https://orcid.org/0000-0002-5085-7518
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Abstract
‘Microgrid’ is a broad concept that is not determined by a single technical definition. This fact is reflected in the academic literature, which agrees that there is no universal definition of microgrids. While this broad understanding might be beneficial for allowing a broad variety of microgrids, from a legal perspective the absence of a common understanding constitutes a barrier to the development of microgrids. Therefore, this article builds upon an extensive literature review to isolate the most salient characteristics of microgrids and proposes a few key elements that any legal definition of microgrids should include, primarily for the European Union’s legal framework, but also applicable to other jurisdictions. It also provides preliminary advice for a legal regime for microgrids that would allow adapting their organisation in terms of ownership and operation to the local context.
Acknowledgements
This research was funded by the Horizon2020 research programme under grant agreement no. 731249, SMILE (Smart Islands Energy System). The funding source was not involved in the preparation of the article. The author thanks JERL’s editor as well as the two reviewers for their valuable comments.
Notes
1 Bobby Magill, ‘Microgrids: Sandy Forced Cities to Rethink Power Supply’ (Climate Central, 9 September 2013) <www.climatecentral.org/news/microgrids-hurricane-sandy-forced-cities-to-rethink-power-supply-16426> accessed 10 February 2022
2 Roy Torbert, ‘A Locally Led Move toward Microgrids in Puerto Rico’ (GreenBiz, 25 September 2019) <www.greenbiz.com/article/locally-led-move-toward-microgrids-puerto-rico> accessed 27 March 2021
3 Tera Roberson, ‘Microgrids Offer Alternative Power in Texas’ (Click2Houston, 10 March 2021) <www.click2houston.com/news/local/2021/03/11/microgrids-offer-alternative-power-in-texas/> accessed 27 March 2021
4 Ken Silverstein, ‘California to Fight Wildfires with Microgrids and Batteries’ (Forbes, 16 June 2020) <www.forbes.com/sites/kensilverstein/2020/06/16/california-energy-regulators-want-to-fight-wildfires-by-facilitating-more-microgrids-and-energy-storage/> accessed 10 February 2022
5 ‘What Are Microgrids and How Can They Help in the Energy Transition?’ (IEF, 29 July 2021) <www.ief.org/news/what-are-microgrids-and-how-can-they-help-in-the-energy-transition> accessed 16 February 2022
6 Mariya Soshinskaya and others, ‘Microgrids: Experiences, Barriers and Success Factors’ (2014) 40 Renewable and Sustainable Energy Reviews 659, 661; Carmen Wouters, ‘Towards a Regulatory Framework for Microgrids – The Singapore Experience’ (2015) 15 Sustainable Cities and Society 22, 23; Amjad Ali and others, ‘Overview of Current Microgrid Policies, Incentives and Barriers in the European Union, United States and China’ (2017) 9(7) Sustainability 1, 1; Adam Hirsch, Yael Parag and Josep Guerrero, ‘Microgrids: A Review of Technologies, Key Drivers, and Outstanding Issues’ (2018) 90 Renewable and Sustainable Energy Reviews 402, 403
7 See Soshinskaya and others (n 6) 661; Ali and others (n 6) 1
8 See section 6 below
9 Stefano Bifaretti and others, ‘Grid-Connected Microgrids to Support Renewable Energy Sources Penetration’ (2017) 105 Energy Procedia 2910
10 T&D Europe, ‘Harnessing Microgrid Technology Opportunities – To Lead The Energy Transition in Europe’ (2019) 1, 6 <https://gimelec.fr/wp-content/uploads/2019/05/TDEurope-brochure_microgrids_web-min.pdf> accessed 16 February 2022
11 Jessica Wentz and Chiara Pappalardo, ‘Scaling up Local Solutions: Creating an Enabling Legal Environment for the Deployment of Community-Based Renewable Microgrids’ in Jordi Jaria i Manzano, Nathalie Chalifour and Louis J Kotzé (eds) Energy, Governance and Sustainability (Edward Elgar 2016) 99, 105
12 Mark Fenwick, Mathias Siems and Stefan Wrbka, ‘The State of the Art and Shifting Meaning of Legal Certainty’ in Mark Fenwick, Mathias Siems and Stefan Wrbka (eds) The Shifting Meaning of Legal Certainty in Comparative and Transnational Law (Hart 2017) 1, 6–7
13 Kaisa Huhta, ‘Anchoring the Energy Transition with Legal Certainty in EU law’ (2020) 2(4) Maastricht Journal of European and Comparative Law 425, 427
14 Kevin B Jones, Mark James and Roxana-Andreea Mastor, ‘Securing Our Energy Future: Three International Perspectives on Microgrids and Distributed Renewables as a Path Toward Resilient Communities’ (2016) 16(2) Environmental Hazards 1, 3; Warda Ajaz, ‘Resilience, Environmental Concern, or Energy Democracy? A Panel Data Analysis of Microgrid Adoption in the United States’ (2019) 49 Energy Research & Social Science 26, 31; Martin Warneryd, Maria Håkansson and Kersti Karltorp, ‘Unpacking the Complexity of Community Microgrids: A Review of Institutions’ Roles for Development of Microgrids’ (2020) 121 Renewable and Sustainable Energy Reviews 1, 5
15 Jones, James and Mastor (n 14) 10
16 SMart IsLand Energy systems (SMILE) project, Horizon2020 research programme, grant agreement no. 731249, results available at <https://cordis.europa.eu/project/id/731249> accessed 26 October 2022
17 Jones, James and Mastor (n 14) 11
18 Raphael J Heffron and Kim Talus, ‘The Development of Energy Law in the 21st Century: A Paradigm Shift?’ (2016) 9 Journal of World Energy Law and Business 189, 197
19 Kaisa Huhta, ‘The Coming of Age of Energy Jurisprudence’ (2021) 39(2) Journal of Energy & Natural Resources Law 199, 204
20 Kaisa Huhta, ‘The Contribution of Energy Law to The Energy Transition and Energy Research’ (2022) 73 Global Environmental Change 1, 2
21 Jamie Behrendt, ‘Small Systems: Big Impacts – Examining the Concept of Microgrids from an EU Law Perspective’ (2021) 30(3) European Energy and Environmental Law Review 74
22 Robert H Lasseter, ‘MicroGrids’ (2002) 1 IEEE Power Engineering Society Winter Meeting 305, 305; European Commission, ‘European SmartGrids Technology Platform: Vision and Strategy for Europe’s Electricity Networks of the Future’ (2006) 27; Nilakshi WA Lidula and Athula D Rajapakse, ‘Microgrids Research: A Review of Experimental Microgrids and Test Systems’ (2011) 15 Renewable and Sustainable Energy Reviews 186, 186; Gregory J Kish and Peter W Lehn, ‘Microgrid Design Considerations for Next Generation Grid Codes’ (2012) IEEE Power and Energy Society General Meeting 1, 1; John Romankiewicz and others, ‘Lessons from International Experience for China's Microgrid Demonstration Program’ (2014) 67 Energy Policy 198, 199; José F Sanz and others, ‘Analysis of European Policies and Incentives for Microgrids’ (2014) Proceedings of the International Conference on Renewable Energies and Power Quality, Cordoba, Spain 874, 874; Christine Schwaegerl and Liang Tao, ‘The Microgrids Concept’ in Nikos Hatziargyriou (ed) Microgrid: architectures and Control (IEEE Press, 2014) 1, 1; Soshinskaya and others (n 6) 660; Wouters (n 6) 23; Lexuan Meng and others, ‘Microgrid Supervisory Controllers and Energy Management Systems: A Literature Review’ (2016) 60 Renewable and Sustainable Energy Reviews 1263, 1264; Abdorreza Rabiee and others, ‘Optimal Operation of Microgrids through Simultaneous Scheduling of Electrical Vehicles and Responsive Loads Considering Wind and PV Units Uncertainties’ (2016) 57 Renewable and Sustainable Energy Reviews 721, 722; Ali and others (n 6) 1–2; Yeliz Yoldaş and others, ‘Enhancing Smart Grid with Microgrids: Challenges and Opportunities’ (2017) 72 Renewable and Sustainable Energy Reviews 205, 205; Yimy E García Vera, Rodolfo Dufo-López and José L Bernal-Agustín, ‘Energy Management in Microgrids with Renewable Energy Sources: A Literature Review’ (2019) 9 Applied Sciences 1, 2; Michiel A Heldeweg and Imke Lammers, ‘An Empirico-Legal Analytical and Design Model for Local Microgrids: Applying the ‘ILTIAD’ Model, Combining the IAD-Framework with Institutional Legal Theory’ (2019) 13(1) International Journal of the Commons 479, 480–82; Naser Mahdavi Tabatabaei, Ersan Kabalci and Nicu Bizon, ‘Overview of Microgrid’ in Naser Mahdavi Tabatabaei, Ersan Kabalci and Nicu Bizon (eds) Microgrid Architectures, Control and Protection Methods (Springer 2020) 1, 4; Donna Attanasio, ‘Microgrids’ in Martha Roggenkamp, Kars De Graaf and Ruven Fleming (eds) Elgar Encyclopedia of Environmental Law Series: Energy Law, Climate Change and the Environment (Edward Elgar 2021) 656, 656–657
23 Kish and Lehn (n 22) 1; Ali and others (n 6) 1; Attanasio (n 22) 656
24 Schwaegerl and Tao (n 22) 1; García Vera, Dufo-López and Bernal-Agustín (n 22) 2; Attanasio (n 22) 656
25 Schwaegerl and Tao (n 22) 1
26 Soshinskaya and others (n 6) 660; Meng and others (n 22) 1264
27 Schwaegerl and Tao (n 22) 15; T&D Europe (n 10) 6
28 See for instance European Commission, ‘Powering a Climate-Neutral Economy: An EU Strategy for Energy System Integration’ (Communication) COM (2020) 299 final
29 Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the Promotion of the Use of Energy from Renewable Sources [2018] OJ L328, art 24 (8)
30 Romankiewicz (n 22) 199; Klemens Leutgöb and others, ‘New Business Models Enabling Higher Flexibility on Energy Markets’ (2019) ECEEE Summer Study Proceedings 235, 243; Hirsch, Parag and Guerrero (n 6) 403; Warneryd, Håkansson and Karltorp (n 14), 2
31 Attanasio (n 22) 657
32 Connecticut General Statutes s 16-243y a (5) (2018) <https://law.justia.com/codes/connecticut/2018/title-16/chapter-283/section-16-243y/> accessed 10 February 2022
33 Energy Bureau of the Puerto Rico Public Service, Regulation on Microgrid Development (Order 9028) s 1.08(20)
34 Schwaegerl and Tao (n 22) 1
35 Yoldaş and others (n 22) 206; Attanasio (n 22) 657; Lidula and Rajapakse (n 22) 201
36 García Vera, Dufo-López and Bernal-Agustín (n 22) 2; Wouters (n 6) 23
37 IRENA ‘Innovation Landscape Brief: Renewable Mini-Grids’ (2019) 1, 3 <www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Sep/IRENA_Renewable_mini-grids_2019.pdf?la=en&hash=CFE9676B470A96F7A974CB619889F5810A06043E> accessed 16 February 2021
38 MGP, Bloomberg NEF and Se4All, ‘State of the Global Mini-Grids Market Report 2020) 1, 4 <https://minigrids.org/wp-content/uploads/2020/06/Mini-grids_Market_Report-20.pdf> accessed 10 February 2022
39 Christian D'Adamo, Samuel Jupe and Chad Abbey, ‘Global Survey on Planning and Operation of Active Distribution Networks – Update of CIGRE C6.11 Working Group Activities [C]//Electricity Distribution-Part 1’, 20th International Conference on Electricity Distribution (2009) 1, 1
40 Soshinskaya and others (n 6) 661
41 As requested by the EU energy communities’ advocacy organisation: Rescoop.eu, ‘What Local Energy Communities Need from the Clean Energy Packaged’ undated 1, 7
42 Attanasio (n 22) 657
43 Soshinskaya and others (n 6) 661
44 Ibid 661 and 663
45 2018 Renewable Energy Sources Directive (n 29) recital 19
46 Ibid art 24 (6) (d)
47 Ibid art 29 (11)
48 Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on Common Rules for the Internal Market for Electricity and Amending Directive 2012/27/EU [2019] OJ L 158, art 35 (4)
49 Mahdavi Tabatabaei, Kabalci and Bizon (n 22) 4; Soshinskaya and others (n 6) 667
50 See for instance Commission Regulation (EU) 2016/631 of 14 April 2016 Establishing a Network Code on Requirements for Grid Connection of Generators [2016] OJ L 112, art 2 (15)
51 Lidula and Rajapakse (n 22) 187
52 Hirsch, Parag and Guerrero (n 6) 408; Schwaegerl and Tao (n 22) 4 and 6; João Abel Peças Lopes and others, ‘Operation of Multi-Microgrids’ in Nikos Hatziargyriou (ed) Microgrid: Architectures and Control (IEEE 2014) 165
53 Mahdavi Tabatabaei, Kabalci and Bizon (n 22) 4
54 Warneryd, Håkansson and Karltorp (n 14) 2
55 Hirsch, Parag and Guerrero (n 6) 404; García Vera, Dufo-López and Bernal-Agustín (n 22) 21
56 Aris Dimeas and others, ‘Deliverable DB1, ΤB1. Requirements Specifications for Microgrid Control’ (EU project MORE MICROGRIDS – Advanced Architectures and Control Concepts for More Microgrids, July 2006), 1, 5
57 Yoldaş and others (n 22) 210; Ahmet Karaarslan and M Emrah Seker, ‘Distributed Control of Microgrids’ in Naser Mahdavi Tabatabaei and Ersan Kabalci (eds) Microgrid Architectures, Control and Protection Methods (Springer 2020) 403, 418
58 Yoldaş and others (n 22) 210
59 Farid Hamzeh Aghdam and Navid Taghizadegan Kalantari, ‘Energy Management Requirements for Microgrids’ in Naser Mahdavi Tabatabaei and Ersan Kabalci (eds) Microgrid Architectures, Control and Protection Methods (Springer 2020) 233, 235
60 Yoldaş and others (n 22) 210
61 Karaarslan and Seker (n 57) 418
62 Hamzeh Aghdam and Taghizadegan Kalantari (n 59) 235; Dimeas (n 56) 5
63 Hamzeh Aghdam and Taghizadegan Kalantari (n 59) 235
64 Meng and others (n 22) 1266
65 Hamzeh Aghdam and Taghizadegan Kalantari (n 59) 235
66 Michael Mattioli and Scott J Shackelford, ‘Powerhouses: A Comparative Analysis of Blockchain-Enabled Smart Microgrids’ (2021), 46(4) The Journal of Corporation Law, 1003, 1006
67 Meng and others (n 22) 1266
68 Hamzeh Aghdam and Taghizadegan Kalantari (n 59) 235; García Vera, Dufo-López and Bernal-Agustín (n 23) 21
69 2019 Electricity Market Directive (n 48) art 2 (53)
70 Schwaegerl and Tao (n 22) 16–18
71 ‘Active customers’ is the term used in EU law; see 2019 Electricity market Directive (n 48) art 2 (8)
72 2019 Electricity Market Directive (n 48) art 35 (4)
73 Ibid art 16
74 Ordonnance n° 2021-236 du 3 mars 2021 portant transposition de diverses dispositions de la directive (UE) 2018/2001 du Parlement européen et du Conseil du 11 décembre 2018 relative à la promotion de l'utilisation de l'énergie produite à partir de sources renouvelables et de la directive (UE) 2019/944 du Parlement européen et du Conseil du 5 juin 2019 concernant des règles communes pour le marché intérieur de l'électricité, art 5
75 Bekendtgørelse om borgerenergifællesskaber og forholdet mellem borgerenergifællesskaber og elhandelsvirksomheder og kollektive elforsyningsvirksomheder, 2252, 29/12/2020, art 5
76 For more, see Hans Vedder and others, ‘EU Energy Law’ in Martha M Roggenkamp (eds) Energy Law in Europe: National, EU and International Regulation (3rd edn, OUP 2016) 187, 264ff
77 Hamzeh Aghdam and Taghizadegan Kalantari (n 59) 236
78 2019 Electricity Market Directive (n 48) art 15; and 2018 Renewable Energy Sources Directive (n 29) art 21
79 2019 Electricity Market Directive (n 48) art 35
80 Soshinskaya and others (n 6) 661
81 Attanasio (n 22) 666
82 Wouters (n 6) 30
83 See, for example, Chris Marnay and others, ‘Policy Making for Microgrids: Economic And Regulatory Issues of Microgrid Implementation’ (2008) IEEE Power & Energy Magazine 69, 74–75; Soshinskaya and others (n 6) 666
84 See, for example, Kish and Lehn (n 22); Julia Merino, Patricio Mendoza-Araya and Carlos Veganzones, ‘State of the Art and Future Trends in Grid Codes Applicable to Isolated Electrical Systems’ (2014) 7 Energies 7936; Glenn Platt, Adam Berry and David Cornforth, ‘What Role for Microgrids?’ in Fereidoon P Sioshansi (ed) Smart Grid – Integrating Renewable, Distributed & Efficient Energy (Academic Press 2012) 185, 202
85 Merino, Mendoza-Araya and Veganzones (n 84) 7941
86 Heldeweg and Lammers (n 22) 483
87 2019 Electricity Market Directive (n 48) art 2 (11) (b)
88 California Legislative Service, Public Utilities Code, (2018) Division 4.1, ch 4.5 s 8370 a (d), <https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PUC&division=4.1.&title=&part=&chapter=4.5.&article> accessed 16 February 2022
89 2019 Electricity Market Directive (n 48) art 2 (20) and 2 (59)
90 Heldeweg and Lammers (n 23) 487