Government & Military Smart Grids & Microgrids Symposium

Topical Report on DOE Smart Grid ARRA Microgrid Projects

Steve BossartSenior Energy Analyst

April 9, 2014 Arlington, VA

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Topics

DOE Topical Reports on Smart Grid ARRA Projects

Microgrids Motivations and Challenges

Results from DOE Microgrid Projects

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Topical Reports

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Topical Reports

Analyze results from SGIG, SGDP, and RDSI

1. Summarize results Report similarities, differences, and range of results Rationalize results Common best practices and lessons learned Connect investments with functions with benefits Connect smart grid with improved DER functionality

2. Educate

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Topical Reports• Microgrids• Dynamic Line Rating• Phasor Measurement Units• Distributed Energy Resources• Transactive Energy Communications• Conservation Voltage Reduction• PUC Filing Review• Consumer Behavior Studies• AMI/smart meter

– O&M– Peak load reduction– Volt/VAR optimization– Reliability

• Applications and Benefits of Smart Meter/AMI• Others?

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Microgrids

Definition, Concepts, Motivations, Benefits,

Technologies & Challenges

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Includes DER & Load

Defined electric boundaries

Single controllable entity

Connect and disconnect from grid

Grid-connected or island-mode

Microgrids & Smart Grids

Central Generation

Transmission Load

Distributed Generation E-Storage

Distribution

E-StorageDistributed Generation Load

Microgrid

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A Possible Future Distribution Architecture

Distribution Control

IndustrialMicrogrid

Utility Microgrid

Commercial Park Microgrid

Campus Microgrid

Municipal Microgrid

Military Microgrid

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Motivations for Microgrids• Reliability

– Impact on business– Grid reliability is worsening

• Resiliency – Ability to withstand challenges and continue operation – Value of microgrids during Superstorm Sandy

• Economic– Best energy mix is 80-89% from microgrid and 11-

20% from main grid• Sustainability/emissions reduction

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Why Microgrids?• Support integration of smart grid & renewables• Ease application of combined heat & power• Local generation reduces electricity losses• Disperses investments between central and local assets• Assist in reducing peak load• Serve critical loads • Provide local power quality & reliability• Promotes community involvement & energy independence• Provide local power during outages• Supports main grid

– Provide ancillary services to main grid– Manage variability of loads and renewables locally

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Cost of Electric Service

• $363 billion is annual electric bill in US (2013)

• $200 billion is paid by commercial and industrial firms

• Value of business losses is $80 - $150 billion annually (LBNL and EPRI studies)

• Interruption Cost Estimate Calculator (ICE)

http://icecalculator.com/

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Types of MicrogridsEnd userUtility distributionRemote/island systems

Size2 MW to 40 MW are economical – average and above cost of electricity (COE)< 1 MW are economical where COE is higher

- Hawaii, Alaska, Northeast

Portfolio MixBalance resources with high capital cost and low O&M with resources with low capital cost and high O&M

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Common Technologies in Microgrid Projects

Generation and Energy Storage Renewable energy (PV, wind) Distributed generation (microturbines, fuel cells, diesel) Combined heat and power Energy storage (thermal storage, batteries)

T&D Communications (wireless, PLC, internet) Advanced metering infrastructure & smart meters T&D equipment health monitors (transformers) Power inverters

Consumers Plug-in electric vehicles and charging stations (PHEV/PEV) Smart appliances & programmable thermostats (DR/DD) Home Area Networks & In-Home Displays Energy management systems

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Barriers to End User Microgrid Deployment• Very young in financing lifecycle

– Majority of microgrids involve third-party financing– Requires long-term service agreements (PPA)

• Regulatory environment has not been favorable– Microgrids must be “good citizens”– Conflict in allocation of utility costs to accommodate

microgrids• Value proposition may be unclear• Technology

– Optimize controls to improve value– Rapidly improving technologies (e.g., energy storage)

• Private wire laws

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DOE OE Microgrid Demonstration Program

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DOE-OE Primary Microgrid Field ProjectsRenewable and Distributed Systems Integration Projects

Chevron Energy Solutions - CERTS Microgrid DemoCity of Fort Collins - 3.5 MW Mixed Distributed ResourcesIllinois Institute of Technology - IIT Perfect Power DemoSan Diego Gas & Electric - Borrego Springs Microgrid

Smart Grid Demonstration Projects (ARRA)Battelle – Pacific Northwest Smart Grid DemonstrationLA Dept. of Water & Power Smart Grid Regional DemoSouthern California Edison Irvine Smart Grid Demo

Microgrid FOA released on January 31, 2014Proposals due April 28, 2014

- Advanced control of microgrids

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SDG&E

Battelle

SCE

Ft Collins

Chevron

IIT

LADWP

RDSI

SGDP

DOE OE Primary Microgrid Project Locations

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Common Objectives Among DOE’s Microgrid Projects

• Reduce peak load• Benefits of integrated DER (i.e., DG, DR, e-storage)• Ability to integrate variable renewables• Operate in “islanding” and “grid parallel” modes• Import and export capabilities• Two-way communications (frequency, verification, data latency)• Data management • Price-driven demand response• Dynamic feeder reconfiguration• Outage management (i.e., number, duration, and extent)• Volt/VAR/frequency control• Balance distributed and central control• Cyber security • Interconnection and interoperability• Defer generation, transmission, and distribution investments

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Smart Grid Demonstration Program (SGDP)

Demonstrate emerging technologies (including energy storage) and alternative architectures

Validate business models Address regulatory

and scalability issues Large projects: $20M-

$89M Small projects: $720K-$20M (Federal share)

4-year projects (average)

Selected ProjectsTotal Funding $1,647,637,256Total Federal Funding $620,027,274Total Number of Projects 32

Large Projects, 12 (37%)Small

Projects, 20 (63%)

Number of Projects

IOU, 41%

Municipal Utilities,

13%

Electric Co-ops, 3.0%

Technology/ Manufac-

turing Company,

34.0%

Non-Profit, 9%

SGDP Recipient Types

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San Diego Gas & Electric - Borrego Springs

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San Diego Gas and Electric Borrego Springs Microgrid

Distributed Energy Resources

2 X 1.8MW Diesel

Substation Energy Storage

1 x 500kW/1500kWh Li Ion Customer Energy

Management

Home Energy Storage

Community Energy Storage3 x 25kW/50kWh

Li Ion

Feeder Automation

Microgrid Controller

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Customer Energy ManagementCapable of Responding to Price and Reliability Events

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Field Demonstration Objectives

• Load reduction– Reduce peak load of feeders

• System reliability

• Integration and management of DERs– Leverage various DG and energy storage assets– Enable customers to be active participants in

managing their energy use

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Energy Storage Peak Shaving Demo

Main Grid

Total Load

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Island Demonstrations – 2/13/13

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CES PV Smoothing Operation

Red – PV power Blue – Impact of energy storage

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Real World Experience

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Damage to Power Infrastructure in Borrego Springs

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Contact InformationMerrill Smith & Dan TonProgram ManagersMicrogrid R&DU.S. Department of EnergyOffice of Energy Delivery and Energy Reliability

Merrill.smith@hq.doe.gov(202) 586-3646

Dan.ton@hq.doe.gov(202) 586-4618

Steve BossartSenior Energy AnalystU.S. Department of EnergyNational Energy Technology Lab

Steven.bossart@netl.doe.gov(304) 285-4643

Key Microgrid Resources:DOE OE www.oe.energy.govSmart Grid www.smartgrid.gov