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A microgrid is a flexible energy solution that collects, stores, controls, integrates and manages energy supply and demand at the local level.

Microgrids: Resilient Solutions for Reliable Energy

Microgrids: Connected to the Grid or Islanded

Flexible Energy Supply and Demand

A microgrid is a flexible energy solution that provides a range of power services.

A microgrid consists of loads, such as facilities, plants, and  buildings, and distributed energy resources, for example solar, wind, and generators, that can be operated in a controlled, coordinated way, either connected to the main power grid or in “islanded mode” – allowing the microgrid to operate and provide power independently from the main power grid.

A microgrid can be an effective solution for peak shaving and demand response, as it allows for more efficient management of energy supply and demand at the local level.

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Flexible energy solutions

What is a Microgrid?

A microgrid is a localized and independent energy system that can operate either in connection with or in isolation from the main electrical grid. It consists of distributed energy resources such as solar panels, wind turbines, energy storage systems (batteries), and can include small-scale generators. Microgrids also have their own digital control system that manages the flow of electricity, optimizes energy generation and consumption, and ensures grid stability.

Reducing the cost and environmental impact of energy production and consumption

How a microgrid uses renewable energy

Renewable energy sources – such as solar and wind – are ideal for microgrids because they provide a reliable and sustainable source of power. Renewable energy can be harnessed locally and does not require the transportation of fuel over long distances, reducing both the cost and environmental impact of energy generation and distribution. Additionally, renewable energy sources are often more predictable and consistent than traditional fossil fuel sources, which can be affected by weather conditions and supply chain disruptions.

Ensuring a more cost-efficient and reliable source of energy supply during peak demand

Energy storage systems

Energy storage systems, such as Battery Energy Storage Solutions (BESS), are another key component of a microgrid. An energy storage system captures and stores energy during periods until its needed (demand response) or when utility costs are at their highest (peak shaving). By storing excess energy, these systems ensure a more consistent and reliable energy supply during periods of high demand or when a renewable source is not actively generating power.

Local energy generation and storage

Distributed Energy Resources (DERs)

Distributed energy refers to the generation and storage of energy at or near the point of consumption, rather than relying solely on centralized power plants and transmission networks. It involves the use of smaller-scale energy resources that are located closer to where the energy is needed, providing a more localized and flexible approach to energy production.

Distributed energy enhances energy efficiency, reliability, and sustainability while reducing transmission losses and grid stress, and can include renewable energy systems, energy storage systems, and microgrids.

Effectively managing energy resources and performance and identifying energy-saving opportunities

State-of-the art energy management

Hitachi’s advanced energy management portfolio manages and optimized energy at all levels with a wide range of applications, providing control and responsiveness to fluctuating energy demands. Features include renewable integration, optimal battery technologies, seamless transition between on and off-grid, peak shaving, base load leveling and frequency regulation.

Real-time analytics produce actionable insights that improve the efficiency and reliability of your company’s energy infrastructure, reducing energy waste and lowering overall energy costs.

The heart of our solution is advanced energy management combined with all the advantages of a microgrid and a service model that minimizes upfront costs. For our customers, this means clean, cost-effective and reliable power delivered seamlessly anytime, anywhere - even when the grid goes down.
Kal Allam_headshot Kal Allam, Vice President and General Manager — Global Environment Business Division - North America | Hitachi, Ltd.

Benefits of a Microgrid

  • Consumes self-generated solar power that costs less than using grid power​
  • Reduces demand charges (peak shaving)​
  • Provides alternate power source during high-rate time-of-use periods​
  • Acts as a back-up power source for reliability and resiliency​
  • Revenue opportunity to sell excess energy utility (market participation)​
  • Sustainability – using renewables reduces carbon footprint
  • Can act independently of the grid, offering peace of mind during outages

Hitachi's Microgrid Offering

Effective demand charge reduction, load profile management and critical backup power when needed, anytime.


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