2025 State Grid Microfilm

Should lawmakers support microgrid development?

As lawmakers in other states consider whether to support microgrid development, it’s important that policies consider the full value and reflect the suite of benefits that microgrids can provide the power grid to harness their full potential.

Are microgrids a state program?

Several states have enacted legislation to include microgrids under existing state programs and incentives. The Connecticut legislature, in particular, has worked to wrap microgrids into state policies designed to support a variety of energy investments for both public and private entities.

Which states have included microgrids in grid modernization initiatives?

Colorado, Minnesota and New Mexico have included microgrids under broad grid modernization initiatives. In Colorado and Minnesota, the legislatures require regulated utilities to develop and submit transmission and distribution system plans to the state PUCs.

Does Connecticut have a microgrid grant program?

On a larger scale, Connecticut has funded a Microgrid Grant and Loan Program administered by the state energy office for nearly a decade. The legislature initially funded the grant program in response to Superstorm Sandy, ultimately rewarding at least 15 projects with more than $36 million.

Can a bank finance a microgrid project?

A number of states have permitted state green banks, infrastructure banks or resilience banks to support microgrid projects, offering potential developers an additional avenue to finance a qualifying project.

Are microgrids a good investment?

Microgrids that incorporate renewable energy resources can have environmental benefits in terms of reduced greenhouse gas emissions and air pollutants. In some cases, microgrids can sell power back to the grid during normal operations. Depending on the complexity, microgrids can have high upfront capital costs.