--- title: Microgrid Glossary description: Browse a growing glossary of microgrid and distributed energy resource terminology from Xendee. 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[See Frequently Asked Questions](https://xendee.com/faq?hsLang=en)   ## 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.* Solutions Solutions - [DESIGN (Engineering Software)](https://xendee.com/design) - [DISCOVER API (Multi-Site Screening)](https://xendee.com/discover) - [OPERATE (Control Software)](https://xendee.com/operate) - [Modeling Services](https://xendee.com/modeling-services) - Use Cases - [Data Centers](https://xendee.com/data-centers) - [Developers/EPCs](https://xendee.com/developers) - [OEMs](https://xendee.com/oems) - [Consultants](https://xendee.com/consultants) - [Government](https://xendee.com/government) - [Academic/Research](https://xendee.com/academic-research) Pricing Pricing - [DESIGN Professional Pricing](https://xendee.com/pricing/design) - [DESIGN Academic/Research Pricing](https://xendee.com/pricing/academic) - [DISCOVER API (Multi-Site Screening)](https://xendee.com/discover#demo) - [OPERATE Controller Pricing](https://xendee.com/operate?hsLang=en#demo) - [Modeling Services](https://xendee.com/modeling-services?hsLang=en#demo) Resources Resources - [News & Press](https://xendee.com/news-press) - Research & Innovation - [Publications](https://xendee.com/innovation) - [Industry Blog](https://xendee.com/insights/tag/insights) - [2026 Microgrid Report](https://xendee.com/2026-microgrid-market-survey) - [EV Report](https://xendee.com/industry-survey-report) - [Xendee Youtube](https://www.youtube.com/@xendee/videos) - Customers - [Our Customers](https://xendee.com/our-customers) - [Customer Webinars](https://xendee.com/insights/tag/webinar-series) - [Case Studies](https://xendee.com/case-studies) - [Microgrid Glossary](https://xendee.com/glossary) Xendee Corporation Xendee Corporation - Xendee University - [XU Week 2026](https://xendee.com/xendee-university-week) - [Register for XU Week 2027](https://xendee.com/xendee-university-week#register) - [Modeling Courses](https://xendee.com/xendee-university) - [Modeling Videos](https://xendee.com/modeling-videos) - [Cybersecurity](https://xendee.com/cybersecurity) - About Us - [FAQ](https://xendee.com/faq) - [Leadership Team](https://xendee.com/our-team) - [Contact Us](https://xendee.com/contact-us) [![Light Logo](https://xendee.com/hubfs/Light%20Logo-1.png)](https://xendee.com?hsLang=en) - [Terms of Service](https://xendee.com/terms) - [Privacy Policy](https://xendee.com/privacy-policy) © 2026 Xendee [X](https://twitter.com/xendee)[Linkedin](https://www.linkedin.com/company/xendee-corporation/)[YouTube](https://www.youtube.com/channel/UCRHNViGSj4_-ngI9Jb7pk0g) Return to top