Cost-benefit analysis and business mode study of microgrid

Author(s): Jin Xiaoling
State Grid Energy Research Institute, Beijing 102209,China
International Journal of Smart Grid and Clean Energy, vol. 4, no. 3, July 2015: pp. 269-275
ISSN: 2315-4462 (Print)
ISSN: 2373-3594 (Online)
Digital Object Identifier: 10.12720/sgce.4.3.269-275

Abstract: Microgrid has effectively mitigated the effect of distributed generation on power grid, thus boasting excellent development potential. This paper discusses the comprehensive benefits of microgrid in improving reliability, energy saving and consumption reduction, environmental protection, investment deferral in transmission and distribution grids from the social perspective. It analyzes the cost composition of microgrid construction and maintenance as well as the key influenced factors. Four typical business modes of microgrid are proposed, and the characteristic of different business modes is analyzed, including distribution of benefits, market structure and adaptive microgrid type. The result can provide decision making basis to the relevant economic subjects and policy makers.

Keywords: Microgrid; comprehensive benefit; cost; business mode

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