Conventional grid or Electric Power System (EPS) has large rotating mass and therefore, inherent stability due to inertia. A large amount of power has to be transferred from the power plant to the remote consumer end, causing a huge loss of electrical power. These losses are proportional to the loading for transmission lines. Distributed generation (DG) of electrical power can reduce the loading of the transmission line as the partial generation of power occurs near to load center and reduce the burden on the transmission line. DG become more affordable and environment-friendly if it uses renewable energy sources (like wind, solar, geothermal, etc.) with a share in total generation. A fossil fuel-based DG can ruin the local environment by polluting it and become more harmful w.r.t. remote power plant.
DGs always work in support of main EPS therefore, it cannot be used as a backup supply. Therefore, a system is required that can work in grid-connected as well as in island mode and can be used in contingency as a backup supply. These types of the system when integrating all local micro sources and group of loads which operate as a single –controlled unit are termed as ‘Microgrid’. In this way, DGs can perform as a backup power supply for local load in case of failure of main EPS. This improves the reliability, utilization and efficiency of electrical power supply for local load center. Apart from this, the microgrid has following salient features and modern aspects:
Future grid: Philosophically and ideally future grid may have many numbers of microgrids. In India, it is expected that until 2021, 10,000 mini-grids and microgrid will come into existence. In such a case, power generation from remote center reduces to minimal value and only serves large industrial customers. Maximum power is generated via renewable energy sources (RES) and environment friendly energy sources.
Economics: Less loading on transmission line will reduce the huge maintenance cost. The up-gradation and additional line can be deferred for a long period. The acquisition of land for the ‘right of way’ can be reduced drastically. The cost of electrical energy reduces with the integration of a higher number of RES. Customers will also have active participation in the generation of electrical energy. The load line will become flattered so, optimization will have a greater effect. An ideal trade base energy market can be established. Combined heat and power (CHP) or Cogeneration will increase the efficiency of the system. Local small society will be more adaptive to new changes and newer efficient technologies and get direct benefit from it. Capital costs for technology improvement become less hence, promote faster change.
Social change: Active participation of customers will improve efficiency and cost-benefit ratio. The system becomes locally more reliable responsibility of operation and control will be distributed among the society locally. Newer and advanced energy sources and technologies can be incorporated more easily.
Reach: The electricity can have higher reach as per the geographical area. The less-dense population at the far end form generation can get electrical power. As in concern of India where thousands of villages need to electrify even in the 21st century, Microgrid can play a vital role in this case.