Microgrid Momentum: Building Efficient, Resilient Power
1 minute read
Microgrids are not a traditional or typical infrastructure investment for utilities, nor has the existing electric power industry been structured to facilitate development of microgrids by non-utilities. This research paper seeks to identify financial and legal barriers to the development of microgrids and provide recommendations for overcoming them.
Key Takeaways
Microgrids currently provide a tiny fraction of U.S. electricity, but their capacity is expected to more than double in the next three years.
Each microgrid’s unique combination of power source, customer, geography, and market can make financing these projects a challenge.
States can play a key role in facilitating microgrid development.
A clearer legal framework is needed to define a microgrid, and set forth the rights and obligations of the microgrid owner with respect to its customers and the macrogrid operator.
Franchise rights granted to utilities may limit microgrid developers’ access to customers.
Linear programming models can help microgrid project developers or energy managers tailor their proposed projects.
Greater dialogue among all stakeholders is needed to develop supportive frameworks and policies.
Video
Watch our March 8, 2017 discussion at Geoge Washington University.
