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Microgrids: what are they and how do they work?

Have you ever wished your community could have its own mini-power system, reliable and tailored just for you? This is exactly what a microgrid is! These small-scale, localised grids have changed the way we think about energy, offering flexible, reliable power while embracing sustainability. And in places like Victoria, Australia, they’re proving to be more than just a bright idea— they’re a practical response to extreme weather events and the challenges they bring.


What is a microgrid?

Think of a microgrid as a mini version of the big electricity network most of us rely on. It’s a group of energy users— homes, businesses, schools— connected to local energy sources like solar panels or wind turbines. Some microgrids can even link up with the main power grid or go solo, operating independently. This flexibility makes it a game-changer for communities, especially those more rural and prone to long-distance power line issues.


How microgrids work

Microgrids combine energy sources and consumers into a tight-knit network. Here’s how they keep the power flowing:

  1. Local energy generation: energy is created closer to where it’s needed, cutting down on transmission losses.

  2. Energy storage: batteries store surplus energy for use during cloudy days or at night.

  3. Smart management: microgrids can be connected to the larger grid to share excess energy or draw from it when needed. If there’s an outage, they can seamlessly switch to an independent mode, ensuring you’re never left in the dark.


Why microgrids matter

For many regional communities, relying on the traditional central grid can be a risky game. The electricity you use travels a long way from massive generation plants, over power lines exposed to the elements— wind, trees or storms. A single disruption can knock out power for everyone down the line.


After the major storms and endless power outages in 2021, Victoria’s Department of Energy, Environment, and Climate Action (DEECA) were looking to make a change, so began with energy resilience studies. These studies looked at how storm-hit towns could improve their energy systems, ensuring that essential services and community hubs stay powered, no matter what weather comes their way.



Built with local power in mind

One of best things about microgrids is that they’re all about using energy that’s already right in your backyard. They use solar panels, wind turbines as well as combined heat and power plants. These systems even include batteries and generators for extra resilience, so your lights stay on when the main grid goes dark.


In Victoria, DEECA-backed studies have focused on energy backup systems for critical services and town-wide solutions to keep key infrastructure—like community hubs and emergency services—powered during extreme weather.


What’s happening so far?

  • Backup systems with solar panels, batteries, and diesel generators.

  • Town-wide solutions to strengthen network resilience in high-risk areas.

  • Installations underway in 22 towns, supported by $7.5 million in funding.

These efforts, guided by the Electricity Distribution Network Resilience Review, involve collaboration with electricity distributors, local councils, and emergency services.


Connecting to a microgrid

To connect to a microgrid, first check with local authorities or energy providers to see if one is available in your area. If you’re a homeowner or business, evaluate whether a grid-connected or off-grid microgrid suits your energy needs. Once eligible, you may need to install renewable energy systems like solar panels or batteries, or the infrastructure might be handled by professionals in larger community setups. Once connected, the microgrid operator will monitor and maintain the system to ensure reliable power. Keep an eye on local programs for updates and incentives if microgrids are still in development.


Why It’s Time to Embrace Microgrids

In a world where reliability and sustainability matter more than ever, microgrids are leading the way. They bring power closer to home, use cleaner energy sources, and provide a dependable backup when things go wrong. Whether you’re a business looking to cut costs or a community seeking a more resilient power solution, microgrids could be a great option for the future.


So, next time you think about where your electricity comes from, imagine a network built right in your community—one that’s smart, green, and always ready to keep the lights on. That’s the power of a microgrid!


If you want to find out more about microgrids or solar power in general, get in touch with us


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