Overview
To support reliability and take advantage of advances in clean energy technologies, communities across Wisconsin are considering microgrids to reduce the impact of electrical power outages on their residents. A grid-connected facility with a microgrid can maintain the benefits of being connected to the utility grid but also has the ability to disconnect during a power outage to keep critical services functioning.
For example, a hospital can utilize a microgrid during a power outage to continue treating patients in need. Or a local community center or a city hall may be outfitted with a microgrid to provide residents with a place to stay cool during the summer or warm during the winter.
What is a Microgrid?
The U.S. Department of Energy defines a microgrid as “a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid.” (See
Microgrid Overview, p. 1).
These localized energy systems generate, distribute, and regulate the flow of electricity to end-users in a building or multiple buildings throughout a community. These systems can be connected to the larger regional electric grid but also function independently from it, ensuring a steady supply of energy, even during grid blackouts or natural disasters.
A microgrid uses a controller that connects or disconnects from the electric grid, manages the power flow, and balances electrical loads. It is supported by one or more of the following onsite distributed energy resources (DERs):
- A power source which can include renewable resources like solar or wind, traditional generators that use liquid fuels, or combined heat and power plants.
- Battery energy storage that is activated when power is unavailable from other sources. The battery can be charged using any of the power sources or the utility grid when it is available.
When the microgrid is activated, the connected power sources can provide electricity to the connected facilities, either directly or through the battery energy storage.
(Image curtesy of the National Association of State Energy Offices (NASEO), NASEO Microgrids)
Benefits of Microgrids
When appropriately designed and operated, microgrids can improve local energy resilience by reducing the impacts of a power outage on a community.
Microgrids are especially valuable in ensuring that critical infrastructure, such as healthcare, public safety, or emergency services can continue to operate during a power outage.
In addition, under certain conditions, grid-connected microgrids can strengthen overall grid reliability by providing power back to the grid to ease the strain on resources.
Microgrids that use a clean power source like solar or wind can also help reduce greenhouse gas emissions and pollutants.
Types of Microgrids
Level 1 or single customer: These microgrids serve one customer through one meter. Example: a single facility (such as a community center) using an on-site microgrid to provide backup power.
Level 2 or single customer or campus setting (partial feeder microgrid): These microgrids serve multiple buildings or facilities, connected to the grid and controlled by one meter at the interconnection point (also known as Point of Common Coupling [PCC]). Example: a microgrid sited on a university campus comprised of multiple buildings connected to the grid through one meter.
Level 3 or multiple customers (advanced or full feeder microgrid): These microgrids serve multiple facilities or customers on multiple meters. The DER(s) may be located on a different site from the facilities or customers. While an advanced microgrid has one PCC, the individual facilities or customers within the advanced microgrid may have their own individual connections to the distribution grid. Example: a community-wide microgrid that powers homes and other buildings.
Microgrids in Wisconsin
Before investing in a microgrid, one of the first steps a community can take is to complete a microgrid feasibility study. These studies can provide communities with information on the proper system configuration, cost estimates, and estimated quantified resiliency, environmental, and grid benefits.
A feasibility study may be required by the electric utility; it is important to communicate with the servicing utility during this phase to identify any technical considerations that would need to be addressed as part of the microgrid installation. Feasibility studies can also help communities work through all the different variables for effective implementation, helping them make the right decisions on the level and configuration of the microgrid for their community.
Entities thinking about a microgrid should seek out an experienced electrical engineering firm to perform their study and identify installers. For more information on microgrids and planning for a microgrid, read U.S. DOE’s
Microgrid Overview.
The Public Service Commission’s Office of Energy Innovation provided a grant program in 2021 to support the development of microgrid feasibility studies. The Critical Infrastructure Microgrid and Community Resilience Center Pilot Grant Program supported 15 projects in the development of those studies. As of 2025 about half of those studies have resulted in the implementation of a microgrid. Feasibility study reports from this program are available here:
PSC Critical Infrastructure Microgrids (wi.gov)
Funding Opportunities
Funding may be available to support your microgrid project. The OEI’s Energy Innovation Grant Program (EIGP) has provided funding for microgrid feasibility studies, as well as implementation of microgrids. Some utilities support microgrids and/or associated DERs. Contact your utility to check if they support either. Use the links below to search for funding opportunities:
Microgrid Projects in Wisconsin
Across Wisconsin, entities have also implemented microgrid projects. To learn about some these projects and how they are benefiting Wisconsin’s communities, see the links below.
A list of projects funded to date by the Energy Innovation Grant Program is included below. Visit the Commission’s EIGP webpage for updates on future program grant rounds.
Additional Microgrid Resources: