What does the microgrid investment process include

What is a microgrid & how does it work?

A microgrid is a group of interconnected loads and distributed energy resources that acts as a single controllable entity with respect to the grid. It can connect and disconnect from the grid to operate in grid-connected or island mode. Microgrids can improve customer reliability and resilience to grid disturbances.

How do microgrids manage energy?

Energy Management: Microgrids need a system to manage the flow of energy, ensuring that energy is being used efficiently and effectively. This includes monitoring and controlling the mix of energy sources, as well as balancing the energy supply and demand.

What are the components of a microgrid?

They can be used to power individual homes, small communities, or entire neighborhoods, and can be customized to meet specific energy requirements. Microgrids typically consist of four main components: energy generation, energy storage, loads and energy management. The architecture of microgrid is given in Figure 1.

What is the mix of energy sources in a microgrid?

The mix of energy sources depends on the specific energy needs and requirements of the microgrid. Energy Storage: Energy storage systems, such as batteries, are an important component of microgrids, allowing energy to be stored for times when it is not being generated.

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.

Are microgrids a good investment?

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. Depending on the complexity, microgrids can have high upfront capital costs.