Overview of Current Microgrid Policies, Incentives and Barriers in the European Union, United States and China

Abstract

Continuously increasing demand of microgrids with high penetration of distributed energy generators, mainly renewable energy sources, is modifying the traditional structure of the electric distribution grid. Major power consumer countries are looking for alternative energy sources to avoid the impact of higher fossil fuel consumption. Thus, different policies have been promulgated to promote renewable energy technologies (RETs) and distributed energy resource (DER) deployment and are encouraging technological innovation. These policies aim to reduce greenhouse gas (GHG) emissions and achieve energy security and independence to meet an ever-increasing electricity demand. Many studies have been performed on the successful integration of RET and DER operation and control, protection and stability issues, all simultaneously and satisfactorily implemented during feasible microgrid operation. However, apart from the technical challenges, few microgrid studies exist on effective policies and incentives for microgrid promotion and deployment. This survey investigates the policy, regulatory and financial (economical and commercial) barriers, which hinder the deployment of microgrids in the European Union (EU), United States (USA) and China. In this paper, a clear view on microgrid policy instruments and challenges are investigated to aid future developments.

Comparison of Profitability of PV Electricity Sharing in Renewable Energy Communities in Selected European Countries

“…Microgrids can either be operated independently [6], as isolated grids, or as community microgrids, [7] with self-contained electricity supply systems that serve certain electric loads. There are some barriers of microgrids [8] which limit their unrestricted use.…”

The Effects of Capital and Energy Subsidies on the Optimal Design of Microgrid Systems

“…In addition, the authors discussed different policy interventions (e.g., financial incentives, carbon tax, minimum renewables) that have been considered in microgrid feasibility studies. In [5] the authors reported the recent perspectives, barriers, and policies for distributed energy sources in the European Union, United States, and China. Additionally, a comprehensive review of the governmental regulations affecting the deployment of microgrids in abovementioned countries was presented.…”

“…In the next decade, it is expected that the developing economies mainly located in sub-Saharan Africa, Central and Southern Asia, and South America will face significant challenges in achieving the ambitious goals of providing access to clean energy to all people and delivering universal access to electricity [1,2]. Despite the remarkable progress on the rural and urban electrification rates around the world [3,4], and on the increasing number of innovative technologies suitable for off-grid applications, there are various factors that have hampered the success of national and local electrification projects, namely infrastructure, technical, economic, market, policy, and regulatory barriers [5][6][7].…”

Evolution of Microgrids with Converter-Interfaced Generations: Challenges and Opportunities

“…The current regulatory process is complex due to the amalgamation of different existing rules and regulations that are not particularly suitable for microgrids [310]. Although they are designed to maintain standard operations during a disturbance in a microgrid [311], the high connection fees are the main burden for microgrid operators [312]. Also, the islanding operation, one of the most-cited features of microgrids, creates conflict with existing rules and regulations as it has a large effect on the power supply of a grid utility.…”