the role of microgrids in grid modernization initiativesin canada, 2016 source: canmetenergy. smart...
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Sima Seidi
Principal Consultant, Microgrids and Distributed Energy Resources
Tetra Tech
September 2017
The Role of Microgrids in Grid Modernization
Initiatives
Contents
Necessity of Grid Modernization
Why Microgrids?
Technical Drivers
Economic Drivers
Challenges
Microgrid Market
Successful Microgrid Projects
Tetra Tech and Microgrids
Necessity of Grid Modernization
Traditional Utility Challenges Manage aging infrastructure and improve efficiency and resilience. In Canada: most of the
existing infrastructure or grid was built before 1980
Manage costs. In Canada: 20% retail electricity price increase from 2013 to 2035
Slowed economic growth. In Canada (National Energy Board, 2016):
1% per year generation growth 2014 to 2040
Real GDP growth of ~1.7% per year 2014 to 2040
Primary demand increase at an average annual rate of 0.7 per cent over the projection period
Integrate renewables, reduce GHGs
Enable customer participation
Canadian Grid Upgrade Requirements
Distribution: ~ $ 70 billion
This is where Smart Grid technologies offer most
value
Source: NRCan, 2014
Smart Grid Benefits in Ontario
Navigant Consulting:
“Smart Grid investments in Ontario, if continue to be made through 2035, can deliver a net benefit of $6.3 B” Source: Ontario Smart Grid Assessment and Roadmap,
2015
Smart Grid Deployment in Canada, 2016
Source: CanmetENERGY
Smart Grid Investment in Canada(2005-2014) 90% of the government
funding of Smart Grid projects in Canada has gone towards:
Energy Storage
Demand Management
Microgrids
Grid Monitoring and Automation
Source: CanmetENERGY
Why Microgrids?
Microgrids Next market iteration of solar
Microgrid market: grown eight-fold from 2010 to 2015
In 2014, Navigant Research predicted $20 B annual microgrid market revenue globally by 2020
Microgrids: Technical Drivers Distributed Generation
Energy Bill Saving
Power Quality and Reliability
Islanding for Higher Resilience
Renewables and Energy Storage Coupling Cope with variable nature of renewables
Cope with technical challenges of high renewable penetration
Advanced Local Control Cost minimization
Asset utilization
Microgrids: Technical Drivers Higher Efficiency: Combined Heat and Power (CHP)
Grid Expansion Deferral
Ancillary Services and Grid Support
Demand Response
Self Healing and Cyber Security
Enabling Smart Grid Technologies
Promoting Local Economies
Economic Drivers: Falling Renewable Energy CostsBloomberg Energy Finance (2017):
Solar already rivals the cost of new coal power plants in Germany and U.S. and by 2021 will do so in quick-growing markets such as China and India.
By 2040 the cost of offshore wind farms will slide 71%
By 2040, wind and solar will make up almost half of the world’s installed generation capacity (12% now), and 34% of all the power generated (5% now).
By 2040, 72% of global power generation investment will be in new wind and solar PV plants.
Economic Drivers: Falling Battery Storage Cost
Battery costs have declined 40 percent since 2014
Bloomberg Energy Finance: utility scale battery storage prices will fall below $500 per kWh by 2021
Economic Drivers: Power Quality and ReliabilityBC Hydro (from Canadian Electricity Association):
Poor power quality is estimated to cost Canadianbusinesses about $1.2 billion annually in lostproduction
Lawrence Berkeley National Laboratory (2006):
Economic cost of power interruptions to U.S.electricity consumers is $79 billion annually.
Economic Cost of Power Interruptions to US Consumers – Source: Lawrence Berkeley National Laboratory
Economic Drivers: Energy ResiliencyAvoided Costs of Major Power Outages
Hurricane Sandy Blackout:
More than 8 million homes (even rooftop PV owners) lost power for more than 2 weeks and up to 60% of backup diesel generators failed for critical facilities.
Princeton University Microgrid (CHP and solar PV) energized the campus for three days
South Oaks Hospital Microgrid (CHP and solar PV) operational for two weeks
Cost: $65 billion in damage in the U.S.Powerless New York During Hurricane
Sandy
Economic Drivers Grid Upgrade Deferral
US grid: $2.1 trillion to modernize and prepare for renewable energy systems by 2035 (IEA)
Other Revenue Streams
Ancillary Services
Demand Response
Peak Shaving and Load Shifting
Government Incentives
NY Prize, Connecticut Microgrid Program, CHP Incentives etc.
Challenges
Government Policy
Regulation
Business Models
Contracting and Back-Feeding
Financing
Interconnection
Microgrid Market Navigant Research:
As of 2Q 2017, 1842 project entries globally, representing 19,279.4 MW of operating, under development, and proposed microgrid capacity.
Remote projects lead
North America No. 1 in operational capacity
Asia Pacific leads the market for under development and proposed capacity
GTM: US Installed Microgrid Capacity to Grow 115% and Reach 4.3GW Over the Next 5 Years
Operational US Microgrid Capacity, 2016, GTM
Successful Microgrid Projects
Co-op City Community MicrogridBronx, New York
One of the largest co-operative housing projects worldwide: 35 high-rise buildings
60,000 residents
40 MW Steam Turbine (CHP) provides electricity, heating and cooling since 2007
Estimates savings of $ 15 M per year: payback in 5 years
Powered residents during Sandy while neighboring areas sat in darkness
Princeton University Campus Microgrid Serves electricity, heating and cooling to 180 buildings
Participates in ancillary markets including voltage and frequency regulation, and Demand Response
Acts as a place of refuge during disasters
Natural Gas CHP Plant: 15 MW Gas Turbine and 4.5 MW Solar Farm
Annual energy savings of $ 5.7 M combined with energy efficiency programs since 2008
Remained operational during Sandy
Kauai Island Microgrid, Hawaii Nearly 95% of the island’s daytime load is
supplied by utility-scale and rooftop solar on sunniest days
PPA between Tesla and Kauai Island Utility Cooperative (KIUC) contracted in 2017:
Solar Power System: 13 MW
Utility Scale Battery System: 13 MW, 52 MWh
Generation shifting and ramp control
Reduce fossil fuel usage by 1.6 million gallons per year.
Remote Microgrids in Underdeveloped Areas Community level solar microgrids from Nepal
and India to Africa
USAID Power Africa Program, 2013-present
World Bank’s Lighting Africa Program, 2009-present
Indonesia Clean Energy Development Project, USAID program in Indonesia and Vietnam, 2011-2020
Brooklyn Microgrid: Blockchain TransActive Grid: LO3 Energy and ConsenSys
Goal: 1,000 participants (prosumers) by 2018
Residential solar/storage systems with peer-to-peer trading system built on blockchain
Offers the chance to bypass utility
Those without solar panels can purchase power credits from neighbors
Local DER and energy generation: benefits going back to the community
Tetra Tech and MicrogridsCanada and United States:
NY Prize Community Microgrid Competition: technical advisory to New York Governor’s Office of Strom Recovery (GOSR), ongoing
Community Microgrid project in Ontario, ongoing
Dugway Proving Ground Microgrid, Utah, 2016
Tetra Tech and MicrogridsInternational:
Power Africa Transactions and Reforms Program, USAID Power Africa Initiative, 2014-2017
Solar PV Microgrid for Rural Households, USAID, Cacahuatepec Village in Mexico, 2005-2008
Preparing the Rural Renewable Energy Development Project, Asian Development Bank, Bhutan, 2009-2011
Indonesia Clean Energy Development Project, USAID program in Indonesia and Vietnam, 2011-2020
Improving Health Facility Infrastructure, USAID program in Haiti and Guyana, 2009-2015
THANK YOU
Contact:Sima Seidi, Ph.D., Principal Consultant, Microgrids and Distributed Energy Resources
Tetra Tech, Toronto, Ontario
sima.seidi@tetratech.com
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