Policy Solution

Microgrids

Incentive

Overview:

Summary: During extreme heat waves, electric grids are often pushed to their limits because of increased demand for mechanical cooling causing power outages. Microgrids are decentralized electricity grids that can supply energy to the main grid or directly to communities. Microgrids help reduce strain on the main grid while providing a reliable and renwable source of energy.

Implementation: Provide incentives like tax credits to support research and development, interconnections, and installation of microgrids.

Considerations for Use: Microgrids need to be maintained regularly to protect equipment. Consider partnering with CBOs to explore different ownership and operational models.

  • Policy Levers: The mechanism municipalities can use to actualize the intervention. These policy levers will likely be used in combination with each other.

    IncentiveFinancial and non-financial incentives to encourage stakeholders to implement heat risk reduction and preparedness solutions, including rebates, tax credits, expedited permitting, development/zoning bonuses, and more.
  • Trigger Points: Opportunities for municipalities to implement risk reduction and preparedness interventions based on the policy lever, building on the United Nations Environment Programme triggers used in the Beating the Heat handbook (2021).

    City planning processesIncludes city initiatives such as the development of climate action plan, pathway to zero-energy, master plan, transit plan, energy mapping etc.
  • Intervention Type:
    Planning/Policy
  • Sectors:
    Informal Settlements, Public Works,

    Impact:

  • Phase of Impact:
    Risk reduction and mitigation
  • Metrics:
    Amount of energy provided by microgrid; Number of buildings served by microgrid

Implementation:

  • Implementation Timeline:
    Medium-term (3-9 Years)
  • Capacity to Act:
    High

    Benefits:

  • Cost-Benefit:
    High: high-cost relative to the heat risk reduction impact
  • Public Good:
    High: high potential benefits
  • GHG Reduction:
    High: high potential benefits