Microgrids for increasing resilience and sustainability in island nations - An explorative case study of scenarios in Puerto Rico

Abstract: Microgrids and distributed renewable energy have the potential to facilitate management and adaptation for climate change. While research on microgrids has been developing for the past decades, further studies are necessary to expand on business models and scenarios which lead to their successful commercialization and implementation. This study applied the business model canvas as an analytical framework to compare and illustrate different scenarios for microgrid deployment, based on stakeholder perspectives from the private and public sectors. The findings describe the main factors influencing the energy transition in Puerto Rico. Specifically, the study explores and analyzes three scenarios and associated business models for microgrid development: Community Cooperative Microgrid, Hybrid Ownership Microgrid and Private-owned Microgrid. The findings highlight the main barriers influencing the energy transition in Puerto Rico which included political, economic, social, and technological factors; as well as environmental and legal factors. Stakeholders emphasized the issues that arise due to political instability, which create uncertainty for potential investors, industries, local and international companies, involved in microgrid development. Stakeholder support and promotion of existing microgrid pilot projects can assist current development and future planning by increasing knowledge of working projects. Supporting local projects can also facilitate public policy and long-term planning.