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Intelligence Is Cheaper Than Infrastructure: The Case For…

Oleh Patinko

Image art by Paul Gerke via Gemini.

The United States definitely needs more infrastructure to satisfy its increasing appetite for electricity: more generation technologies, more poles and wires, more transformers and substations, switchgears, inverters, panels, turbines, and so on.

Of course, that’s easier said than done.

Building stuff means solving supply chain challenges, navigating evolving policies, and, lately, paying more for almost everything. Then there’s clogged interconnection queues and the alarmingly slow pace of transmission construction to worry about, plus competition for critical parts and personnel from deep-pocketed parties trying to bring data centers online, with or without the grid keeping up. And while we’re on the topic of paying for stuff, did I hear you volunteer to sign off on another utility rate hike in the name of grid modernization?

The bottom line: We’re also going to have to get more out of the built environment we’ve already got.

The Opportunity of Demand-Side Flexibility

Global energy technology company Schneider Electric warns we’re overlooking a powerful and underutilized resource: demand-side flexibility. In a new report, authors Vincent Minier and Candela Utrilla Bustamante argue that a smarter path is possible, one that recovers headroom within existing grid limits rather than simply expanding them.

According to research conducted by the Energy Transitions Commission, up to one-third of total global electricity demand in 2050 could be flexible, roughly the total electricity consumption of today. Commercial buildings, which need large heating and cooling systems and can host electric vehicle (EV) charging and rooftop solar infrastructure, are at the heart of the opportunity at hand.

Schneider’s team analyzed five building types across 14 geographies. It found that building assets such as heat pumps, batteries, rooftop solar, and smart EV charging represent a distributed, profitable, and rapidly deployable source of grid relief.

Other key findings of Grid Relief from Smart Buildings… include:

  • Smarter is better: Grid constraints can be eased more quickly by using buildings more intelligently, not just by building more infrastructure. The report argues for “recovering headroom” within existing grid limits via smarter operations. Microgrids enable the recovery of power headroom in more than half of cases, reaching up to 60% of the site grid limit, depending on the archetype and regional tariffs. Where tariffs include demand charges or subscribed power, typical recovery is 20 to 40%.
  • Buildings can provide grid relief: Smart building assets can deliver “grid relief” by tapping into distributed energy resources (DERs). Heat pumps, batteries, rooftop solar, and smart EV charging are assets already in/near buildings. When coordinated, they can pack a punch. On-site PV paired with a stationary battery helps flatten the load curve, creating energy headroom recovery up to 35% of site capacity.
  • Intelligence is cheaper than infrastructure: The report’s core economic message is that software/control/coordination can often unlock capacity and reduce congestion more cost‑effectively than traditional grid upgrades alone. Microgrid investments are profitable and do not burden grid operators. In fact, nearly all 65 use cases in the report are profitable. Over 50% show paybacks of 5 to 10 years, and 25% show paybacks of less than 5 years.

The report cautions that realizing grid relief will require determined regulatory action. Things dynamic pricing, open flexibility markets, and connectivity standards will be needed to make the most of the intelligence already embedded in modern buildings. This approach, while practical, is also not a silver bullet. It has limitations, and further research is required.

However, the opportunity presented by smart buildings is tantalizing, and not just for grid operators, but for those responsible for putting resiliency hubs online.


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The Value of Partnerships

Microgrid development firm American Microgrid Solutions (AMS) recently announced an expansion of its strategic partnership with Schneider Electric to accelerate the deployment of DERs by integrating Schneider’s EcoStruxure Microgrid technology suite, including EcoStruxure Microgrid Flex, with AMS’s core platform. AMS focuses on end‑to‑end microgrid solutions for critical facilities healthcare, utilities, multi‑family housing, state and local government, and advanced manufacturing.

With this expansion, AMS will deploy full-lifecycle capabilities, including design, delivery, commissioning, and long‑term operation, to simplify microgrid adoption and enhance early-stage microgrid development by combining technical evaluation with financial and operational planning. This includes feasibility studies, resilience assessments, business case development, and pro forma modeling, as well as support for structuring and securing financing to move projects more efficiently from concept to deployment. By engaging earlier in the project lifecycle, AMS and Schneider Electric aim to help customers de-risk investment decisions and accelerate the delivery of resilient energy systems with long-term operational value.

“This partnership with American Microgrid Solutions strengthens our ability to collectively deliver secure, efficient, and resilient microgrid deployments that communities can rely on,” said Samantha Childress, microgrid partner and strategy director at Schneider Electric. “Our collaboration will help drive microgrid lifecycle capabilities that allow resilience and recovery amid wildfires, hurricanes, earthquakes, blackouts, and other causes of extended outages, maximizing energy availability.”

Case Study: The HillanDale Gateway Community Hub

Hillandale Gateway, a new mixed-use development in Montgomery County, Maryland, demonstrates the impact of the partnership between AMS and Schneider Electric. The development combines residential, retail, a resilience hub, and community amenities with high-performance building standards. AMS designed and is developing the project’s solar and battery microgrid utilizing EcoStruxure Microgrid Flex to support efficient operation under normal conditions and enable the continued delivery of critical services during grid disruptions.

Hillandale Gateway Microgrid System Highlights

  • Solar Size: 1.1 MW rooftop
  • Battery Size: 375 kW / 860 kWh
  • Resilience Support (Loads): Income‑ and age‑restricted housing and full‑building resilience hub
  • Resilience Support (Length): 24 hours minimum; typically 72+ hours
  • Estimated Carbon Impact: 600 metric tons of CO₂ offset per year

To maximize the system’s impact during outages, AMS configured EcoStruxure Microgrid Flex with battery set points that progressively prioritize the most critical loads as available charge declines. This allows the resilience hub and age-restricted residential buildings to maintain power when it is needed most.

By supporting vulnerable populations while generating an estimated savings of more than $150,000 annually, AMS says Hillandale Gateway demonstrates how advanced energy systems can enhance equity, security, and sustainability at the community scale.

“Schneider Electric and American Microgrid Solutions a clear goal: make microgrids simpler to deploy, easier to operate, and more valuable over their full lifecycle for communities in need,” summarized Geoff Oxnam, CEO and founder of American Microgrid Solutions. “We’re helping customers move from concept to commissioning while improving resilience, visibility, and long-term performance across sites.”

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Renewableenergyworld.com

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