Sustainability of Distributed Energy Networks

This paper links the UN Sustainable Development Goal (SDG) of “Affordable and Clean Energy” (nr. 7) to “Partnerships” (nr. 17). These partnerships refer to stakeholders’ participation in renewable energy networks. Given that renewable energy is environmentally superior to fossil fuels and the participatory approaches foster well-being, this paper addresses economic sustainability. Therefore, the costs and benefits of electric power on the grid are compared to the distributed power networks in the EU, the USA, and India. Firstly, the present (dis)incentives for distributed energy networks are identified, concerning power generation, transmission, distribution, and consumption on the grid. Second, the costs of mini-grids and microgrids are assessed based on the existing literature. Thirdly, the benefits of such networks for individual and collective interests of producers and consumers of power are indicated. Although these partnerships are often as yet costly, incorporating those benefits into electricity prices enables price parity with the grid. Policies that pursue those benefits foster the realization of SDGs and improve the balance on the grid.