Micro Grid Integration Opportunities and Challenges

Abstract

Penetration of distributed generation (DG) poses significant new challenges and benefits to the existing electricity market structure. Distributed energy resources (DER) management and the successful technology advancement have paved the way for the creation of the micro grid (MG) distribution network. Having various coordinated energy conversion units under one central energy management creates new realties for efficient use of resources. This will ultimately shape the future of electricity usage and trading. There are obvious mutual benefits for all electricity generation and supply sector players. However, DG penetration and integration rules are inconsistent and will eventually weaken the improvement of the sector in terms of efficient use of resources and technology. The paper presents the opportunities and challenges facing the integration of micro grid with existing utilities and concludes with the required steps needed to minimize the challenging factors.