A microgrid is a group of interconnected loads and distributed energy resources with defined electrical boundaries forming a local electric power system at distribution voltage levels, that acts as a single controllable entity and is capable to operate in islanded mode, no matter if it is standalone or grid-connected (IEC 62898).
When operating in islanded mode, microgrids can manage and optimise supply and demand (energy management system) and regulate demand locally. When operating in connected mode, they may also aim to offer new services (provision of flexibilities, congestion management, reactive power management, etc.). Microgrids’ major objectives are to improve resilience and decarbonize production. ‘’Isolated/ remote grids” differ from microgrids in that they are self-sufficient and never connected to the main grid due to geography (islands, rural areas) or chosen design. Microgrids are similar to citizen energy communities in terms of their local focus. Citizen energy communities are based on open and voluntary participation of members, effectively controlled by their members or shareholders with the purpose of environmental, social and economic benefits. Such initiatives can provide grid services, if they are technically capable to do so. Citizen energy communities differ from microgrids, because some customers connected to the grid in the area where the community is located may have chosen not to belong to the community. Furthermore, the legal entities in charge of citizen energy communities are not responsible for the management of the local grid (maintenance and operation of components, identification and management of network congestions, purchase of technical and non-technical losses, etc.).
Highlights
During periods when they are disconnected from the grid, microgrids operate in the same way as islands and isolated sites, which needs to have self-sufficiency of power generation. Today, the strong development of renewable energies represents an opportunity to make these installations less costly and more environmentally-friendly. The global microgrid market is expected to grow at a relatively high annual rate (e.g., estimated at 13.9% in Europe over the period 2025-2032)[1]. Market growth is driven by renewable energy integration, rapid adoption of distributed technologies such as electric vehicles as well as volatile energy prices. Furthermore, the threat of cyber-attacks, climate hazards and geopolitical developments are stimulating the desire for energy independence.
Opportunities for DSOs
- Technical (peak shaving, resilience, etc.),
- Environmental (supporting renewable integration),
- Economic (system-level potential cost-savings, reduced grid reinforcement needs, etc.).
Challenges for DSOs
- Operating microgrids requires local energy management systems to deal with supply/demand equilibrium through smart controls of loads and storage.
- Protection systems have to be updated to enable safe operations in islanded mode.
- Appropriate technical provisions are required to enable black start.
- Connection and disconnection of microgrids to the grid can generate local instabilities.
- Technical and contractual conditions for making benefits to be effective yet to be clarified.
- Coordination needs for multiple microgrids among each other and DSO (real-time data exchange, protocols).
E.DSO Considerations
- Microgrids are still complex and expensive solutions to implement and they are not cost-effective if the grid is of good quality.
- The technical and economic competitiveness of the electricity network is therefore not called into question.
- However, in some cases, microgrids are an interesting resilience solution. Microgrids can be promising especially in remote areas or islands.
- Regulatory needs on technical requirements (e.g., islanding, grid reconnection) as well as tariff mechanisms.
Potential Use Cases
- Critical users as a backup power such as hospitals, fire brigades, etc.
- Emergency and as a backup power when natural disasters and for black-start.
- Industrial sites where a local energy management is potentially feasible and cost-effective.
Ongoing projects
- Scheveningen microgrid project Stedin/ Smart Beach Grid with solar PV, EV, battery and heatpumps. Smart, autonomous, self-regulating network where local users share resources. By local balancing, grid congestion is also addressed.
- Stedin-TU Delft collaboration student thesis: control of multiple microgrids.
- Green Village TU Delft pilot on DC microgrids: Meshed grid with solar PV, battery, street lighting and EV charging. Solid-state protection explored. https://dc-opportunities.com/dcmicrogrids
- Enedis
- Several field demonstration projects (some of which still ongoing) to identify challenges and test solutions for the implementation of microgrids to maintain power supply from local renewable energy installations in the event of climatic events, in various configurations: PV in rural areas (CorezeResilientGrid), wind (RIR), etc. Topics include implementation of an EMS, operation of protections, harmonics, blackstart, control of inverters (Grid Forming / Grid Following).
- Financed and supervised several PhD theses and research projects on the operation of microgrids, particularly on the control of inverters (Grid Forming / Grid Following). Objective to design innovative solutions to reduce the cost of implementing micro-grids (small systems without rotating machines and, if possible, without batteries, or with only an as small as possible battery).
Last update: 8 December 2025