Should We Have Selfish Microgrids?

Substantial breakthroughs in renewable energy have been made in order to reduce energy-induced climate change. Yet our reliance on these sources is still insufficient. The UK’s objective of attaining net-zero emissions by 2050 is highly dependent on shifting to an electrical system that exclusively relies on zero-carbon generation. This entails integrating renewable energy sources, along with other low-carbon sources such as nuclear power, into the energy mix. However, the primary barrier to incorporating additional renewable energy sources into the grid is their intermittent and volatile nature. Therefore, there is a pressing need to stabilise the generation of renewables and manage this volatility by enhancing the balancing mechanism between microgrids and the national grid. This paper examines previous research on microgrids and smart grids, specifically from a supply chain perspective. It has been observed that the majority of the current literature focuses on documenting selfish microgrids that strive to optimise performance at the microgrid level. However, there is an alternative approach that draws inspiration from the field of supply chain management. Consequently, it is possible to enhance a microgrid’s performance within the broader system that it belongs to by reconsidering the timing and location of storage utilisation.