Why Aren’t There More Multi-User Microgrids?

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When most people consider a microgrid, they think of on site generation serving a single business or an enclosed campus. But another concept is emerging called multi-user microgrids, which allows neighbors to share distributed energy resources to receive reliable electricity.

Only a few such multi-user microgrids exist. But some electricity experts say that conditions could evolve and benefits mount for more of them.

Richard Stuebi, president of Future Energy Advisors, sees improving microgrid economics and increasing customer need for resilience as a growing catalyst.

multi-user microgrids

By jamesteohart/Shuttersstock.com

“Even today, certain sets of customers find the benefits offered by multi-user microgrids to outweigh the additional costs,” writes Stuebi in a recent study on the subject. 

That study was authored by a research team from the Institute of Sustainable Energy at Boston University.

Expounding on what a multi-user microgrid is, Stuebi says that it provides multiple energy consumers the ability to self-supply electricity during grid outages. Durinng normal periods, they they leverage the existing power grid. For this movement to become a trend, the economics would have to improve, including that of solar-plus-storage, which bottles electrons when the sun is out to discharge them for later use. 

Some examples of multi-user microgrids include Commonwealth Edison’s Bronzeville microgrid, which is under development; the Philadelphia Navy Yard and Burrstone Energy Center (Utica, NY), both in operation; and National Grid’s Potsdam Community Microgrid, a New York project in planning.

The Institute of Sustainable Energy studied the northeastern United States to discover the barriers to development of multi-user microgrids. It found:

  • Inability to monetize resilience (and other value streams)
  • Conflicts with pre-existing rights associated with electricity delivery
  • Preferential rights for utilities to cross public rights-of-way
  • Ambiguity about viable multi-user microgrid ownership models
  • Utility assertion of rights via legal action
  • Lack of suitable risk-mitigation structure
  • Insufficient leadership to coalesce solutions

And at least some of those obstacles can be overcome by tailoring business models to meet situation-specific cases, phasing in development to minimize cost and strengthening regulations to improve the odds of multi-user microgrids.

“If the barriers that prevent the development of multi-user microgrids can be reduced or eliminated, a wide range of stakeholders (private individuals, utilities, businesses, etc.) stand to benefit from the internalization of various social surpluses that multi-user microgrids can produce,” says Stuebi.

The report also noted that more advocacy could help the microgrid industry overcome barriers.

“Although a growing number of conferences are being convened on the topic of microgrids, with the annual Microgrid Knowledge conference arguably being the best and most well-attended, the microgrid community generally lacks a focal point – such as a trade association – that is well-positioned to serve in convening, educational, research and advocacy capacities,” says the report. “No doubt, this reflects the fact that the microgrid market is still immature and consequently small, but there is a risk that the microgrid market will remain underdeveloped unless and until stakeholders organize for impact and provide necessary leadership for market participants.”

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  1. Phil Jutras says:

    Currtent single use microgrid operating at universities, hospitals, businesses can establish multiple use microgrids as part of local economic development centers with advanced planning by private/public partnerships.

  2. Microgrids are increasingly advanced as part of the Smart Cities movement, and in the planning of innovation centers to spur economic development. New single use applications for microgrids are appearing as part of data centers, casinos and rail and shipyard redevelopment in our cities. The markets and vendor support is moving faster with more innovation than the utilities and the public service commissions can effectively manage and control. Their market is driven by national electric policy and global fuel issues ,while microgrids are fostered increasingly by the dynamics of resilience, reliability, service and consumer responsiveness. The talents to serve in the US will migrate toward the market driven
    by customer driven services and not legacy regulatory models that have not been modernized since the New Deal.

  3. Bradford Snipes says:

    Everyone seems to focus on microgrids that are connected to the Grid. This is not the most effective way to use solar energy. Air-conditioning, heating, refrigeration, and hot water require about 80% of a homes energy requirement. All of these can be provided by thermal energy from a collector. In the Summer, air-conditioning loads are at a maximum at noon when collector output is also a maximum. Thermal storage requirements are much less. My solar collector designs produce steam. Steam can not be transported over great distances, It must be used locally close to where it is produced. My designs are most economical for Off-Grid non Grid-tied applications. I have also designed a Zero-Brine-Discharge Solar-Powered Multiple-Effect Flash Desalination, MEFD Plant, that will use the steam produced to desalinate seawater. Connect with me on LinkedIn for details.


  1. […] see regulatory and incumbent obstacles to multi-user microgrids, which provide multiple energy consumers the ability to self-supply electricity […]

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