Toward grid-scale microgrids; evaluating the capacity of financial structures

To achieve an adequate level of integration, microgrids are facing challenges in three fronts; technical, financial and regulatory. In this study, a comprehensive study was carried out to investigate the main financial deficiencies and shortcomings faced by microgrids in their way to reach a grid-scale penetration. Accordingly, a systematic approach is proposed to explore the financial and policy factors affecting microgrid integration in distribution networks and evaluate possible conceptual microgrid business models. Economic analysis was performed to assess the proposed business models as investment options using the net present value method. Using the proposed approach, a platform to investigate the capacity of amending financial structure in helping achieve grid-scale microgrids is discussed. The proposed structure is implemented on the sample network and the results are evaluated.