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MICROGRIDS: INSOURCING MORE RELIABLE ENERGY RESOURCES TO CONNECTICUT TOWNS AND CITIES FIRST DRAFT FOR DISCUSSION PURPOSES ONLY Studies of microgrid technology and project finance have encouraged Connecticut towns and cities to continue pursuing microgrids. Recent studies of technology and project finance suggest that communities could now in- source some of the electric power they now import from the grid by installing microgrids that supplement and interconnect with the existing utility-company distribution network. Much like the network that serves the internet, energy users now imagine that they could govern microgrids as an economic commons and, thereby, better control their energy and environmental destiny. Fuels that are now imported from gas pipelines could also be insourced. To achieve cleaner power, microgrids can use locally-available renewable fuels instead – intermittent geothermal, solar, wind and hydrogen resources can cover normal loads. To meet peak power demands, community waste streams can be gasified to fire up microgrids together with pipeline natural gas. Recycling waste heat from power generation and reducing reliance on transmission and distribution networks both increase energy efficiency for all microgrid users. As compared to grid power, therefore, a microgrid can dramatically reduce NOx, SO2 and CO2 emissions that contribute to asthma, acid rain and climate change, respectively. To achieve more affordable power, microgrids typically exceed 80 percent fuel-use efficiencies versus an average of below 40 percent for grid power. By simply recapturing the cash flows now paid to import power and redirecting them to finance fuel-efficient microgrids, communities believe that they can attract private developers to fully fund the design, installation and operation of a microgrid. Once private developers and banks have recouped their investment by selling energy – typically within 10 years – ownership of the microgrid could transfer to the community and its energy users. In addition, communities can attract so-called smart grid companies that can more readily plug-and-play new technologies, such as electric vehicles, on a microgrid. The vision of microgrid potential is illustrated in the graphic below. Page 6PDF Image | MICROGRIDS
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