Charging Microgrids: Progress for Electric Trucks, Challenges Remain

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Key Takeaways:

Microgrids speed power availability and deployment of freight truck charging
Specific charging challenges face microgrid deployment that must be overcome
There are federal, state, and non-profit organizations that can assist

As previous articles have made clear, microgrids, strategically designed for truck stops and depots, are a path forward for electric truck charging in the United States. Customer-sited storage and solar with a grid connection enables two flows of energy into the battery depending on time of day and cost of electricity, and high-power charging of trucks as needed. This can get significant electric freight truck charging operational long before major grid connection upgrades can be established. Microgrids face hurdles to their deployment in the country, but the strategy addresses them with a set of self-reinforcing actions in subsequent articles.

In this series, Rish Ghatikar and Michael Barnard, experts in sustainability, transportation, and strategy, are developing a full kernel of strategy for microgrids for trucking, as per Richard Rumelt’s kernel of good strategy that he laid out in the book Good Strategy Bad Strategy. The introductory article laid out the key intended audiences for the material, major logistics firms like Walmart, major truck stop firms like Pilot, and large engineering, procurement, and construction firms like TLM that service the first two.

The first diagnosis article assessed the US transportation landscape and shows the reasons why freight trucking is both going to increase as a ratio of all freight, and why it’s the mode with the fastest pathway to decarbonization. The second diagnosis article assessed the barriers to truck charging, the key blocking factors inhibiting the growth of electric trucking that aren’t systemically changing rapidly without external help, and concludes that microgrids for truck stop and depot charging are the simplifying policy that makes sense.

This third diagnosis article explores the challenges of deploying microgrids in the USA, enabling future articles to explore action plans that mitigate each challenge.

High initial costs of microgrid deployment continue to pose a significant barrier to widespread adoption, as highlighted by recent studies from the National Renewable Energy Laboratory (NREL). Microgrid projects often require large upfront investments in infrastructure, including power generation sources, energy storage, and sophisticated control systems to manage both local and grid-connected power. According to NREL, these initial costs can deter smaller communities and private entities from pursuing microgrid solutions, despite potential long-term benefits in resilience and energy savings. In a 2023 report, NREL stressed that although technological advancements have gradually lowered some component costs, financing remains a major hurdle, especially for rural areas and low-income communities.

Complex regulatory and policy barriers remain a substantial roadblock for microgrid deployment in the United States, according to recent insights from the National Association of Regulatory Utility Commissioners (NARUC). As many regulations governing energy distribution and grid operations were crafted with traditional centralized grids in mind, they often do not account for the decentralized, resilient structure that microgrids offer. NARUC’s latest policy recommendations underscore that without clear standards on ownership rights, operational responsibilities, and compensation for microgrid services, projects can face lengthy approval processes and inconsistent rules across jurisdictions. In a recent report, NARUC calls for state-level regulatory reform, suggesting standardized frameworks and incentivized policies to help microgrids become a reliable and scalable solution for energy resilience. These updates, NARUC argues, would allow microgrid operators to participate fully in energy markets and contribute to grid stability, helping close the regulatory gaps that currently hinder deployment.

Interconnection and utility coordination present ongoing challenges for microgrid deployment, as detailed in recent findings by the Electric Power Research Institute (EPRI). The institute’s studies show that while microgrids can enhance energy reliability and resilience, integrating them smoothly with the existing power grid requires careful coordination with utility providers. Many utilities view microgrids as potential competition, adding complexity to interconnection processes and often creating friction in project approval. EPRI’s report recommends collaborative frameworks that encourage utilities and microgrid developers to work together, ensuring that both parties can leverage the benefits of microgrids while maintaining grid stability. This approach, EPRI argues, could streamline interconnection processes and foster more supportive relationships between utilities and microgrid operators.

A lack of standardization across microgrid technologies continues to slow adoption, according to a 2021 report from NREL. Microgrids often rely on a mix of components from various vendors, ranging from power generation and storage to advanced control systems, which frequently lack interoperability due to differing technical specifications. NREL’s findings highlight that without a unified set of standards, developers face increased costs and complexities, as systems often need costly custom integration to function cohesively. The report advocates for industry-wide standards to simplify integration, reduce costs, and accelerate deployment, enabling microgrids to fulfill their potential in supporting a more resilient energy future.

Uncertain revenue streams are a major hurdle for microgrid operators, as highlighted in a recent analysis by Microgrid Knowledge, a key industry platform supporting microgrid advancement. Although microgrids offer valuable services such as demand response, peak shaving, and grid stability, the financial returns from these services remain unpredictable. Microgrid Knowledge points out that revenue models are highly dependent on local energy markets and policies, which vary significantly and can change unexpectedly. In its latest industry report, the organization underscores the need for more consistent policies and market structures that fairly compensate microgrid operators, ensuring these resilient energy systems can achieve financial viability and attract broader investment.

Cybersecurity concerns pose a significant risk to the expansion of microgrids, as detailed in research by EPRI, which specializes in energy grid technology and resilience. With microgrids often operating through interconnected digital control systems, they are vulnerable to cyber attacks that could disrupt power supplies or compromise system operations. EPRI’s findings warn that as microgrids are integrated more widely into the energy grid, they could become prime targets for cyber threats. The institute advocates for rigorous security protocols and investment in advanced cybersecurity measures to protect these systems, calling on stakeholders to prioritize resilience as they deploy microgrid infrastructure. EPRI suggests that adopting secure communication standards and real-time monitoring could help safeguard against cyber attacks, ensuring the reliability of microgrid operations.

Measuring resilience and reliability benefits remains a complex challenge for microgrids, according to a report from NREL, a leader in microgrid research. While microgrids are widely valued for their ability to enhance energy resilience, especially during power outages, quantifying this resilience in a way that supports financial and regulatory decisions has proven difficult. NREL’s findings reveal that without standardized metrics for resilience, it is challenging to assess a microgrid’s full value, creating barriers to securing investment and regulatory support.

Limited awareness and expertise around microgrids continue to slow their adoption, as highlighted in a report by the Clean Energy States Alliance (CESA). CESA, an advocate for clean and resilient energy solutions, emphasizes that many local governments and smaller organizations lack the technical knowledge needed to implement and manage microgrid systems. This knowledge gap can deter decision-makers from pursuing microgrid projects, even when these systems could provide critical energy security and sustainability benefits.

Capital expenses will precede revenue for the organizations which build the infrastructure necessary for increased road freight electrification. Specific to truck stop charging, a barrier is the need for a network of charging stations to be built along key routes prior to significant truck volumes. As an indicator of potential approaches to overcoming this, the Environmental Protection Agency has awarded nearly $250 million to a coalition of four states — New Jersey, Connecticut, Delaware, and Maryland — to establish 24 electric truck charging sites along the Interstate 95 freight corridor. This project aims to reduce greenhouse gas emissions and support the adoption of electric trucks in the region.

Potentially large and complex stakeholder groups to manage are a concern with microgrids. Existing literature and efforts frequently attempt to add value propositions like local grid resiliency, utility demand management, national grid cybersecurity, and the like to microgrid efforts. This can bring a significant number of often slow-moving stakeholders to the table attempting to maximize the benefit for their purposes. The authors address an approach to dealing with these varied value propositions and stakeholders that enables accelerated delivery of truck charging in a pair of related articles later in the series.

These challenges all apply to greater or lesser extents to specific microgrids for trucking. However, the story is not all about the challenges that must be overcome, but also the support available to organizations building microgrids.

Several federal programs are now accelerating microgrid deployment with targeted funding, technical assistance, and policy support. The Department of Energy (DOE) leads many of these efforts through its Microgrid Program, which supports research, development, and demonstration projects to advance microgrid technology and its integration into the larger grid.

Further support for microgrid deployment comes from the DOE’s Grid Resilience and Innovation Partnerships (GRIP) program, which, under the Infrastructure Investment and Jobs Act, recently awarded $3.46 billion in grants to enhance grid resilience and develop innovative grid solutions, including microgrids. Meanwhile, the Microgrid State Working Group, co-led by NARUC and the National Association of State Energy Officials (NASEO), collaborates with the DOE to improve state-level policies and regulatory frameworks for microgrid expansion. Together, the initiatives aim to reduce deployment barriers, strengthen the grid, and enable clean energy access through microgrids.

Subsequent articles will articulate a set of self-reinforcing actions and approaches to depot and truck stop charging microgrids to avoid and overcome the challenges while taking advantage of the existing programs and support structures. The intent is to create a framework for a forward thinking organization to build the road freight charging network of the future and expand its market share.

Previous articles in this series:

About the authors:

Rish Ghatikar has an extensive background in decarbonization, specializing in electric vehicles (EVs), grid integration, and demand response (DR) technologies. At General Motors (GM), he advanced transportation electrification energy services, as part of a broader climate strategy. Previously, at Electric Power Research Institute (EPRI), he focused on digitalizing the electric sector, while at Greenlots, he commercialized EV-grid and energy storage solutions. His work at the DOE’s Lawrence Berkeley National Laboratory spearheaded DR automation to support dynamic utility pricing policies. An active climate advocate, Ghatikar advises on policies and technologies that align the grid with transportation and energy use for sustainable growth.

Michael Barnard, a climate futurist and chief strategist at The Future Is Electric (TFIE), advises executives, boards, and investors on long-term decarbonization strategies, projecting scenarios 40 to 80 years into the future. His work spans industries from transportation and agriculture to heavy industry, advocating for total electrification and renewable energy expansion. Barnard, also a co-founder of Trace Intercept and an Advisory Board member for electric aviation startup FLIMAX, contributes regularly to climate discourse as a writer and host of the Redefining Energy – Tech podcast. His perspectives emphasize practical solutions rooted in physics, economics, and human behavior, aiming to accelerate the transition to a sustainable future.