SECTION 2 – PLANNING YOUR MICROGRID
What is the timeline to deploy a microgrid?
The figure below shows an expected timeline for microgrid deployment. xiv Expanding upon information from PG&E, the expected length of microgrid deployment would be 3 to 5 years. This is an estimate for community microgrids with established infrastructure and closer distances to the main utility grid. This is the expected length of microgrid deployment if funding and resources are available. A timeline to reflect estimates for deployment in rural and remote communities is added below.
However, if difficulties in communication and differences in priorities exist, rural and remote communities may take longer in all stages of microgrid deployment. For projects in these areas, the timeline can be significantly longer due to complications in construction and permitting. Without confirmed funding and resources, deployment may range from 5-20 years.
How do I plan the details of a microgrid?
Simulation is a key activity to design a microgrid given the various complex factors in play. Simulations are typically used in the early design stage to give an understanding for microgrid performance. They are used to test and optimize designs prior to implementation, reducing possibilities for flawed and/or ineffective designs. This process is essential for finding cost effective solutions that are tailored to a particular community microgrid.
There are several software options available for microgrid capacity simulation, and four options are compared below. Though interesting to explore, a working knowledge of how to use the modelling software is not required for use by community members. However, microgrid integrators should have access to at least one of these software options or some equivalent.
How does our community optimize energy use?
When implementing a microgrid to increase the energy available to a community, it is also important to think about how the community can make the best use of that energy. A growing community looking to save energy can do so through conscious behavior changes that improve energy efficiency. The figure below includes actions that can be taken to reduce energy consumption in buildings.
How do you pay for a microgrid?
What is the price and scaling of a microgrid?
The figure below gives a sense of scale and cost for different sizes of microgrids. Using the expected power generation capacity and estimated cost per kW, community members can determine a rough estimate for total costs of DERs.
Note that the costs may be different depending on location and developers. Rural and remote microgrids may cost more depending on access to transmission lines and the main grid.xviii This all reinforces the importance of conducting techno-economic analysis with proper professionals in the field.
What payment paths are there?
There are two main paths that can be taken to pay for a microgrid – direct purchase or a power purchase agreement (PPA).
Direct purchase is simply buying the system from a microgrid provider or set of providers, paying up front for the system as a Capital Expense, or ‘CAPEX’ cost.
A power purchase agreement (PPA) involves the microgrid provider installing the system but maintaining ownership of the equipment, instead selling power to the customer for a fixed rate. This is also referred to as ‘energy-as-a-service’ and makes paying for the microgrid an Operating Expense, or ‘OPEX’ cost.
Some of pros and cons of each path are shown below:
What funding opportunities exist?
Find information about funding opportunities for microgrids from the links in the table below. Note that these opportunities change over time!
|
Source Level |
Source |
Description |
Link |
|
Private |
MicrogridKnowledge.com |
A website dedicated to everything microgrids |
|
|
Federal |
DoE |
Community Microgrid Assistance Partnership |
Community Microgrid Assistance Partnership | Department of Energy |
|
Federal |
DoE |
Microgrid Program Strategy |
|
|
Federal |
Grants.gov |
How to search for federal govt grants |
|
|
Federal |
Grants.gov |
Grant-making Agencies |
|
|
Federal |
Grants.gov |
Federal Grant Eligibility |
|
|
Federal |
DoC |
Department of Commerce Grant opportunities |
Grants and contract opportunities | U.S. Department of Commerce |
|
Washington State |
Commerce |
Washington State Clean Energy Funds |
|
|
Maryland |
DoE |
Maryland Energy Administration Accepting Clean Energy Grant Applications |
|
|
Private |
Carbon Credits |
Academic paper on carbon credits and microgrids |
https://www.sciencedirect.com/science/article/pii/S2405844024151377 |
What are the rules and regulations to be aware of?
It’s important for community stakeholders to understand the rules and regulations involved with clean energy microgrids. These regulations are imposed at the federal, state and local level. Regulations come in two forms: policy and technical standards for microgrids. Policy regulations are concerned with how communities set up microgrids and, for example, how they interact with the larger national grids. Technical regulations are concerned with technical standards for how they are built.
Although there are not too many requirements imposed by federal and state governments, microgrids are becoming increasingly utilized by communities all over the country. With more communities adopting microgrids, more attention will be placed on them as a concept and interest and oversight from the government should be expected. The energy environment, not just microgrids, is rapidly developing and regulation and legislation pertaining to it will follow.
|
Description |
Link |
|
Public Utility Regulatory Policies Act of 1978 |
|
|
FERC Order No. 2222 |
FERC Order No. 2222: Fact Sheet | Federal Energy Regulatory Commission |
|
Overview of Microgrid Regulation in the USA |
Microgrid Regulatory Policy in the US | Greentech Renewables |
|
Interconnection Standards |
How to connect my microgrid to the utility grid?
A community that experiences intermittent or unreliable power from an existing utility connection may want to consider adding a microgrid to supplement the power they get from that utility. This can reduce system losses at peak production and provide additional profit by selling energy to the utility.
The process for connecting to a utility grid can be lengthy process, sometimes taking up to 4 years. A summary of this process can be seen below Regulation for interconnection is controlled by the states and can vary by area. IEEE 1547 provides standards and best practices for interconnection, all states either use this standard or site it in their interconnection processes.
