Microgrids promise decentralized power and a greener future 

When the lights go out, most of us realize just how much our lives depend on a steady flow of electricity. From keeping hospital equipment running to powering the devices we use every day; reliable energy is no longer a luxury, it has become a necessity. That’s where microgrids come in. 

For decades, these small-scale electricity networks, able to operate independently of larger urban grids, have delivered reliable power to remote and underserved areas. They can also provide backup energy systems for urban facilities including hospitals, industrial parks, and even entire neighborhoods. Many cities rely on a combination of renewable sources and fossil fuels for self-sufficiency and to balance fluctuations in energy generation and demand. 

But as the world moves towards a sustainable energy future, microgrids are emerging as key enablers of change, says Prof. Ahmed Al-Durra, Associate Provost for Research at Khalifa University. “[Microgrids] provide reliable, resilient local power and integrate renewable sources. They also stabilize the grid, improve energy security, and offer efficiency benefits,” explains Al-Durra, who is developing systems to encourage more communities to adopt the technology. 

Sustainable and decentralized 

Microgrids play a pivotal role in the global energy transition, by accelerating renewable energy generation and use at the local level. In the Gulf region, they allow countries to leverage abundant solar energy, ultimately reducing dependence on fossil fuels and improving resilience against extreme climate conditions.  

“Microgrids will not only be capable of connecting multiple energy systems, but also of bringing together diverse renewable sources.”  

Ahmed Al-Durra

By connecting to other grids, including larger main networks, they can bring greater energy security during periods of low production, natural disasters or equipment failures. “Microgrids provide flexible, reliable energy for communities and industries. This bridges the gap between large-scale renewable deployment and on-demand electricity access,” Al-Durra explains. 

For all their promise, however, microgrids are rare. Initial costs are high and without reliable insights into cost savings and performance, communities are reluctant to implement them. So how do we convince communities that the investment is worth it?  

Al-Durra and colleagues are AI models to address this challenge. Their goal is to transform smaller, local power lines that take energy from the main grid to smaller communities into self-reliant microgrids running on renewables and stored energy. 

Their model helps communities determine the best design their microgrid. It creates a blueprint based on the number of solar panels, battery size, the combination of such components and daily weather variations. This keeps costs low while generating enough electricity. “AI models are important because they enable intelligent, data-driven planning and operation, optimizing energy flows, enhancing reliability and facilitating renewable integration,” says Al-Durra. 

When the researchers simulated a real-life scenario using data from a remote Australian community, they found that an AI-powered, intelligent microgrid could save communities 65% of their costs and cut 98% of carbon emissions.  

Fair trade for electricity 

In a future where more communities implement renewable energy microgrids, more small-scale electricity producers will become capable of peer-to-peer trading instead of relying on centralized grids. Al Durra and colleagues say that this could revolutionize the electricity market, making energy systems consumer centric.  

To maximize the benefits, the team is developing frameworks that ensure fairness during energy exchange. A major challenge is accounting for the physical constraints of the network, such as energy losses. The framework incorporates fair loss-sharing, splitting economic gains so that losses are fairly divided between trade participants. It also ensures that each microgrid, regardless of size or location, receives the same profit per unit of energy it trades.  

In a computer simulation, the team found that trading using their model to trade directly with other microgrids would reduce operating costs by 13% compared with trading exclusively with a larger main grid. “A new model for transactive energy trading among multiple microgrids is crucial to coordinate decentralized resources efficiently, maximize economic benefits, and ensure stable, scalable, and sustainable energy exchange across interconnected systems,” says Al-Durra. 

From niche to mainstream 

Looking ahead, Al-Durra expects microgrids to become more decentralized and interconnected. “They will not only be capable of connecting multiple energy systems, but also of bringing together diverse renewable sources. They will also integrate advanced storage and have AI-driven control so that the entire system operates optimally,” he says.  

For microgrids to join the mainstream, they need to become more reliable and cost-effective. Achieving this, he suggests, includes standardized design, adopting AI-driven management and improving energy storage. Policymakers must also attract investment by offering incentives, creating grid-integration standards and developing financing mechanisms. 

Al-Durra believes early adoption of the technology will be focused on remote areas, critical infrastructure and industrial clusters. Integration into existing urban grids and the emergence of multiple, interconnected smaller grids would follow. While widespread adoption will likely be gradual, the pace could be fast in regions such as the Gulf, where solar resources are abundant and government investment is strong. “Overall, significant penetration could be achieved within the next 10 to 15 years, with coordinated efforts.” 

Reference

1. Elimam, M.; El Moursi, M; El-Fouly, T.H.M; Al-Durra, A.; and Al Hosani, K.H. Transactive energy trading among multi-microgrids in a distribution network with fair loss sharing. Applied Energy 381, 2025. ∣ Article 

2. Alam, M.M.; Hossain, M.J.; Zamee, M.A.; and Al-Durra, A. Design and operation of future low-voltage community microgrids: An AI-based approach with real case study. Applied Energy 377, 2025. ∣ Article