| Resource Type | Article |
| Author / Source | Miguel Yañez-Barnuevo (Environmental and Energy Study Institute) |
| Publication Date | July 2024 |
| Location | Multi-state (Wisconsin, Iowa, and co-op communities in Arizona, California, Minnesota, Montana, North Carolina, and Tennessee) |
| Initiative Type | Program, Technology, Partnership |
| Project Complexity | Advanced |
| Recommended For | Board, Staff |
Estimated reading time: 15 minutes
Why This Matters for Rural Electric Co-ops
This article profiles three federally funded microgrid projects in rural communities, with the details a co-op needs to judge whether a similar project fits: site sizing, backup duration, cost share, and the criteria NRECA used to narrow 25 interested co-ops down to seven funded communities. The DOE ERA program is now closed to new applicants, so the article is not a funding lead. Its project details may still help co-ops that already hold awards as well as co-ops weighing microgrids with other funding.
Each project shows a different model: a state office installing solar and storage at town facilities, a municipal utility islanding a whole town, and a national co-op consortium. The article also names the consortium communities, including Clinton and Cooke City in Montana and the Shakopee Mdewakanton Sioux Community in Minnesota, which can point a co-op toward peers doing similar work. The Wisconsin sites offer a useful reality check, since each provides up to three hours of backup. That is far short of what members may picture when they hear "microgrid" during a multi-day rural outage.
Key Takeaways
| › | ERA funded solar-plus-storage microgrids in communities of 10,000 or fewer, in some cases paired with advanced metering, EV chargers, and distribution upgrades. |
| › | NRECA picked its seven consortium sites based on replicability, location in disadvantaged communities, innovation, and tribal engagement. That gives co-ops a model for pooling smaller projects into a competitive bid. |
| › | Small critical-facility microgrids offer limited backup (up to three hours per Wisconsin site). Co-ops should set member expectations to match actual duration, not the word "microgrid." |
| › | Awardees stacked grants with federal tax credits through direct pay. These credit terms have since changed and need fresh review before anyone relies on them. |
Implementation Considerations
- Cost or Funding Requirements: ERA funding is not available to co-ops without an approved award, and new applicants should not rely on this pathway. Awardees also covered a local cost share of roughly 20% or more. Any co-op following this model needs another funding source and a clear local match.
- Staffing or Technology Requirements: Microgrids involve design, permitting, interconnection, procurement, and controls work spread over several years. Smaller co-ops will likely need outside support from organizations, consultants, or peer co-ops. Joining a consortium, as these co-ops did, is one option.
- Time-Sensitive Information: The funding and tax credit details in the article have changed since it was published, so treat its figures as historical.
Notable Examples
- NRECA: Led a seven co-op consortium selected for $45.2 million for microgrids in rural communities.
- Wisconsin Office of Sustainability and Clean Energy: Installing solar and batteries at 24 critical facility sites in Bayfield County as community resilience hubs.
- Montezuma Municipal Light & Power: Municipal utility building a solar and battery storage microgrid that can island the town.
Estimated reading time: 15 minutes
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