Policies for the development of new energy microgrids

By 2035, microgrids are envisioned to be essential building blocks of the future electricity delivery system to support resilience, decarbonization, and affordability. The Strategy development process began with microgrid experts deliberating on areas the Strategy should focus on for impactful results in key metrics, such as reliability .

Microgrids that incorporate renewable energy resources can have environmental benefits in terms of reduced greenhouse gas emissions and air pollutants. In some cases, microgrids can sell power back to the grid during normal operations.

As state lawmakers consider policies to enhance energy system reliability and resilience, a growing number have looked to the benefits of microgrids. These unique systems represent a specific form of electric resilience—the ability to maintain power locally even in the face of wider system failures.

NCSL’s Microgrids: State Policies to Bolster Energy Resilience outlines specific legislative actions that can be taken to encourage development of microgrids, including: Setting a standard statewide microgrid definition; Appropriating funding for a grant, pilot, or technical assistance program;.

Resilience, efficiency, sustainability, flexibility, security, and reliability are key drivers for microgrid developments. These factors motivate the need for integrated models and tools for microgrid planning, design, and operations at higher and higher levels of complexity.

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6 FAQs about [Policies for the development of new energy microgrids]

What policies have been implemented to promote the development and adoption of microgrids?

Several countries have implemented policies to promote the development and adoption of microgrids. In the United States, the Federal Energy Regulatory Commission (FERC) has implemented Order-2222 , establishing rules enabling microgrids to participate in wholesale energy markets.

Are microgrids the future of energy resilience?

Microgrids are poised to play a large role in the future of energy resilience in the U.S. electric system. However, these systems face financial and regulatory barriers in many states. Several states have already taken steps to enable new financing tools and improve regulatory processes.

What is a microgrid strategy?

The Strategy development process began with microgrid experts deliberating on areas the Strategy should focus on for impactful results in key metrics, such as reliability, resilience, decarbonization, and affordability, in the next five to ten years.

How does government support microgrids?

Support for microgrids comes from research and development (R&D) programs at federal and state levels, software and tools, grants and funding support to incentivize demonstration projects, and tax and financial incentives for the installation of distributed energy , , , .

Should lawmakers support microgrid development?

As lawmakers in other states consider whether to support microgrid development, it’s important that policies consider the full value and reflect the suite of benefits that microgrids can provide the power grid to harness their full potential.

Why are regulatory and policy frameworks important for microgrids?

Regulatory and policy frameworks are crucial in facilitating the growth and acceptance of microgrids. However, several challenges related to these frameworks need to be addressed. One of the primary issues is the variation in regulations that govern microgrids across different countries and states.

Policies for the development of new energy microgrids