Minnesota Emerging as a National Hub for Microgrid Technology
Minnesota is rapidly establishing itself as a leading center for microgrid technology, offering cleaner, more reliable local power solutions that address the evolving challenges faced by energy providers and consumers alike. At the forefront of this trend is Bloomington-based Open Access Technology International (OATI), a prominent player traditionally known for its role in managing electricity markets across North America. Now, OATI is scaling its expertise to develop advanced microgrid solutions serving campuses, data centers, and other facilities.
Innovation Rooted in Bloomington
OATI’s headquarters in Bloomington—located near the I-494/Highway 100 interchange—houses a sophisticated setup that serves as a proof of concept for its microgrid platform. This system synchronizes solar panels, battery reserves, an onsite cogeneration plant, and emergency diesel generators to ensure continuous operation during main grid outages. David Heim, vice president and chief strategy officer at OATI, remarked, “It’s cool that we are a [Twin Cities] company doing all this right here in our backyard, not out in Silicon Valley.”
Microgrid expertise in Minnesota extends beyond OATI. Minneapolis-based Syncris produces high-tech hardware designed to simplify microgrid development, while Microgrid Initiatives specializes in development support and project management nationwide, with emphasis on state, local, and tribal projects. Additionally, the Center for Microgrid Research at the University of St. Thomas stands out as a nationally recognized hub providing hands-on microgrid training—the only such institution offering this kind of education in North America.
Research efforts continue at the University of Minnesota and partner Midwestern universities, where researchers are working to strengthen the power grid and microgrids against growing cybersecurity threats.
A Legacy of Energy Technology Excellence
Michael Burr, founder and director of Microgrid Initiatives, attributes Minnesota’s significant influence in the microgrid sector to the presence of multinational companies specializing in power electronics and energy controls. Firms like Honeywell, Siemens, IBM, Eaton, and Johnson Controls have long called Minnesota home, establishing a multibillion-dollar industry base complemented by specialized companies such as OATI and Hunt Technologies—a Pequot Lakes firm that became a pioneer in advanced metering infrastructure and was later acquired by Landis+Gyr.
According to the Minnesota Department of Employment and Economic Development, the state exported approximately $2.3 billion worth of IT-related electrical equipment last year, highlighting its manufacturing strength. This robust ecosystem not only fosters innovation but also positions Minnesota as a critical hub for microgrid technology and design, addressing pressing concerns like rising electricity costs and grid reliability amid extreme weather events.
OATI’s Expanding Role in Microgrid Solutions
Founded in the mid-1990s, OATI made its mark by offering software that facilitates the buying and selling of large blocks of electricity throughout the United States. Their platform plays a vital role in ensuring sufficient power during extreme conditions, like the record-breaking heatwave experienced in June.
Expanding beyond North America, OATI now serves international markets where government-owned transmission infrastructure is common, focusing on enhancing efficiency as homes, businesses, electric vehicles, and distributed energy systems become more interconnected.
Mary Brown, OATI’s senior executive vice president and chief legal officer, noted changes such as import tariffs and new federal energy policies that are anticipated to increase electricity costs, emphasizing the growing importance of technology solutions to reduce energy bills for Minnesotans.
Demand Response and Distributed Energy Resource Management
OATI’s distributed energy resource management system (DERMS) is especially popular among electric cooperatives, which serve many rural customers often vulnerable to outages. More than 150 cooperatives, including 24 members of Dairyland Power Cooperative in Wisconsin and Minnesota, use the platform. DERMS coordinates diverse resources—solar panels, batteries, electric vehicles, and heavy appliances—in demand response programs that provide compensation to consumers for adjusting their energy usage.
Additionally, this technology supports smaller microgrids by enabling them to operate autonomously or in tandem with the public grid, enhancing local resilience.
Microgrids for Resilience and Tribal Energy Sovereignty
The increasing prevalence of severe storms, such as the hurricane-force weather that left tens of thousands of northern Minnesota residents without power, underscores the relevance of microgrids. Facilities such as refrigeration, HVAC, and critical communications can continue running during extended outages through self-contained microgrids.
OATI has participated in projects in hurricane-prone areas, including building a “cottage community” in North Carolina with a resilient microgrid that initially produced more power than it consumed. This success has driven expansion plans to benefit hundreds of homes. Such projects demonstrate how utilities increasingly view microgrids as complementary assets rather than competitors to the main power grid.
Tribal nations have found microgrids instrumental in securing long-term energy independence. Last year, the Biden administration allocated $3.15 million to the Red Lake Nation and $1.75 million to the White Earth Nation for installing solar- and battery-powered microgrids at community schools in remote tribal villages. These initiatives provide political and economic leverage to tribes in negotiations with utilities by giving them a stronger voice in energy planning and investment.
Federal support continues despite previous administration resistance, with the U.S. Department of Energy recently awarding $8 million in microgrid grants to remote communities across Alaska, Nevada, and South Dakota. Microgrid Initiatives has supported several such projects on tribal lands in Southern California, most receiving federal backing. David Heim emphasizes that for tribes, “energy sovereignty is becoming a necessity.”
Local Developments and Future Prospects
Back in Minnesota, local developers like Renewable Energy Partners are preparing to commence construction on two microgrid projects in north Minneapolis this fall, as part of Xcel Energy’s Resilient Minnesota initiative. This reflects a growing statewide commitment to building energy systems capable of withstanding future challenges.
Minnesota’s unique blend of research institutions, innovative companies, robust manufacturing bases, and proactive communities continues to position the state as a leader in microgrid technology and a model of energy resilience for the nation. As electricity markets evolve and climate-related threats intensify, Minnesota’s homegrown expertise and ongoing projects offer a hopeful blueprint for the future of local power generation and management.
