Microgrids Could Ease Strain on Power Grid, Reduce Utility Costs, Study Finds

Microgrids have the potential to reduce strain on the electric grid and lower long-term utility costs, according to a new perspective from the National Renewable Energy Laboratory (NREL).

In a recent installment of NREL’s Tell Me Something Grid series, researcher Rory McIlmoil shared how microgrids are emerging as key tools in energy resilience and efficiency. Drawing from firsthand experience during Hurricane Helene in 2024—when widespread power and water outages affected his rural North Carolina community—McIlmoil emphasized the need for local, adaptive energy systems that can operate independently during disasters.

Microgrids, as defined by the U.S. Department of Energy, are groups of interconnected loads and distributed energy resources that can function both while connected to the main grid or in isolation. Their ability to power essential services—such as fire stations, medical centers, and community hubs—makes them particularly valuable during emergencies.

Beyond disaster response, microgrids are increasingly being seen as assets for grid management. They can alleviate stress during peak demand periods, integrate renewable energy sources, and potentially delay the need for costly infrastructure upgrades. Several utilities, such as Duke Energy, have already begun deploying microgrids in partnership with local institutions to support resilience goals.

The growing interest in microgrids is also leading to regional collaborations. Projects now underway aim to deploy both stationary and mobile systems that can deliver critical services during outages, while contributing to broader utility and policy planning.

As the energy landscape evolves and climate-related disruptions become more frequent, research from NREL is helping chart a path toward a more reliable and cost-effective grid—where microgrids play a central role in balancing resilience and affordability.