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Microgrids looking for right model

Microgrids offer a compelling alternative to traditional energy generation and distribution, utilizing smart grid technologies to enable integrated control of distributed power generation assets either in parallel to or “islanded” from the utility power grid. So, what is the business model?

January 2, 2011

Microgrids offer a compelling alternative to traditional energy generation and distribution, utilizing smart grid technologies to enable integrated control of distributed power generation assets either in parallel to or “islanded” from the utility power grid. However, with this promise also comes a dilemma: What is the business model?

Pike Research said there are more than 140 microgrid projects totaling over 1.1 gigawatts (GW) of capacity worldwide. The current mix of microgrids utilizes a wide variety of renewable and fossil fuel-based power sources in addition across all types of operating segments, including commercial and industrial sites, university campuses, remote off-grid communities, and military microgrids.

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