NARUC, NASEO produce report on the benefits of clean energy microgrids

Published on June 23, 2023 by Dave Kovaleski

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The National Association of Regulatory Utility Commissioners (NARUC) along with the National Association of State Energy Officials (NASEO) issued a new report this week that examines the potential benefits of clean energy microgrids for states.

The report – called Clean Energy Microgrids: Considerations for State Energy Offices and Public Utility Commissions to Increase Resilience, Reduce Emissions, and Improve Affordability – outlines the benefits and challenges of clean energy microgrids. It also focuses on the economic and cost considerations for clean energy microgrid development. Further, it delves into the necessary technological components of a clean energy microgrid and highlights current and future clean technologies. Finally, it offers policy and regulatory considerations for State Energy Offices and public utility commissions to assist in the deployment of clean energy microgrids.

“Over the past decade, State Energy Offices have partnered with energy providers, local governments, and utilities to develop microgrid roadmaps and facilitate microgrid installations that enhance resilience and reduce emissions,” NASEO President David Terry said. “The NASEO-NARUC Clean Energy Microgrids guide offers states actionable policy and regulatory considerations to facilitate construction of clean energy microgrids by local governments, state institutions, mission-critical facilities and businesses.”

Clean energy microgrids can provide benefits to critical infrastructure, disadvantaged communities, higher learning institutions and other electric consumers. The benefits include decarbonization, increased resilience, cost savings and grid efficiency. State Energy Offices and public utility commissions play a key role in implementing different regulatory and policy actions to support the development and deployment of clean energy microgrids.

“Ensuring energy resilience and meeting state decarbonization goals are two major challenges that state regulators are tasked to address. This new clean energy microgrid paper is a helpful resource for state public utility commissions grappling with these interrelated topics,” NARUC Executive Director Greg White said. “We are extremely proud of our ongoing partnership with NASEO through our joint Microgrids State Working Group and we are thrilled to help develop valuable resources like the clean energy microgrids white paper.”

The U.S. Department of Energy Office of Electricity provided financial support for this initiative as well as research to inform the development and scope of the report.