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The tragic LA wildfires are the latest in a string of billion-dollar natural disasters threatening the reliability of the U.S. electric system. In fact, this event has been coined one of the worst natural disasters in California’s history, with damage estimates reported as high as $275 billion. In addition to the daunting physical damage, the wildfire smoke poses a significant health risk to those living in and around the impacted communities, especially those who have asthma or respiratory conditions.
With the frequency of severe weather events only expected to increase over time, electric utilities are looking for cost-effective mitigation solutions that can help build a more reliable and resilient grid. Microgrids, which are small energy systems that operate independently of the electric grid, are quickly becoming an attractive option because they are clean, reliable, and significantly cheaper than upgrading overhead power lines.
“Capital expenditures for hardening overhead electrical equipment are expanding at a rapid rate, and we’re finding that there is a greater return on investment for installing standalone microgrids than upgrading power lines,” said Noa Schachtel, sales and marketing coordinator at BoxPower, which manufactures microgrid solutions for remote areas. According to BoxPower, upgrading transmission equipment and poles can cost utilities an estimated $1 million per mile.
Microgrids Powered by Clean Energy
BoxPower’s microgrid systems are typically powered by solar and batteries and use propane or diesel backup generators depending on their clients. Schachtel says his company is actively pursuing additional energy sources for their systems, including renewable propane and hydrogen, due to increasing demand for more clean energy options.
Propane is an excellent energy choice to support these renewable microgrids since it is a clean, on-site fuel source with no expiration date. Propane is significantly cleaner than diesel, emitting 25% to 35% fewer greenhouse gases and producing almost no nitrogen oxides such as NOx and SOx. In addition, propane releases virtually no particulate matter, making it a perfect complement to solar power and batteries.
Microgrids Supporting Utilities
Several utilities, including PG&E and Liberty Utilities in California, are installing BoxPower microgrids as part of their ongoing wildfire mitigation efforts. PG&E hired BoxPower to install a solar-battery-propane microgrid in Briceburg, California, following a major fire in 2019 that destroyed the power lines serving this rural community. Following its success in increasing grid resilience and reducing greenhouse emissions, PG&E has since installed additional microgrids in other high-risk areas.
Liberty Utilities installed a BoxPower system for the Sagehen Field Station located in Tahoe National Forest approximately 10 miles north of Truckee, California. Sagehen is the largest privately operated experimental research forest in the U.S. and is managed by UC Berkeley in conjunction with the National Forest Service. Like PG&E’s system, the field station’s microgrid is powered by solar and battery and includes a backup propane generator. With the microgrid in place, the field station disconnects from the electric grid approximately six months out of the year during wildfire season in California. According to BoxPower, Liberty Utilities saved over $2 million in avoided capital and operation and maintenance costs by choosing to install a microgrid instead of upgrading overhead equipment.
While these systems address smaller loads in remote regions, utilities are also looking at solutions on a broader scale. In those cases, Schachtel says BoxPower’s microgrids can be clustered to address larger, more populated areas. They’ve already identified hundreds of potential locations that would benefit from these off-grid systems.
“Utilities want to do the right thing,” said Schachtel. “Our microgrids are cost-effective, resilient, extremely reliable, and clean. When compared to other grid hardening investments, it seems like a no brainer.”
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