A Microgrid offers a network of adjacent electricity users with a local source of supply that is usually attached to a centralised grid but draws from directly connected onsite generation. In some cases, Microgrids can minimise the need for upfront investment in electricity network infrastructure by allowing electricity demand to be serviced locally and behind a conventional electricity meter.

Industrial and Commercial Microgrids are maturing quickly in North America and Asia Pacific but Microgrids that are established in order to minimise the need for upfront investment in electricity network infrastructure are relatively new to Western Australia.

The main reasons for the installation of an industrial microgrid are to provide power in remote areas where conventional power infrastructure does not exist, minimise potential costly infrastructure upgrades for existing energy supply networks, power supply security, reliability and the integration of low-cost embedded generation including from renewables.

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