One byproduct of the renewable economy has been the growth of microgrids, as large institutions and communities look for new ways to accommodate distributed generation and utilities take measures to increase grid reliability. In addition to the new technologies they incorporate, microgrids are also benefitting from innovation in the arrangements created to finance their construction.

A new report from Greentech Media (GTM) Research examines how these original financing models are triggering growth in microgrid capacity across the country. Released this month, “U.S. Microgrids 2016: Market Drivers, Analysis and Forecast” identifies a number of microgrid projects that involve third-party ownership of certain assets and of the benefits or potential revenues that are expected to come from operating those systems.

Examples include a 1.4-megawatt (MW) fuel cell system powering the Bridgeport University microgrid in Bridgeport, Conn. They also include a 63-MW diesel backup generator system at a data center and a 25-MW microgrid at the Marine Corps Air Station in Yuma. Both are projects initiated by the Arizona utility APS.

According to report author Omar Saadeh, “Microgrids are increasingly becoming a tool of utilities to increase reliability and work with customers.” He added that the ability to allocate the costs across multiple participants is helping make third-party financing an attractive option. This is helping drive growth in microgrid projects.

“I think it is safe to say that we are at the tipping point between research and development piloting and technology commercialization,” Saadeh said.

According to GTM Research, microgrid capacity could expand by 115 percent and reach 4.3 gigawatts over the next five years.