Multi-stakeholder microgrids for resilience and sustainability

ABSTRACT

The electricity grid is susceptible to numerous threats, especially severe weather events that have the potential to cause large-scale power outages. This has resulted in an increased emphasis on resilience against these events. Microgrids, small standalone power grids that have the ability to function independently from the greater electricity grid, have significant potential to improve response to environmental and anthropogenic crises. The vast majority of extant microgrids are generally small in scale, and operated under a conventional model of single operator, owner, and user. We argue that the ultimate potential of this approach will be in the development of multi-stakeholder microgrids which can combine a diversity of renewable and conventional power resources to respond to environmental hazards. The addition of stakeholders allows for increased diversification of generation sources, economies of scale, and other increased operational benefits and opportunities. However, there are significant challenges that arise with the additional layer of stakeholders in terms of governance, cost, and technical operations that can cause the multi-stakeholder model to be more difficult to implement. We develop the case for multi-stakeholder microgrids as a response to environmental hazards, and outline the challenges and questions facing the development of this form of microgrid.