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MICROGRIDS: INSOURCING MORE RELIABLE ENERGY RESOURCES TO CONNECTICUT TOWNS AND CITIES FIRST DRAFT FOR DISCUSSION PURPOSES ONLY Non-synchronous microgrid technologies adopted by the Stamford Energy Improvement District and approved by Connecticut Light & Power seem to hold promise for microgrids that can easily meet with utility company approval, add distributed generation modules without the need for new interconnection applications, and generate power at costs below utility grid rates .............................. 16 Non-Synchronous microgrids can insulate the utility grid from both local generation and local loads.................................................................................................. 17 Considering Utility Company Business Models to Better Encourage Microgrids....... 19 From a business model point of view, the utility grid should be considered as an evolving bundle of property rights that, due to technological advances, have been gradually transferring from utility monopolies to non-utility stakeholders...............19 Most studies about the adoption of distributed energy and microgrids conclude that the best business model is one in which the incumbent utility companies have an ownership share of the microgrid..................................................................................... 23 The Technology Issues .......................................................................................................... 25 Can existing distributed energy systems that could not run during the storms be retrofitted such that run safely and continuously during power outages in the future?.................................................................................................................................... 25 What is the role in a microgrid of utility grid power, each type of Class 1 renewable resource, and Class 3 combined heat and power resources and how can they be optimally dispatched and controlled? .............................................................................. 25 Can a city-center microgrid be safely interconnected with a medium voltage utility distribution grid?.................................................................................................................. 25 What types of pilot projects are technically optimal?.................................................... 26 The Legal Issues......................................................................................................................27 What legal personality should a microgrid take? Energy Improvement District? Municipal Power Entity? Electrical Cooperative? How do these solutions compare with calls for a State Power Authority? ........................................................................... 27 Can a microgrid legally distribute energy within a utility company franchise area, especially where wires cross public rights of way?......................................................... 27 Page iiPDF Image | MICROGRIDS
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