Fundamentals of Microgrids: Development and Implementation
Edited by Stephen A. Roosa
Edited by Stephen A. Roosa
Contents
Preface………………………………………………………………………. xv
Contributors ………………………………………………………………………xxi
List of Acronyms ……………………………………………………………………………………. xxiii Introduction…………………………………………………………………………………………….xxvii
Acknowledgments……………………………………………………………………………………..xvii
Editor Bio………………………………………………………………………………………………….xix
Chapter 1 Introduction to Microgrids ………………………………………………………… 1
What Are Microgrids?……………………………………………………………….. 1
Standalone Power …………………………………………………………………. 2
Distributed Energy Resources………………………………………………… 3
Why Would You Need a Microgrid?……………………………………….. 4
Types of Microgrids ……………………………………………………………… 6
How Does a Microgrid Help?…………………………………………………. 8
Advantages and Disadvantages of Microgrids………………………………. 9
Advantages of Microgrids ……………………………………………………. 11
Disadvantages of Microgrids………………………………………………… 12
Summary……………………………………………………………………………….. 13
References ……………………………………………………………………………… 15
Chapter 2 Environmental Drivers for Microgrid Development…………………….. 17
Introduction ……………………………………………………………………………. 17
The Hydrocarbon Age Has Arrived…………………………………………… 18
Carbon Dioxide Emissions …………………………………………………..20
International Policies—Kyoto and the Paris Agreement ………….. 22
Carbon Management—Adapt or Mitigate? ……………………………..24
Costs of Reducing Greenhouse Gas Emissions………………………..25
Potential for Reducing Carbon Emissions……………………………….26
The New Economics of Coal Plants………………………………………. 27
Transitioning to a Low-Carbon Economy……………………………………28
Greenhouse Gas Reduction Strategies …………………………………… 29
Other Environmental Concerns……………………………………………..30
Microgrids Are One Solution……………………………………………….. 32
Conclusions ……………………………………………………………………………. 33
References ………………………………………………………………………………34
Chapter 3 The Roots of Microgrids ………………………………………………………….. 37
The Early History of Microgrids……………………………………………….. 37
Hydropower Microgrids ………………………………………………………. 37
The World’s Largest Microgrid in 1883 …………………………………. 38
Alternating Current………………………………………………………………….39
Combined Heat and Power………………………………………………………..39
Mill Towns as a Model for Today’s Microgrids ……………………….40
Ships Are Microgrids ………………………………………………………………. 41
Building-Scale Nanogrids ………………………………………………………..42
Sustainable Buildings…………………………………………………………..42
Green Building Assessment Methods …………………………………….44
Zero Net Energy Buildings……………………………………………………44
Nanogrids ………………………………………………………………………….45
Regional Grids…………………………………………………………………………46
The Role of Transportation Systems…………………………………………..48
Summary………………………………………………………………………………..50
References ……………………………………………………………………………… 51
Chapter 4 Traditional Electrical Supply Systems ……………………………………….. 53
Supplying the Electric Grid………………………………………………………. 53
What Is the Electric Grid?……………………………………………………. 53
Categories of Energy Resources ……………………………………………54
Traditional Sources of Grid-Supplied Elecrical Power………………….56
Large Hydropower ………………………………………………………………56
Coal-Fired Electrical Power ………………………………………………… 57
Natural Gas-Fired Electrical Power ………………………………………58
Diesel Generation………………………………………………………………..59
Nuclear Power …………………………………………………………………….60
Problems with the Electric Grid…………………………………………………62
Security Issues…………………………………………………………………….62
System Ineffciencies and Power Outages……………………………….64
Environmental Issues …………………………………………………………..65
Regulation of the Electric Grid ……………………………………………..65
Connecting Microgrids with the Grid…………………………………………66
Summary……………………………………………………………………………….. 67
References ………………………………………………………………………………68
Chapter 5 Microgrid Architecture and Regulation………………………………………71
Features of Microgrid Architecture …………………………………………… 71
Microgrid Operational Confgurations……………………………………71
Planning for Electrical Distribution Systems…………………………..73
Alternative Architectures for AC and DC Microgrids………………75
Components of Microgrids……………………………………………………….. 76
Power Sources ……………………………………………………………………. 76
Point of Common Coupling…………………………………………………..77
Microgrid Power Management Systems………………………………….77
Categories of Loads……………………………………………………………..79
Energy Storage Systems……………………………………………………….79
Advanced Microgrids……………………………………………………………….81
Microgrid Regulations and Standards…………………………………………84
U.S. Clean Air Act……………………………………………………………….85
U.S. Public Utility Regulatory Policies Act (PURPA)………………85 IEEE Standard 1547-2018 for Interconnection and Interoperability of Distributed Energy Resources with IEEE P1547.4-2011 Guide for Design, Operation, and Integration of Distributed Resource Island Systems with IEEE P2030.7-2007 IEEE Standard for the Specifcation of IEC 61727 International Electrotechnical Commission’s PV
Associated Electric Power Systems Interfaces…………………………86
Electric Power Systems ……………………………………………………….87
Microgrid Controllers ………………………………………………………….87
System Requirements…………………………………………………………..87
Microgrid Standards Being Developed…………………………………..88
Summary………………………………………………………………………………..88
Acknowledgments ……………………………………………………………………89
References ………………………………………………………………………………89
Chapter 6 Linking Microgrids with Renewable Generation…………………………. 91
The Impact of Renewable Energy ……………………………………………… 91
Renewable Generation for Microgrids ………………………………………..93
Small Hydropower Systems…………………………………………………..94
Biomass Energy…………………………………………………………………..95
Landfll Gas Extraction………………………………………………………..95
Solar Energy (Thermal)………………………………………………………..97
Solar Energy (Photovoltaic)…………………………………………………..98
Wind Power ………………………………………………………………………100
Geothermal Energy ……………………………………………………………100
Waste-to-Energy ………………………………………………………………. 102
Comparitive Cost of Generation Systems …………………………………. 103
Summary …………………………………………………………………………….. 105
References ……………………………………………………………………………. 106
Chapter 7 Energy Storage Technologies for Microgrids…………………………….. 109
Energy Storage Solves Problems……………………………………………… 109
Electrical Energy Storage……………………………………………………….. 110
Mechanical Energy Storage ……………………………………………………. 111
Pumped Storage Hydroelectricity ……………………………………….. 111
Compressed Air Energy Storage ………………………………………… 114
Flywheel Energy Storage …………………………………………………… 116
Electrical/Electrochemical Energy Storage………………………………. 116
Lead-Acid Batteries…………………………………………………………… 117
Lithium-Ion Batteries ………………………………………………………… 117
Sodium Sulfur Batteries …………………………………………………….. 118
Vanadium Redox Batteries…………………………………………………. 119
Zinc-Air Batteries……………………………………………………………… 119
Hydrogen Energy Storage ……………………………………………………….120
Thermal Energy Storage …………………………………………………………120
Summary……………………………………………………………………………… 121
References ……………………………………………………………………………. 123
Chapter 8 Hybrid Generation Systems for Microgrids ………………………………. 125
Energy Resources for Microgrids ……………………………………………. 125
Hybrid Generation Systems……………………………………………………..126
What Are Hybrid Power Systems? ……………………………………….126
Advantages of Hybrid Generation………………………………………..128
Examples of Hybrid Generation………………………………………………. 129
Diesel and Renewable Hybrid Systems ……………………………….. 129
Natural Gas and Renewable Energy Systems………………………… 129
Solar and Wind Power ………………………………………………………. 130
Solar and Geothermal Energy…………………………………………….. 131
Nuclear and Renewable Energy…………………………………………… 133
Fuel Cells and Renewable Hybrid Generation ………………………. 134
Renewable Co-Generation………………………………………………….. 135
Summary……………………………………………………………………………… 136
References ……………………………………………………………………………. 137
Chapter 9 Community and Local Microgrids ………………………………………….. 141
Community Microgrids………………………………………………………….. 141
Drivers for Community-Scale Microgrids ……………………………. 141
U.S. Municipal Renewable Energy Goals ……………………………. 142
Types of Microgrids ………………………………………………………………. 143
Mobile Microgrids…………………………………………………………….. 144
Local Service Microgrids…………………………………………………… 144
Military Microgrids…………………………………………………………… 145
Industrial Microgrids…………………………………………………………. 146
Utility Distribution Microgrids …………………………………………… 147
Campus Microgrids …………………………………………………………… 148
Virtual Power Plants………………………………………………………….. 148
Examples of Community and Local Microgrids………………………… 150
Kodiak Island …………………………………………………………………… 150
Borrego Springs Microgrid ………………………………………………… 151
Long Island Community ……………………………………………………. 152
Summary……………………………………………………………………………… 153
References ……………………………………………………………………………. 154
Chapter 10 Ghana’s Transition to Renewable Energy Microgrids…………………. 157
Ishmael Ackah, Eric Banye, Dramani Bukari, Eric Kyem, and Shafc Suleman
Introduction ………………………………………………………………………….. 157
Access to Electricity in Africa ……………………………………………. 157
Ghana’s Renewable Energy Act ………………………………………….. 158
Microgrid Solar PV System Viability in Ghana ………………………… 158
Perspectives on Microgrids …………………………………………………….. 159
Energy Requirements of Rural Communities ……………………….. 163
Methodology ……………………………………………………………………….. 164
Discussion of Findings …………………………………………………………… 165
Microgrid Policy and Regulation in Ghana ………………………….. 165
Private and Government Microgrid Systems ………………………… 165
Capacity and Reliability …………………………………………………….. 166
Technologies ……………………………………………………………………. 166
Tariffs and Rates ………………………………………………………………. 167
Impact of Microgrid Development…………………………………………… 167
Impact on Expenditures for Fuel …………………………………………. 167
Impact on Women …………………………………………………………….. 168
Impact on Education………………………………………………………….. 168
Conclusions and Recommendations…………………………………………. 168
Conclusions………………………………………………………………………. 169
Recommendations …………………………………………………………….. 170
Acknowledgments …………………………………………………………………. 170
References ……………………………………………………………………………. 171
Chapter 11 Local Energy Supply Possibilities—Islanding Microgrid Case Study……………………………………………………………………………. 173
István Vokony, József Kiss, Csaba Farkas, László Prikler, and Attila Talamon
Introduction …………………………………………………………………………. 173
International Overview…………………………………………………………… 174
Guaranteed Service Levels…………………………………………………. 176
Construction Aspects…………………………………………………………. 176
Planning Principles……………………………………………………………. 177
Operational Aspects ………………………………………………………….. 178
Local Solution: Container Microgrid……………………………………….. 179
Container Microgrid Assessment ……………………………………….. 180
Decision Support for Software Development…………………………….. 182
Cost of Network Development Alternatives………………………………. 183
Summary……………………………………………………………………………… 185
Acknowledgments …………………………………………………………………. 185
References ……………………………………………………………………………. 185
Chapter 12 Energy Blockchain—Advancing DERs in Developing Countries……189
Alain G. Aoun
Introduction ………………………………………………………………………….. 189
Blockchain Opportunities for Energy Trading…………………………… 190
DER Challenges in Developing Countries…………………………………192
Incentives for Developing Countries…………………………………………193
Blockchain and Smart Meters …………………………………………….. 193
Smart Contracts and P2P Energy Trading ……………………………. 194
Energy Backed Currencies …………………………………………………. 195
Blockchain for Electric Vehicle Charging…………………………….. 196
Key Challenges and Barriers…………………………………………………… 197
Conclusion……………………………………………………………………………. 198
Acknowledgments …………………………………………………………………. 199
References ……………………………………………………………………………. 199
Chapter 13 Smart Microgrids ………………………………………………………………….. 201
Introduction ………………………………………………………………………….. 201
Smart Microgrids and Their Benefts……………………………………….. 201
Advanced Microgrids…………………………………………………………202
Advanced Remote Microgrids……………………………………………..202
Mandatory Microgrid Features ……………………………………….202
Preferred Microgrid Features ………………………………………….203
Differences between Smart Grids and Smart Microgrids ……….203
Benefts of Smart Microgrids ……………………………………………..204
Technologies Used for Smart Microgrids ………………………………….205
Sensor Systems …………………………………………………………………205
Advanced Metering Infrastructure……………………………………….206
Technologies……………………………………………………………………..206
Residential ……………………………………………………………………207
Commercial …………………………………………………………………207
Electricity Distribution…………………………………………………..207
Examples of Smart Microgrids………………………………………………..207
Projects Under Development……………………………………………….208
Projects Deployed………………………………………………………………209
Use of Renewable Energy Technologies ………………………………….. 210
Sustainable Smart Microgrids…………………………………………….. 210
Managing Multiple Renewable Microgrids…………………………… 211
Policy Concerns…………………………………………………………………….. 212
Conclusions ………………………………………………………………………….. 213
References ……………………………………………………………………………. 214
Chapter 14 Scoping the Business Case for Microgrids ………………………………. 217
Introduction ………………………………………………………………………….. 217
Business Case for Renewable Energy-Based Microgrids ……………. 217
Creative Approaches to Project Financing………………………………… 219
Cap and Trade Programs …………………………………………………… 221
Renewable Energy Certifcates…………………………………………….223
Global Environmental Facility and Clean Development Mechanism ………………………………………………………………………223
Build-Transfer Agreements …………………………………………………224
Peer-to-Peer Trading ………………………………………………………….225
Ways to Combine Project Financing and Delivery ……………………..225
Public–Private Partnerships ………………………………………………..226
Energy Savings Performance Contracts ……………………………….229
Challenges to Microgrid Development ……………………………………..230
Policies in Flux …………………………………………………………………. 231
Development and Scalability Issues …………………………………….. 231
Controller Technologies……………………………………………………… 232
Electricity Pricing …………………………………………………………….. 232
Cost of Generation Systems, Integration, and Maintenance ……. 233
Cash Flow Analysis for a Microgrid Project……………………………… 235
Summary……………………………………………………………………………… 239
References ……………………………………………………………………………. 241
Chapter 15 It’s Back to the Future with Microgrids…………………………………….245
It’s All About Providing Electricity………………………………………….245
Bright Future for Microgrids ………………………………………………246
Creating Smart Microgrids …………………………………………………246
Development of Distributed Energy Resources ……………………..248
Emerging Electrical Generation Technologies……………………………249
Wave Energy Systems ………………………………………………………..249
Tidal Power………………………………………………………………………. 251
Stirling-Dish Engine …………………………………………………………. 252
Electricity Generated Using Hydrogen ………………………………… 253
Small-Scale Nuclear Reactors……………………………………………..254
Plasma-Arc Gasifcation …………………………………………………….256
Developing Applications for Microgrids…………………………………… 257
Artifcial Intelligence ………………………………………………………… 257
Wireless Energy Transmission ……………………………………………258
Conclusion…………………………………………………………………………….259
References …………………………………………………………………………….259
Index……………………………………………………………………………………………………….263
Acknowledgments……………………………………………………………………………………..xvii
Editor Bio………………………………………………………………………………………………….xix
Chapter 1 Introduction to Microgrids ………………………………………………………… 1
What Are Microgrids?……………………………………………………………….. 1
Standalone Power …………………………………………………………………. 2
Distributed Energy Resources………………………………………………… 3
Why Would You Need a Microgrid?……………………………………….. 4
Types of Microgrids ……………………………………………………………… 6
How Does a Microgrid Help?…………………………………………………. 8
Advantages and Disadvantages of Microgrids………………………………. 9
Advantages of Microgrids ……………………………………………………. 11
Disadvantages of Microgrids………………………………………………… 12
Summary……………………………………………………………………………….. 13
References ……………………………………………………………………………… 15
Chapter 2 Environmental Drivers for Microgrid Development…………………….. 17
Introduction ……………………………………………………………………………. 17
The Hydrocarbon Age Has Arrived…………………………………………… 18
Carbon Dioxide Emissions …………………………………………………..20
International Policies—Kyoto and the Paris Agreement ………….. 22
Carbon Management—Adapt or Mitigate? ……………………………..24
Costs of Reducing Greenhouse Gas Emissions………………………..25
Potential for Reducing Carbon Emissions……………………………….26
The New Economics of Coal Plants………………………………………. 27
Transitioning to a Low-Carbon Economy……………………………………28
Greenhouse Gas Reduction Strategies …………………………………… 29
Other Environmental Concerns……………………………………………..30
Microgrids Are One Solution……………………………………………….. 32
Conclusions ……………………………………………………………………………. 33
References ………………………………………………………………………………34
Chapter 3 The Roots of Microgrids ………………………………………………………….. 37
The Early History of Microgrids……………………………………………….. 37
Hydropower Microgrids ………………………………………………………. 37
The World’s Largest Microgrid in 1883 …………………………………. 38
Alternating Current………………………………………………………………….39
Combined Heat and Power………………………………………………………..39
Mill Towns as a Model for Today’s Microgrids ……………………….40
Ships Are Microgrids ………………………………………………………………. 41
Building-Scale Nanogrids ………………………………………………………..42
Sustainable Buildings…………………………………………………………..42
Green Building Assessment Methods …………………………………….44
Zero Net Energy Buildings……………………………………………………44
Nanogrids ………………………………………………………………………….45
Regional Grids…………………………………………………………………………46
The Role of Transportation Systems…………………………………………..48
Summary………………………………………………………………………………..50
References ……………………………………………………………………………… 51
Chapter 4 Traditional Electrical Supply Systems ……………………………………….. 53
Supplying the Electric Grid………………………………………………………. 53
What Is the Electric Grid?……………………………………………………. 53
Categories of Energy Resources ……………………………………………54
Traditional Sources of Grid-Supplied Elecrical Power………………….56
Large Hydropower ………………………………………………………………56
Coal-Fired Electrical Power ………………………………………………… 57
Natural Gas-Fired Electrical Power ………………………………………58
Diesel Generation………………………………………………………………..59
Nuclear Power …………………………………………………………………….60
Problems with the Electric Grid…………………………………………………62
Security Issues…………………………………………………………………….62
System Ineffciencies and Power Outages……………………………….64
Environmental Issues …………………………………………………………..65
Regulation of the Electric Grid ……………………………………………..65
Connecting Microgrids with the Grid…………………………………………66
Summary……………………………………………………………………………….. 67
References ………………………………………………………………………………68
Chapter 5 Microgrid Architecture and Regulation………………………………………71
Features of Microgrid Architecture …………………………………………… 71
Microgrid Operational Confgurations……………………………………71
Planning for Electrical Distribution Systems…………………………..73
Alternative Architectures for AC and DC Microgrids………………75
Components of Microgrids……………………………………………………….. 76
Power Sources ……………………………………………………………………. 76
Point of Common Coupling…………………………………………………..77
Microgrid Power Management Systems………………………………….77
Categories of Loads……………………………………………………………..79
Energy Storage Systems……………………………………………………….79
Advanced Microgrids……………………………………………………………….81
Microgrid Regulations and Standards…………………………………………84
U.S. Clean Air Act……………………………………………………………….85
U.S. Public Utility Regulatory Policies Act (PURPA)………………85 IEEE Standard 1547-2018 for Interconnection and Interoperability of Distributed Energy Resources with IEEE P1547.4-2011 Guide for Design, Operation, and Integration of Distributed Resource Island Systems with IEEE P2030.7-2007 IEEE Standard for the Specifcation of IEC 61727 International Electrotechnical Commission’s PV
Associated Electric Power Systems Interfaces…………………………86
Electric Power Systems ……………………………………………………….87
Microgrid Controllers ………………………………………………………….87
System Requirements…………………………………………………………..87
Microgrid Standards Being Developed…………………………………..88
Summary………………………………………………………………………………..88
Acknowledgments ……………………………………………………………………89
References ………………………………………………………………………………89
Chapter 6 Linking Microgrids with Renewable Generation…………………………. 91
The Impact of Renewable Energy ……………………………………………… 91
Renewable Generation for Microgrids ………………………………………..93
Small Hydropower Systems…………………………………………………..94
Biomass Energy…………………………………………………………………..95
Landfll Gas Extraction………………………………………………………..95
Solar Energy (Thermal)………………………………………………………..97
Solar Energy (Photovoltaic)…………………………………………………..98
Wind Power ………………………………………………………………………100
Geothermal Energy ……………………………………………………………100
Waste-to-Energy ………………………………………………………………. 102
Comparitive Cost of Generation Systems …………………………………. 103
Summary …………………………………………………………………………….. 105
References ……………………………………………………………………………. 106
Chapter 7 Energy Storage Technologies for Microgrids…………………………….. 109
Energy Storage Solves Problems……………………………………………… 109
Electrical Energy Storage……………………………………………………….. 110
Mechanical Energy Storage ……………………………………………………. 111
Pumped Storage Hydroelectricity ……………………………………….. 111
Compressed Air Energy Storage ………………………………………… 114
Flywheel Energy Storage …………………………………………………… 116
Electrical/Electrochemical Energy Storage………………………………. 116
Lead-Acid Batteries…………………………………………………………… 117
Lithium-Ion Batteries ………………………………………………………… 117
Sodium Sulfur Batteries …………………………………………………….. 118
Vanadium Redox Batteries…………………………………………………. 119
Zinc-Air Batteries……………………………………………………………… 119
Hydrogen Energy Storage ……………………………………………………….120
Thermal Energy Storage …………………………………………………………120
Summary……………………………………………………………………………… 121
References ……………………………………………………………………………. 123
Chapter 8 Hybrid Generation Systems for Microgrids ………………………………. 125
Energy Resources for Microgrids ……………………………………………. 125
Hybrid Generation Systems……………………………………………………..126
What Are Hybrid Power Systems? ……………………………………….126
Advantages of Hybrid Generation………………………………………..128
Examples of Hybrid Generation………………………………………………. 129
Diesel and Renewable Hybrid Systems ……………………………….. 129
Natural Gas and Renewable Energy Systems………………………… 129
Solar and Wind Power ………………………………………………………. 130
Solar and Geothermal Energy…………………………………………….. 131
Nuclear and Renewable Energy…………………………………………… 133
Fuel Cells and Renewable Hybrid Generation ………………………. 134
Renewable Co-Generation………………………………………………….. 135
Summary……………………………………………………………………………… 136
References ……………………………………………………………………………. 137
Chapter 9 Community and Local Microgrids ………………………………………….. 141
Community Microgrids………………………………………………………….. 141
Drivers for Community-Scale Microgrids ……………………………. 141
U.S. Municipal Renewable Energy Goals ……………………………. 142
Types of Microgrids ………………………………………………………………. 143
Mobile Microgrids…………………………………………………………….. 144
Local Service Microgrids…………………………………………………… 144
Military Microgrids…………………………………………………………… 145
Industrial Microgrids…………………………………………………………. 146
Utility Distribution Microgrids …………………………………………… 147
Campus Microgrids …………………………………………………………… 148
Virtual Power Plants………………………………………………………….. 148
Examples of Community and Local Microgrids………………………… 150
Kodiak Island …………………………………………………………………… 150
Borrego Springs Microgrid ………………………………………………… 151
Long Island Community ……………………………………………………. 152
Summary……………………………………………………………………………… 153
References ……………………………………………………………………………. 154
Chapter 10 Ghana’s Transition to Renewable Energy Microgrids…………………. 157
Ishmael Ackah, Eric Banye, Dramani Bukari, Eric Kyem, and Shafc Suleman
Introduction ………………………………………………………………………….. 157
Access to Electricity in Africa ……………………………………………. 157
Ghana’s Renewable Energy Act ………………………………………….. 158
Microgrid Solar PV System Viability in Ghana ………………………… 158
Perspectives on Microgrids …………………………………………………….. 159
Energy Requirements of Rural Communities ……………………….. 163
Methodology ……………………………………………………………………….. 164
Discussion of Findings …………………………………………………………… 165
Microgrid Policy and Regulation in Ghana ………………………….. 165
Private and Government Microgrid Systems ………………………… 165
Capacity and Reliability …………………………………………………….. 166
Technologies ……………………………………………………………………. 166
Tariffs and Rates ………………………………………………………………. 167
Impact of Microgrid Development…………………………………………… 167
Impact on Expenditures for Fuel …………………………………………. 167
Impact on Women …………………………………………………………….. 168
Impact on Education………………………………………………………….. 168
Conclusions and Recommendations…………………………………………. 168
Conclusions………………………………………………………………………. 169
Recommendations …………………………………………………………….. 170
Acknowledgments …………………………………………………………………. 170
References ……………………………………………………………………………. 171
Chapter 11 Local Energy Supply Possibilities—Islanding Microgrid Case Study……………………………………………………………………………. 173
István Vokony, József Kiss, Csaba Farkas, László Prikler, and Attila Talamon
Introduction …………………………………………………………………………. 173
International Overview…………………………………………………………… 174
Guaranteed Service Levels…………………………………………………. 176
Construction Aspects…………………………………………………………. 176
Planning Principles……………………………………………………………. 177
Operational Aspects ………………………………………………………….. 178
Local Solution: Container Microgrid……………………………………….. 179
Container Microgrid Assessment ……………………………………….. 180
Decision Support for Software Development…………………………….. 182
Cost of Network Development Alternatives………………………………. 183
Summary……………………………………………………………………………… 185
Acknowledgments …………………………………………………………………. 185
References ……………………………………………………………………………. 185
Chapter 12 Energy Blockchain—Advancing DERs in Developing Countries……189
Alain G. Aoun
Introduction ………………………………………………………………………….. 189
Blockchain Opportunities for Energy Trading…………………………… 190
DER Challenges in Developing Countries…………………………………192
Incentives for Developing Countries…………………………………………193
Blockchain and Smart Meters …………………………………………….. 193
Smart Contracts and P2P Energy Trading ……………………………. 194
Energy Backed Currencies …………………………………………………. 195
Blockchain for Electric Vehicle Charging…………………………….. 196
Key Challenges and Barriers…………………………………………………… 197
Conclusion……………………………………………………………………………. 198
Acknowledgments …………………………………………………………………. 199
References ……………………………………………………………………………. 199
Chapter 13 Smart Microgrids ………………………………………………………………….. 201
Introduction ………………………………………………………………………….. 201
Smart Microgrids and Their Benefts……………………………………….. 201
Advanced Microgrids…………………………………………………………202
Advanced Remote Microgrids……………………………………………..202
Mandatory Microgrid Features ……………………………………….202
Preferred Microgrid Features ………………………………………….203
Differences between Smart Grids and Smart Microgrids ……….203
Benefts of Smart Microgrids ……………………………………………..204
Technologies Used for Smart Microgrids ………………………………….205
Sensor Systems …………………………………………………………………205
Advanced Metering Infrastructure……………………………………….206
Technologies……………………………………………………………………..206
Residential ……………………………………………………………………207
Commercial …………………………………………………………………207
Electricity Distribution…………………………………………………..207
Examples of Smart Microgrids………………………………………………..207
Projects Under Development……………………………………………….208
Projects Deployed………………………………………………………………209
Use of Renewable Energy Technologies ………………………………….. 210
Sustainable Smart Microgrids…………………………………………….. 210
Managing Multiple Renewable Microgrids…………………………… 211
Policy Concerns…………………………………………………………………….. 212
Conclusions ………………………………………………………………………….. 213
References ……………………………………………………………………………. 214
Chapter 14 Scoping the Business Case for Microgrids ………………………………. 217
Introduction ………………………………………………………………………….. 217
Business Case for Renewable Energy-Based Microgrids ……………. 217
Creative Approaches to Project Financing………………………………… 219
Cap and Trade Programs …………………………………………………… 221
Renewable Energy Certifcates…………………………………………….223
Global Environmental Facility and Clean Development Mechanism ………………………………………………………………………223
Build-Transfer Agreements …………………………………………………224
Peer-to-Peer Trading ………………………………………………………….225
Ways to Combine Project Financing and Delivery ……………………..225
Public–Private Partnerships ………………………………………………..226
Energy Savings Performance Contracts ……………………………….229
Challenges to Microgrid Development ……………………………………..230
Policies in Flux …………………………………………………………………. 231
Development and Scalability Issues …………………………………….. 231
Controller Technologies……………………………………………………… 232
Electricity Pricing …………………………………………………………….. 232
Cost of Generation Systems, Integration, and Maintenance ……. 233
Cash Flow Analysis for a Microgrid Project……………………………… 235
Summary……………………………………………………………………………… 239
References ……………………………………………………………………………. 241
Chapter 15 It’s Back to the Future with Microgrids…………………………………….245
It’s All About Providing Electricity………………………………………….245
Bright Future for Microgrids ………………………………………………246
Creating Smart Microgrids …………………………………………………246
Development of Distributed Energy Resources ……………………..248
Emerging Electrical Generation Technologies……………………………249
Wave Energy Systems ………………………………………………………..249
Tidal Power………………………………………………………………………. 251
Stirling-Dish Engine …………………………………………………………. 252
Electricity Generated Using Hydrogen ………………………………… 253
Small-Scale Nuclear Reactors……………………………………………..254
Plasma-Arc Gasifcation …………………………………………………….256
Developing Applications for Microgrids…………………………………… 257
Artifcial Intelligence ………………………………………………………… 257
Wireless Energy Transmission ……………………………………………258
Conclusion…………………………………………………………………………….259
References …………………………………………………………………………….259
Index……………………………………………………………………………………………………….263