Microgrids: Experiences, barriers and success factors

Although microgrids have been researched for over a decade and recognized for their multitude of benefits to improve power reliability, security, sustainability, and decrease power costs for the consumer, they have still not reached rapid commercial growth. The main aim of this research is to identify the common barriers and ultimate success factors to implementing a microgrid in the real world. We found that microgrids vary significantly depending on location, components, and optimization goals, which cause them to experience different types of challenges and barriers. However, the most common barriers were identified and grouped into four categories: technical, regulatory, financial, and stakeholder, based on the literature and overlying patterns recognized amongst the thirteen case studies. The most common technical barriers include problems with technology components, dual-mode switching from grid-connected to island mode, power quality and control, and protection issues. There is extensive research on how to overcome these issues, so technical solutions are becoming available yet case specific. Regulatory barriers exist due to interconnection rules with the main grid and the prohibition of bi-directional power flow and local power trading between microgrid and the main network. The latter issue is the barrier experienced most often and has only recently been addressed, so solutions need further research. The main financial barrier is still the burden of high investment and replacement costs of the microgrid. This can be resolved with proper market support in the short term and might naturally resolve itself through learning over the long run. Lastly, stakeholder barriers include issues with conflicting self-interest and trust, and having the expertise to manage operations. These stakeholder barriers are not yet addressed in the literature and need to be further researched.