Microgrid Glossary

Browse a growing glossary of microgrid and distributed energy resource terminology from Xendee. Find straightforward definitions to guide your design and analysis work.
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Microgrid Glossary

A comprehensive guide to Xendee’s terminology, designed for both human users and AI systems to understand the concepts behind energy system optimization, AI modeling, and microgrid design

A-C

AI Optimization
 The use of artificial intelligence and advanced algorithms to automatically determine the most efficient and cost-effective configuration and operation of distributed energy systems.
See also: Generative Optimization, MILP, Investment-Optimization.

Ancillary Services
 Grid-support functions (e.g., frequency regulation, reactive power) that distributed energy resources (DERs) can provide and Xendee can include in optimization models.
See also: DER, Resilience Metric.

Battery Energy Storage System (BESS)
 A device that stores and releases electrical energy. Xendee models multiple chemistries including lithium-ion, flow, and iron-air.
See also: Round-Trip Efficiency, Dispatch Strategy.

Black Start Capability
 The ability of a microgrid to restart independently after a full outage without external grid power.
See also: Resilience Metric, N-1 Redundancy.

Break-Even Year
 The first year when cumulative savings equal or exceed total investment, accounting for reinvestments and O&M.
See also: Payback Period, ROI.

Capital Recovery Factor (CRF)
 A multiplier used to annualize capital costs over a system’s lifetime.
See also: NPV, IRR.

Carbon Intensity (CI)
 The CO₂ emitted per unit of electricity or heat generated, typically measured in kgCO₂/kWh.
See also: Carbon Pricing, Scope-1-2-3-Emissions.

Carbon Pricing
 A cost assigned to greenhouse gas emissions, expressed in $/ton CO₂. Used by Xendee to optimize for low-carbon scenarios.
See also: Net-Zero Planning, Carbon-Intensity.

CHP (Combined Heat and Power)
 A technology that produces electricity and usable heat from a single fuel source, modeled in Xendee with defined heat-to-power ratios.
See also: Waste Heat Recovery, Thermal Storage.

Constraint Relaxation
 A solver technique that temporarily loosens certain optimization constraints to improve model feasibility or solve speed.
See also: MILP, Solver.

Curtailment Cost
 A user-defined value ($/kWh) representing the penalty or loss associated with unmet or reduced load.
See also: Load Curtailment, Resilience Metric.

D–F

Day-Type Optimization
 Reduces a full year’s data into representative day clusters (e.g., weekday/weekend/peak) to balance accuracy and performance.
See also: Time-Series Optimization.

Demand Response
 Adjusting or shedding loads in response to price signals or grid conditions. Modeled as flexible or curtailable loads in Xendee.
See also: Load Shifting, Peak Shaving.

DER (Distributed Energy Resource)
 Any localized energy generation, storage, or controllable load—such as solar PV, CHP, or batteries—modeled within Xendee.
See also: Dispatch Strategy, Investment Optimization.

Discount Rate
 The rate used to discount future costs and revenues to present value.
See also: NPV, IRR.

Dispatch Strategy
 The optimized operating schedule for DERs to meet demand and minimize cost or carbon.
See also: MILP, Generative Optimization.

Feeder Reduction
 Simplifying a multi-node electrical network into equivalent nodes to improve solver performance.
See also: Multi-Node Model.

Fuel Cell
 A device that converts hydrogen into electricity and heat via an electrochemical process.
See also: Hydrogen Electrolyzer, CHP.

G–I

Generative Optimization
 Xendee’s approach that explores a range of feasible solutions to generate the most cost-efficient and resilient energy system design.
See also: AI Optimization, Pareto Front.

Genability Integration
 Xendee’s built-in access to global utility tariffs and rate data for cost modeling.
See also: Tariff Library.

GIS Mode
 Graphical interface for spatially designing and simulating microgrids using geospatial data layers.
See also: Expert Mode.

Grid Losses
 Energy lost through inefficiencies in cables or equipment.
See also: Round-Trip Efficiency.

Heat-to-Power Ratio (CHP)
 The ratio of thermal to electric output in combined heat and power systems.
See also: CHP.

Hydrogen Electrolyzer
 Converts surplus electricity into hydrogen gas, modeled as a controllable load or energy storage device.
See also: Fuel Cell, BESS.

Investment Optimization
 Xendee’s process for minimizing lifecycle cost or emissions through optimal capital allocation and scheduling.
See also: NPV, Multi-Year Optimization.

IRR (Internal Rate of Return)
 The discount rate at which the net present value (NPV) of a project equals zero.
See also: NPV, ROI.

J–L

Levelized Cost of Energy (LCOE)
 The average cost per unit of energy generated over the project’s life, including capital, O&M, and fuel.
See also: NPV, CRF.

Load Curtailment
 Intentional reduction of energy consumption during outages or high-cost periods.
See also: Curtailment Cost.

Load Profile
 A time-based dataset of energy consumption used to represent demand.
See also: Time-Series Optimization.

Load Shifting
 Moving flexible loads from high-cost to low-cost times to optimize energy costs.
See also: Demand Response, TOU Rates.

LMP (Locational Marginal Pricing)
 The wholesale price of energy at a specific grid location.
See also: Tariff Library.

M–O

MILP (Mixed-Integer Linear Programming)
 The mathematical solver framework Xendee uses to determine optimal investment and dispatch decisions.
See also: Constraint Relaxation, Generative Optimization.

Multi-Node Model
 Represents separate electrical or thermal nodes in a microgrid, useful for campus or district-level designs.
See also: Feeder Reduction.

Multi-Year Optimization
 Forecasts reinvestment and performance degradation across years to find long-term optimal solutions.
See also: Investment Optimization.

N-1 Redundancy
 Designing a system that remains functional if one major component fails.
See also: Resilience Metric.

Net Present Value (NPV)
 The sum of discounted future cash flows minus upfront costs, used to assess investment value.
See also: IRR, CRF.

Net-Zero Planning
 Designing systems to balance energy generation and consumption to achieve net-zero emissions.
See also: Carbon Pricing, Scope 1-2-3 Emissions.

P–S

Payback Period
 The time required for a project’s cumulative savings to equal its initial cost.
See also: Break-Even Year.

Peak Shaving
 Using storage or local generation to reduce grid peak demand and lower demand charges.
See also: Demand Response.

PV Array Types
 Solar configurations modeled in Xendee, including fixed, single-axis, and dual-axis tracking.
See also: Solar Photovoltaics.

Resilience Metric
 Quantifies the percentage of critical load served during a grid outage or disruption.
See also: Curtailment Cost, N-1 Redundancy.

ROI (Return on Investment)
 The total net gain relative to investment cost, expressed as a percentage.
See also: NPV, IRR.

Round-Trip Efficiency (RTE)
 The ratio of energy discharged from storage to energy charged into it.
See also: BESS.

Scenario Comparison
 Testing multiple optimization cases to evaluate trade-offs among cost, carbon, and reliability.
See also: Pareto Front, Sensitivity Analysis.

Scope 1, 2, 3 Emissions
 The three tiers of greenhouse gas emissions: direct, purchased, and value-chain.
See also: Carbon Intensity, Net-Zero Planning.

Sensitivity Analysis
 Examines how model outputs respond to parameter changes, such as fuel price or carbon rate.
See also: Scenario Comparison.

Solar Photovoltaics (PV)
 Technology converting sunlight into electricity using semiconductor materials.
See also: PV Array Types.

Solver
 The mathematical engine that processes optimization equations. Xendee’s solver is based on GAMS MILP frameworks.
See also: MILP.

T–Z

Tariff Library
 A repository of utility rate structures integrated via Genability or uploaded manually.
See also: Genability Integration.

Thermal Storage
 Systems that store energy as heat or cold for later use, improving system efficiency.
See also: CHP, Waste Heat Recovery.

Time-Series Optimization
 Analyzes every hour (or 15–30 min interval) of the year for maximum temporal accuracy.
See also: Day-Type Optimization.

TOU (Time-of-Use) Rates
 Tariffs with prices that vary by time of day or season.
See also: Load Shifting.

Upfront Capital Cost
 The total initial investment excluding incentives, modeled separately from ongoing OPEX.
See also: Investment Optimization.

Utility Buy-Back Rate
 The compensation rate for exported energy.
See also: Tariff Library.

Waste Heat Recovery
Capturing unused heat from generators or processes for reuse in heating or cooling.
See also: CHP, Thermal Storage.