Distributed Energy & Microgrid Solutions...“A microgrid is a group of interconnected loads and...

2018 Summer Forum

Distributed Energy & Microgrid

Solutions

July 2018

Where We Are

We Design & Build Infrastructure

End‐to‐End Capabilities  Planning, Design, Engineering, Procurement, Construction

Microgrid Definition

“A microgrid is a group of interconnected loads and

distributed energy resources within clearly defined

electrical boundaries that acts as a single controllable entity

with respect to the grid. A microgrid can connect and

disconnect from the grid to enable it to operate in both

grid-connected or island-mode.”- the U.S. Department of Energy

Microgrid Definition

“A microgrid is a group of interconnected loads and

distributed energy resources within clearly defined

electrical boundaries that acts as a single controllable entity

with respect to the grid. A microgrid can connect and

disconnect from the grid to enable it to operate in both

grid-connected or island-mode.”- the U.S. Department of Energy

Essence of a Microgrid

Microgrid

Point of Common Coupling

Point of Common Coupling

Load Balancing Controls

Load Balancing Controls

Dispatchable GenerationDispatchable Generation

Where Microgrids / Resiliency Live

Controls• ADR• SmartGrid

Generation• DER• Storage

Other Tech• Blockchain• Smart Cities

Historical View of Microgrids

► Strictly for Customer Energy Resilience

► Typically Diesel Generation Based

► Life Safety & Other Critical Functions

Microgrid Evolution

► Microgrids Now Contain Assets which are Installed Primarily for Utility-Tied Operation

► No Source of Energy is Out of Bounds

► Multiple Modes of Operation -Both Grid Tied and Islanded

Where We are Headed

► Microgrids with Resiliency as a Secondary Function

► Utilities Adopting New Rate Structures to Profit from Microgrid Capabilities

► Utility-Owned Storage Enabling Multi-Customer Microgrid Clusters

► Cyber Security is an Unending Challenge

► Dispatchable Generation

► Highly Elastic Load

► Dispatchable Reactive Power

► Energy Storage

How Microgrids May Benefit Utilities

Pilo

t /

Dem

ons

trat

ion

Pro

ject

s

• Typically Focused on Renewables & Storage

• Usually Designed to Demonstrate Everything in One Project

• Typically Very High Profile Projects St

rand

ed /

Iso

late

d C

usto

mer

s

• Commonly for Remote Communities

• Customers in Need of High Cost Infrastructure Changes

• Fossil-Fuel and Energy Storage Focused

Uti

lity

/ C

usto

mer

Par

tner

ship

s

• Typically Financially Driven

• Favors Non-Regulated Utility Entities

• Win/Win Focused Approach

Common Utility Microgrid Models

Push for Community Microgrids

► Backup to the Backup for First Responders, Critical Services, and Areas of Refuge

► Citizens Need Electricity for Safety and Security

► Growing Number of EVs

Federal Government Push for Resiliency

► Greater Dependence on Electronics at All Levels of Government

► Leaner Military has Resulted in a Great Deal of Theater Command and Control being Located in the US

► High Performance and Net Zero Buildings are Useless without Utility Power

Uti

lity

Pri

vati

zati

on

(UP

)

• DOD May Sell Utility Infrastructure Inside the Fence

• Purchaser Provides Utility Services for Up to 50 Years

• Additional Services May be Added to the Contract

Uti

lity

Ene

rgy

Serv

ices

Co

ntra

ct

(UE

SC)

• Open Only to Serving Utility Companies

• Financed by Utility Bill Savings

• Up to 25 Year Payback Allowed

Enh

ance

d U

se L

ease

(E

UL)

• Open to Any Entity

• Trades Use of Federal Land for Monetary or In-Kind Consideration

• Up to 75 Year Agreement

Federal Government Teaming Programs

Example #1

Schofield Generation Station

HECO Schofield Barracks Power Plant

► Enhanced Use Lease (EUL)► Partnership between the Army,

State of Hawaii, and Hawaiian Electric

► 50MW biofuel distributed generation for system stability, peaking

► Power plant maintains power to DOD operations in islanded mode when utility is lost

Benefits

► Emergency power directly to Army and National Guard units

► Centrally located generation plant for protection from tsunami

► Allows increased wind and solar in HECO grid

► Allows HECO to deactivate older, less efficient generating units

Utility Interaction

► Solar Chasing► Localized Resiliency► Black Start of Grid

Example #2

CMEEC & US Dept of NavySUBASE New London

SUBASE New London

► US Navy’s Primary East Coast Submarine Base

► Home Port for Both Los Angeles and Virginia Class Subs

► Originally Slated for Closure as Part of 2005 BRAC but Removed from Final List

CMEEC & State of Connecticut DEEP

► CT Dept of Energy & Environmental Protection Created Microgrid Grant Program in Response to Superstorm Sandy

► CT Municipal Electric Energy Cooperative Wants to Site 8MW of Natural Gas Fuel Cells in Groton

► SUBASE New London Needs Energy Resiliency but Lacks Funding to Execute on Its Own

New London Microgrid

► Enhanced Use Lease (EUL)► CMEEC Gets Land for Fuel Cells

and Interconnection to SUBASE’sElectrical System

► SUBASE Gets Fully Functional Microgrid Utilizing Existing Gas Turbine and Diesel Generators with New Fuel Cells to Repower Entire Base

Example #3

Minnesota Power & Camp Ripley

Camp Ripley

► 53,000 Acres► Training Center for Troops

& Police Worldwide► Potential Relocation Site

for State Government► Very Focused on Sustainability

MNP Solar Array

► MNP Needed Additional PV for Renewable Energy Portfolio Requirements

► 10MW (AC) Peak Output► Physically Located within Camp

Ripley► Connected Directly to MNP

Distribution System

EUL Terms

► Typically Solar Array Directly Supplies MNP’s 35kV Distribution System

► MNP will Isolate the Camp and Make the Solar Array Available to it During Extended Outages

► MNArNG is Currently Building a Microgrid to Integrate with This Resource

► MNArNG Receives RECs Equal to All Electricity Consumed by the Camp

Example #4

Gainesville Regional Utilities & UF Shands Cancer Hospital

GRU / Shands UF Cancer Hospital

► Combined Heat and Power Plant Owned and Operated by GRU on Shands Property

► Energy Services Outsourced as Design / Build / Own / Operate / Maintain

► Utilities Include Normal and Emerg Electricity, Steam, Chilled Water, Medical Gasses, Water, Non-Potable Water, & Comm

Shands / GRU South Energy Center

► Partnership Between Hospital and Municipal Utility

► Combined Heat & Power for Efficient Generation of Utilities

► Medical Professionals Don’t Have to Think About Power

Utility Interaction

► CHP Generators Dispatched per Heat Load and Grid-Wide Needs

► Power is Routinely Exported to Grid

► Proactive Islanding of Site When Storms Approach

Example #5

Thermal Energy Corporation & Texas Medical Center

Texas Sized Capacities

► Non-profit Corporation Owned by Texas Medical Center Members

► TECO Serves 18 Million Sq Ft of Space Within the 52 TMCMember Institutions

► 120,000 Ton Chilled Water Capacity (Provisionsfor 48,000 Tons in Future)

► 900,000 lb/hr Steam Generation► 48MW CHP Turbine► 16MW Diesel Backup

TECO / Texas Medical Center

► Operating 45MW CHP Turbine in Deregulated Market Within ERCOT

► Dynamically Changes Energy Mix Based on Market Conditions

► Thermal Storage Tank for Additional Flexibility

Thermal Energy Storage

► 8.8 Million Gallon Tank

► Thermal Capacity of 64kton-hr (~64MWhe)

► Charge/Discharge at 16kgpm (~8MW)

► Provides Immediate Ride Through for Chilled Water Loss

► Allows TECO to Peak Shave & Participate in Arbitrage

Utility Interaction

► No Direct, Formal Utility Interaction

► Turbine Utilized in ERCOT’s Day Ahead Market

► Ratio of Gas / Electricity Based on Real Time Pricing of Commodities

► TECO has Dispatched Generation and Load at CNP’s Request

Example ProjectsProject Generation Energy 

Storage

Utility Owned Assets

Life Safety Power

HECO Schofield Barracks 50MW Biodiesel

CMEEC / US Navy SUBASE New London

8MW Nat Gas Fuel Cell5MW Nat Gas Turbine

1.5MW Diesel

MNP / MNArNG Camp Ripley 10MW Solar6MW Diesel

GRU / Shands Cancer Center4MW Turbine6MW Gas Recip5MW Diesel

TECO Texas Medical Center 50MW Gas Turbine15MW Diesel

8MW / 64MWhChilled Water

Summary

► Microgrids Take Many Forms with Varied Ownership Models

► Utility Interaction is Driven by Customer Economics► Today’s Microgrids have Greater Capabilities than

Just kW

3 8

Customers are Continually Looking for Energy Resilience Options with or 

without Their Utility