Renewable Energy Resilience

Nanogrids, Microgrids and Virtual Power Plants

Expert on new energy business models such as nanogrids, microgrids and virtual power plants, covering cutting edge energy and environmental issues for over 25 years.

Arctic Circle Hot Spot for Renewables

The market opportunity for remote, off-grid power is immense, as was verified in a report released late last year sizing this market including projects that met Navigant Research’s definitions of both nanogrids and microgrids. According to this analysis, the total value of the assets and services that could flow into this huge global market over the next ten years could reach more than $200 billion.

As was reported in a previous blog, one could make the argument that Alaska, sitting within the Arctic Circle, is a global leader on remote microgrids, with almost 140 such systems identified in the most recent version of the Microgrid Deployment Tracker representing over 900 MW of capacity. The vast majority of these remote microgrids incorporate some level of renewable energy. In fact, Kodiak Island reached nearly 100% renewable energy generation during 2014. Several local utilities have set goals ranging from 70 or 80% renewable penetration within the next 5 to 7 years

It turns out innovation on renewables and remote microgrids is not limited to Alaska. The Alaska Center for Energy and Power (ACEP) is co-leading a new program to be launched this summer for countries whose borders venture into the Arctic Circle. Dubbed the Arctic Renewable Energy Network Academy (ARENA) program, this program is a formal project under the US Chairmanship of the Arctic Council, with 4 of the 8 countries co-leading (so far), including Canada, Finland, and Iceland, along with the U.S. (Alaska). This program is designed to bring together practitioners from throughout the Arctic to learn from one another with the goal of increasing the number of hybrid-renewable energy systems installed across the Arctic.  “ARENA is focused on the Arctic now, but we are hoping to expand it to other regions in the future, if we are able to find some partners,” said Gwen Holdmann, ACEP director.

As a region, the 8 countries representing the circumpolar Arctic are at the forefront of climate change, where measured and expected temperature increases are significantly higher than the national average.  Impacts like diminishing sea ice and coastal erosion are becoming common challenges for these frigid and remote communities. However, the Arctic region, is also leading the way when it comes to renewable energy development. ACEP estimates 60% of grid-connected communities across the Arctic produce power from renewable resources (compared to a global average of 22%), including:  

       Finland (39%, biomass)

       Sweden (48%, hydropower, biomass)

       Norway (99%, hydropower)

       Iceland (100%, geothermal, hydropower)

However, approximately half of the populations residing within the Arctic are not connected to a traditional power grid. Instead, they rely on remote microgrids to provide electric power services. This increases the complexity of integrating renewables, particular at high penetration levels. These systems are among the most sophisticated engineering marvels in the world, providing life/death energy services.

Countries throughout the Arctic are actively investing in renewable resource development. Perhaps the most fascinating data points come from Russia, a country hardly known for a focus on sustainability. A project pipeline totals over 800 MW of remote microgrid capacity designed to displace pure diesel capacity with some renewables. Last year, a modest 15 MW of wind and solar capacity was brought online by RAO Energy Systems of the East, the state-owned utility that serves parts of Russia within the Arctic Circle. Those numbers will scale up dramatically in the near future, with some 178 distinct projects in the works. At present, Russia also has the largest solar PV array located within the Arctic – a 1 MW system at Bagaday. 

©2016 Peter Asmus. Photo credit: David Clites. Website by: