Defining your microgrid project’s business model is the process through which you identify the economic benefits and underlying financial structure of your project. This should justify the investment you are making as well as define any ancillary benefits, such as resiliency, that might be more difficult to monetize or quantify. This process is especially important if you are not a utility who might be able to rate-base costs and you need to show financial metrics for your investment with a higher level of certainty.
The quest to create a zero-carbon future and the drive for a more resilient, flexible power grid are not mutually exclusive goals. Utilities who were once resistant to islanded distributed generation projects are now developing renewably powered microgrids at a rapid pace. Here’s why.