As state energy officials grapple to satisfy growing demand for clean electricity, microgrids are becoming a valuable tool.

A new report highlights their benefits.

Published in May 2023, “Clean Energy Microgrids: Considerations for State Energy Offices and Public Utility Commissions to Increase Resilience, Reduce Emissions, and Improve Affordability” is a collaboration between the National Association of Regulatory Utility Commissioners and the National Association of State Energy Officials. The report is a product of the joint Microgrids State Working Group (MSWG) formed by the two organizations.

The report focuses specifically on the clean energy and resiliency benefits of microgrids. With those two priorities in mind, it makes several notable observations.

According to the report, microgrids are becoming more prevalent across the United States, with 687 sites and a capacity of 4,357 megawatts (MW) installed nationwide as of Dec. 31, 2022, according to statistics from the U.S. Department of Energy (DOE).

The report also notes that while fossil fuels currently make up about 80% of microgrid generation, that is expected to change rapidly in the near term, with clean energy sources such as wind, solar, hydropower and energy storage projected to represent 35% of annual installed microgrid capacity by the year 2025. With those projections in mind, microgrids are well positioned to help states pursue their clean energy goals, especially in servicing the energy needs of remote areas that traditionally rely on the delivery of fossil fuels for backup power.

Another important consideration for remote areas is resiliency in the face of extreme weather and other environmental conditions. In that regard, microgrids are also a valuable asset. The report cites the state of Alaska, for example, where microgrids have been widely installed to service remote communities that are located far from centralized power generation. Similarly, microgrids are a valuable resource to disadvantaged communities, which often face energy insecurity.

Microgrids can also help support grid services and transmission, through such actions as voltage regulation, demand response and transmission alternatives to support renewable generation.

The reports notes that solar is the leading renewable energy generation source for microgrids with 298 MW deployed, followed by hydro (71 MW) and wind (27 MW), according to DOE statistics.

The report suggests that states adopt microgrid tariffs, other financial incentives and regulatory standards, among other things, to encourage the growth of microgrids.