Navigating microgrid complexity: a smart path to decarbonisation

In a recent episode of The Energy Situation Room hosted by Wärtsilä Energy, Terence Mentor sat down with Ella Teperi, General Manager for Market and Financial Analysis at Wärtsilä, to discuss the evolving landscape of microgrids.

This article is based on Season 1, Episode 5 of the the Energy Situation Room Podcast 

Listen to the full episode here: 
Apple Podcast: https://go.wartsila.com/SubscribeApplePodcast 
Spotify: https://go.wartsila.com/Subscribespotify 
Web: https://wartsi.ly/3LiyHS2 

As industries face increasing pressure to reduce CO2 emissions while maintaining reliable and affordable power, the conversation highlighted how modern technology is turning operational complexity into a strategic advantage. 

The microgrid dilemma: reliability vs. decarbonisation 

Teperi defines microgrids not necessarily by their size, but by their isolation, often having limited or no connection to a national grid. For operations like remote mines or island utilities, transitioning to renewables is no longer just an environmental goal; it is a financial and technical necessity. 

However, adding volatile sources like wind and solar to a traditional grid introduces significant complexity. Operators must now balance: 

  • Renewable variability: Predicting generation minutes and hours ahead. 
  • Energy storage: Managing battery states of charge and deciding when to shift renewables versus providing system reserves. 
  • Asset dispatch: Determining the most efficient thermal units to use at specific load points. 

The "muscle" and the "brain" of modern microgrids 

To solve this "complex matrix of needs," Teperi suggests a layered approach to technology: 

  1. Flexible generation (the muscle): While renewables are the foundation for decarbonisation, they require "dispatchable" support. Wärtsilä engines and battery storage provide the necessary reliability, providing rotating masses that offer inertia and short-circuit capacity that inverter-based technology alone often cannot. 
  2. Energy management systems (the brain): Wärtsilä’s GEMS system acts as the intelligence centre, optimising the entire grid. By using load and renewable forecasts, GEMS dispatches all assets, including engines, batteries, and renewables, to minimise the levelised cost of electricity while ensuring stability. 

First steps toward transition 

For organisations starting their journey, Teperi outlines a clear path: 

  • Modelling and simulation: The process begins with understanding the current system and using power system modelling to optimise the sizing of new assets. 
    Prioritising renewables and flexibility: Adding solar or wind is typically the most cost-competitive first step, provided it is paired with flexible generation and smart energy management. 
  • Future-proofing: While sustainable fuels may not be cost-competitive today, selecting engine technology that is ready for future fuel transitions ensures long-term viability. 

As the energy sector moves toward 100% renewable systems, the takeaway from Teperi’s insights is clear: complex energy questions don't have simple answers, but with the right combination of "muscle" and "brain," decarbonisation is both achievable and economically sound. 

Written by
Terence Mentor