Keaton PetersColorado is moving ahead with plans to strengthen local electric grids against outages. The state government recently published a comprehensive strategy for deploying microgrids, a type of small electricity system with on-site energy generation and storage that can operate independently during a power outage or disruption to the regional grid.
Backed by $17.7 million in funding through the Department of Local Affairs (DOLA) Microgrids for Community Resilience Grant program, Colorado’s new roadmap provides criteria and guidance for microgrid projects.
The Colorado Microgrid Roadmap, developed by the state’s Energy Office and Department of Local Affairs, introduces a three-tiered classification system for these power systems: Level 1 single-building microgrids, Level 2 campus-level systems designed for a few buildings sharing an electric meter, and Level 3 full community microgrids for entire neighborhoods or towns.
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In recent years, Colorado has experienced severe wildfires and powerful storms that threaten power reliability. In the face of increasing climate threats, states are increasingly looking to microgrids as a solution. This roadmap is one part of Colorado’s strategy for scaling up microgrid deployment, with targeted support for five high-risk regions identified through climate and socioeconomic vulnerability assessments.
“Microgrids are one useful tool to help achieve our ambitious climate goals,” said Colorado Energy Office Executive Director Will Toor. “Reliable access to clean electricity is a must as communities electrify buildings and cars.”
The grants program has already funded 25 planning and construction projects, with a particular focus on critical facilities like emergency services, hospitals and community centers that can serve as hubs during outages. The initiative builds on successful implementations like Fort Collins’ Northside Aztlan Community Center, which combines 120kW of battery storage with 54kW of solar power to serve as an emergency shelter. Currently, more than a dozen microgrids operate in Colorado, ranging from single-building systems to community-wide networks.
The program utilizes federal funding from the 2021 Infrastructure Investment and Jobs Act’s Grid Resilience Formula Grants program. Colorado’s planning grants support feasibility studies, infrastructure assessments and community engagement in priority regions that are largely isolated from population centers and infrastructure along the I-25 corridor, including Southeastern Colorado, the San Luis Valley, Southwest Colorado, Northwest Colorado and the Central Mountains.
Key objectives include improving education about microgrid benefits, developing economic frameworks for grid services provided by microgrids, clarifying ownership structures and updating grid interconnection standards. The roadmap also emphasizes the need for utilities to allow microgrids to serve customers across adjacent parcels without becoming regulated as utilities themselves.
Beyond improving grid resilience, state officials expect the microgrid strategy to advance clean energy goals by incorporating more local renewable generation and battery storage. The systems can exchange power with traditional utility grids while also generating electricity from sources like solar, wind and geothermal, potentially reducing overall grid demand and emissions.
The Colorado Energy Office is also launching complementary grant programs focused on grid monitoring and grid hardening to protect against wildfires and extreme weather. These include support for technologies like AI-assisted cameras for early wildfire detection and upgrading distribution poles.
Local governments, utilities and community institutions can apply for funding through DOLA’s microgrid program. The state has developed an extensive selection process to help identify key projects and allocate resources based on local needs. This process includes evaluating factors like historical outage frequency, climate risks and social vulnerability indicators.
“It’s vital that local governments, utilities and community institutions can enhance their critical infrastructure’s energy resilience against increasing demand on the grid, and more frequent and severe impacts of natural hazards,” said Maria De Cambra, Executive Director of the Department of Local Affairs.
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