Microgrid Reference Methodology for Understanding Utility and Customer Interactions in Microgrid Projects

Abstract

The purpose of this paper is to introduce a holistic and systematic approach, based in key concepts of systems thinking, systems of systems and management science; to completely represent, model and analyze microgrid systems. In this paper we propose a Microgrid Reference Methodology (MRM) that guides the cooperation and mutual benefits between electric utilities and industrial customers for microgrid projects. We sketch a four-level socio-technical system in which the δ (business) level is added to the other three levels that are traditionally analyzed in microgrid design and planning. This MRM clearly specifies the steps and processes necessary for determining actors in the system, their interrelations, interests, goals and undesired effects. Finally, the MRM makes possible the evaluation of the impact of different alternatives on the objectives of both parties through the determination of criteria and factors. These factors can be influenced by the electric utility and customer; or they can be external, but still influenced by other actors such as regulators and government, to incentivize the implementation of microgrid projects.

Microgrids Literature Review through a Layers Structure

“…The benefits of microgrids are very similar in both industrial documents and scientific research. All of them imply that MGs are reliable and efficient [8,16,[27][28][29][30][31][32]. In almost all analysed publications, reliability and efficiency are described from different perspectives.…”

“…It is not only divided into direct or indirect benefits, but also relates them to the microgrid stakeholders. The security benefit is outlined in [28,29]. It is related with resiliency, but it is more focused on the detection and prevention of external disruptions, which is a subject of study in smart grids.…”

“…For instance, when changing from grid connected to islanded, many security and economic issues may come to mind. The concern of utility regarding connection tariffs, among some others, are shown in [28]. In this manuscript, the relationship among the different stakeholders and their main goals are discussed.…”

“…In [48], through analysing the business model of a microgrid, research concludes that policy makers have the power to guide the microgrid landscape by increasing its deployment as well as have the control over different key cost parameters. Following a literature review, questionnaires and interviews in [28] suggest that the lack of standardised regulation of microgrids, in this case referring to the US, and the disincentives for utilities to permit them collide with the main advantages that microgrids can offer for consumers. The aim of [60] was to inform policy makers and industry participants about new business models to evolve the traditional electric networks.…”

Microgrid Infrastructure Compendium Analysis with a Model Creation Tool and Guideline Based on Machine Learning Techniques

“…Although MGs can work when they are located in isolated areas, many of their benefits are related to working along a stronger grid. As many authors have propose in both industrial documents and research publications [6,[8][9][10][11][12][13][14], efficiency and reliability are the main benefits shared by all MGs. Their efficiency is mostly due to the proximity between energy generation and demand.…”