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Table 1: DER/Microgrids create benefi ts for three benefi ciaries:
microgrid owner/users, the utility transmission and distribution grid, and
society at large:
The next chart depicts a scenario where the sum of the benefi ts to owner/users,
the T&D system and society, are signifi cantly greater than the costs. The owner will
not invest unless the benefi ts that they receive outweigh the costs that they incur.
The next slide illustrates that scenario and suggests that some form of government
support is likely to be necessary, in order to stimulate such an investment.
Table 2 Total Benefi ts Exceed Total Costs: A scenario where the sum of the benefi ts
to owner/users, the T&D system and society, are signifi cantly greater than
the costs. The owner will not invest unless the benefi ts that they receive
outweigh the costs that they incur:
Finally we conclude with a table that suggests that the objective should be creation
of new markets for microgrid owners to capture a greater share the presently non-
monetized benefi ts that they create. Self-funded microgrid development will arise
over time by making progress on two fronts. A self-sustaining industry will come
about in part as a result of a reduction over time in microgrid costs. Another critical
component to the development of robust markets for resilient microgrids is the
creation of markets that fairly measure and pay for the presently non-monetized
benefi ts of these investments.
