What is a microgrid business model?

With respect to microgrids, a business model defines the way in which a microgrid project or business is planned, implemented, and executed to meet strategic objectives. Strategic objectives can range from community resiliency to renewable energy integration to greater profit for a new economy enterprise such as a data center.

Can a microgrid be commercially & financially viable?

For a microgrid to be commercially and financially viable, it must address both the technical (e.g., plan, operations, components, and functions) and commercial (e.g., revenue, expense, and profit) components of the business model definition.

Is building a microgrid a good idea?

Building a microgrid can be an expensive proposition. But, the growth of microgrid projects is surging worldwide, and that’s partly because new business models are lowering, if not eliminating, upfront costs and reducing the financial risk. The Energy-as-a-Service (EaaS) business model is evolving as a front-runner and growing quickly.

What drives microgrid development?

Resilience, efficiency, sustainability, flexibility, security, and reliability are key drivers for microgrid developments. These factors motivate the need for integrated models and tools for microgrid planning, design, and operations at higher and higher levels of complexity.

How much does a microgrid cost?

Spending under EaaS represents nearly $1.7 billion market in 2018, but that grows to over $12.3 billion by 2027, a CAGR of 25.0%, the most robust growth of any business model profiled. The capital expense to build a new microgrid or convert another system to a hybrid microgrid can range from the tens of thousands to hundreds of millions of dollars.

What is a microgrid planning capability?

Planning capability that supports the ability to model and design new microgrid protection schemes that are more robust to changing conditions such as load types, inverter-based resources, and networked microgrids.