Microgrids are bespoke energy systems-each designed around the customer’s specific objectives considering both normal and islanded operations.
This issue brief will explain how microgrids operate, the ways in which they can support the reliability and resilience of the power grid and the policies state legislatures have adopted to support their development. Several states have already taken steps in this direction by enabling new financing tools, addressing regulatory uncertainty and clarifying how they should be compensated for these services.
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With the right incentives and programs, they can support grid reliability in a way that can help absorb larger disturbances.Īs state lawmakers consider whether to support microgrid development in their states, it’s important that the full suite of benefits that microgrids can provide are considered. These advanced systems are designed to operate in concert with the larger grid during normal operations. The reality is that microgrids are much more than simply backup power systems. The unique characteristics that make microgrids so attractive-including their ability to power critical facilities, enhance community resilience and integrate clean energy resources-are the same characteristics that often leave them in a regulatory grey space. However, microgrids often face a variety of financial and regulatory barriers that limit their deployment. It’s a suite of technologies designed around a pragmatic admission: that the power grid is vulnerable and will at times fail. These unique systems represent a specific form of electric resilience-the ability to maintain power locally even in the face of wider system failures. In 2021 alone, there were 20 separate “billion-dollar disasters,” causing total losses of nearly $150 billion.Īs state lawmakers consider policies to enhance energy system reliability and resilience, a growing number have looked to the benefits of microgrids. The previous decade was far and away the most destructive since the federal government began tracking these storms in 1980-both in terms of the frequency of severe storms and their destruction. The threat from natural disasters has grown in intensity and frequency. The electric grid is considered especially important because power is required to maintain the functionality of most critical infrastructure sectors-those deemed vital to the economy, public health and safety. The United States faces a growing threat from natural disasters and energy infrastructure is in the eye of the storm.
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E-Learning | Staff Professional Development.
Research, Editorial, Legal and Committee Staff.Legislative Staff Coordinating Committee.Institute for International Cooperation.
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