Cost-Benefit Analysis: Case Studies of Community Microgrids

Abstract

Microgrids are receiving increased attention from a variety of stakeholders for their potential to deliver multiple benefits. Despite their upside, microgrids are, however, not currently widely commercially deployed. Lack of understanding of the value proposition(s) that microgrids present, and the appropriate use cases and business models that can support their commercial viability are additional contributing factors. EPRI’s previous work presented a Cost-Benefit Analysis Framework for evaluation of individual microgrids [1]. Utilizing the framework, this paper presents a real-world case study focused on a community microgrid in the southeastern U.S., where the local utility is interested in better understanding economic drivers for customer adoption of microgrids. The paper also provides key insights on microgrid design and operational parameters and their impact on costs & benefits.