Local power distribution with nanogrids

Matching electricity demand to supply will be a growing challenge in the future. We argue for the need for further research into local power distribution with a focus on “nanogrids”. We define a nanogrid as a small electricity domain with distinct voltage, price, reliability, quality, and administration. We seek to improve upon existing nanogrids (such as USB and PoE) by the addition of electricity price information to enable power distribution to be managed in a distributed bottom-up and fair manner to optimally match demand to supply, and to more easily and efficiently integrate local generation and storage. This approach, modeled on Internet principles, offers the possibility of moving to a less reliable utility grid, providing quality and reliability at the edge, and saving capital and energy. We illustrate the operation of a simple nanogrid driven by rules governing controller and load behavior in response to varying electricity availability from a renewable source.