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Unpacking the complexity of community microgrids: A review of institutions’ roles for development of microgrids
RISE Research Institutes of Sweden, Built Environment, System Transition and Service Innovation. Mälardalen University, Sweden; Dalarna University, Sweden.ORCID iD: 0000-0003-1276-6647
RISE Research Institutes of Sweden, Built Environment, Energy and Resources.ORCID iD: 0000-0002-3418-8385
RISE Research Institutes of Sweden, Built Environment, System Transition and Service Innovation. Jönköping International Business School, Sweden.ORCID iD: 0000-0002-1993-6453
2020 (English)In: Renewable & sustainable energy reviews, ISSN 1364-0321, E-ISSN 1879-0690, Vol. 121, article id 109690Article in journal (Refereed) Published
Abstract [en]

Community microgrids implemented in existing electricity grids can meet both development targets set out in the Paris agreement: 1. mitigate greenhouse gas emissions through increased implementation of renewable energy sources, and 2. to adapt to climate related disturbances and risk of catastrophes. Community microgrids are, however, complex to implement and institutional change is needed to reach their full potential. The purpose of this article is to review existing literature and analyze institutional developments influencing the growth of community microgrids. The literature describes a concentration of microgrid activities in specific regions: USA, EU, Asia and Australia. Varying reasons for implementing community microgrids were found in the different regions but similar institutional developments occurred, albeit with differing emphasis due to contextual specificities. Formal directions do however influence informal institutions even though their aims differ. Power utilities stand out as a critical actor and both formal and informal institutions put pressure on utilities to update their traditional business models. This article illustrates how informal and formal institutions play a significant role in the growth of community microgrids in existing electricity grids and provide interesting examples which can be utilized by policymakers. Microgrid development is still in a formative phase and further institutional change in the form of updated regulations is needed. © 2020 The Authors

Place, publisher, year, edition, pages
Elsevier Ltd , 2020. Vol. 121, article id 109690
Keywords [en]
Community energy, Community microgrid, Energy system transformation, Microgrid, Socio-technical change, Sustainability transition, Gas emissions, Greenhouse gases, Renewable energy resources, Micro grid, Socio-technical changes, Electric power transmission networks
National Category
Natural Sciences
Identifiers
URN: urn:nbn:se:ri:diva-43357DOI: 10.1016/j.rser.2019.109690Scopus ID: 2-s2.0-85077921856OAI: oai:DiVA.org:ri-43357DiVA, id: diva2:1389466
Note

Funding details: New Energy and Industrial Technology Development Organization, NEDO; Funding details: Energimyndigheten; Funding details: Ministry of National Development - Singapore, MND; Funding details: Ministry of the Environment and Water Resources - Singapore, MEWR; Funding details: Samsung; Funding details: Centre of Excellence in Plant Energy Biology, Australian Research Council, PEB; Funding details: National Development and Reform Commission, NDRC; Funding details: Curtin University of Technology; Funding details: Neelan Tiruchelvam Trust, NTT; Funding details: Chinese Academy of Sciences, CAS; Funding details: Ministry of Economic Affairs, MOEA; Funding details: City, University of London, City; Funding details: Ministry of Trade, Industry and Energy, MOTIE; Funding details: European Commission, EU; Funding text 1: Japan has been the early leader in MG research in Asia, but in recent years South Korea, Singapore and China have been increasingly expanding their MG development [ 148 ]. In Japan, the New Energy and Industrial Technology Development Organization (NEDO) is a key actor which has been funding several demonstration projects including the Sendai MG. This was created from a network involving NEDO as funding agency in collaboration with research actors and the City of Sendai local government which were the driving actors in developing and maintaining the MG [ 148 ]. This local city support proved particularly valuable in helping to ‘ sidestep [utility] regulation ’ [ 148 ]. Both south Korea and Taiwan has a history of government-business driven initiatives. In recent years, these collaborations between private actors and government have been promoting smart MGs, viewing this as a future competitive positioning of domestic actors. Important actors include Ministry for Trade, Industry and Energy (MOTIE) in Korea and Ministry of Economic Affairs (MOEA) in Taiwan. Thus, private actors in these countries, are connected with the government and shaped by strategic initiatives and governmental visions [ 150 ]. Numerous state actors in China influence MG development, see Refs. [ 146 , 148 ] and Appendix D for specific examples. In general, most MG initiatives in China are state driven suggesting for instance that MGs are able to enhance grid capacity in already densely populated and yet rapidly growing cities which provides one direction for actors in the domain. Formal, top-down approval of MGs to help integrate renewable energy in dense cities has potential to stimulate fast development. In Singapore, the government through different ministries has played an important role in formulating strategies and goals for more sustainable development, including clean energy [ 149 ]. Among others, it resulted in the Singapore Sustainable Development Blueprint released in 2009, which outlines targets for the next 10–20 years. The Singapore Agency for Science, Technology, and Research (A*STAR) has been involved in MG testing [ 149 ]. 5.4.2; Funding text 2: The authors would like to thank the Swedish Energy Agency for funding the study within the research project ‘Solar-based microgrids-a potential for the future? [Project no. 43272-1 ]. We would also like to thank the two anonymous reviewers which greatly contributed to improving earlier versions of this article. We are also grateful to Ewa Wäckelgård at Dalarna University for commenting on earlier versions of the article. Appendix A; Funding text 3: Examples of state and federal actor Examples of technology providers Examples of communities • New Energy and Industrial Technology Development Organization NEDO (Japan) • Ministry of Trade, Industry and Energy MOTIE (Korea) • Ministry of Economic Affairs MOEA (Taiwan) • National Energy Administration NEA (China) • National Development Reform Commission (NDRC) (China) • Ministry of the Environment and Water Resources MEWR (Singapore) • Ministry for National Development (MND) (Singapore) • Ministry of Trade and Industry (Singapore) • Renewable energy Agency ARENA (Australia) • Department of Resources, Energy and Tourism (DRET) (Australia) • Council of Australian Governments Energy Council COAGEC (Australia) • Australian Energy Market Operator AEMO (Australia) • Samsung • LG • Tesla • City of Sendai • White Gum Valley Examples of local utilities Examples of research actors Examples of NGOs • Synergy (Australia) • Chinese academy of sciences (China) • Curtin University (Australia) • NTT Facilities Research Institute (Japan) • Tohoku Fukushi University • Clean Energy Council (Australia) Sources: [1–7] [1] Romankiewicz J, Marnay C, Zhou N, Qu M. Lessons from international experience for China's microgrid demonstration program. Energy Policy. 2014; 67:198–208. [2] Chan D, Cameron M, Yoon Y. Implementationof micro energy grid: A case study of a sustainable community in China. Energy and Buildings. 2017; 139:719–31. [3] Feng W, Jin M, Liu X, Bao Y, Marnay C, Yao C, et al. A review of microgrid development in the United States–A decade of progress on policies, demonstrations, controls, and software tools. Applied energy. 2018; 228:1656–68. [4] Akizu O, Bueno G, Barcena I, Kurt E, Topaloğlu N, Lopez-Guede J. Contributions of Bottom-Up Energy Transitions in Germany: A Case Study Analysis. Energies. 2018; 11:849. [5] Nohrstedt L. Skånsk by blir först med mikronät. Ny Teknik; 2017. [6] MGK E. Homepage. Microgrid knowledge 2019. [7] Green J, Newman P. Planning and Governance for Decentralized Energy Assets in Medium-Density Housing: The WGV Gen Y Case Study. Urban Policy and Research. 2018; 36:201–14. Appendix E; Funding text 4: Microgrid related projects funded by the European Commission

Available from: 2020-01-30 Created: 2020-01-30 Last updated: 2023-05-25Bibliographically approved

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Warneryd, MartinHåkansson, MariaKarltorp, Kersti

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