Environmental Engineering Reference
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third case explains attempts toward energy independence and increased system reliability
in Bornholm, Denmark, supported primarily by the European Union. After telling each of
these stories, we summarize the commonalities and differences across cases, and explore
both the opportunities and challenges involved in integrating these smaller systems into the
overall vision of smart grid. Finally, we discuss how each of these cases, as well as some
other organizationally specific small-scale grid initiatives at universities, in the military,
and in other organizations, demonstrate interest in gaining greater local control of energy
systems.
7.1.1 Defining Key Terms
In this introductory section we define a few key terms and provide some examples to
clarify what we mean when we use them: community-based energy, microgrid, nanogrid,
locavolts, and prosumer.
Community-based energy . Multiple new and creative ways of structuring
community-based energy systems are emerging. Enhanced community engagement is
being formalized through multiple approaches to giving local users greater control of
electric systems which operate within existing institutional frameworks and rely on
coordination between the public and private sectors. These initiatives often encourage
small-scale solar and wind energy development, and emphasize legal ownership of the
value-added product. For example, Windustry, an NGO that encourages “renewable energy
solutions,” defines community wind simply as “a community-owned asset” (Windustry
2014 ) . In 2014, its annual Community Wind Innovator Award went to Chris Diaz at
Seminole Financial Services, who has developed innovative solutions for the financial
challenges facingcommunity windthroughouttheUnitedStates (Goldman 2011 ; Seminole
Financial Services 2014 , ).
Community-based grid innovation is occurring in communities throughout the world.
German development of smart grid is not limited to the large-scale wind projects described
in the previous chapter. Rather, community-based renewable energy systems in Germany
continue to develop rapidly (NAW Staff 2013 ; NAW Staff 2014b ; NAW Staff 2014c ),
with robust participation from well-known companies such as Siemens and Vestas. And
the enthusiasm is not limited to commercial actors. Communities are eager for what
they perceive as an opportunity to generate value that stays onsite as increased income
for individual residents, increased profits for local companies, avoided fuel costs, and
increased taxes for local municipalities and states (NAW Staff 2014a ; Krause 2013 ) .
Despite the costs to utilities (see Chapter 4 ), the German experiment with
community-based energy has caught the attention of Southeast Asian nations, generating,
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