Community Microgrids

Overview of the Community Microgrid Initiative (90 seconds)

The Clean Coalition works with electric utilities to design and implement Community Microgrids.

Community Microgrids prove that local renewables provide a reliable and cost-effective foundation for a modern grid. In addition, Community Microgrids deliver an unparalleled trifecta of economic, environmental, and resilience benefits to communities.

On this page

What is a Community Microgrid?

A Community Microgrid is a coordinated local grid area served by one or more distribution substations and supported by high penetrations of local renewables and other distributed energy resources (DER) such as energy storage and demand response. Community Microgrids represent a new approach for designing and operating the electric grid, relying heavily on DER to achieve a more sustainable, secure, and cost-effective energy system while generally providing renewables-driven power backup for prioritized loads over indefinite durations. The substation-level foundation of a Community Microgrid ensures that the approach can be readily extended throughout a utility’s service territory and replicated across utilities.


  • Leverages high penetrations of local renewables and other distributed energy resources to achieve desired level of grid reliability, power quality, and resilience.
  • Uses efficient load design, including local balancing and load flattening, to reduce costly peaks and transmission costs.
  • Includes the ability to island critical loads.
  • Establishes a scalable solution spanning one or more substations.


  • Creates a more sustainable, reliable, secure grid.
  • Achieves the desired level of local renewable generation and grid reliability, power quality, and resilience in the most cost-effective manner.
  • Establishes a foundation for more precise and efficient grid operations.
  • Provides a pathway for utilities to thrive in the distributed energy future.
  • Takes a system-wide approach to reduce dependence on vulnerable, inefficient, and expensive remote generation and associated transmission infrastructure.

Community Microgrids deliver these combined benefits to communities:

  • Lower costs due to energy provided locally instead of over long distances.
  • Increase clean energy for homes and businesses, as well as transportation.
  • Provide energy resilience and security that can withstand multiple disaster scenarios.
  • Provide economic stimulation at the community level.
  • Create a replicable model that can be deployed in any community around the world.

In addition, Community Microgrids replace the need for natural gas-fired peaker plants, while maximizing the use of the existing built environment and existing infrastructure, protecting open space, and lowering the overall environmental impact of urban culture.

Elements of a Community Microgrid


Why we need Community Microgrids

The United States’ power system, built on century-old technology and approaches, was designed to deliver electricity from large, remote power plants across significant distances to the cities and towns where electricity is actually used. Now, however, locally sited renewable energy generation has become economically competitive with centralized generation and offers a superior approach for a vastly improved power system.

In addition, our centralized power system is highly vulnerable to extreme weather events, which are occurring more frequently. In fact, 2017 was the most costly year for domestic disasters in US history, with 16 weather or climate events with losses exceeding $1 billion, and a total estimated cost of $306 billion.

Source: National Atmospheric and Oceanic Administration

Yet, utility executives and policymakers are reluctant to embrace local renewables due to fears that the existing power system cannot reliably integrate distributed energy generation. These grid reliability concerns have effectively limited local renewables to providing no more than 15% of peak power needs. Without empirical proof that the power grid can integrate greater amounts of local renewables in a cost-effective manner, this 15% limit will continue to slow the nation’s transition toward our clean energy future.

To overcome this reluctance, and to demonstrate the technical and economic feasibility of high penetrations of local renewables, the Clean Coalition established the Community Microgrid Initiative. Working in partnership with electric utilities, the Community Microgrid Initiative is designed to achieve Community Microgrid demonstration projects that prove local renewables connected to the distribution grid can provide at least 25% of the total electric energy consumed while maintaining grid reliability and power quality. These demonstration projects will serve as models for modernizing America’s electrical system in the most intelligent manner possible.

A scalable and replicable solution

The Community Microgrid Initiative will accelerate the transition to renewable energy and a modern grid. One important outcome will be a standard methodology that any utility can use to optimize and streamline the deployment of local renewable energy throughout its service territory.

Rather than continuing the painstakingly slow process of evaluating local renewable energy projects one at a time, the Community Microgrid Initiative will create a faster pathway to bring clean local energy online. By modeling large areas of the distribution grid, utilities and regulators can efficiently identify greater distributed generation opportunities and establish streamlined deployment plans. This system-wide approach enables large amounts of local renewables to come online in months rather than years.

To achieve this, the Clean Coalition is collaborating with electric utilities and technology firms to ensure that grid modeling software enhances visibility and management of energy at the distribution grid level. This advanced distribution grid modeling, which includes optimization analysis for both the location and mix of distributed energy resources, allows for a quick and accurate assessment of an individual substation’s potential capacity for local renewable energy. Utilities can then rapidly deploy local renewables in communities based on simplified “integration” scenarios, such as:

  1. Lower-Cost Capacity: the amount and location of local renewables that can be brought online, using existing voltage regulation and advanced inverters, with minimal investment in the distribution grid.
  2. Medium-Cost Capacity: the amount and location of local renewables that can be brought online with cost-effective storage and some investment in the distribution grid.
  3. Higher-Cost Capacity: the amount and location of local renewables that can island essential services with additional storage, local reserves, and more substantial investment in the distribution grid.

These scenarios will guide utilities and regulators to determine appropriate local capacity targets for renewable energy and establish pathways to meet an area’s specified goals. This combination of advanced distribution grid modeling and cost scenario analysis creates a replicable and scalable method for deployment of local renewables.

A beneficial solution

The Community Microgrid Initiative incorporates local renewables into the existing utility grid, offering these significant advantages over centralized generation:

  • A stronger local economy: Community Microgrids attract private investment, create jobs, and keep energy dollars close to home.
  • A more resilient power system: Community Microgrids enhance grid reliability and power quality through local balancing of supply and demand of energy, using intelligent grid solutions — such as advanced inverters, demand response, and energy storage — and a diverse generation portfolio.
  • Affordable and stable energy prices: Community Microgrids secure predictable and affordable energy prices by protecting consumers from the volatile costs of fossil fuels and the rising costs of delivering energy over long-distance transmission lines.
  • A cleaner, healthier environment: Community Microgrids reduce greenhouse gas emissions, minimize water use, and preserve pristine lands by siting local renewables on rooftops, parking lots, and other underused spaces within the built environment.

Community Microgrid projects

The Clean Coalition is already working with several utilities on Community Microgrid demonstration projects — most notably in San Francisco, CA, Napa and Sonoma Counties, CA, and Long Island, NY. The Community Microgrid Initiative is accelerating the transformation of the electric utility sector. By demonstrating that locally sited renewables can cost-effectively and reliably replace centralized generation, these replicable demonstration projects will enable the rapid deployment of clean energy and robust grids in communities across the country.