The microgrid sector is experiencing high growth rates and rapid evolution as microgrids become an increasingly cost-effective alternative for integrating renewables, ensuring reliable power and electrifying off-grid sites. However, both the technical operations and economics of microgrids differ significantly from conventional power plants and grid-tied renewable plants. Microgrids are typically more complex systems that can offer a broader range of services and benefits to their energy-users than conventional power options; all of which need to be considered and evaluated when determining the feasibility of microgrid projects.

In addition, microgrids are capital intensive projects requiring significant upfront investment. The system economics directly impact the ability and cost of financing which will often determine whether a project is able to go ahead. Investors and financiers will evaluate projects according to a range of standardised metrics and risk criteria.

This half-day workshop is intended for project owners, developers and investors who are preparing microgrid projects and need to consider the economic and financial aspects in order to obtain financing or sell projects. It will also be of interest for participants in other sectors, including equipment suppliers and advisors, who may be asked to participate in project financing or for whom project economics are relevant.

The workshop will be a mix of educational sessions and more interactive sessions with participants expected to participate. Participants are encouraged to forward questions, issues or case studies ahead of time for these to be included or covered in the workshop.

Agenda

12:00 - 13:00        Lunch for Workshop attendees

13:00 - 13:45        Session 1: Review of Microgrid Economic Concepts and Component Economics

• Applicable economic and technical terms relating to microgrid systems
• Component economics and use cases

13:45 - 14:30        Session 2: Economic and Financial Evaluation of Projects

• Key system economic metrics including LCOE, capex, cashflow, pay-back period, IRR
• System financing
• Consideration depending on stakeholder perspective

14:30 - 15:00        Coffee Break

15:00 - 15:40        Session 3: Case studies -- High Renewable Penetration Village System and Commercial System

• Practical overview of two case studies: one village system and a commercial system
• Comparison of microgrid system with alternatives and assessment of renewable penetration impacts

15:40 - 16:20        Session 4: Interactive Session on Improving Microgrid Project Economics

• Discussion on trends in microgrid finance including results-based financing, portfolio approaches, and insurance offerings
• Discussion on options for improving economics (increasing or broadening revenues, reducing capex or operating costs)

16:20 - 17:00        Questions and follow-up

Workshop Leader