Microgrid Reference Methodology for Understanding Utility and Customer Interactions in Microgrid Projects

The purpose of this paper is to introduce a holistic and systematic approach, based in key concepts of systems thinking, systems of systems and management science; to completely represent, model and analyze microgrid systems. In this paper we propose a Microgrid Reference Methodology (MRM) that guides the cooperation and mutual benefits between electric utilities and industrial customers for microgrid projects. We sketch a four-level socio-technical system in which the δ (business) level is added to the other three levels that are traditionally analyzed in microgrid design and planning. This MRM clearly specifies the steps and processes necessary for determining actors in the system, their interrelations, interests, goals and undesired effects. Finally, the MRM makes possible the evaluation of the impact of different alternatives on the objectives of both parties through the determination of criteria and factors. These factors can be influenced by the electric utility and customer; or they can be external, but still influenced by other actors such as regulators and government, to incentivize the implementation of microgrid projects.