EcoStruxure™ Microgrids

A microgrid co-locates electricity generation and consumption. Unlike the utility grid, which generates electricity in a centralized power plant and then distributes it along hundreds of miles of transmission lines, a microgrid generates electricity on-site. For electricity generation, microgrids typically use some combination of backup diesel generators and renewables such as solar panels. Microgrids can incorporate battery systems to store electricity and deploy it during outages or when grid demand spikes.

Microgrids range dramatically in complexity and size. The exciting answer for organizations is “it’s free” because an energy-as-a-service (EaaS) approach eliminates your upfront costs. A microgrid, in a more traditional way, is a CapEx and an OpEx model. In a project mode, it’s high CapEx and low or no OpEx, in an energy-as-a-service business model, it’s high OpEx. EaaS is a financing model for microgrids that allows you to avoid upfront costs. Similar to a software-as-a-service model, with EaaS you avoid capital expenditures and instead pay only for ongoing service.