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* Generate power locally to reduce dependence on long distance transmission lines and cut transmission losses.
Micro-grids have seen implementation in a number of communities over the world. For example, Tesla has implemented a solar micro-grid in the Samoan island of Ta'u, powering the entire island with solar energy.<ref>{{Cite news|url=https://www.theverge.com/2016/11/22/13712750/tesla-microgrid-tau-samoa|title=Tesla powers a whole island with solar to show off its energy chops|work=The Verge|access-date=2018-03-09}}</ref> This localized production system has helped save over {{convert|100,000|usgal|m3|order=flip}} of diesel fuel. It is also able to sustain the island for three whole days if the sun were not to shine at all during that period.<ref>{{Cite news|url=https://news.nationalgeographic.com/2017/02/tau-american-samoa-solar-power-microgrid-tesla-solarcity/|archive-url=https://web.archive.org/web/20170225040142/http://news.nationalgeographic.com/2017/02/tau-american-samoa-solar-power-microgrid-tesla-solarcity/|url-status=dead|archive-date=25 February 2017|title=How a Pacific Island Changed From Diesel to 100% Solar Power|date=2017-02-23|access-date=2018-03-09}}</ref> This is a great example of how micro-grid systems can be implemented in communities to encourage renewable resource usage and localized production.
To plan and install Microgrids correctly, engineering modelling is needed. Multiple simulation tools and optimization tools exist to model the economic and electric effects of Microgrids. A widely used economic optimization tool is the Distributed Energy Resources Customer Adoption Model (DER-CAM) from [[Lawrence Berkeley National Laboratory]]. Another frequently used commercial economic modelling tool is [https://www.homerenergy.com/ Homer Energy], originally designed by the [[National Renewable Energy Laboratory|National Renewable Laboratory]]. There are also some power flow and electrical design tools guiding the Microgrid developers. The [[Pacific Northwest National Laboratory]] designed the public available GridLAB-D tool and the [[Electric Power Research Institute|Electric Power Research Institute (EPRI)]] designed OpenDSS to simulate the distribution system (for Microgrids). A professional integrated DER-CAM and OpenDSS version is available via [https://www.bankableenergy.com/ BankableEnergy]. A European tool that can be used for electrical, cooling, heating, and process heat demand simulation is EnergyPLAN from the [[Aalborg University|Aalborg University, Denmark]].
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