IEEE Electrification Magazine - March 2014 - 6

technology leaders

Microgrids Beyond the Hype:
Utilities Need to See a Benefit
By John D. McDonald

o move microgrids
from the potentially irritating "hype cycle" across the
dreaded "trough of disillusionment"
and up the slippery "slope of enlightenment" to reach the long-sought
"plateau of productivity" might seem
a daunting task, particularly given the
obviously melodramatic language
that often accompanies technology maturation and market acceptance. Nonetheless, the promise of
microgrids for achieving energy assurance-essentially a measure of
reliability-when coupled with other
crucial value propositions, including
environmental and economic goals,
deserves review. While not all technology advancements survive beyond the hype cycle, every successful
technology must endure a journey
that begins in a giddy whirlpool of
potential outcomes.
in the case of microgrids, many
stakeholders are optimistic that the
fundamental strengths of the technology and its myriad applications will
prevail over what appear to be surmountable hurdles. But to move
beyond the hype, the technology's drivers and opportunities should be
spelled out alongside an honest review
of the barriers to implementation.
my own related work focuses on
interconnections, where technology,

Digital Object Identifier 10.1109/MELE.2013.2297181
Date of publication: 18 March 2014

I E E E E l e c t r i f i c ati o n M agaz ine / MARCH 2014

standards, and policies join grid to
microgrid. To develop the proper context for interconnection-related
issues, i will begin by defining
microgrids in general terms and
describing typical use cases. Then, i
will turn to recent efforts by the state
of minnesota to explore microgrid
drivers, opportunities, hurdles, and
next steps. it is in that specific context that a description of ongoing
changes to interconnection standards and policies will make the
most sense. The discussion is relevant not only to minnesota's interest
in microgrids but to other states, utilities, microgrid sponsors, and readers
of IEEE Electrification Magazine.

Definitions, Drivers,
and Hurdles
definitions can be a perilous exercise, but let us try one. microgrids
are often conceived as self-contained energy systems with the ability to operate independently of the
grid, either as stand-alone systems
or, if grid tied, by islanding-disconnecting from the grid while continuing
to operate. microgrids must possess
their own generation source(s), typically under the category of distributed generation (dg), which could be
fossil fuel-driven (likely diesel) generators and/or renewable resources
such as wind turbines, solar photovoltaic (Pv) cells, fuel cells, or other
means. microgrids include load

management functionality to balance the supply/demand mix, perhaps aided by energy storage in
chemical or thermal form.
drivers are many, and they range
from energy assurance, where that
single benefit is sometimes deemed
to outweigh high costs, to implementations based on a variety of specific
goals that offer a positive business
case. Likely sponsors range from utilities to large customers such as cities
and towns and military installations,
universities, schools, and hospitals
(mUsH). The fact that a microgrid can
serve a nonutility sponsor by providing a degree of self-sufficiency, of
course, is often perceived to challenge
utility interests by reducing volumetric sales, a traditional avenue for utility revenue. That is a policy issue that
must be addressed as such. But technological challenges presented by
microgrids must be overcome as well,
particularly regarding their interconnection with the utility grid. in fact,
amendments to fundamental interconnection standards are ongoing,
and all stakeholders will gain by
tracking progress in this vital area.
Although this article focuses on
interconnection standards and policies, i will finish by discussing how
regulatory reform to a more resultsbased approach can improve incentives for utilities to implement or
accommodate microgrids. in fact,
the path of least resistance to

Table of Contents for the Digital Edition of IEEE Electrification Magazine - March 2014