Financing Federal Microgrids

A microgrid can enhance a site’s electrical power system during normal operations, as well as provide reliable backup power to critical loads when electric utility power is interrupted. When components of a microgrid (and potentially the entire system) can be justified economically and paid for out of energy savings or avoided costs, implementation by one of several privately financed federal procurement mechanisms is possible. However, it is typically difficult to achieve enough savings and avoided costs to cover the design, equipment, and installation of certain microgrid components that are required to integrate the system. This presentation explores procurement options and agreements that may be useful to federal agencies interested in implementing microgrids at their sites. This information will be most useful to agencies when they are exploring electric energy system resilience options and/or considering different procurement options to meet their needs.