Microgrids vs traditional power grids

Whilst microgrids and traditional power grids have some fundamental differences, it’s not necessarily a case of ‘us against them’, but more of an opportunity for the new to support the old.

Below are some of ways on which microgrids differ from traditional power grids:


The way microgrids versus traditional power gridssystems are structured would be the most visible difference.

Main power grids have a centralised source of power generation supported by a large infrastructure to deliver energy across vast areas.

On the other hand, microgrids are localised energy systems with energy generated by multiple sources, stored in batteries and controlled locally.


Traditional power systems, whilst highly reliable when it comes to providing energy to vast areas and numbers of people, still have some vulnerable points.

They can be vulnerable to natural disasters, power outages and equipment failures. Microgrids are still vulnerable to those same issues, but on a much smaller scale. However, the two systems together provide increased reliability and stability of energy distribution, plus improved efficiencies, by supporting each other.


One area in which the microgrid can outshine its larger counterpart is by providing greater energy efficiency. This is because the microgrid is managed within a smaller system and therefore it is better able to react quickly and efficiently to energy disruptions, generation issues and changes in demand.

Renewable Energy:

Traditional power systems typically rely on fossil fuel or nuclear power plants, although renewable energy solutions are now being incorporated.

Microgrids, however, are generally made up of more renewable energy sources, such as wind, solar and hydro, making them more sustainable into the future.


The traditional power system is one large grid designed to serve large populations across vast areas. The microgrid is more flexible in that it can be designed specifically for an area, community or particular need. Hence its size and energy generation sources will be more suited to its particular area, and it can grow in line with demand.

Local Control:

Microgrids, unlike traditional power grids, offer communities, businesses and even individuals to have direct involvement in their power generation, giving them independence, resilience against the main grid, and more involvement in how their energy is created and consumed.

Microgrids and main power systems can work independently of each other, but they work well together by providing support, stability and reliability as part of a bigger picture, especially if you are based in a rural area.

DEUTZ Australia will soon be able to assist you in constructing your customised microgrid system to back up the main grid. Our upcoming microgrid solution, scheduled for release in the fourth quarter of 2023, has been thoughtfully designed to seamlessly adapt to Australia’s distinct weather conditions and environment.

The process commences with a thorough assessment to determine the optimal quantity of on-site solar panels, tailored specifically to meet your location’s power output requirements and diverse terrains.

Subsequently, the power generated by these solar panels is efficiently stored in our innovative expandable battery storage system, available in both low voltage (ranging from 9 kVA to 36 kVA) and high voltage battery platforms (ranging from 45 kVA to 90 kVA).

To ensure continuous power supply to critical businesses and sites, we have integrated a reliable DEUTZ diesel generator into the system, providing a dependable fail-safe measure.