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MICROGRIDS

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MICROGRIDS ( microgrids )

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MICROGRIDS: INSOURCING MORE RELIABLE ENERGY RESOURCES TO CONNECTICUT TOWNS AND CITIES FIRST DRAFT FOR DISCUSSION PURPOSES ONLY As distributed energy results in a more decentralized power network and a change in the traditional utility business model, what lessons from the governance of decentralized telecommunications networks and the internet can be useful for the governance of microgrids?................................................................................................. 27 What types of pilot projects are legally optimal? ........................................................... 27 The Financial Issues ............................................................................................................... 28 What is the best way to fund the early stage microgrid designs necessary to secure project financing? What lessons can be learned from proposals for public-private infrastructure banks that would provide such funding? ............................................... 28 Are there solutions that could help energy users avoid having their commitments to buy power from a microgrid recorded as a liability on their books? In this context, is there a role for the State to pre-buy power or for the utility company to rate-base microgrids? ........................................................................................................................... 28 What types of projects have the best opportunity of being financed? How do a group of microgrid users, an EID or a municipality develop a Request for Proposal (“RFP”) for designing, building and operating a microgrid? What type of RFP would elicit responses with the best opportunity of financing? .................................. 28 Getting Started: A Pathway for Pilot Projects ................................................................... 30 Page iii

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