![]() As a result, the code may require microgrids to include plans to upgrade the existing circuit infrastructure before any new energy generation can be built. To avoid overloading the grid with excess energy, the National Electrical Code limits how much distributed energy generation can be safely integrated into an existing service. These differences may be due to economies of scale, with projects that have between 2-10 megawatts of installed generation capacity generally coming in with a lower cost per megawatt.Īccording to Westerman, the existing electrical capacity of a facility plays a significant role in the final cost of any microgrid design. This study found that microgrid systems built for the commercial/industrial sector have the highest average cost, at $4 million per megawatt, followed by campus/institutional systems at $3.3 million, utility at $2.5 million, and community at $2.1 million. ![]() Jumping straight into answering the titular question, Asmus cited a study he had previously worked on with the National Renewable Energy Lab: “the costs, we found, actually varied by market segment. The session was moderated by Peter Asmus, Research Director at Guidehouse Insights. ![]() These panelists included John Westerman, Director of Project Development & Engineering at Schneider Electric Bruce Nordman, a research scientist at Lawrence Berkeley National Laboratory and Manoj Sinha, CEO and Co-Founder of Husk Power Systems. On May 20, a panel of experts convened during the Microgrid 2021 Virtual Conference to try to answer some of these questions. What factors into the final cost of a microgrid? Why are microgrids an economically feasible alternative to fossil fuel-based energy generation in some situations but not in others? How can some of these extra expenses be avoided?
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