Assessing marginal value of stage 2 Microgrids

Basic, stage 1, MicroGrids combine distributed generation, intelligent load control, and in many cases energy storage, to form a well-behaved aggregate load or generator. This allows more straight-forward and widespread integration of distributed generation. More advanced MicroGrids (stage 2) can further add the capability to isolate such small sections of the network and continue to operate them during main network disturbances. This can improve power quality to users. This paper examines the marginal value of a MicroGrid upgrade from stage 1 to stage 2. A sensitivity analysis establishes that the primary economic barrier is the (still large) initial capital cost of the power electronics required, and to a lesser extent the system power losses. While justifiable in specific cases, the widespread use of MicroGrids for power quality improvement, would however first require further development in power electronics to reduce device costs and increase converter efficiencies.