3FOOD

Third Industrial Revolution Consulting Group
Figure 9: Hypothetical Deployment of Storage Assets Across a Power System 53
Microgrids. As energy storage is deployed, we recommend evaluating each installation
for the opportunity to create a building- or community-level microgrid. A microgrid is
not a single technology, but rather a system of systems, as illustrated in Figure 9. Since
microgrids can be deployed as a shared asset within a group of buildings or in a
community, new financing mechanisms will be required to enable adoption. One option
is that the distribution utility owns and operates microgrids and includes them in their
tariff structure for cost recovery purposes. Another financing option can occur through
third-party leases. Finally, government agencies could sponsor their development and
operation, which is happening with municipalities in parts of North America, as a
resiliency option to mitigate large power outages resulting from extreme weather
events. Another relevant type of microgrid financing option for Luxembourg could be
the community microgrid, as illustrated in Figure 10. These arrangements enable local
community homeowners and businesses to economically share in the development,
ownership, and operational costs for microgrids. Many of these systems are deployed
throughout Europe due, in part, to a retail competition framework that is more
advanced than other parts of the world.
53 International Energy Agency. IEA “Energy Storage Roadmap”. Available at:
https://www.iea.org/publications/freepublications/publication/TechnologyRoadmapEnergystorage.pdf
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