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The impact of project financing in optimizing microgrid design
A disconnect between real world financing and technical modeling remains one of the largest barriers to widespread adoption of microgrid technologies. Simultaneously, the optimal design of a microgrid is influenced by financial as well as technical considerations. This paper articulates the interplay between financial and technical assumptions for the optimal design of microgrids and introduces a design approach in which two financing structures drive an efficient design process. This approach is demonstrated on a descriptive test case, using well accepted financial indicators to convey project success. The major outcome of this paper is to provide a framework which can be adopted by the industry to relieve one of the largest hurdles to widespread adoption, while introducing multiple debt financing models to the literature on microgrid design and optimization. An equally important outcome from the test case, we provide several points of intuition on the impact of varying financing terms on the optimal solution.
The impact of project financing in optimizing microgrid design
A disconnect between real world financing and technical modeling remains one of the largest barriers to widespread adoption of microgrid technologies. Simultaneously, the optimal design of a microgrid is influenced by financial as well as technical considerations. This paper articulates the interplay between financial and technical assumptions for the optimal design of microgrids and introduces a design approach in which two financing structures drive an efficient design process. This approach is demonstrated on a descriptive test case, using well accepted financial indicators to convey project success. The major outcome of this paper is to provide a framework which can be adopted by the industry to relieve one of the largest hurdles to widespread adoption, while introducing multiple debt financing models to the literature on microgrid design and optimization. An equally important outcome from the test case, we provide several points of intuition on the impact of varying financing terms on the optimal solution.
The impact of project financing in optimizing microgrid design
Pecenak, Zachary K. (author) / Mathiesen, Patrick (author) / Fahy, Kelsey (author) / Cannon, Charles (author) / Ayandele, Ebun (author) / Kirk, T. J. (author) / Stadler, Michael (author)
2020-11-01
12 pages
Article (Journal)
Electronic Resource
English
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