The Emergence of Microgrids in South Africa

[DavidKruger]

Decentralization is one major development that could help address the energy challenges of the 21^st century. In the early 20^th century, the centralization of electricity production made significant progress, enabling economies of scale and improved plant efficiency. It also increased the overall use of electrical power. Today, however, the situation has evolved considerably, and utilities need to provide more and cleaner energy to an increasing number of consumers.

Major technical and economic changes have also occurred in the energy market the last 10 years alone. Substantial progress has been made in the decentralization of energy resources, such as solar energy and battery storage systems. The Internet of Things is operational, driving new cooperation and optimization capabilities. These factors enable the emergence of new energy ecosystems such as microgrids, which offer a way to tackle our energy challenges.

Microgrids contribute to the energy transition by providing practical and accessible answers to improve energy reliability, energy resiliency, energy accessibility, energy independence, green energy, energy cost optimization, energy flexibility as well as the ability to participate in demand response or grid-balancing programs.