In December 2011, APEC Budget and Management Committee approved a project proposal under the title Piloting Smart/Micro Grid Projects for Insular and Remote Localities in APEC Economies (No. EWG 15/11A). The project was developed by the Russian Federation within the APEC New and Renewable Energy Technologies Expert Group (EGNRET) which is a sub-forum of the APEC Energy Working Group (EWG).

As APEC 2012 Chair, Russia has chosen the theme “Integrate to Grow, Innovate to Prosper”. One of the priority workstreams it will pursue is “Cooperating to foster innovative growth” where APEC members will be expected to contribute to the development of innovation strategies and policies, recognizing that fostering innovation is important to increased productivity and economic growth.

Microgrid may be seen as an extension of Smart Grid concept which has recently gained prominence in APEC work plans. In 2010, APEC Energy Ministers instructed EWG to start an APEC Smart Grid Initiative to evaluate the potential of smart grids to support the integration of intermittent renewable energies and energy management approaches in buildings and industry. Further, a Smart Grid pillar was incorporated into the APEC Energy Smart Communities Initiative.

Objectives of the project can be summarized as follows:

• To compile and share the experiences of APEC member economies in introducing new technologies for local energy systems including smart & micro grid technologies to support sustainable development of remote and isolated areas;
• To review microgrid concept application to the local energy systems with a view to to maximize the economic and environmental effect of tested and ready-to-use technologies;
• To provide a menu of options to APEC economies for piloting microgrid projects in the form of feasibility assessment methodologies, business scenario models and other specific recommendations.