The role and interaction of microgrids and centralized grids in developing modern power systems

A rapid expansion of the introduction of microgrids is underway universally, primarily to allow increased electrification in growing economies, but also to meet the need to reduce global CO2 emissions and to provide ancillary services to centralized grids.

Energy access constitutes one of the fundamental building blocks for economic growth, as well as social equity, in the modern world. Access to sustainable energy is needed to achieve sustainable development. This paper serves as an input document to the global discussion on how to reach the UN goal of “Sustainable Energy for All”, by sharing case study knowledge in the field. The following topics are considered through the examination of several implemented cases from different parts of the world:

  • Analysis of the interaction between centralized grids and microgrids.
  • Analysis of stakeholder decision parameters for electrification through extension of the central grid or microgrids; such as distance from grid, economic feasibility and environmental sustainability.
  • Analysis of design differences and requirements for microgrids, based on intended purpose and the needs of the end customer.

It has been determined that good planning, appropriate requirements and clear regulations for microgrids limit the risk of stranded assets and enable better business cases for the involved stakeholders.


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