Executive Summary Microgrids are gaining in popularity because of their adaptability and flexible expandability, the need for increased electricity reliability, the increased affordability of distributed energy resources (DERs) and grid intelligence devices, goals to reduce greenhouse gas emissions, and other factors. The U.S. Department of Energy commissioned the National Renewable Energy Laboratory to complete a microgrid cost study and develop a microgrid cost model. The goal is to elucidate

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... the variables that have the highest impact on costs as well as potential areas for cost reduction. This study consists of two phases. Phase I comprises the collection and analysis of data from microgrid projects built in the United States and is the subject of this report. In Phase II, NREL will assess current barriers facing the industry and identify potential solutions with help from industry representatives. Microgrid components are classified as follows in the form used to collect cost data from industry representatives for NREL's microgrid cost database: • DERs: diesel, natural gas, combined heat and power (CHP), biofuel, solar photovoltaic (PV), wind, and fuel cell and energy storage • Microgrid controller: primary, secondary, or tertiary • Additional infrastructure: distribution system infrastructure, information technology communications upgrades, metering, etc.