Value streams in microgrids: A literature review

Microgrids are an increasingly common component of the evolving electricity grids with the potential to improve local reliability, reduce costs, and increase penetration rates for distributed renewable generation. The additional complexity of microgrids often leads to increased investment costs, creating a barrier for widespread adoption. These costs may result directly from specific needs for islanding detection, protection systems and power quality assurance that would otherwise be avoided in simpler system configurations. However, microgrids also facilitate additional value streams that may make up for their increased costs and improve the economic viability of microgrid deployment. This paper analyses the literature currently available on research relevant to value streams occurring in microgrids that may contribute to offset the increased investment costs. A review on research related to specific microgrid requirements is also presented.