Innovative Microgrid Services and Applications in Electric Grids: Enhancing Energy Management and Grid Integration

Abstract

Currently, microgrids are a reliable solution for integrating distributed energy resources and managing demand on electricity grids, serving as a pathway towards a responsible energy transition. However, the evolving needs of the sector require specialized approaches to enhance grid flexibility and support the increasing penetration of renewable energy sources and their rising demand. This article explores and characterizes various advanced and innovative services offered by microgrids to improve the resilience, security, and reliability of electricity grids. It analyzes technical advances and novel control methodologies that demonstrate the potential for microgrids beyond mere energy provision. These include ancillary services, services aligned with demand response programs, and advanced asset management and energy resource optimization services. A global case study is conducted to provide a framework for the services that microgrids can provide. The case study validates the efficiency and reliability of electric grids with microgrids and addresses challenges related to their stability and resilience. This research provides a comprehensive perspective on the benefits of implementing microgrids and proposes new guidelines for the deployment of these systems in both urban and rural areas within the framework of energy communities in the Colombian electricity system, emphasizing the need for collaboration among stakeholders to ensure sustainable energy solutions.

1. Introduction

Over the years, the concept of microgrids (MGs) in terms of control, operation, and energy/power management has evolved. Although there is still no consensus on their definition, it is important to address key concepts for their understanding, such as smart grids (SGs) and distributed energy resources (DERs) [1]. An SG is an advanced electrical network that integrates various technologies to improve the efficiency, sustainability, and reliability of the energy supply. It involves the coordination of all connected users, from producers to consumers, through monitoring, analysis, control, and communication capabilities [2]. DERs are generation systems that contribute to the better operation and efficiency of electric grids (EGs), often integrating renewable energy sources (RESs). DER technologies include solar photovoltaic systems, wind turbines, hybrid energy storage systems, combined heat and power systems, and electric vehicles (V2G, G2V), among others [3].

With these concepts in mind, an MG can be understood as a power system that integrates DERs and is capable of operating either connected to or disconnected from the main grid to enhance the efficiency, reliability, sustainability, safety, and resilience of power grids [4]. However, some organizations have their own definitions, such as the Institute of Electrical and Electronics Engineers (IEEE), which defines it as “A group of interconnected loads and distributed energy resources with clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid and can connect and disconnect from the grid to enable it to operate in both grid-connected or islanded modes” [5]. Similarly, the International Electrotechnical Commission (IEC) defines it as “A group of interconnected loads and distributed energy resources with defined electrical boundaries that acts as a single controllable entity and is able to operate in both grid-connected and island mode” [6].

MGs offer configuration versatility. They can be classified by system type as DC microgrids, AC microgrids, or hybrid microgrids, depending on the common bus to which the DERs are connected. In terms of architecture, MGs can be either radial or ringed. Depending on what load they feed, they can be residential, industrial, commercial, institutional, military, etc. Figure 1 and Figure 2 show examples of typical microgrid topologies.

In addition to being an innovative way to utilize DERs, MGs are highly flexible in providing a range of services to power grids. These services can be delivered either to the power system or directly to consumers when operating in islanded mode. A commonly used term in the literature is “ancillary services”, which [7] defines as “all services required by the transmission system operator (TSO) or distribution system operator (DSO) to maintain the integrity and stability of the transmission or distribution system, and the quality of energy”. Consequently, the absence of these microgrid services in electrical grids can lead to several significant issues, primarily related to reliability, efficiency, stability, and power quality. Without these services, traditional grids face challenges such as frequent outages, inefficient energy use, and poor power quality.

Traditional grids often experience failures and blackouts due to various factors such as adverse weather conditions, infrastructure weaknesses, and generation problems. This lack of reliability leads to production losses and higher operational costs, particularly for commercial and industrial sites [8]. Similarly, during abnormal events like major storms, the absence of microgrids means the grid cannot isolate and protect critical loads, leading to extensive service interruptions and compromising the grid’s resilience.

Without MGs, the integration of renewable energy sources can cause voltage and frequency fluctuations, leading to power quality issues such as harmonic distortion, voltage sags, and active and reactive power oscillations, affecting the grid’s steady-state and dynamic response. Additionally, the lack of microgrid services can lead to higher costs due to production losses, equipment damage, and inefficient energy use. This is particularly problematic for industries that depend on a continuous energy supply [9,10].

MGs can co-optimize multiple energy services, such as energy arbitrage and frequency control, which are not possible in traditional grids. This results in inefficient energy use and higher operational costs. Moreover, energy storage systems in microgrids help manage power generation fluctuations and provide a seamless transition between grid-connected and island operations. Without these systems, grids cannot effectively shift energy usage to optimize demand and supply [9]. Another important aspect of microgrid operation is their participation in demand-side management (DSM) programs, which is a key component in achieving established goals [11].

Several case studies have been conducted on the management of DER and different types of control architectures within a microgrid, including many optimization challenges, as indicated in [12]. Since their inception, microgrids have been able to provide not only energy to consumers, but also a variety of ancillary services, which, in most cases, are not well known by either electric utilities or users. Therefore, the goal of this line of research is to identify and describe these additional services that microgrids can provide and to significantly expand their impact and utility by developing new business models to enhance their use for both the system operator and the prosumer.

For example, in Colombia, efforts are currently underway to develop energy communities (ECs), where various stakeholders, such as utility companies, prosumers, and governmental entities, collaborate to develop these communities both technically and economically [13].

The objectives of these ECs are as follows [14,15]:

• Increase access to electricity, ensuring access for vulnerable populations.
• Improve energy efficiency by bringing generation closer to the point of consumption, thus, reducing losses.
• Democratize energy services through the participation of users and potential users.
• Decentralize the generation, distribution, storage, and consumption of energy within communities.
• Decarbonize the economy using non-conventional renewable energy sources.
• Develop the local and regional economy through activities related to energy services.
• Increase system reliability using non-conventional renewable energy sources and distributed energy resources.
• Provide affordable economic conditions for electric energy services to communities.

Ensuring the financial sustainability of these projects is crucial for the widespread deployment of these communities, which use MGs to manage DERs and RESs. One way to guarantee the return on the investment into these projects is through new and innovative business models that emerge from the ancillary services offered by MGs. The motivations behind this work lie in the need to define and characterize the innovative services that MGs can provide to the electric grid, assess their impact on grid performance indicators, and propose the deployment of these services in the Colombian market by evaluating current regulations. Additionally, there is a need to outline the new technical requirements that a microgrid must consider when providing each of these services.

The contributions of this work are as follows:

• The investigation into and characterization of new services offered by MGs.
• The qualification of the significant impact of services on electrical grid indicators.
• The technical evaluation of the benefits offered by MG services.
• New guidelines for the potential use of energy services provided by MGs in the Colombian electric power system.

The document is organized as follows: Section 2 addresses the current landscape of research on the services that MGs provide to electric grids, followed by progress in the Colombian electricity sector on this topic. Section 3 describes the main services and their impact on electric grids, followed by several case study analyses. Section 4 provides a discussion of the findings. Finally, Section 5 presents the conclusions.

2. Analysis of Global Trends and Colombian Market Integration

2.1. Current Status of Microgrid Services

A bibliometric analysis was conducted to assess the current state of the art of the services that MGs provide to electric grids. This analysis began with an initial search of the Scopus database, focusing on scientific articles that contained the keywords “microgrids” and “service” in the title. By examining the volume and trends of published research, we aim to gain insight into the evolution and growing interest in MG services, as well as identifying key areas of study and potential gaps in the literature. The results of this search provide a foundation for understanding the contributions of MGs to modern electric grids.

Figure 3 shows that since 2015, there has been growing interest in new business models based on the services that microgrids can provide. Although less knowledge was generated in 2021 compared to the previous year—possibly due to the COVID-19 pandemic—there has been an overall increase in recent years.

Figure 4 shows how the United States and China led in publications on this topic. The bibliography found will serve as the basis for this research.

Traditional power systems have well-defined structures, with each part of the value chain performing specific tasks, many of which involve providing basic services or supporting the main grid through ancillary services. These ancillary services can be classified based on where or when they are provided, either to transmission systems (TSs) or distribution systems (DSs).

With the recent massive penetration of DERs based on RESs and the trend of reducing investment in large generation centers, MGs play an important role in addressing the challenge of providing ancillary services to the electric grid. By properly managing RESs, mitigating their intermittent behavior, and optimally dispatching resources, MGs can provide some of the services that best fit their architecture, whether to TSs or DSs. Some of the services typically requested by the transmission system are related to the system stability, such as frequency and voltage control, while the distribution system may also request demand management services, congestion management, and electric vehicle integration.

According to [16], some examples of ancillary services that can be provided to distribution and transmission systems are as follows:

• DS-oriented services:

  a.

  Voltage regulation.

  b.

  Voltage unbalance mitigation.

  c.

  Congestion management.

  d.

  Power smoothing.

• TS-oriented services:

  a.

  Reactive power support.

  b.

  Inertial response.

  c.

  Power smoothing for grid stability.

  d.

  Frequency response.

Services directed to TSs generally help to ensure system stability, which means that some services are mandatory for electric utilities, and their characteristics are well regulated by national regulations, a situation that is not shared with services in different distribution areas [17].

Section 3 of this document thoroughly discusses various services that, according to the literature, microgrids can provide to the electric system.

2.2. Colombian Context

Colombia is located in the northwestern region of South America, bordered by the Pacific Ocean to the west and the Caribbean Sea to the north. Its proximity to the equator gives the country a great climatic and geographic diversity, making it one of the most biodiverse nations in the world. This rich diversity, ranging from tropical rainforests to mountains and plains, also plays a critical role in the availability of natural resources for energy production [18].

In South America, Colombia is notable for its production and export of coal and oil [19]. However, the country also possesses a diverse energy matrix, historically dominated by hydropower, which accounted for 63% of its total installed capacity in 2023 [20]. The contrast of being a significant contributor to fossil fuel exports while championing a clean energy matrix highlights Colombia’s energy outlook. This dual role underscores the country’s distinctive position in the global energy paradigm and calls for a nuanced assessment of its energy strategies. Figure 5 illustrates Colombia’s projected energy matrix through 2028, highlighting the significant inclusion of solar energy [21].

Additionally, it is important to understand that the Colombian electric power system is composed of two distinct zones: The non-interconnected zones (NIZs) and the National Interconnected System (NIS). The NIS is characterized by its centralized structure, consisting of large generation plants, transmission lines, substations, distribution grids, and loads. In contrast, the NIZs refer to areas not connected to the national grid, where diesel generation is the predominant energy source [22].

The Colombian market has four main approaches: (a) reliability market, (b) financial market of bilateral contracts, (c) service market, and (d) spot market (Bolsa) [23].

The reliability market, which primarily involves generation stakeholders, defines firm energy commitments at a set price through the energy auction mechanism. This market serves as a key tool to facilitate the construction of generation to ensure the future reliability of the electric system.

The financial market of bilateral contracts is where commitments are made by both generators and marketers to sell and purchase energy freely negotiated between the parties.

The spot market is a free market of supply and demand managed by the system operator and administrator, XM S.A E.S.P., where hourly and intraday transactions are carried out.

Finally, the service market, which will be studied in more detail, is currently dominated by the hydroelectric market, as it meets the operational conditions necessary to meet the technical requirements of the services provided, thus ensuring the stability and flexibility of the system.

In Colombia, the services necessary to maintain system stability are known as SSCCs (Complementary Services). In [24], issued by the National Energy and Gas Regulatory Commission (CREG), the roadmap for the coming years regarding services in the Colombian market is identified. These services are generally focused on the national and regional transmission system belonging to the NIS. Figure 6 illustrates the SSCCs that currently govern the Colombian energy system, along with the services proposed to be offered in the future.

These services are not focused on MGs, since the current energy system is centralized. However, the objective of this work is to characterize the services that MGs can provide and to present a more decentralized or hybrid perspective that allows users to coordinate operations with both the TSO and the DSO, in accordance with current and future regulations. Even so, the CREG, in its Roadmap for Demand Response in the National Interconnected System, has planned a study to allow SSCCs, which are typically provided to TSs, to be offered by DERs and MGs in the retail market [25].

The regulatory framework for MGs is under development in various countries, where regulatory agencies are creating their own standards tailored to their specific contexts, applications, and systems. As previously mentioned, Colombia is promoting ECs, where MGs play a highly significant role, serving as a control mechanism for the DERs available to the community.

Table 1. Norms, standards, and regulations for MGs.

Norm/Standard/Regulation	Description	Ref.
IEEE 1547-2018	IEEE Standard for Interconnection and Interoperability of DERs	[26]
IEEE 1547a-2020	IEEE Standard for Interconnection and Interoperability of DERs, Amendment 1: To Provide More Flexibility for Adoption of Abnormal Operating Performance Category III	[27]
IEEE 519-2022	IEEE Standard for Harmonic Control in Electric Power Systems	[28]
IEEE 2030.2-2015	IEEE Guide for the Interoperability of ESS with the Electric Power Infrastructure	[29]
IEEE 2030.7-2017	IEEE Standard for the Specification of Microgrid Controllers	[30]
IEEE 2030.8-2018	Standard for the Testing of Microgrid Controllers	[31]
IEEE 2030.10-2021	IEEE Standard for DC Microgrids for Rural and Remote Electricity Access Applications	[32]
IEEE 2030.9-2019	IEEE Recommended Practice for the Planning and Design of the Microgrid	[33]
IEEE P2030.12	IEEE Draft Guide for the Design of Microgrid Protection Systems	[34]
IEEE 2050-2018	IEEE Standard for a Real-Time Operating System (RTOS) for Embedded Systems	[35]
IEC 61850	Communication networks and systems for power utility automation	[36]
IEC 62443	Industrial communication networks—Network and system security	[37]
Colombian Regulation
RETIE	Technical Regulations for Electrical Installations	[38]
NTC 2050	Colombian Electrical Code	[39]
Law 1715 of 2014	Regulating the integration of non-conventional renewable energies to the National Energy System	[40]
Law 2099 of 2021	Whereby provisions are issued for the energy transition, the dynamization of the energy market, the economic reactivation of the country and other provisions are issued.	[41]
PIEC 2019-2023	Indicative Plan for the Expansion of Electric Energy Coverage	[42]
PND 2022-2026	National Development Plan “Colombia, world power of life”	[43]
Law 2294 of 2023	Whereby the National Development Plan 2022–2026 “Colombia, world power of life” is issued	[44]
Decree 2236 of 2023	Regulating Art 235 of Law 2294 of 2023	[13]
Decree 273 of 2024	Modifies articles of Decree 2236 of 2023	[45]

Source: adapted and complemented by authors [46].

shows the grid codes, standards, and both national and international regulations, including the advancements in the EC topic in Colombia.

However, ECs face a series of multifaceted challenges involving regulatory, financial, social, and technological aspects. ECs need to integrate RESs with existing electric grids, which can be technically complex and require advanced technology and skilled personnel. Technical gaps, such as the lack of tools and clear standards for defining the technological architecture necessary for their operation, and a lack of knowledge about generation technologies and data management platforms, complicate both the characterization of their energy needs and the selection of optimal models for their design and development. Moreover, the absence of mechanisms to identify technology providers and the lack of awareness of the economic, energy, and environmental benefits that new technologies offer exacerbate this situation [47,48].

The financial and institutional support gaps in the implementation of ECs in Colombia are significant. First, the absence of widespread subsidy and financing mechanisms limits the development of specific energy projects. The high initial investment and elevated costs of renewable energy, especially in isolated areas, further increase barriers to adoption, exacerbated by the logistical costs of providing energy services in hard-to-reach regions. Additionally, users lack protection mechanisms against the insolvency of ECs, and there are no schemes that allow income generation through productive processes. The difficulties in accessing resources to cover Administration, Operation, and Maintenance (AOM) expenses hinder financial sustainability. Furthermore, despite their potential to improve energy efficiency, ECs do not have direct access to the resources and mechanisms of the Rational and Efficient Energy Use Program (PROURE). Finally, they are not prioritized as projects within the administrative and financial structure of the Comprehensive Climate Change Management Plan for the Mining and Energy Sector (PIGCCme), limiting their integration into national climate change mitigation policies [47,48].

MGs have the versatility to be connected at different voltage levels, which allows them to be divided into two segments: behind the meter (BTM) and front of the meter (FTM) for grid-connected MGs as shown in Figure 7. In general, BTM refers to installations located on the user side of a commercial boundary. This means that they are located behind the meter. In contrast, FTM refers to equipment that is located before the connection point and is generally part of the network operator’s infrastructure [49,50].

Since the behind the meter segment is where the load and DER of prosumer microgrids are located, this makes it typically the most studied one. In this segment, the microgrid manages energy generation and consumption, optimizes resource utilization, and provides more efficient and sustainable energy services to the end user.

Table 2. Use cases by segment.

Segment	Business Model	Use Case
FTM	Large energy volumes	Arbitrage Contributing power capacity Reliability charge Peak shaving management
	Complementary services (SSCCs)	Frequency control support Voltage support Black start Reserve service
	Grid support	Power quality Flexibility Reactive power regulation
	Renewable energy integration	Renewable energy displacement Firm energy capacity Grid integration of renewables Renewable smoothing
BTM	Consumer energy services	Peak shaving Load shifting EV storage Oscillation damping Congestion management (optimization) Loss compensation Phase balancing Curtailment of renewable energy (DER integration)

Source: authors.

shows possible use cases in both segments.

3. Results

3.1. Services Offered by Microgrids

According to the previous section, there are various case studies from which microgrids (MGs) can develop business models. The implementation of these models may depend on several factors, such as the connection point, installed capacity, amount of stored energy, and other technical requirements specific to each case. The aim of this section is to present the services that MGs can provide. However, the specific technical and economic details of each case will be addressed in future work stemming from this document. The following services, or potential services, are categorized into three groups: conventional ancillary services, pilot services, and services under development. The goal is to provide a clear definition of each service and its application within electric grids (EG).

3.1.1. Conventional Ancillary Services

Frequency control support: In a microgrid, this refers to the energy reserve needed to respond to changes in the grid frequency. The microgrid can receive a signal from the grid operator when the frequency is low, allowing it to inject a percentage of this available reserve, or it can draw from the grid when the frequency is high [7,51].

In general, electrical systems respond to three levels of frequency control: primary control, secondary control, and tertiary control. The difference lies in the operation time and the moment they act. For example, primary control acts locally, close to where the unbalance occurs. Meanwhile, the secondary and tertiary control depend on the dispatch made by the centralized system operator, and only those generators that were previously coordinated to provide this service can act [52]. In summary, MGs can help maintain frequency stability in the main grid by dynamically adjusting their generation and consumption, thereby contributing to power quality. Figure 8 shows a graphical representation of this service.

The DER that contributes to frequency control in microgrids requires specific technical characteristics to ensure stability and dynamic response to disturbances. First, photovoltaic systems (PVs) and wind turbines (WTs) without storage must be equipped with power inverters with the capacity of performing frequency and voltage control. These inverters, known as Converter-Interfaced Generators (CIGs), must be able to adjust their output in response to frequency changes, which is achieved through advanced active and reactive power control algorithms. CIGs can operate in both grid-forming and grid-following modes, making them versatile for various network conditions and configurations [53].

Energy storage systems, such as supercapacitors in PVs and kinetic energy in WTs, play a key role in enhancing the inertia of microgrids, this is crucial for maintaining stability and reducing excessive frequency deviations during disturbances. These systems must be capable of releasing and absorbing energy almost instantly in response to any frequency deviations in the grid. Technologies like lithium batteries and Flywheel Energy Storage Systems (FESSs) have very short response times (milliseconds) and are ideal for stabilizing the frequency in low-inertia microgrids. FESSs store energy in the form of rotational kinetic energy through a heavy rotating disk, capable of spinning at high revolutions to store and release energy when needed. FESSs are specifically designed to enhance the frequency stability of microgrids, particularly those with high-integration RESs, by providing a rapid response to changes in the energy supply and demand [54].

Battery Energy Storage Systems (BESSs) offer a significant advantage due to their ability to release or absorb energy in milliseconds, enabling instantaneous frequency stabilization in response to sudden changes in load or generation. This rapid response is critical to keeping frequency deviations within acceptable limits, particularly in low-inertia microgrids, where maintaining frequency stability can be more challenging due to the limited natural inertia of traditional generators [55].

Innovative control tools have emerged due to the increasing need for grid stability as a result of the growing integration of RESs. Model Predictive Control (MPC) is one such strategy that optimizes control actions over a future time horizon, relying on a predictive model of the system to forecast its future behavior. This model is crucial, as its accuracy directly impacts the effectiveness of the control strategy. In [56], a data-driven system identification approach is proposed to enhance the precision of this predictive model, making it more computationally efficient and reliable for frequency support in microgrids.

Voltage support: In a microgrid, this refers to its ability to adjust the power flow profile at the node or Point of Common Coupling (PCC), improving the power factor and reducing reactive power to stabilize voltage levels within required parameters [25,52,57]. By providing voltage support, microgrids help maintain a high-quality power supply and prevent voltage fluctuations that could negatively affect end users.

For this service, it is crucial that the MG has the ability to coordinate the control of distributed energy resources and compensation devices to quickly adjust the reactive power at the PCC, thereby improving the power factor (PF) delivered to users. The regulation of reactive power is essential for the stability of the power system, as it has a direct or indirect influence on the following factors:

• Voltage regulation: increasing or decreasing the amount of reactive power injected into the system directly affects the voltage level at the PCC.
• Power quality: it is possible to maximize the transmission capacity of the system, minimizing losses and allowing greater active power transfer.
• Grid support: MGs have the versatility to inject or absorb reactive power as required.

Figure 9 shows a graphical representation of this service.

Black start: this process allows the microgrid to quickly restore power to the grid in the event of a total or partial blackout caused by natural disasters, human error, or cyber-attacks. MGs, which have the inherent ability to operate in islanded mode, provide rapid system restoration by providing power to affected consumers while the interconnected system is restored [58]. To provide this service, the MG must be in a strategic location (referred to as on-site operation) agreed with the system operators and must pass established black start tests [24]. Figure 10 shows a graphical representation of this service.

DERs play a crucial role in providing black start services within interconnected microgrids, offering flexibility and resilience during system recovery following a blackout. Traditionally, synchronous DERs, such as hydroelectric plants, steam turbines, and conventional diesel generators, have been used to initiate grid recovery [59]. However, DERs like batteries, solar panels, and wind generators now enable an almost immediate response through grid-forming converters (GFMs) or Multiport Interlinking Converters (MICs), which provide grid-forming functionalities. This ensures that microgrids can begin their restoration process without the need for large external generating plants. Additionally, their integration allows for the segmentation of critical loads and the prioritization of essential areas during the reactivation process [60].

Different methodologies adapt to the grid conditions and the available distributed resources, ranging from simple algorithms, as presented in [60,61], to more complex approaches, such as the developments in [59].

Reserve services or “energy storage”: In a microgrid, this refers to the use of energy storage systems (ESSs) to provide reserve capacity for system contingencies and fluctuations in net load power. Technologies enabling this function may include conventional batteries, fuel cells, or hydrogen storage [62]. Due to the high level of non-synchronous RES, it is essential for MGs to have an optimal storage system, as this serves as the basis for providing more complex services, such as voltage and frequency control. Figure 11 shows a graphical representation of this service.

3.1.2. Pilot Services

Peak shaving: In a microgrid, this refers to the technique of reducing demand peaks by supplying the necessary power to meet demand or by decreasing the load during peak hours. This service is a key component of DSM strategies. Additionally, it helps mitigate overvoltage and power flow issues [63,64]. The purpose of this service is to flatten the system’s demand curve, thereby avoiding or minimizing electrical load peaks, which leads to a reduction in energy costs by requiring less generation capacity. According to [65], for MGs to provide this service, it is crucial to have the necessary energy storage to compensate for peak demand, as RESs alone may not generate sufficient energy at the requested time due to their intermittency. Some of the technical and economic benefits of peak shaving are as follows.

Technical benefits.

• Improved power quality.
• Energy efficiency.
• Reduction in energy losses.
• RES integration.
• Reliability.
• Reactive power support.
• Efficient use of distribution and transmission systems.

Economic benefits.

• Replacement of expensive generators.
• Reduction in storage capacity costs.
• Reduced fuel costs.
• Prolonged grid infrastructure upgrade costs.

Figure 12 shows a graphical representation of this service.

Peak shaving techniques involve several considerations regarding the necessary resources. First, flexible energy resources can be considered, as illustrated in [66], which proposes an optimization scheduling method for multi-source energy microgrids that incorporates DSM strategies and joint peak regulation through heat pumps. From the supply perspective, the introduction of natural gas heat pumps (GHPs) represents a significant contribution. These pumps utilize natural gas refrigeration to replace electricity used for air conditioning, effectively reducing the peak electricity demand.

Additionally, various types of batteries that offer rapid responses can be considered, such as flow batteries. In [67], a microgrid system is investigated that utilizes a vanadium redox flow battery (VRFB) for energy storage, integrated with biomass gasification and solid oxide fuel cells (SOFCs) for energy generation. The system is optimized using a predictive algorithm based on Support Vector Machines (SVMs), which provides accurate predictive results even with a small test sample. This model significantly reduces the workload associated with data collection and ensures the reliable application of the VRFB under various operating conditions.

Finally, BESSs combined with RESs are technologies that are continuously being optimized. In [68], an algorithm is presented that is specifically designed to maximize the efficiency of a BESS in reducing energy consumption. This algorithm uses PV energy forecasts to effectively manage the charging and discharging of the battery, significantly reducing peak demand charges from the DSO and energy retailers.

Load shifting: This service is part of DSM strategies that involve shifting peak loads to periods when the demand curve is lower. It is considered one of the best strategies for grid operators [69]. By disconnecting non-critical or lower priority loads during periods of high demand or supply disruptions, the total load can be reduced, improving the efficiency and reliability of the system.

MGs can assist companies or large consumption centers in benefiting from DSM strategies. By disconnecting from the grid during periods of high consumption and self-supplying through microgrid-controlled DER, these entities can achieve significant economic savings on their utility bills [70].

Similarly, MGs can make the most out of the local marginal price of energy by storing energy when prices are low and releasing it when prices are higher, typically during peak load hours [51]. Figure 13 provides a graphical representation of this service.

Tariff incentives encourage the deployment of new algorithms, such as the one presented in [71], which is a hybrid price incentive algorithm designed to optimize load transfer within the framework of demand-side management (DSM) programs. It analyzes several factors, including the minimum tariff periods, historical usage of appliances, operational duration, supply priorities, and local generation capabilities of microgrids (MGs). Additionally, this program introduces the concept of the Energy Internet to prosumers, enabling them to manage energy and monitor consumption, facilitating real-time adjustments and awareness of energy consumption patterns.

Other studies, such as the one presented in [72], introduce an Improved Biogeography-Based Optimization (IBBO) algorithm for the optimal scheduling of microgrids, focusing on integrating non-critical and interruptible load shifts to enhance efficiency and reduce operational costs. Similarly, in [73], a Quantum-Behaved Particle Swarm Optimization (QPSO) algorithm is utilized to solve and optimize two phases. In the first phase, the algorithm optimizes flexible loads to maximize the use of renewable energy, helping to shift load peaks and fill valleys, which means balancing the energy demand throughout the day. The second phase addresses the daily economic dispatch problem, aiming to minimize operational and environmental costs by leveraging the optimization achieved in the first phase.

EV storage: The “electric vehicle” service in a microgrid refers to the integration of electric vehicles (EVs) as a component of the mobile electric grid, allowing for bidirectional energy flow with the grid. This service involves the use of EVs for grid-to-vehicle (G2V) charging and vehicle-to-grid (V2G) discharging, which can help stabilize the microgrid by providing temporary energy storage [74]. Figure 14 shows a graphical representation of this service.

Bidirectional battery chargers are a key component for providing this service. Some authors, such as those of [75], also implement a DC bus for the interconnection of all vehicles at a charging station, which facilitates the integration of electric vehicles and allows for the separate transfer of energy from the AC grid through the DC bus. Considerations such as vehicle battery degradation and financial incentives due to this deterioration are essential for the economic viability of these services. In [76], battery degradation is examined, taking into account the Depth of Discharge (DOD). The study suggests that the revenues from charge–discharge cycles must offset the battery degradation cost (BDC) in order for the service to be viable.

MPPT controllers are commonly used in load centers, as they employ a technique designed to maximize the energy output from variable energy sources, such as solar panels, by adjusting the electrical operating point of the modules or array. The commonly used algorithms include Perturb and Observe (P&O), Incremental Conductance, and Constant Voltage [75,77].

Congestion management: There are strategies or practices focused on ensuring that power flows remain within operational limits to avoid overloads on the transmission and distribution lines. Factors such as high demand, the integration of RESs, and the integration of electric vehicles can lead to congestion. In this process, the microgrid provides data and signals to TSO or DSO to inform long-term investments aimed at improving grid infrastructure while anticipating physical and operational constraints [78]. The control hierarchy of a microgrid should be capable of optimizing generation resources at a technical level, considering factors such as energy source availability, operating costs, and resource management to ensure reliable and stable operation. This also includes collecting the necessary data for predictive control developments in the optimal operation of microgrids and their connection to the interconnected system, enabling the competitive participation of renewable energy with conventional systems [79]. Figure 15 shows a graphical representation of this service.

Another important aspect is the integration of ESSs, which allow for the storage of excess energy and its discharge during periods of congestion, thereby reducing the strain on transmission lines [80]. The optimization of the location and size of distributed generators is essential, as they can relieve congestion in distribution grids. An approach such as Distribution Locational Marginal Pricing (DLMP), combined with optimization techniques like Hybrid Optimal Firefly Particle Swarm Optimization (HFPSO-TOPSIS), enables the optimal allocation of DERs, reducing energy losses by more than 75% and minimizing generation costs by 70% [81].

Additionally, event-based control methods, such as Optimal Power Flow (OPF) models, help efficiently manage congestion by triggering energy rescheduling only when necessary. These methods use distributed optimization algorithms, reducing the computational load and ensuring transaction diversity between microgrids and the main grid in a Peer-to-Peer (P2P) market. This approach facilitates decentralized energy management, optimizing the integration of distributed energy resources (DERs) and enhancing the overall grid flexibility and efficiency [82].

3.1.3. Services Under Development

Loss compensation: A microgrid can provide services to compensate for transmission and distribution losses, especially when grid operators have compensation facilities located far from the affected areas. This can reduce costs for users and improve the system’s reliability and quality [78]. Figure 16 shows a graphical representation of this service.

Phase balancing: In a microgrid, this refers to the optimization process using an advanced controller or switches to balance load and generation across different phases within the grid, to minimize energy loss and improve efficiency. According to [57], this service can be provided by injecting negative sequence currents and reactive power to achieve phase balance in the system currents. On the other hand, ref. [83] presents it as a solution to an optimization problem in a microgrid, targeting to find the optimal phase configuration point using switches in a distribution network. According to [84], the implementation of intra- and inter-phase power management techniques can help transfer power from surplus to deficient phases, achieving a dynamic phase balance. This is particularly useful in residential networks with phase-dependent generation and single-phase loads, such as rooftop PVs and electric vehicle chargers. Figure 17 shows a graphical representation of this service.

Oscillation damping: Low-Frequency Oscillations (LFOs) are phenomena that occur in power systems related to the relative speeds of the rotors of synchronous generators and the penetration of RESs coupled through electronic power converters. These oscillations can be classified into two modes. “Local modes” are associated with the oscillations of a single synchronous generator concerning the other elements of the system, ranging from approximately 0.8 to 2 or 4 Hz. “Inter-area modes” are generated by groups of geographically distant generators oscillating between them through one or more interconnecting lines in a conventional electrical network and range from ~0.1 to ~0.8 Hz [78,85].

Implementing coordinated control techniques that integrate frequency and power oscillation damping controllers is essential. These controllers can be based on active and reactive power modulation to enhance frequency response and effectively dampen Low-Frequency Oscillations (LFOs) [86]. Some techniques, such as the Tri-Band Damping Controller presented in [87], can address both local and inter-microgrid LFOs, improving system response to rapid load changes and interconnections. MGs can contribute to system stability by preventing total or partial blackouts through advanced controls that dampen these oscillations. Figure 18 shows a graphical representation of this service.

Curtailment of renewable energy (DER integration): This is more than a service; it is a fundamental aspect of a microgrid. DERs can experience intermittency when using renewable energy sources, such as solar and wind, due to their variable nature. However, a microgrid can effectively manage these resources through optimal dispatch and integration with energy storage systems [88]. The following are some strategies related to curtailment that MGs can employ to mitigate the challenges of congestion and overproduction of energy. Figure 19 shows a graphical representation of this service [89]:

• Disconnecting generation units during overvoltage events.
• Setting generation limits.
• Implementing W/V (active power vs. voltage) control.
• Applying a percentage reduction to total generation.

The aforementioned services can be classified based on their application. Some services are designed to operate while connected to the main grid NIS, whereas others are crucial for islanded operation or in NIZs [90].

Table 3. Operation of identified services.

No	Services	Operation
1	Frequency control support	NIS
2	Voltage support	NIS
3	Black start	NIZ/NIS
4	Reserve service (energy storage)	NIZ/NIS
5	Peak shaving	NIS
6	Load shifting	NIZ/NIS
7	EV storage	NIZ/NIS
8	Oscillation damping	NIS
9	Congestion management	NIS
10	Loss compensation	NIS
11	Phase balancing	NIS
12	Curtailment of renewable energy (DER integration)	NIZ/NIS

Source: authors.

provides a categorization of each service according to its operational mode.

In order to facilitate the implementation or provision of services provided by microgrids to electric grids, it is essential to define the technical indicators that will have a positive impact on the earlier referenced processes.

Reliability: in the context of electric grids, reliability can be defined as the probability that a given grid can perform a specific function or provide a designated service under established conditions over a specified period of time [91].

Resilience: in the context of electric systems, resilience can be defined as the ability to rapidly recover from disasters caused by human activity, or low-probability, high-impact events, while also having the capacity to anticipate these events [91].

Stability: this can be defined as the ability of an electric system to maintain or regain a state of equilibrium after disturbances or contingencies [91].

Flexibility: this is defined as “the ability of an electric system to reliably and cost-effectively manage the variability and uncertainty of demand and supply across all relevant time scales, from ensuring instantaneous system stability to supporting long-term supply security” [92].

Quality: the term “power quality” is used to describe the characteristics and conditions under which electricity reaches equipment, allowing it to function optimally, ensuring continuity without affecting performance over time or causing component failures.

Efficiency: in the context of electric grids, efficiency refers to the system’s ability to meet load demands in an economically viable manner while ensuring reliability, safety, and minimal environmental impact.

Considering the previously cited considerations and the insights provided by various authors, it can be claimed that the services offered by microgrids have the potential to enhance the performance of electric grids, as illustrated in

Table 4. Indicators of improvement to the power grid as a result of services offered by MGs.

No	Services	Efficiency	Reliability	Resilience	Stability	Flexibility	Quality
1	Frequency control support	X	X		X		X
2	Voltage support	X	X		X		X
3	Black start		X	X	X
4	Reserve service (energy storage)		X	X	X
5	Peak shaving	X			X
6	Load shifting	X				X	X
7	EV storage		X	X	X	X
8	Oscillation damping	X			X		X
9	Congestion management					X	X
10	Loss compensation	X
11	Phase balancing	X	X			X	X
12	Curtailment of renewable energy	X	X	X		X

Source: authors.

.

3.2. Case Studies

Globally, microgrids are evolving from their initial deployment in university and research settings to become a source of viable business models and cost savings for their host organizations. As posited by [93], the microgrid market could reach USD 30.9 billion by 2027, driven by environmental incentives aimed at reducing CO₂ emissions and the emergence of new business models. In addition, among the most relevant cases mentioned in the literature, eight were selected out of sixty case studies reviewed. The selection of these eight cases is primarily based on their explicit or implicit efforts to provide an innovative service to electric grids. Additionally, the aim is to present a variety of characteristics that differ among each case, such as the installed capacity, storage capability, type of connection, and others. This approach diversifies the analysis and enables conclusions to be drawn about the current features of MGs that allow them to offer the innovative services previously discussed.

4. Discussion

The information presented in Table 3, Table 4,

Table 5. Characteristics of the case studies.

Name	Ubication	Category	Date	Type	Power	Energy Sources	Storage
UC San Diego	United States	University MG	2001	Connected	45 MW	CCGT, CT, PV, TES, BESS, Evs	2.5 MW BESS 2.8 MW TES
Island of Bornholm	Denmark	Piloto	2021	Connected	602 kW	PV, BESS, WT, EVs	0.104 kWh
Huatacondo	Chile	Community MG	2011	Isolated	218 kW	PV, BESS, DG, WT	129 kWh
El Hierro	Spain	MG of public services	2014	Isolated	34.5 MW	PV, WT, HP, HS, DG	530,000 m3
Inland Empire Utilities Agency	United States	MG of public services, Utility	2016	Connected	13.5 MW	PV, WT, BESS, TES, DG	5.55 MW
Peña Station NEXT	United States	Residential and commercial MG	2017	Connected	2.86 MW	PV, BESS, EVs	2 MWh
Hachinohe	Japan	Residential and commercial MG	2005	Connected	890 kW	PV, WT, BESS, GE	100 kW

(CCGT) combined cycle gas turbine, (CT) combustion turbine, (TES) thermal energy storage, (BESS) Battery Energy Storage System, (DG) diesel generator, (WT) wind turbine system, (HP) hydroelectric plant, (HS) hydro storage, (GE) gas engine. Source: authors.

and

Table 6. Results of the case studies.

Nombre	Segment	Services Offered	Savings	Environmental Impact	Barriers and Challenges	Performance	Ref.
UC San Diego	BTM	1, 2, 4, 12.	Savings of USD 800,000 per month	NOX reduction by 2.5 ppm.	Voltage regulation service is technically feasible, but the regulatory standards are without guarantees	It imports only 8% of the energy required from the grid operator. Voltage regulation can increase revenue by 2%.	[94,95,96]
Ta’u MG American Samoa	FTM	4, 12.	110,000 Gallons of fuel	2.5 MTons of CO2 emission reduction.	High initial capex as it is a remote island	99% of supply.	[97,98,99,100]
Island of Bornholm	BTM	4, 5, 6, 7, 12.	NI	Reduction in power demand from the power grid, resulting in better use of available resources.	As this is a pilot and experimental GM, large-scale implementations have not been considered.	Saves more than half the energy required from the grid.	[101,102]
Huatacondo	FTM	4, 12.	NI	Reduce fuel consumption by 50%.	Systemically change-averse social structure.	Increased reliability. Improved power quality.	[103,104]
El Hierro	FTM	1, 2, 3, 4, 9, 12.	Savings of EUR 1.8 million per year	100 tons of SO2, 400 tons of NOx, and 18,700 tons of CO2 reduced.	NI	47% reduction in energy produced in the diesel plant.	[105,106,107]
Inland Empire Utilities Agency	FTM	1, 2, 4, 9, 12.	USD 230,000 per year	NI	Finding financing and regulatory complications for deploying various DERs.	Increased installation resiliency.	[108,109]
Peña Station NEXT	BTM/FTM	1, 2, 4, 6, 7, 9, 12.	NI	NI	Microgrid pilot with participation of different private entities and public utilities.	NI	[109,110,111]
Hachinohe		4, 5, 6, 11, 12.	NI	520% CO2 reduction.	NI	62% reduction in energy imported from the grid.	[112,113]

(BTM) behind the meter, (FTM) front of the meter, (NI) no information. Source: authors.

is used as the basis for an analysis of a series of graphs and statistics. This facilitates a comprehensive overview of the investigated data. Furthermore, it serves as a foundation for conclusions and suggestions for future work. Additionally, it provides the reader with a summarized view of the information, highlighting the most important ideas presented in this study.

4.1. Identification of the Impact of Services to the NIS and NIZs

Looking at the data presented in Table 3, which assess the impact of the services studied on the network sector in which they are deployed, it becomes clear that the services have a significant impact on the NIS, as all of them can be added to this system, thus creating significant opportunities for new business models that extend the scope of activities that an MG can operate. Conversely, 46.66% of the services studied have a significant impact on non-interconnected regions. The integration of DERs, frequency control, and energy storage are essential for the operation of MGs in these regions. They can also provide support to neighboring MGs experiencing stability problems.

The integration of microgrids, along with the services studied in NIZs and NIS, into ECs offers numerous benefits, enhancing both the technical and socioeconomic aspects of energy systems. Microgrids facilitate local energy management, improve energy efficiency, and empower communities to become active participants in the energy market. These benefits are particularly relevant in the context of Colombia’s ongoing energy transition, which aims to create environmentally just and economically viable energy solutions.

Thus, it is projected that future guidelines will include regulatory and economic incentives, as well as the creation of frameworks for integrating new microgrid services such as demand management programs, energy storage, response to energy emergencies, and small-scale reliability services. Additionally, it is expected that the government and entities like UPME and CREG will continue to work on regulations that promote the decentralization and democratization of energy through MGs, aligned with sustainability goals and emission reduction targets.

4.2. Analysis of Indicator Improvement for Electric Grids

In accordance with the data presented in Table 4, an in-depth examination has been conducted to ascertain the advantages conferred by each investigated service on a range of grid indicators. Figure 20 illustrates the proportion of investigated services that enhance each indicator. It can be observed that more than 50% of the services contribute to enhancing the efficiency, reliability, and stability of the system. The indicator exhibiting the least significant improvement is resilience, with approximately 30% of the investigated services demonstrating a positive impact. This aspect has recently gained increased importance, and the analysis presented herein suggests that it is an area under research that may be suitable for the development of future strategies for improvement.

4.3. Case Study Analysis

The following figures are presented based on the information gathered from Table 5 and Table 6 and cover various case studies of microgrids. These case studies examine microgrids that are connected to the grid or isolated, in both the BTM and FTM segments, and across different power levels.

Figure 21 and Figure 22 indicate that “reserve service (energy storage)” is a fundamental and indispensable component of all the microgrids studied, serving as the foundation for the deployment of other services. The “Curtailment of renewable energy (DER integration)” service is present in all the case studies, which indicates that the optimal dispatch of DERs has become a crucial aspect of any solution. Furthermore, it is important to note that all microgrids are initially designed with the objective of providing on-site energy self-sufficiency.

Figure 21 illustrates that microgrids with power capacities exceeding approximately 3 MW can provide “frequency control support” and “voltage support” services, due to the complexity of the requirements set by various regulatory bodies in each country.

The provision of less conventional services, such as “(EV) storage”, “load shifting”, and “peak shaving”, is observed in microgrids with a more experimental focus. This is intended to facilitate the gathering of essential technical and economic data, which is necessary to enable the broader deployment of these services.

The “congestion management” service is oriented towards grid operators, as evidenced by the microgrids offering this service, which frequently involves direct or indirect participation from public or private utilities.

Lastly, services such as “phase balancing”, “loss compensation”, and “oscillation damping” have yet to be implemented in a significant number of case studies, as they are still in the developmental or research stages and remain to transition from laboratory implementation into real-world applications.

5. Conclusions

The investigation and characterization of new services provided by MGs reveal their substantial potential to enhance the operation and stability of both the NIS and NIZs in Colombia. By offering services such as renewable energy curtailment (DER integration), frequency control support, reserve service (energy storage), and black start capabilities, MGs demonstrate their capacity to contribute to grid stability and support. These services create new opportunities for innovative business models and diversify the operational scope of MGs, reinforcing their value in the modernization of the Colombian electric grid. Furthermore, these services are crucial for the development and deployment of ECs in Colombia, as they foster local energy independence, enhance energy security, and support the integration of renewable energy resources at the community level.

This study presents a systematic classification of the services that microgrids can provide, based on a comprehensive analysis of case studies. This classification not only serves as a reference for understanding the capabilities and benefits of microgrids, but also establishes a framework that can be used by government agencies to streamline regulations that drive the deployment of these technologies. Moreover, it serves as a reference for energy companies and prosumers in the process of implementing these technologies by providing a comprehensive and practical study that facilitates the adoption of microgrids, thus promoting a more efficient and sustainable transition to smart grids.

The significant impact of these services on key grid performance indicators, such as efficiency, reliability, and stability, is clear. Over half of the services analyzed show notable improvements in these areas, underscoring the technical potential of MGs. Services like congestion management and load shifting directly improve grid flexibility and operational balance, key indicators that are particularly beneficial to electrical grids and EC systems, which rely on the seamless integration of distributed energy resources. However, the contribution of MGs to resilience remains a crucial area for future research and development, as only 30% of the services studied had a marked impact on this indicator. Enhancing resilience is especially critical for ECs, as it ensures consistent energy supply during disruptions and empowers these communities to better manage their energy resources. Services such as peak shaving, congestion management, and energy storage offer grid operators and community energy managers the tools to optimize local energy operations, manage demand, and reduce stress on infrastructure. The economic benefits, including reduced operational costs and the generation of revenue through of these services, also support the long-term sustainability of ECs.

Lastly, this study provides new guidelines for the potential use of MG-provided services in the Colombian electric power system, particularly in the context of ECs. The framework developed here can assist government agencies in formulating policies that encourage the deployment and integration of MGs while helping energy communities navigate the technical and regulatory challenges of implementing these services. By providing a comprehensive analysis of both the benefits and challenges, this research strengthens the case for energy communities as a critical element of Colombia’s future energy landscape, contributing to a more resilient, sustainable, and decentralized power system.