Microgrid Hardware Stack

Supply Chain Risks:
Transformers have the highest risk with the longest lead time (12–36 months), which is limited by GOES steel and low U.S. production. SiC/GaN power modulesare also are in high demand with competition from EV/AI sectors - critical for inverters, chargers, SSTs.

A microgrid is only as strong as its hardware foundation. This article details the physical components—both conventional and next-gen—that make up the microgrid electrical layer. From transformers and switchgear to inverters, controllers, and cabling, each component plays a role in enabling safe, efficient, and flexible operation across grid-tied, islanded, and hybrid systems.

Hardware Components

Transformer - Voltage step-down from utility or internal distribution.

Switchgear - Safely switches, isolates, and protects circuits. Includes relays, circuit breakers, reclosers; smart options allow automation and islanding

Inverter/Converter - Converts DC to AC (and vice versa); integrates renewables and storage. SiC/GaN-based units improve efficiency, thermal stability, and size.

Relays/Solid-state switches - Fast, precise switching of power circuits. Solid-state options offer lower maintenance, faster response

Busbars/Panelboards - Distributes power within facility. AC and DC buses are common for many facilities today.

Battery Energy Storage System (BESS) - Stores and discharges energy to balance loads. LFP, NMC, and Li-ion dominate; needs integration with EMS and fire protection.

Charge Controllers & BMS - Manages current flow into/out of BESS. Ensures safe charge/discharge, thermal control, state-of-health reporting.

Microgrid Controller/PLC - Acts as the logic and control brain of the system. Interfaces with SCADA/EMS/DERMS and downstream equipment.

Grounding Equipment - Ensures safety and fault protection. Critical in islanded or sensitive environments like hospitals or data centers

Emerging & Optional Technologies

Solid-State Transformer (SST)
Replaces conventional transformer + adds power conditioning. Ideal for DC-native systems, modular deployments.

Gas-Insulated Switchgear (GIS)
Compact switchgear with arc containment. Useful in space-constrained sites or fire-critical zones.

DC Distribution Bus
Reduces conversion losses, simplifies EVSE/BESS/PV integration.

Hybrid AC/DC panels
Useful in transitional designs where legacy and DC-native systems coexist.

Power Quality Conditioning Units
Critical for sensitive electronics in AI data centers, labs, fabs.

Hardware Stack Layers

A typical microgrid layout includes the following layers or segments:

1. Grid Interconnection Point - Utility transformer, metering, switchgear.

2. Main Distribution Layer - MV/LV transformer, main busbars and switchboards.

3. DER Integration - PV inverters, BESS, bidirectional inverters, LNP/CHP gensets.

4. Load Panels - Critical, priority, and non-critical load segmentation; automatic transfer switches (ATS).

5. Control Layer (Overlays Entire Stack) - Microgrid controller (central logic); SCADA/EMS/HMI interface.

Siting & Permitting

Deploying microgrids can be faster than waiting on utility infrastructure, but siting and permitting can still pose friction:

Interconnection varies by utility: standards (IEEE 1547, UL 1741) must be met.
Zoning/Permitting: Local land use laws may limit DER siting or fuel storage for gensets.
Air quality regulations for diesel or CHP generators.
Fire codes:- particularly for lithium-ion BESS and hybrid setups.
Cybersecurity Requirements: Increasingly scrutinized for facilities tied to national infrastructure.

Despite these challenges, microgrids can often be deployed in 6–18 months, far faster than most utility infrastructure upgrades.

Microgrid Use Cases