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Microgrids and the transition toward decentralized energy systems in the United States: A Multi-Level Perspective

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  • Ajaz, Warda
  • Bernell, David

Abstract

The increasing penetration of microgrids in appears to be part of a transition toward electricity distribution systems that are more decentralized than the current system. With microgrids gaining space as a competing and parallel distribution grid model and challenging the current centralized grid system, studying their adoption presents an opportunity to understand this socio-technical transition in the energy system. This study looks at this ongoing change in the United States and applies the Multi-Level Perspective framework to explore the drivers, contexts, processes, policies, institutions, and interactions that affect the adoption of microgrids. Through a qualitative case study analysis of California, New York, and Oregon, the study finds that natural disasters, massive power outages and climate change concerns have acted as key pressures for the adoption of microgrids. At the same time, the electric power system maintains important stabilization mechanisms, such as the availability of cheap and abundant electricity, as well a market structure that limits the opportunities of entry and profit for third-party developers, which make it harder for niche innovations like microgrids to break in. In addition, this study finds that state support in the form of funding and legislation is crucial for nurturing the microgrid niche market.

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  • Ajaz, Warda & Bernell, David, 2021. "Microgrids and the transition toward decentralized energy systems in the United States: A Multi-Level Perspective," Energy Policy, Elsevier, vol. 149(C).
    • Handle: RePEc:eee:enepol:v:149:y:2021:i:c:s0301421520308053
    DOI: 10.1016/j.enpol.2020.112094
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    Cited by:

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    2. Debora Sarno & Pierluigi Siano, 2022. "Exploring the Adoption of Service-Dominant Logic as an Integrative Framework for Assessing Energy Transitions," Sustainability, MDPI, vol. 14(15), pages 1-26, August.
    3. Kaczmarski, Jesse I., 2022. "Public support for community microgrid services," Energy Economics, Elsevier, vol. 115(C).
    4. Ashraf Zaghwan & Indra Gunawan, 2021. "Energy Loss Impact in Electrical Smart Grid Systems in Australia," Sustainability, MDPI, vol. 13(13), pages 1-34, June.
    5. Razmjoo, Armin & Mirjalili, Seyedali & Aliehyaei, Mehdi & Østergaard, Poul Alberg & Ahmadi, Abolfazl & Majidi Nezhad, Meysam, 2022. "Development of smart energy systems for communities: technologies, policies and applications," Energy, Elsevier, vol. 248(C).
    6. Li, Zhen & Wu, Baijun & Wang, Danyang & Tang, Maogang, 2022. "Government mandatory energy-biased technological progress and enterprises' environmental performance: Evidence from a quasi-natural experiment of cleaner production standards in China," Energy Policy, Elsevier, vol. 162(C).
    7. María-José Prados & Marta Pallarès-Blanch & Ramón García-Marín & Carolina del Valle, 2021. "Renewable Energy Plants and Business Models: A New Rural Development Perspective," Energies, MDPI, vol. 14(17), pages 1-19, September.
    8. Devenish, Anna, 2023. "Institutional and contextual drivers of and barriers to incentive-based demand response: A comparative case study in the Pacific Northwest," Utilities Policy, Elsevier, vol. 84(C).
    9. Muttaqee, Mahmood & Furqan, Maham & Boudet, Hilary, 2023. "Community response to microgrid development: Case studies from the U.S," Energy Policy, Elsevier, vol. 181(C).
    10. Rozhkov, Anton, 2024. "Applying graph theory to find key leverage points in the transition toward urban renewable energy systems," Applied Energy, Elsevier, vol. 361(C).
    11. Long, Yong & Liu, Xia, 2024. "Optimal green investment strategy for grid-connected microgrid considering the impact of renewable energy source endowment and incentive policy," Energy, Elsevier, vol. 295(C).

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