Abstract
Continuously increasing demand of microgrids with high penetration of distributed energy generators, mainly renewable energy sources, is modifying the traditional structure of the electric distribution grid. Major power consumer countries are looking for alternative energy sources to avoid the impact of higher fossil fuel consumption. Thus, different policies have been promulgated to promote renewable energy technologies (RETs) and distributed energy resource (DER) deployment and are encouraging technological innovation. These policies aim to reduce greenhouse gas (GHG) emissions and achieve energy security and independence to meet an ever-increasing electricity demand. Many studies have been performed on the successful integration of RET and DER operation and control, protection and stability issues, all simultaneously and satisfactorily implemented during feasible microgrid operation. However, apart from the technical challenges, few microgrid studies exist on effective policies and incentives for microgrid promotion and deployment. This survey investigates the policy, regulatory and financial (economical and commercial) barriers, which hinder the deployment of microgrids in the European Union (EU), United States (USA) and China. In this paper, a clear view on microgrid policy instruments and challenges are investigated to aid future developments.
Highlights
The microgrid (MG) has been researched for decades [1], the debate is ongoing regarding an unanimous definition of a microgrid
New directions were set in the energy policy Act 2005 (EPAct-2005), which opened the gateway for renewable energy and distributed energy generation (DEG) in the United States (USA) power sector [42]
As well, growing concern about energy security and climate change have significantly increased the interest in harnessing renewable energy sources (RES) and distributed energy generation
Summary
The microgrid (MG) has been researched for decades [1], the debate is ongoing regarding an unanimous definition of a microgrid. This is even though the European Commission has launched different directives (2013/347/EC, 2004/8/EC, 2009/72/EC, 2006/32/EC, 2009/28/EC and 2001/77/EC, etc.) [30] and framework programs (FP5, FP6 and FP7) corresponding to renewable energy penetration into EU countries and development of microgrids, and formed the “Smart Grids Task Force” in 2009 for proposing recommendations and standardization roadmaps in this field [27,31,32]. Directive 2004/8/EC issued on 11 February 2004, of the European Parliament and the Council is based on promotion of cogeneration and use of heat demand in the internal energy market The aim of this directive is to improve security of supply and increase energy efficiency by creating a framework for the promotion and development of high efficiency cogeneration systems for heat and power based on energy demand [38].
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