Evaluating the value proposition of microgrids for utilities

Abstract

At present, the market is seeing utility scale Wind plants, PV Plants and even Battery Storage systems, but not a utility scale Microgrids.There are a number of reasons for this, and as with other technologies at their beginnings, microgrid value proposition for utilities still needs to be proven. This paper presents a methodology for evaluating the value proposition for the microgrids by a comprehensive techno-economic calculation based on economic dispatch optimization of consumer specific solution in two options: Grid only energy supply vs Microgrid.Only with a detailed study of both options which takes into consideration technical specifications and constraints of all included assets on one side and financial parameters (CAPEX, OPEX) on the other side is it possible to determine a real value of a Microgrid.