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Scope 2  ·  3.2.4

Microgrid

A microgrid is a locally controlled energy system that integrates onsite generation, storage, and controllable loads and can operate either connected to the main grid or in islanded mode during outages. Microgrids increase energy resilience, enable 24/7 clean power matching, and allow facilities to optimize across cost, carbon, and reliability objectives simultaneously.

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Self-Assessment

Select where your organization currently operates and where you want to get to. There is no obligation to reach "Leading Org." — choose the target that is right for your business context and investment capacity.

📍 Current Level
🎯 Target Level
Select your current and target levels above to map your assessment on this initiative.
Fundamental
Market Standard
Above Average
Leading Org.

Technology

  • Onsite diesel or natural gas generator for emergency backup power
  • Basic automatic transfer switch enabling generator-to-grid changeover

Process

  • Conducting a resilience assessment to identify critical loads requiring backup power
  • Evaluating fuel supply logistics and generator maintenance requirements
  • Reviewing utility interconnection rules for onsite generation

Financing

  • Generator capital cost justified by insurance value and operational continuity
  • Emergency generator may qualify for utility demand response enrollment during non-emergency periods

Technology

  • Fundamental Technologies +
  • Solar PV and battery storage paired with existing backup generator as proto-microgrid
  • Microgrid controller enabling manual islanding during utility outages
  • Advanced metering and SCADA system for real-time load and generation monitoring

Process

  • Identifying critical and non-critical load circuits for islanding prioritization
  • Designing solar, storage, and generator sizing for defined backup duration and load profile
  • Coordinating interconnection upgrade with utility for grid-parallel operation

Financing

  • FEMA Hazard Mitigation Grant Program or state resilience grants accessed for critical facility microgrids
  • Solar and storage ITC combined with resilience value to justify project economics

Technology

  • Market Standard Technologies +
  • Fully automated microgrid controller enabling seamless grid-to-island transition
  • Clean microgrid: solar, storage, and EV charging with natural gas or RNG backup only
  • Microgrid integrated with BEMS for automated load prioritization and optimization

Process

  • Operating microgrid to minimize grid import during high-carbon or high-cost periods
  • Participating in utility grid support programs (voltage regulation, islanding) as qualified DER
  • Conducting quarterly islanding tests and maintaining operational readiness protocol

Financing

  • Third-party microgrid-as-a-service (MaaS) contract eliminating CAPEX via energy services agreement
  • Resilience value quantified and included in project finance model as avoided outage cost

Technology

  • Above Average Technologies +
  • 100% renewable microgrid: solar, long-duration storage, and green hydrogen backup generation
  • Multi-site networked microgrids sharing generation and storage resources across campus
  • AI-optimized microgrid dispatch balancing cost, carbon, resilience, and grid services objectives

Process

  • Achieving net-zero or net-positive energy campus via fully optimized clean microgrid
  • Providing local grid stability services (black start, frequency support) to utility as qualified resource
  • Publishing verified renewable fraction, outage resilience metrics, and grid services in sustainability reports

Financing

  • Microgrid revenue stack: energy savings + DR + capacity + resilience value + grid services
  • Networked campus microgrid securitized as long-term clean infrastructure asset for institutional investors

Related Pathways

← All Pathways 2.1.1 Onsite Generation 2.1.2 Storage 2.2.3 Grid Edge Solutions