The document discusses the potential of microgrids in the U.S. electricity generation landscape, highlighting their ability to operate independently and the necessity of overcoming regulatory and financial barriers to enhance their adoption. It emphasizes the investment gap in distribution infrastructure and the decreasing costs of solar and battery storage technologies. The authors advocate for policy improvements to facilitate energy democracy for consumers and producers as the energy landscape evolves.

1. M I G H T Y M I C R O G R I D S
H O W S M A L L G R I D S C O U L D B E C O M E A B I G D E A L
John Farrell & Matt Grimley
March 15, 2016

2. A Q U E S T I O N
How much do Americans spend on
electricity each year?

3. A ( N ) ( I N E F F I C I E N T )
M A R V E L

4. P O R T I O N O F E L E C T R I C
G E N E R AT I O N L O S T A S
H E AT
67%

5. Electric outage rate
2005 2015Photo: SULA-CH via Flickr

6. U N P R E C E D E N T E D
O P T I O N S

7. 1 I N S TA L L E V E RY
6 0 S E C O N D S

8. P E R S O N A L I Z E D
C O N T R O L
Software allows
many iterations

9. A S M A L L S TA R T
0.1%
Microgrid % of
total U.S. electricity generation

10. U P A G A I N S T A
M O N O P O LY
P R O B L E M

11. D I S T R I B U T I O N G R I D I N V E S T M E N T
L A G G I N G
American Society of Civil Engineers
“America will see an investment gap in distribution
infrastructure of $57 billion by 2020”

12. S L O W T O
I T E R AT E

13. “ M I G H T Y ” M I C R O G R I D S

14. M I C R O G R I D
A group of interconnected loads and
distributed energy resources within clearly
defined electrical boundaries that acts as a
single controllable entity with respect to the
grid and that connects and disconnects from
such grid to enable it to operate in both grid-
connected or island mode.

15. M I C R O G R I D

16. M I C R O G R I D
• Likes to act alone
• Capable of making its own
decisions
• May benefit from
remaining grid connected
• Lots of possibility
Photo: tifotter via Flickr

17. A Q U E S T I O N
Where is one of the first 100% renewable microgrids
larger than 1 megawatt?

18. A F E W S A M P L E S

19. S TA F F O R D H I L L
Photo: Green Mountain Power

20. A U S T I N
Photo: clickykbd via Flickr

21. L O N G I S L A N D
Photo: Clean Coalition

22. M A C R O B A R R I E R S

28. S M A L L R U L E S F O R B I G
R E S U LT S

29. S TAT E F U N D I N G ?
Credit: Microgrid Resources Coalition
New York
Minnesota
NY Prize provides
funding for municipal
feasibility studies
No microgrid financing

30. E X E M P T F R O M R E G U L AT I O N ?
Credit: Microgrid Resources Coalition
New York
Minnesota
Exempt if:
1. solely on private
property OR
2. uses cogeneration,
small hydro, or
alternative energy
Exempt if:
1. muni or co-op OR
2. only serves tenants of
single building OR
3. serves < 25 persons

31. A R E M I C R O G R I D S P U B L I C U T I L I T I E S ?
Credit: Microgrid Resources Coalition
New York
Minnesota
New York does not
designate monopoly
service territories
Only if they serve fewer
than 25 persons

32. E A S Y I N T E R C O N N E C T I O N ?
Credit: Microgrid Resources Coalition
New York
Minnesota
B C

33. R E TA I L O R W H O L E S A L E M A R K E T
C O M P E N S AT I O N ?
Credit: Microgrid Resources Coalition
New York
Minnesota
Wholesale, yes. Retail
may be coming with
Reforming the Energy
Vision process.
Wholesale, no. Retail
limited to net metering
for 1 MW or smaller.

34. O T H E R B A R R I E R S
Credit: Microgrid Resources Coalition
New York
Minnesota
Distribution utilities
may be limited in
ownership of
microgrids.
Vertically integrated
utilities will likely fight
any laws enabling
microgrids.

35. B I G O P P O R T U N I T Y

36. R O O F T O P S O L A R A N D B AT T E RY S T O R A G E
P R I C E S K E E P FA L L I N G
Battery:costperkilowatt-hour
$0
$450
$900
$1,350
$1,800
Solar:CostperinstalledWatt
$0
$3
$6
$9
$12
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Median solar installed cost
Lithium ion battery cost

37. www.ilsr.org
D O W N L O A D
O U R F U L L
R E P O R T
R E A D M O R E
@johnffarrell
Mighty'Microgrids''
Communi'es*all*over*the*country*are*finding*ways*to*break*the*macro*barriers*to*
microgrids.*As*we*flip*from*a*top>down*to*bo?om>up*grid*management*structure,*
major*policy*barriers*must*be*liBed*in*order*to*expand*energy*democracy*to*
customers*and*producers.*
!
Ma$!Grimley!and!John!Farrell!
March!2016!