’s
grid and the microgrid operate in tandem microgrids work together via complex
algorithms, data-driven solutions, and
Microgrid providers use
and serve one another. For example, on
blue sky days, the main grid is used for advanced analytics to ensure that the predictive analytics
microgrid’s resources are consistently
supply. But if the main grid experiences
an outage or runs low on power supply — and adequately used. These software-
around the information
as it sometimes does on hot summer driven tools deliver system performance that’s being gathered to
afternoons when we all are running our air to a level of efficiency that is difficult to
conditioning—it can turn to the microgrid achieve alone. The orchestration of this forecast issues, power
for help. The grid can be a source of microgrid ecosystem is managed in a near- requirements and
revenue for microgrids that provide instantaneous fashion—autonomously.
services known variously as capacity, There is no need for human intervention. maintenance cycles.
emergency reserves, resource adequacy, Unlike many traditional backup In some service models,
demand response, and ancillary services.
Furthermore, modern microgrids are data-
generators, microgrids can support
continuous operations and provide grid
you never have to touch
and software-driven. Advanced microgrid reserve capacity. Either way, microgrids the microgrid once
controllers leverage machine learning and can be available to operate 24/7/365,
data-driven solutions to track real-time managing and supplying energy to their it goes in.
changes in the power prices on the central customers.
Chapter 5
Microgrid Partners Aim to Change Power Delivery, Efficiency, and Economics
In today’s connected world, a microgrid
is a real technology making a real
difference. These are the solutions that
enable true energy-as-a-service designs,
leveraging advanced data analytics
to create predictive and prescriptive
decisions around power delivery. Far
beyond a simple generator, microgrids
alleviate reliance on the grid, allow you
to deliver much cleaner and reliable
power, and remove the scare and risk
of major outages.
Enchanted Rock’s
solution was provided
at a substantial
discount in both
Image source: Enchanted Rock
upfront capital and
ongoing O&M costs as
Texas A&M RELLIS Campus microgrid use-case
compared to traditional ▶▶ The Client System signed a Master Service
backup systems. Texas A&M RELLIS Campus (RELLIS), Agreement with Enchanted Rock for
located in Bryan, Texas, is a facility the RELLIS Campus. Enchanted Rock’s
that fosters cutting-edge research, 10 MW, medium voltage system backs
Getting started on this journey is as simple technology development, education, up the Texas A&M Transportation
as asking the leaders in the space what and workforce training. Texas A&M, Institute, the Texas A&M Experiment
some of today’s most innovative use cases along with academic, corporate, Station, the Blinn College Education
look like. In a range of verticals, microgrids and private partners, conducts Center, and other research, educational,
are being deployed to serve many valuable research for world-changing and extension facilities. Enchanted Rock
scenarios. technologies, processes, and products, will operate and maintain the system
Here’s a specific example. Founded in with state-of-the-art labs, testing, and for the life of the agreement
2006, Enchanted Rock builds, operates, proving grounds. ▶▶ The Real-World Results
and manages cost-effective resiliency ▶▶ The Challenge Construction on the RELLIS site
microgrids that help companies efficiently The RELLIS Campus boasts a growing began in early 2018 and was completed
manage the risk associated with electricity list of multimillion-dollar state and ahead of schedule. The system was
interruptions. In 2010, Enchanted Rock national research facilities, testbeds, fully commissioned in Summer 2018
became the first in Texas to provide utility- and proving grounds that depend on and provides full electrical reliability
grade backup power as a service. high availability power supply for their to the entire campus so that public
And, in the same state, they helped mission. The facility was served by a institutes and private investors can
revolutionize the way power was delivered single radial transmission service and be confident that their investments
to a primary university campus. was vulnerable to power disruptions. on the RELLIS Campus are safe.
They needed a reliable backup power Additionally, Enchanted Rock’s solution
system for minimal capital outlay. was provided at a substantial discount
▶▶ The Solution in both upfront capital and ongoing
After a competitive solicitation process O&M costs as compared to traditional
in Fall 2017, Texas A&M University backup systems.
Redundant Power
Metered Power
Efficient Cooling
Customer Service
Microgrid-as-a-Service Capabilities
Engineering Expertise
Customer Satisfaction
Physical Security
Cybersecurity Capabilities
Expansion Capabilities
TOTALS