Should Israeli microgrids be based on centralized markets?

Since the current proposed reforms of Israel’s electricity sector include fully centralized markets, the assumption of identical revenues for identical services is reasonable for the timeframe in which microgrids would move beyond an initial “pilot project” stage.

Are microgrids a sustainable alternative to Central-Station generation in Israel?

Sustainability multi-criteria evaluation for microgrid deployment is proposed. Environmental, economic and social costs and benefits are evaluated for microgrids. Microgrids are cost-effective alternative to central-station generation in Israel. Net benefits to the Israeli economy may exceed $13 million per year.

How much does a 10-MW microgrid investment benefit the Israeli economy?

This analysis indicates that, considering the reliability, T&D investment deferral, local economic, environmental, and social costs and benefits of each alternative, the net benefits to the Israeli economy from selecting the incremental 10-MW investment in a representative Israeli microgrid exceed $13 million per year.

Are microgrids better than conventional central-station generation?

The results of that study indicate that, while microgrids may be superior to conventional central-station generation on a stand-alone cost-benefit analysis, both resource types require compensation through some combination of capacity, energy and ancillary service payments.

What is a 10 MW microgrid?

For our purposes, we assume a 10-MW microgrid comprised of 4 MW solar; 1 MW CHP; 3 MW gas micro-turbine; and 2 MW demand response/energy efficiency. The most commonly used metric for comparing the costs of producing, storing, and curtailing energy is the levelized cost of electricity (“LCOE”).

Are microgrids a facilitator of renewables integration?

The environmental benefits focus primarily on the avoided social costs of carbon, generally estimated between $20 and $50 per ton. Studies addressing microgrids as facilitators of renewables integration include ABB (2015), Industrial Economics Inc. (2015), and Morris, Bogart, Dorchak, and Meiners (2009).