Cities face unique vulnerabilities when it comes to grid planning. With densely concentrated energy demand and highly interdependent infrastructure systems, even a single failure can propagate rapidly. This is why cities are turning to microgrids: localized systems that generate and manage energy closer to the point of consumption, reducing reliance on distant transmission infrastructure and laying a foundation for resilience.
This shift is occurring at the same time the global energy landscape is undergoing rapid change. According to the World Economic Forum, wind and solar represented more than three-quarters of new generation infrastructure added worldwide in 2024, marking a 15.1% increase in total installed capacity. As renewable generation expands, the operational challenges for utilities are shifting from traditional production constraints toward localized distribution issues. This is particularly evident in dense urban zones where load fluctuations and distributed energy growth can create stress on the distribution grid with little warning.
Supporting this transition, the U.S. Department of Energy recently announced more than $8 million in funding through its Community Microgrid Assistance Partnership. This investment acknowledges growing concern that climate-driven disruptions, severe weather events and aging infrastructure require new strategies for maintaining stability. Cities increasingly need tools that enhance local reliability without requiring major upgrades to long-distance transmission and substation infrastructure.
The urban advantage
One of the strongest benefits of an urban microgrid is its ability to keep essential services running when the broader grid experiences instability. During heatwaves, hurricanes, cyber events or other disruptions, a microgrid serving a hospital, transit hub or community shelter can maintain operations independently while the surrounding grid is restored. This localized ability to ride through outages reduces downtime, minimizes cascading service failures and provides communities with a buffer against unpredictable grid conditions.
The value is even higher when microgrids are coordinated with a modern coordination platform, such as a distributed energy resource management system (DERMS). A DERMS does not replace the microgrid controller or a utility’s core operational platforms, but strengthens coordination between distributed assets and the larger grid. It provides visibility into behind-the-meter DERs, supports event-based dispatch and aligns the operation of microgrids with system-level objectives. When microgrids are connected through DERMS, they can optimize local renewable generation, support peak load management and reduce infrastructure strain. In cities where demand patterns change rapidly throughout the day, microgrids become dynamic grid edge assets rather than isolated backup systems.
Active grid participants
Unlike static backup generators that only activate when an outage occurs, modern microgrids can deliver ongoing grid support when integrated through utility systems. The microgrid controller manages internal protection, islanding and resynchronization while platforms such as DERMS and Advanced Distribution Management System (ADMS) provide situational awareness, control signals and alignment with grid conditions.
Advanced metering technology strengthens this coordination. A modern Advanced Metering Infrastructure (AMI) system gives utilities essential visibility across every service point and transformer. When AMI data is paired with data from distributed intelligence-enabled meters, which provide higher frequency grid telemetry such as transformer loading, voltage measurements, waveform anomaly detection and high impedance detection, operators gain a more complete and timely understanding of distribution system behavior. When this dataset is combined with forecasting for feeder loading, minimum demand conditions or expected DER export, utilities can anticipate issues rather than react to them. This integrated intelligence supports safer use of microgrids on constrained feeders and enhances day-to-day operational planning.
Examples of active microgrid participation include:
- Feeder load relief. Microgrids can help reduce demand or provide export support, depending on interconnection agreements and protection settings, to alleviate stressed feeders during peak conditions.
- Faster reconnection. During an outage, a microgrid can remain energized and then synchronize and reconnect once grid operations are restored. This capability helps reduce recovery times for both utilities and customers.
- Voltage and frequency stability. Microgrids equipped with advanced inverters can support local voltage and respond to frequency fluctuations, improving service quality in congested areas.
- Coordinated energy storage. Batteries within a microgrid can charge during low-cost periods and discharge during peak demand, reducing grid stress and improving cost effectiveness.
As these capabilities become more common, cities are no longer using microgrids solely for emergency backup. They are integrating them as active contributors to grid stability and resilience.
Equity and energy access
Where microgrids are placed matters. The impacts of outages vary across communities, and areas with older infrastructure, high medical dependence or limited access to backup options often experience slower recovery during major grid events. Rather than concentrating resilience investments in a few central zones, cities are beginning to integrate microgrids into community hubs, healthcare districts and high-occupancy residential areas. In these locations, microgrids act as distributed reliability nodes, providing essential services to populations that would otherwise be disproportionately affected by outages.
Microgrids as infrastructure
Incorporating microgrids into long-term planning requires more than constructing standalone pilot projects. It requires alignment with planning studies, hosting capacity analysis, interconnection rules and regulatory frameworks. Cities that evaluate microgrids alongside traditional non-wires alternatives and treat them as part of the broader grid architecture gain the strongest resilience benefits. Integrating microgrids through DERMS and microgrid controllers creates an operational model where microgrids can support system needs rather than function as isolated assets. According to NEMA’s recent grid reliability study, without investment into DERMS, the rising demand from electrification will continue to place strain on distribution networks. Incorporating microgrids into the system, rather than treating them as contingency resources, helps scale resilience at the same pace as electrification growth and distributed energy adoption.
A new phase
Urban energy planning is entering a phase where distributed assets must be intentionally integrated into core infrastructure. The question is no longer whether cities will need microgrids, but how they will deploy and operate them at scale. When microgrids are connected to the utility’s grid planning models, distribution operations workflows and operational intelligence tools that support decision-making, they can operate as part of the distribution network rather than as isolated systems. This creates a stronger and more adaptable foundation that can support growing urban populations and withstand future disruptions.
Jacob George is a product leader at Itron with over 12 years of global energy experience, currently heading the DERMS product line to deliver scalable grid flexibility solutions. He previously led VPP development at Generac Grid Services and holds a master’s in clean energy engineering from the University of British Columbia.
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
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