Phase I Microgrid Cost Study: Data Collection and Analysis of Microgrid Costs in the United States

Abstract

Executive SummaryMicrogrids are gaining in popularity because of their adaptability and flexible expandability, the need for increased electricity reliability, the increased affordability of distributed energy resources (DERs) and grid intelligence devices, goals to reduce greenhouse gas emissions, and other factors. The U.S. Department of Energy commissioned the National Renewable Energy Laboratory to complete a microgrid cost study and develop a microgrid cost model. The goal is to elucidate the variables that have the highest impact on costs as well as potential areas for cost reduction. This study consists of two phases. Phase I comprises the collection and analysis of data from microgrid projects built in the United States and is the subject of this report. In Phase II, NREL will assess current barriers facing the industry and identify potential solutions with help from industry representatives.Microgrid components are classified as follows in the form used to collect cost data from industry representatives for NREL's microgrid cost database:• DERs: diesel, natural gas, combined heat and power (CHP), biofuel, solar photovoltaic (PV), wind, and fuel cell and energy storage• Microgrid controller: primary, secondary, or tertiary• Additional infrastructure: distribution system infrastructure, information technology communications upgrades, metering, etc.

Cost-Effectiveness and Resiliency Evaluation of Net-Zero Energy U.S. Residential Communities

“…According to a 2018 microgrid cost study conducted by NREL, the average total cost of a community microgrid is $2.1 million per megawatt [35]. This cost includes the cost of the generation equipment, microgrid controller, additional infrastructure, and soft costs such as construction and commissioning.…”

Microgrids for Energy Resilience: A Guide to Conceptual Design and Lessons from Defense Projects

“…The exact capital costs for these project components can vary according to several factors, including system size, location, and features. For more information on typical system costs, see Giraldez et al (2018).…”

Handbook on Microgrids for Power Quality and Connectivity:

“…However, by far the largest component appears to be cost of the distributed generation equipment, followed by the microgrid control system. Figure 30 shows the average per-MW installed capital cost of microgrids in the United States based on a 2016 study (Giraldez et al 2018).…”