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TH3. Business case for Microgrids

In this task will combine system operational and development benefits of Microgrids and evaluate their overall economics and environmental benefits and provide information necessary to examine business case for Microgrids. In this task we will develop models for the evaluation of business cases for micro generation and examine alternative ownership structures. Particular emphasis will be on alternatives for allocation of the additional value created by integrated micro generation in the form of Microgrids. This will incorporate all three sources of benefits of Microgrids evaluated in WPG and WPH: (i) operational benefits, including improved efficiency of the system operation, value created from improved service quality, benefits of reduced losses (ii) environmental benefits and (iii) improved utilisation of existing infrastructure and reduced capital investment in system reinforcement. This analysis will provide a basis for the development of comprehensive business cases for future development of Microgrids. Also, expenditure associated with communication and information infrastructure will be considered in this study.

University of Manchester will develop the overall approach for the development of business scenarios for microgrids. MVVand Siemens will study on impact of Microgrids on urban grids and industrial sites within the sphere of MVVnetwork that will be elaborated as a business cases. INESC, ICCS/NTUA and EDP will study the business scenarios for Microgrids that will be characteristic for PV dominated Microgrids. Utility partners will provide input regarding approaches to risk assessment and allocation associated with the development of Microgrids.