Deepdive into microgrids
And why they are essential for Power systems 2.0
Table of Contents
Introduction to microgrids
A part of a modern power system
Microgrids are quickly becoming the building blocks of the current and future electricity system. Microgrids enables industry players: energy generation, storage and power control on-site, cutting exposure to volatile grid prices, securing operation if outages, and unlocking cost benefits of electrification.
Here we will explain the characteristics of microgrids, where they add value, commercial models and practical steps towards evaluating how a microgrid will benefit your company. Plexar Energy’s end-to-end offering includes opportunity for financing through the CI Microgrid Electrification Fund (MEF I).
The definition of a microgrid
Closed distribution systems, CDS
A microgrid is a localized power system with clearly defined electrical boundaries that combines renewable energy resources such as solar & wind with storage through battery energy storage systems, BESS. All assets both generating and storing facilities are controlled by an Energy Management System (EMS). The EMS allows your allocated assets to operate as one single controllable unit, a microgrid.
A microgrid, closed distribution systems can either run connected to the collective grid or, when needed, operate independently in “island mode” to maintain uninterrupted operations through for example grid black outs.
The components
& how each of them play a crucial role
A typical industrial microgrid brings together several elements & technologies that each play a distinct role:
Core components
- On-site generation: Solar power, wind where suitable, generates renewable energy close to demand.
- Battery Energy Storage System (BESS): Captures excess generation and dispatches it when needed to smoothen intermittency, to meet peak demand or to stabilize power prices.
- Inverters and grid-forming technology: Enable renewable and battery systems to provide grid services previously supplied by synchronous machines.
- Energy Management System (EMS): The brain. The energy management system forecasts supply and demand, optimizes dispatch (charging/discharging), manages market interactions and provides 24/7 remote optimization and monitoring. The EMS runs rolling forecasts (e.g., every 15 minutes) to adapt to the latest data from the market, load & dispatch and ensures continuous optimization. EMS is intelligent power management that develops to your continuous advantage day by day, minute by minute by each datapoint it’s feeded.
- Security & grid compliance: Ensures safe, seamless operation with local grid infrastructure.
How they operate together
- Day-ahead and intraday forecasts predict generation, demand and market conditions.
- EMS schedules solar use, battery charge/discharge and, when applicable, limited market transactions to achieve lowest cost and highest value for the off-taker.
- During peak demand or grid outages, BESS and inverters support loads and, if designed to island mode, maintain site operations.
Urgency and opportunity
WHY microgrids matter now
Rapid electrification of industrial operations and transport
Sectors such as logistics, ports, data centres, mining and heating/cooling are electrifying quickly. Electrification drives increased electricity demand profiles and a need for reliable, low-carbon supply
A faster shift to intermittent renewable generation & grid expansion
Large volumes of renewables are being developed, but grid build-out is slow; many renewables projects sit in queues because of long lead times for transmission. Microgrids offer a modular, faster path to deploy renewables at the point of demand.
Microgrids are the enabler for accelerating decarbonisation & energy Resilience while putting you in control of energy costs
The benefits
Delivered by our microgrid solution
-
Top & bottom-line impact
Access to own supply and smart trading turns you from a price-taker into a price optimizer enables control of the electricity bill. Sell, store & consume . Generation and storage reduces exposure to volatile grid prices, stabilization of costs, and flexibility. -
Energy resilience & security
Storage and on-site generation ensure reliability for businesses and industries. In addition, a microgrid in island mode with grid forming and black start capabilities ensure continued operations in case of black outs or grid disruption. -
Green capacity
Microgrids help decarbonize operations while meeting peak demand. Our modular design ensures flexibility and can adapt to future growth or changing energy needs. A scalable solution that evolves with your business as needed for a sustainable future.
Our approach to your solution
driven by market leading expertise, know how & partnerships
Plexar Energy’s approach represents best practice for industrial microgrids. Our offering includes development, financing, construction and continuous operation into one offering:
1
End-to-end, fully financed solution
- Development, permitting and engineering delivered by a specialist team.
- Construction and installation.
- Long-term fixed-price electricity contracts (typically 10–20 years) where the off-taker pays a monthly fee once the microgrid is operational. This is intended to deliver off-balance-sheet treatment and predictable costs.
2
Fund and capital structure
- CI Microgrid Electrification Fund I (MEF I) is capitalised to develop and finance microgrids, with ready-to-deploy capital and a strategy to accelerate electrification within industries.
3
Optimisation Agreement & EMS profit sharing
- Under an Optimisation Agreement, the EMS operator schedules flows day-ahead and during operations; optimisation profits (when available) are shared between the operator and the off-taker, aligning incentives. The EMS both reduces cost and unlocks new revenue streams.
Value adding technical features
Being at the forefront of technological development
The technological differentiators of a microgrid are:
Grid-forming inverters
High-quality BESS
AI-driven EMS
Cybersecurity and operational safeguards
Concrete use cases
Sector specific know-how
Logistics & Ports
Shore-power for vessels, electrifying yard equipment and ensuring continuous operations for cold chains.
Islands & remote communities
Local renewables + BESS replace expensive and polluting diesel generation.
Data Centers
Affordable, clean backup to protect uptime while lowering carbon footprint.
Mining & remote operations
Industrial heating & cooling
Enabling large heat pump systems and low-carbon thermal platforms.
Your decision checklist
Will a microgrid benefit your companY?
- Are you electrifying some or all of your operations?
- Would outages or power quality issues impose measurable operational costs?
- Is your site constrained by available grid capacity or costly grid upgrades?
- Would stabilized energy cost and potential revenue due to ancillary services benefit your company and budget?
- Are you targeting measurable CO₂ reductions as part of a decarbonization roadmap?
If the answer to one or more of the above is yes – A microgrid is likely worth a detailed site feasibility study
How Microgrids hedge price risk
Will a microgrid benefit your companY?
Will electricity prices go up or down?
Can a microgrid be treated off-balance-sheet?
It depends on contractual details and accounting standards (IFRS). Factors include whether the off-taker has rights to substantially all economic benefits or the right to direct the use of the asset. The arrangement described in typical Plexar structures aims for off-balance-sheet treatment by keeping operational control and ownership with the project vehicle, but companies should obtain a formal accounting analysis before concluding treatment under IFRS 16 / IFRS.
We welcome you to contact us for a comprehensive explanation and a discussion tailored to your specific project.
Step by step
Execution of a microgrid project – power solution 2.0
1
Initial site assessment & energy audit
Baseline consumption, peak profiles, constraints.
2
Concept design & technical feasibility
Sizing PV, BESS and defining interfaces to site electrical infrastructure.
3
Commercial proposal & contract structure
Fixed monthly supply, duration (10–20 years), optimisation agreement and profit sharing (if any).
4
Permitting & grid integration studies
Secure permits and negotiate any necessary grid agreements.
5
Construction & commissioning
Procurement, installation, testing and commission to handover.
6
Operations, optimisation & maintenance
EMS delivers continuous optimisation; preventive maintenance and 24/7 monitoring ensure availability.
language you should see in a robust proposal
Look for explicit items in any good microgrid proposal:
- Detailed energy audit & metered baseline
- Performance guarantees and availability targets
- EMS description: update frequency, forecasting inputs and reporting cadence
- Contract term and fixed monthly price mechanics
- Risk allocation for permitting, connection and force majeure
- Clear termination and asset treatment clauses (important for accounting clarity).
Quick glossary / Short definitions
- Microgrid: A localised, controllable power system combining generation, storage and loads.
- BESS: Battery Energy Storage System; stores electricity for later use.
- EMS: Energy Management System; software that optimises dispatch, storage and market interactions.
- Island/Islanding: Operating disconnected from the wider grid to maintain local supply.
Why act now
Microgrids combine technical maturity (PV + BESS + grid-forming inverters) with advanced software (EMS, AI-driven optimization) and commercially attractive financing structures. For energy-intensive businesses, ports, data centres and remote operations, Microgrids are a pragmatic route to lower costs, higher resilience and faster decarbonization, without the up-front capital burden of traditional projects. Plexar Energy, backed by CIP and supported by MEF I, has been formed precisely to professionalize and scale that pathway.
Ready to take the next step towards
the future of power solutions?
Contact us and let’s deep dive into what Microgrids can do for your business
Frequently asked questions
What is the main purpose of a microgrid?
A microgrid’s primary purpose is to deliver reliable, low-cost, and clean electricity by combining on-site renewable generation, battery storage, and an intelligent Energy Management System. It reduces dependency on the utility grid and keeps operations running even during outages.
How long can a microgrid provide backup power?
Are microgrids only for large industrial sites?
How are microgrids financed?
Can microgrids reduce my energy costs?
Yes. By maximising self-consumption of renewables, optimising storage, and providing price stability through fixed contracts, microgrids typically reduce lifetime energy costs compared to full reliance on the grid.
Can the microgrid export to the grid?
Yes. When generation exceeds site demand and a microgrid can export to the grid. EMS will decide whether to export, store or dispatch to the off-taker based on optimisation logic.
Who takes market price risk?
Under a fixed monthly supply contract, the project owner takes the primary market exposure; the off-taker receives price predictability. Optimisation agreements may allocate a share of upside from market interactions back to the off-taker.
How is a microgrid maintained and monitorised?
Plexar’s specialised operators provide continuous remote monitoring, preventive maintenance schedules and SLAs for availability and power quality. This is a standard element in end-to-end offerings.