Microgrid Economics

What is the economics of microgrids?

Perfect for senior undergraduate and graduate students as well as researchers studying power system design, The Economics of Microgrids will also benefit professionals working in the power system industry and government regulators and policymakers with an interest in microgrid technologies and infrastructure. About the Author

How much does a microgrid cost?

The investment cost and operating cost are calculated to be2135 USD/kW and 0.066 USD/kWh respectively, both figures being higher than those of pulverized-coal and natural gas. It is projected that by 2025 the costs of renewable energy microgrids will begin to be competitive with non-renewable energy generation.

Are microgrids sustainable?

While examining the sustainability of a microgrid, it is best that all costs and benefits that microgrids incur and bring are considered .It has been suggested that investment in a microgrid can result in manifold benefits, such as enhanced energy efficiency and integrated renewable power generation.

Does a microgrid installation benefit from economies of scale?

Economies of scale While making a commercial decision regarding renewable energy microgrid installation, the life cycle cost is not the only concern;whether an installation can benefit from economies of scale is also critical. The effect of savings due to economies of scale is usually measured by the economies of the scale factor.

What is a microgrid and how does it work?

Microgrids can be seen as a way to connect a number of independent and heterogeneous renewable energy systems to form a complex and dynamic integrated energy system, essentially a system of systems . The simplified general structure of a microgrid comprises of generators (renewable or non-renewable), storage systems, and loads.

Do economic analyses of microgrids have a broader focus?

To date, economic analyses of microgrids have adopted a broader focus, mainly due to greater data availability.