Is it possible for utilities to implement solar panels and batteries instead of traditional power lines in isolated locations?

PG&E to Install 30 Solar-Powered Microgrids in California by 2023

Pacific Gas & Electric (PG&E) has announced plans to install at least 30 solar- and battery-powered microgrids across California by the end of next year. This initiative, which includes the successful PG&E project at the Pepperwood Preserve, aims to provide a more cost-effective and reliable energy solution, especially in areas prone to wildfire threats.

The remote-grid initiative by PG&E allows the utility to earn a rate of return on these projects similar to what it would earn on grid upgrades. The utility has already installed about a dozen solar- and battery-powered microgrids in the Sierra Nevada high country, with the Pepperwood Preserve being the first to be powered 100% by solar and batteries.

Michael Gillogly, manager of the Pepperwood Preserve, is relieved about PG&E's plan to install a solar- and battery-powered microgrid to replace the single power line serving a guest house on the property. The Pepperwood Preserve, a 3,200-acre nature reserve in Sonoma County, California, burned in 2017 and 2019 due to fires sparked by power lines.

Angelo Campus, CEO of BoxPower, which built most of PG&E's remote microgrids, sees the strategy penciling out for more and more utilities for these same reasons. BoxPower is working with about a dozen utilities across the country on similar but distinct flavors of microgrid implementation.

Climate change is increasing the frequency and severity of wildfire threats in the West. Wildfire mitigation is a huge issue across the region due to the changing climate. PG&E and California's other major utilities are spending tens of billions of dollars on wildfire prevention measures.

The costs of installing and operating the solar panels and batteries and maintaining and fueling the generators in PG&E's remote grids must be lower than what the utility would have spent on power lines. This is according to Abigail Tinker, senior manager of grid innovation delivery at PG&E. Until recently, utilities have rarely promoted solar-and-battery alternatives to power lines.

However, the costs of these investments are driving up utility expenditures and customer rates. PG&E was forced into bankruptcy in 2019 due to its power lines sparking California's deadliest-ever wildfire. PG&E is responsible for the fires that burned the Pepperwood Preserve in 2019.

Microgrids can improve reliability for customers when utilities must intentionally de-energize lines during windstorms and other times of high wildfire risk. The savings from getting rid of grid connections or delaying the construction of new lines through the use of microgrids are significant.

PG&E's remote-grid initiative was launched with regulator approval in 2023. The utility's plans to complete more than 30 solar- and battery-powered microgrids by the end of next year could mark a significant shift in energy infrastructure in California.

Is it possible for utilities to implement solar panels and batteries instead of traditional power lines in isolated locations?