Comparison of Regulatory Challenges Faced by Different Microgrid Ownership Models

Microgrids are a proposed solution for several issues arising in the current energy system. Advancements in different distributed energy resources and macro-level policy targets, such as grid resiliency and sustainability, support the adoption of microgrids in suitable contexts. Since microgrids would change the structure and roles in the grid significantly, regulations, which were created for the existing structures, would have to be updated. Main challenges lie in unclear legal definition of microgrids and their liabilities and responsibilities. Technical as well as economic challenges are related to interconnection and island mode rules and tariff setting. DSO microgrid ownership minimizes these challenges and is therefore the model that is currently easiest to adopt. However, as a result of technology and business model advancements, more demanding third-party and hybrid ownership models are becoming popular, and are expected to play an important role in the future microgrid arena.

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