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Policy Solution




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 renewable source of energy.


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.


  • Climate:

    Cold, Hot/Dry, Hot/Humid, Temperate
  • Policy Levers:

    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:

    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 Types:

  • Sectors:

    Informal Settlements, Public Works

Case Studies


  • Target Beneficiaries:

    Heat-vulnerable communities, Residents
  • Phase of Impact:

    Risk reduction and mitigation
  • Metrics:

    Amount of energy provided by microgrid, Number of buildings served by microgrid


  • Intervention Scale:

    City, State/Province
  • Authority and Governance:

    City government, State/provincial government
  • Implementation Timeline:

    Medium-term (3-9 Years)
  • Implementation Stakeholders:

    CBOs, City government, Industry, State/provincial government
  • Funding Sources:

    Private investment, Public investment
  • Capacity to Act:



  • Cost-Benefit:

  • Public Good:

  • GHG Reduction:

  • Co-benefits (Climate/Environmental):

    Reduce greenhouse gas emissions
  • Co-benefits (Social/Economic):

    Build community capacity, Create jobs, Save on utilities