On the other hand, in the case of for-profit systems (where the owner of the microgrid sells energy to third parties account that a cooperative structure mitigates the need for broader regulatory norms. In the case of small cooperatives, the objective of the Commission is to create a light regulatory framework, taking into account that a cooperative structure mitigates the need for broader regulatory norms. This classification system seeks to ensure a rational and organized application of the regulatory requirements, in light of the nature and particular characteristics of each system, avoiding regulatory obstacles that would otherwise hinder the development of microgrids. In general, the proposed rules establish microgrid categories based on their ownership structure, size, and whether or not it sales energy to third parties. It is interconnected to the city of New York’s main electrical network, but it supplies the energy demand of its facilities using its own energy resources, only purchasing energy from the main power grid when its demand exceeds the microgrid’s capacity. One example is the microgrid developed and implemented by New York University, which has a capacity of 13.4 MW, which supplies electricity to 22 buildings and installations. Similarly, the development of microgrids has allowed certain communities to withstand natural phenomena, providing service continuity in times of massive blackouts because of these atmospheric events. There are several examples of microgrids that provide its users more control over the cost, quality, service driveability and energy sources used for electricity generation. However, it is not enough to identify strategies to restore electrical service as quickly as possible - it is also necessary that these strategies encourage the development of a modern, flexible resilient electrical system, he added.Ī microgrid is a “group of interconnected loads and distributed energy resources acting as a single entity with respect to the Puerto Rico Electric Power Authority’s controllable transmission and distribution system.Ī microgrid allows one or more clients to maintain and operate an independent, separate electrical system from PREPA, so that the availability of electric service does not rely solely on the corporation’s service and infrastructure. “The result is that we were able to develop - in a short period of time - a unique regulation that establishes a regulatory framework for developing microgrid systems, which certainly is a step leading toward energy restructuring in Puerto Rico,” he said.Īs a result of the damage to the island’s electrical system - which was knocked out 100 percent and still remains partially down - and taking into account the fundamental role electricity plays on the island’s economic development and the daily lives of its citizens, its restoration should be the main short-term goal, he said. “We studied various successful models in the United States and collected input from many companies and organizations interested in energy issues,” he said. “Last October, the Commission initiated an investigation into the status of Puerto Rico’s electrical system as a result of Hurricane María’s passage over the island,” said Commission Chair José Román. (Credit: NYU)Īware of the need to quickly and effectively restore Puerto Rico’s electrical service and simultaneously ensure its sustainable long-term development, the Puerto Rico Energy Commission has drafted the first regulation on the development of microgrids on the island. NYU installed a microgrid that cost $126 million when it was built.
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