Dive Brief:
- California Energy Commission has announced $26.5 million in grant money for renewable and energy storage-focused microgrid projects in the state.
- $6 million of the funding is to go to microgrid incorporating electric vehicles, and $20.5 million is to go to projects at either "critical facilities" like hospitals, or to "high penetration renewable-based" projects, which would use up to 100% total renewable energy generation and demand management.
- All projects must fit a variety of criteria, including having the ability to self-power for more than 3 hours, entirely disconnected from the grid, and be commercially viable after construction.
- The proposals for projects are due November this year, with construction to begin in the following 12 months.
Dive Insight:
Unlike many grant-based projects, the Energy Commission is only asking for matching funds equating to 25% of the total grant money, which means projects need a less private investment to get the grant. Most other schemes of this kind ask for a 50% matching sum to get approval.
And for those looking at the possible benefits of a microgrid, the effects can already be seen in San Diego, where the San Diego Gas & Electric Borrego Springs microgrid initiative is taking off, integrating rooftop solar and energy storage technology. The U.S. Navy is working on a similar initiative on their bases, aiming to be self-sufficient as soon as possible. Other states, particularly in the Northeast, are also developing similar projects. A recent report by GTM Research found that capacity for microgrids is expected to grow to 1.8 GW by 2018, up from just over 1,000 MW currently online.