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Why It Matters

Microgrids help the clean energy transition.

As overall demand for electricity increases, owing in part to the use of air conditioning and electric vehicles, the existing power grids may become more frail and blackouts more frequent. Grid flexibility will help the power grids become more adaptive. Another critical solution is the microgrid. 

A microgrid is a localized grouping of distributed energy source, like solar, wind, in-stream hydro, and biomass, together with energy storage or backup generation and load management tools. They're "micro" because they are nimble, efficient microcosms of the big grid, designed for smaller, diverse energy sources. They can operate as a stand-alone entity that can use local supply to serve local demand. Or they can also plug into the larger grid as needed. 

Through localization, micrgrids can play a critical role in advancing a flexible and efficient electric grid. If the larger grid suffers a blackout, a microgrid can respond by suppling the local community with electricity. 

In low-income countries, the payoff from microgrids are even higher. Globally, more than 1 billion people - around 17% of the world's population - still lack access to a centralized power grid. Microgrids can provide them with energy access using clean energy sources. 

These companies are making it happen.

In the Climate Index, we take all of the companies that offer products and services that help expand microgrids. Then we take out the ones that derive a greater share of revenue from fossil fuel-dependent business than from microgirds. And as always, we exclude penny stocks whose share prices were lower than $0.50 in our last update. 

This means that the Climate Index includes all of the microgird companies that are at the forefront of improving grid flexibility and pushing the clean energy transition.

If you are a Carbon Collective member, you own all of these companies through the Climate Index.

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