Can microgrids be financed?

Microgrids can be financed if the components (and potentially the entire system) can be justified economically and paid for out of energy savings or avoided costs.

What is the future of microgrid investment?

In summary, the U.S. DOE – with assistance from National Laboratories and working closely with strategic public- and private-sector partners – seeks a future in which utility regulatory frameworks and approaches enable prudent microgrid investment from the private sector, regulated utilities, communities, and states.

Should a state invest in a microgrid?

Rather than that, the results suggest a state investment over private investment, as the current state of financial structure enables state entities to enjoy the advantages of microgrid establishment more than private investors.

Can microgrids improve energy resilience?

Since microgrids are not the only way to enhance energy resilience, communities may want to consider alternate resilience investment options, including hardening existing transmission and distribution systems, weatherizing power generation sources, and building additional distribution systems to provide energy supply redundancy.

How much does a microgrid cost?

Microgrids are complex systems that require specialized skills to operate and maintain. Microgrids include controls and communication systems that contain cybersecurity risks. A 2018 study conducted by the National Renewable Energy Laboratory found that microgrids in the Continental U.S. cost an average of $2 million-$5 million per megawatt.

Is there a microgrid regulatory model?

At the same time, there is no single business or regulatory model that can accommodate all microgrid use cases, ownership and investment constructs, or applications, and establishing effective and balanced regulatory frameworks takes great care to achieve.