As North Carolina prepares for a surge in electricity demand from data centers, manufacturing and population growth, some energy experts and policymakers are looking at microgrids as a way to improve reliability, reduce strain on the power grid and keep the lights on during disasters.
A microgrid is essentially a smaller, self-contained energy system that can generate, store and manage electricity locally. Unlike traditional solar panels alone, microgrids typically combine power generation with battery storage and control systems that allow them to operate independently from the larger electric grid during outages.
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The technology is drawing new attention as utilities grapple with growing demand and communities face increasingly severe weather.
Siemens recently unveiled a solar-and-battery microgrid in Wendell, highlighting a technology gaining attention for its potential to boost reliability during outages. “We’re looking at record load growth in the state,” said Brian Dula, president of Siemens’ electrification and automation business. “Microgrids are certainly scalable for other industrial users, manufacturing and other types of industries, to help reduce overall load consumption and really provide an overall blueprint of how customers can scale and be more resilient.”
Interest in microgrids grew after Hurricane Helene devastated western North Carolina, leaving some communities without power for weeks.
In a speech last year, Gov. Josh Stein pointed to microgrids as one example of how the state can better prepare for future disasters.
“Fuel can be expensive and hard to transport in the wake of a disaster, but solar power can be collected in place without any need for transportation,” Stein said.
He highlighted a Duke Energy microgrid in Hot Springs that continued operating after a substation serving the town was damaged during the Hurricane Helene. The system helped reduce what could have been a multiweek outage to just a few days.
“The choices we make today help us be prepared better for the disasters of tomorrow,” Stein said.
North Carolina’s electric grid is facing unprecedented growth.
Utilities have warned that new manufacturing facilities, data centers and continued population growth could significantly increase electricity demand over the next decade.
Duke Energy’s latest long-range plans call for new power generation, including natural gas plants, battery storage and renewable energy projects to meet future needs.
Supporters of microgrids argue that generating more electricity where it is used could help ease pressure on the broader grid.
Unlike traditional backup generators, microgrids can continuously generate and store electricity while remaining connected to utility systems. During normal operations, they may reduce the amount of power a facility purchases from the grid. During outages, some can disconnect and continue operating independently.
“This allows customers to serve some of their own needs and ability to scale up and grow as needed,” Dula said.
Battery storage has become a critical part of modern microgrids because it helps solve one of renewable energy’s biggest challenges: solar panels don’t generate electricity at night and produce less power during cloudy weather.
Dula said batteries allow facilities to store electricity when solar production is high and use it later when demand rises or grid power becomes unavailable.
“The storage really brings that to life,” he said. “You’re able to store that power and reuse it at the opportune times when your power goes down.”
The combination of solar power and battery storage has helped make microgrids increasingly attractive for hospitals, military installations, universities, manufacturers and other facilities where outages can be costly.
Energy experts caution that microgrids are unlikely to replace the traditional electric grid.
Large power plants, transmission lines and substations will remain essential to delivering electricity across the state and balancing supply and demand.
Instead, many see microgrids as one tool that can complement the larger system — improving resilience, reducing peak demand and helping businesses manage their own energy needs.
For Siemens, the company says the economics still make sense.
“We did take advantage of some policy incentives,” Dula said. But even beyond those incentives, “the business case made sense for us, and it still does today.”
As North Carolina debates how to meet rising electricity demand while preparing for more extreme weather, microgrids are increasingly being viewed as part of the conversation — not as a replacement for the grid, but as a way to make it more flexible, resilient and locally powered.

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