Dynamics and challenges of microgrids implementation

Abstract

Microgrids have the capability of operating on an island mode as well as an integrated mode with the smart grid, depending on the requirement and objectives. Recently, microgrids projects have gained popularity both in developed world and developing world because of their ability to lower cost, increase resiliency and overall power quality. However, most of the studies on microgrids till now have focused on the technological challenges associated with design and implementation of microgrids. This study tries to develop an industry perspective on the recent development of microgrids. Several case studies from both developed world and developing world are explained to understand drivers, constraints and challenges of microgrid implementation. A generic model used by Weil and Utterback (2005) forms the basis for this study to develop a conceptual model, mapping different social, technological, market and regulatory factors which influence technology and industry evolution. The same model is used to develop a scenario analysis to predict future development of microgrids as a technology and as an industry.