Microgrids speeding up UK grid connections!

The Future of Power Distribution: Embracing Microgrid Technology

Spencer Thompson, the CEO of Eclipse Power, heads an investment platform catering to networks, primarily focusing on Eclipse Power Networks, a licensed Independent Distribution Network Operator (IDNO). The pressing question resonating within the energy sector is where the power will originate to meet the escalating demands arising from the electrification of housing, industry, transport, and heating. Equally significant is whether grid connections can align with expectations and targets.

The recent commitment by the Labour government to construct 1.5 million homes within five years to alleviate the housing crisis is commendable. However, numerous housing projects face delays in securing grid connections. Developers grapple with the realization that grid connections are bottlenecked, with the queue inching perilously close to the terabyte mark.

The surge in housing development requirements, complemented by a sharp escalation in the installation of electric vehicle charging points, is exacerbating the queue backlog. Typically, a new housing development of a few thousand units evolves into a protracted ‘five-year plus’ initiative, constructed and connected in cohorts of 100-500 homes. Initiating the initial connection can prove to be a formidable challenge.

The imminent modifications to the ‘Connections Reform,’ scheduled to become operational by January 2025, could herald a significant transformation. The pivotal shift entails transitioning the connection queue mechanism from ‘first come, first served’ to ‘first ready, first connected.’ This overhaul presents an optimistic outlook for developers meticulously orchestrating their connection projects, particularly those pioneers exploring innovative approaches to grid constraints, such as leveraging microgrid technology concealed behind the meter.

Unlocking the Potential of Microgrid Technology

Microgrids function as self-contained power networks interfacing with the national grid at a localized or regional level, operating in parallel with the national grid. These networks typically encompass interconnected loads and an array of distributed energy resources like solar panels, wind turbines, battery storage, and generators within a specific boundary. They synergize to fulfil the site’s energy requirements with minimal interaction with the conventional grid. Crucially, microgrids harmonize seamlessly with other smart grid technologies, further optimizing energy consumption and augmenting grid stability.

One viable alternative involves establishing and expanding a private network, potentially incorporating microgrid technology. Such an infrastructure reduces the need for substantial import/export capacity from the grid. Consequently, developers submitting grid connection applications may secure closer connection dates owing to the diminished capacity prerequisite. Balancing electricity consumption behind the meter with import/export activities to and from the grid is the crux of the matter. Although this concept has existed within the industry for a considerable duration, its widespread adoption by both networks and consumers has been relatively sluggish. Given the prevailing grid constraints, the timing is apt to introduce innovative solutions on the path to achieving net zero.

Practical Implementation of Microgrid Solutions

A recent case involved a development comprising approximately 4000 homes necessitating a 20MVA supply from a local DNO, with an anticipated connection delay of six years due to upstream transmission reinforcement. Deploying a microgrid could downsize the 20MVA demand to a practical 5-10MVA connection, thereby reducing grid connection costs and, critically, lead times.

Microgrids also pave the way for innovative revenue models operating discreetly in the background. Whether owned by developers, network companies like Eclipse Power, or by the local community, microgrids promise a versatile ownership structure.

Empowering Commercial & Industrial Complexes

Beyond catering to residential demands, the integration of microgrids within commercial and industrial parks and campuses holds immense potential in fostering grid optimization. Strengthened by solar and battery assets, energy parks encompass a spectrum of revenue streams appealing to large energy players. Collaborations are underway between developers and entities like data centres, even contemplating the integration of green hydrogen within microgrid environments. These initiatives have the capacity to alleviate the connection queue gridlock over the upcoming five to ten years significantly.

Strategic Network Development for Enhanced Efficiency

A holistic approach towards building solar panels, batteries, hydrogen installations, and data centres across the country aligning with the network layout can mitigate constraints in specific regions. Presently, the lack of regulatory oversight translates to a scenario where assets can connect haphazardly, fostering an inefficient network structure. Imposing judicious regulations to govern the location of new generation and storage entities can yield substantial network benefits while preserving a degree of operational flexibility.

Envisioning a Digitally Empowered Grid Landscape

Microgrids embody the blueprint for a technologically advanced network environment that has loitered on the periphery of government and industry deliberations for an extended period. Several obstacles must still be surmounted, particularly around regulatory constraints impeding widespread implementation in the residential segment. Unlocking this potential hinges on regulatory amendments and judicious distribution code adjustments to facilitate seamless integration.

For more insights into the energy sector’s evolving landscape and the transformative potential of microgrid technology, visit the official Eclipse Power website.

This feature originally appeared in the September 2024 edition of Energy Manager magazine. Don’t miss out on our latest updates by subscribing to the magazine today!