Overview of current microgrid policies, incentives and barriers in the European Union, United States and China

Abstract

Continuously increasing demand of microgrids with high penetration of distributedenergy generators, mainly renewable energy sources, is modifying the traditional structure ofthe electric distribution grid. Major power consumer countries are looking for alternative energysources to avoid the impact of higher fossil fuel consumption. Thus, different policies have beenpromulgated to promote renewable energy technologies (RETs) and distributed energy resource (DER)deployment and are encouraging technological innovation. These policies aim to reduce greenhousegas (GHG) emissions and achieve energy security and independence to meet an ever-increasingelectricity demand. Many studies have been performed on the successful integration of RET andDER operation and control, protection and stability issues, all simultaneously and satisfactorilyimplemented during feasible microgrid operation. However, apart from the technical challenges, fewmicrogrid studies exist on effective policies and incentives for microgrid promotion and deployment.This survey investigates the policy, regulatory and financial (economical and commercial) barriers,which hinder the deployment of microgrids in the European Union (EU), United States (USA) andChina. In this paper, a clear view on microgrid policy instruments and challenges are investigated toaid future developments.