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In the ever-evolving tapestry of modern electricity grids, microgrids emerge as dynamic and resilient contributors, reshaping the narrative of energy distribution. The inception of distributed energy resource grid architecture and microgrids can be traced to the landmark Public Utility Regulatory Policies Act (PURPA) of 1978. Born out of the energy crisis in the 1970s, this groundbreaking legislation aimed to steer dependence away from oil toward renewables, fostering energy conservation and sustainable practices. Before this pivotal act, electricity utilities maintained a vertical integration monopoly over generation, transmission, and distribution ( Figure 1 ). The act revolutionized this entrenched model, mandating nondiscriminatory grid access for small power producers and laying the foundation for both a decentralized energy landscape and the rise of microgrids ( Figure 2 ).
Mukesh Nagpal (Sat,) studied this question.