Unlocking the energy potential of microgrids 

Greta Foster

Greta Foster is the product line manager for Microgrids and DER systems within Eaton's engineering systems & services division.  Since 2021, Greta has been responsible for shaping Eaton's microgrid control solutions offering and go-to-market strategy.  Prior to this role, she was a business development manager in Eaton’s electrical sector strategy and acquisitions team. 

Greta joined Eaton in 2016 following 10 years in various strategy and portfolio planning roles at Deere & Company based in Moline, IL.  She holds an MBA from the Tuck School of Business at Dartmouth and a bachelor's from Amherst College in Massachusetts.  

Joe Cappeta

Joe joins us with more than 15 years of experience in the electrical industry. During his tenure with Eaton Joe has held roles spanning multiple functions and leadership positions.

He has designed and applied power systems installed globally that integrate distributed energy resources, enable electrification of transport, back up critical data processing equipment, and distribute power to a world that is increasingly electrifying. Currently, he leads a team of application specialists focused on the energy transition nationwide.

Joe holds a B.S in Electrical Engineering from the University of Pittsburgh and an MBA from Georgetown University.

ANNOUNCER: Welcome to Eaton's 10 in 10 podcast, where we focus on industry trends, shaping the future of power management. In this series, our expert answers 10 questions about one of today's most talked about industry topics, in 10 minutes or less, from the energy transition to digital transformation and beyond. We explore trends and discuss strategies for delivering safer, more efficient, and reliable power. 

JOE CAPPETA: The electrification of buildings and transportation is changing when, where, and how much energy we consume. And these shifts are creating demand for a more flexible and resilient energy infrastructure. Hi, I'm Joe Cappeta, director of technical applications for the energy transition at Eaton. And today, we are joined by Greta Foster, Eaton's product line manager for microgrids and distributed energy resource systems, to talk about the untapped potential of microgrids as a cost effective and sustainable solution. This is unlocking the energy potential of microgrids. We've got 10 questions and 10 minutes, so let's get started. Greta, technically speaking, what is a microgrid and how does it work? 

GRETA FOSTER: Thanks, Joe. Microgrids are standalone electrical power systems that integrate onsite electrical loads and decentralized generating assets like solar and energy storage into a system that can operate either gridconnected or islanded for the utility grid. At the heart of this system is an intelligent microgrid controller, like Eaton's power expert microgrid controller, that makes decisions about how the system should operate in order to optimize performance from the predefined user settings, depending on what the application is and the customer priorities.

JOE CAPPETA: So Greta, do microgrids help address the growing energy demand from the electrification of buildings and transportation?

GRETA FOSTER:Absolutely. With the increase in renewables and the build out of all this new EV infrastructure across the country, this new energy mix is putting a strain on the traditional power grid. So utilities are already reaching their capacity in some areas, and adding an onsite distributed generation can be a faster and more cost effective alternative to the utility building out a whole new sub feeder for the substation. The ability to generate power closer to where the energy is consumed is critical to offsetting this additional demand.

The energy transition overall is creating a whole new group of energy prosumers, where the consumers of power are also the producers of power. So universities, hospitals, corporations, and local communities are turning to microgrids and distributed energy resource systems to help take control of their energy needs and to achieve a greater energy independence from the grid.

JOE CAPPETA: All of those points are extremely important, and it's great to hear that. So how do microgrids also contribute to sustainability goals?

GRETA FOSTER: So sustainability is one of the three primary benefits of a microgrid. And microgrids often incorporate renewable energy sources like solar and fuel cells, which combined with battery energy storage can play a major role in meeting those sustainability goals. So when the sun is shining, you can power your site from the solar power generated and store any excess clean energy into the battery to use when the sun isn't out, or to help you reduce your utility bill by using that stored battery power when the utility prices are high and reducing those costly peak demand charges.

Microgrids and DER systems are a fantastic way to reduce your overall carbon footprint because you're supplementing the fossil fuel based utility power with renewables. And they have this added benefit of lowering your utility costs because you're generating your own power.

JOE CAPPETA: Thank you for that, Greta. And of course, while sustainability is extremely important, the bottom line also matters quite a bit. So tell me a little bit about microgrid business models. And how can microgrids be used to generate revenue?

GRETA FOSTER:Sure. The energy transition is opening up whole new energy markets, with new business models emerging that take advantage of two-way power flow that's available flexible capacity and the ability to sell power back to the grid. The regulatory environment is also evolving in this space. In late 2020, the Federal Energy Regulatory Commission issued order 2222, which opened up participation of distributed energy resources like battery storage into these energy trading markets.

So after a site's energy needs are met, the excess clean energy generated can be used to earn additional revenue by selling it back to the utility or to energy aggregators. So building owners can also generate revenue for their site by monetizing the flexibility of their DER energy assets and participating in these grid programs like demand response or frequency regulation. These kinds of programs help utilities balance the supply and demand of electricity, and they're willing to pay for them.

JOE CAPPETA: So you're saying that you get the sustainability and resiliency and can also make some money. That's fantastic. Over the past several years, the frequency and severity of climate and weather-related events such as wildfires, hurricanes, and earthquakes has steadily increased. Talk to me about the benefits of a microgrid when it comes to severe weather events.

GRETA FOSTER: Resilience is typically what you think about for microgrids, keeping the power on in the event of a grid outage. And as severe weather events get increasingly more destructive, they're having a lasting impact to the electrical grid. And microgrids really enable that energy independence. You can take control of your own power destiny. The federal government and states' energy offices are also introducing numerous publicly funded initiatives towards grid resilience against these growing threats of extreme weather and climate-related events.

They've got $10.5 billion in matching grants from the DOE's grid resilience and innovation partnership program, that ensures that disadvantaged communities, critical facilities, and power infrastructure stay up and running during a grid outage. So there's a lot of money flowing into this space to help boost the resilience of the grid.

JOE CAPPETA: So Greta, as you mentioned, there's a lot of public money flowing into this space. The federal government, states, and municipalities across North America have introduced funding initiatives and tax incentives to promote clean energy. How do microgrids and DER solutions fit into that?

GRETA FOSTER: So I just mentioned the GRIP grant funding. But in general, there's just so much money getting pumped into this space right now. There's truly no better time to build a microgrid or DER system with all of these clean energy incentives that are available. Federal and state governments had introduced $370 billion towards clean energy funding initiatives that include microgrids and DER systems. So for example, eligible components qualifying for this new ITC clean energy tax credit now includes solar, plus battery storage, fuel cells, microgrid controllers, and more.

And depending on the location of your project, if it's located in an underserved or disadvantaged community or an energy community based on census tracts, the tax credit could be 50% or more towards these eligible project costs. The other interesting aspect is that non-tax-paying entities, like schools or hospitals that previously couldn't benefit, can now benefit from these tax credits because they're eligible for direct pay. And these tax credits are transferable also to third parties, such that they can be rolled into the financing for a project.

So if you've got an energy as a service finance project that doesn't require any upfront capital investment, that's really a game changer in this space. And to have these tax credits go against that, that's huge. Eaton offers customers the ability to fund microgrid projects as an operating expense by structuring deals with financing partners through this energy as a service offering.

JOE CAPPETA: You talk about backing up power for important facilities such as hospitals, schools, government buildings. We've seen a lot of cyber attacks in the news recently. How important is cybersecurity when it comes to building a microgrid for a site?

GRETA FOSTER: That's a great question. With the rise of smart grid technology, cybersecurity is essential to safeguard our power infrastructure against attacks. And with that in mind, Eaton's industrial grade power expert microgrid controller platform, it has that embedded cybersecurity. It's built from the ground up. It meets all of the IEEE IED requirements for substation grade equipment, as well as has a built-in firewall. So cybersecurity is really core to Eaton's design principles across the board, and distinguishes our microgrid solution in the marketplace. And it is just absolutely top of mind as you're building out a system that you ensure that it's able to withstand any potential attack on it.

JOE CAPPETA: Typically, we think about microgrids providing power infrastructure for urban communities, campuses, and buildings. Are they a practical solution for remote and rural communities as well?

GRETA FOSTER: Off grid, remote, and disadvantaged communities are facing energy poverty and lack access to reliable, affordable, and clean energy. Microgrids and DER systems can help provide energy equity to these vulnerable and underserved communities. We've worked on a number of off grid community microgrid projects, located more than 50 miles from the nearest utility pole, that integrate solar and battery storage to existing generators powering the site. This has had a lasting impact on the community, and significantly reduces their reliance on fossil fuels, and overall, improves their energy resilience.

JOE CAPPETA: And this is one of my favorite topics-- how do microgrids support the growing adoption of electric vehicles and charging infrastructure?

GRETA FOSTER: So as I mentioned earlier, as EV adoption grows, the need for a more robust energy system to support it will increase as well. Microgrids can be a great solution to balance the strain on the power grid as more electrical technologies come online. And as building owners consider the benefits of installing EV chargers, integrating a microgrid system with solar and storage at the same time can be a cost effective approach to expand a facility's electrical capacity in order to support the increased demand from EV charging.

So what will also be interesting to keep your eye on in the near future is the emergence of vehicle to grid technologies. Because electric vehicles can be both a load and a power source to a microgrid system. And we're hearing more and more about this in the space and the technologies are catching up.

JOE CAPPETA: Very interesting, Greta. With all this complexity entering our power systems, is there a place where designers and end users can go to get started with a microgrid project?

GRETA FOSTER: Well, first I'd say, start with a microgrid feasibility study. And this is really an assessment of your site's power system infrastructure and load profile. And it gives you the basic project economics and recommended sizing of assets for your site. Ultimately, a feasibility study helps build the business case for your project based on your goals.

Second, I'd recommend downloading Eaton's new DER and microgrid design guide to use as a reference. It's a helpful step-by-step design and planning guide that includes technical and regulatory considerations. And you can find it by googling DER design guide, or on our website  www.eaton.com/microgrid.

Lastly, I'd say, don't hesitate to reach out to Eaton to help you navigate the complexities of the microgrid and DER space. We have a broad range of capabilities to support microgrid design and deployment from end to end. And you can make us your easy button. We've been building microgrid systems for more than a decade.

JOE CAPPETA: Greta, this has been great. Thank you for sharing your insights today.

GRETA FOSTER: Thanks, Joe.

JOE CAPPETA: To learn more about how we're unlocking the energy potential of microgrids, visit us at eaton.com/microgrids.