At the China Electric Equipment Innovation and Development Forum, Du Hong, General Manager of Beijing North Microgrid Technology Co., Ltd., shared insights on the positioning, boundaries, capacity, and cost analysis of microgrids. Polaris Power Grid has organized the key points as follows:
Microgrids are considered a distribution subsystem that integrates distributed generation. At their core, they represent an intelligent distribution network, acting as a bridge between distributed energy sources and the main power grid. By doing so, microgrids help integrate a higher proportion of renewable energy into the larger grid, reducing the impact of intermittent power sources like solar and wind. This makes it easier for distributed power generation—especially photovoltaic systems—to develop rapidly and efficiently.
In short, the large power grid, the power source, and the microgrid form a critical link. Power that cannot be directly connected to the main grid can now be accessed at a high rate, minimizing waste and ensuring better utilization of electricity. Ultimately, this benefits end users by providing more reliable and cost-effective power.
Currently, the boundaries of domestic microgrids are defined as follows: The voltage level is 35kV or below, including 35kV, 10kV, and 400V. The boundary between the main grid and the microgrid substation or switching station is set at the export point. The internal distribution system is included, along with monitoring, protection, metering, communication, and energy management systems. Energy storage systems with regulation capabilities are also part of the setup. Microgrids can access various distributed generation systems (but not energy storage power stations), ensuring safe and stable power supply within the microgrid. They can also manage adjustable loads and maintain power supply during isolation from the main grid.
The capacity of a microgrid refers to its rated capacity, which ensures a stable power supply. It typically ranges from 30kW to 50MW, covering most distributed generation projects. The microgrid’s internal energy storage system is matched with its capacity, and the amount of distributed generation it can accommodate depends on both its size and storage configuration. The goal is to achieve a high penetration of distributed photovoltaics, ideally above 25%, such as 30%, 50%, 80%, or even 100%. Through advanced energy management systems, microgrids can coordinate energy storage, distributed generation, and controllable loads to ensure safe, stable, and efficient operation.
Due to the diversity and uncertainty of microgrids, economic analysis remains a challenge. Previously, some analysts have conflated microgrids with distributed generation, viewing them as adding extra costs to traditional systems. This misconception led to an overestimation of microgrid investment requirements.
To address this, the plan suggests comparing microgrid costs with those of the main power grid, particularly the distribution network, rather than just the power supply itself. In China, where the electricity market is still developing, grid costs are not fully transparent. According to data, grid costs are approximately 1 to 1.5 times that of power generation. Here, the grid includes transmission, transformation, and distribution, while power supply refers to conventional sources like thermal and hydro power.
Therefore, for a microgrid primarily built around new energy integration, comparing its cost to that of new energy sources and determining a reasonable ratio could be a meaningful approach. This helps in understanding the true value and cost-effectiveness of microgrid systems.
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