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MICROGRIDS

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MICROGRIDS ( microgrids )

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MICROGRIDS: INSOURCING MORE RELIABLE ENERGY RESOURCES TO CONNECTICUT TOWNS AND CITIES FIRST DRAFT FOR DISCUSSION PURPOSES ONLY Contents Executive Summary .................................................................................................................. 1 A Summary of The Demand and Vision for Microgrids By Connecticut Towns and Cities............................................................................................................................................ 4 Connecticut towns and cities are among the most motivated and proactive communities in the country for insourcing energy with microgrids. ........................... 4 Connecticut towns and cities have been frustrated that innovations in microgrid regulation, technology and financing conceived of by Connecticut law makers, companies and energy improvement districts are being implemented to develop microgrids in other states that compete with Connecticut economically.................... 5 Studies of microgrid technology and project finance have encouraged Connecticut towns and cities to continue pursuing microgrids. .......................................................... 6 Microgrids Can Balance Thermal Use Better than Single Facility Combined Heat and Power Systems and Result in Much Better Fuel-Use Efficiencies ........................ 8 There are economically viable means whereby communities can insource fuels by converting local waste streams into microgrid feed stocks ............................................ 9 Decentralized Microgrids Respond Better to Cyber Security than Centralized Utility Grids ...................................................................................................................................... 10 There are Financing Options for Designing, Building, Owning, Operating Microgrids in Exchange for Agreements to Purchase Power...................................... 10 Microgrids Could Provide Connecticut Towns and Cities with Additional Educational and Employment Opportunities ................................................................ 11 The Difficulties of Interconnecting Microgrids with the Utility Distribution System 13 Distributed generation cannot interconnect to medium voltage utility distribution system in the same way that telecommunications devices and computers plug-and- play with telephone exchanges and the internet or large merchant generators and even some microgrids interconnect to high-voltage transmission grids....................13 Synchronizing microgrids in a high-voltage transmission network is complex and expensive and proposals to rebuild distribution network to do so are not realistic 15 Page i

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