MakingCleanLocalEnergyAccessibleNow

Community Microgrids:The Path to Resilience & Sustainability

Greg ThomsonDirector, Community Microgrid InitiativeClean Coalition415-845-3872 mobilegreg@clean-coalition.org

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Introduction: Energy is critical infrastructure

• Thisarchitectureiscostly,aging,inefficient, andahighlyvulnerablesecurityrisk

• Extremeweathereventsareoccurringmorefrequently,furtherdemonstratingthevulnerability andhighcost

• Cyberattacksareagrowingrisk,and anattackonacentralizedsystemcan affectmillions

• Toaccomplishboth localandnationalsecurity,wemustmovemorequicklytoanewsolution

Energyiscriticalinfrastructure.

Andyet,ourlegacy,centralizedenergyarchitecturecarriesmultiplecritical risks.

CommunityMicrogrids:Cleaner,MoreReliable&Resilient,MoreAffordable

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Source:OncorElectric DeliveryCompany

Traditional Microgrids focus on single customers

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Community Microgrids serve thousands of customers

Source:OncorElectric DeliveryCompany

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Community Microgrids = the Grid of the Future

Keyfeatures:

• Atargetedandcoordinated localgridareaservedbyoneormoredistribution substations

• HighpenetrationsoflocalrenewablesandotherDistributedEnergyResources(DER)suchasenergystorageanddemandresponse

• Stagedcapabilityforongoing renewables-drivenpowerbackupforcriticalandprioritized loadsacrossthegridarea

• Asolution thatcanbereadilyextendedthroughoutautilityserviceterritory– andreplicatedintoanyutilityserviceterritoryaround theworld

ACommunityMicrogridisanewapproachfordesigningandoperatingtheelectricgrid,stackedwithlocalrenewablesandstagedforresilience.

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Community Microgrids deliver Local Balancing

• LocalBalancingasasystemsolutionforthegridanalyzestheloadamountsandloadshapesateachsubstation

• Basedonthisanalysis,wecandeterminetheoptimalloadshape(flatter)andloadamount(lower)foreachsubstation,thusreducingsystemwidecostsandinefficiencies

• Basedonlocalresources,DERisintegratedintothesubstationplanspecificallytoachievethedesiredflatterloadshapeandreducedloadamounts,whilealsoaddinglocalresilienceandenergysecurityatcritical&desiredlocations

• Thesubstationbecomesacombinedload&generationecosystem– alocalbalancingsolution– thatreducesremotegridcostswhilesimultaneouslystrengtheningthelocalgrid

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Local Balancing offers multiple economic benefits

1. CostReductionsDuetoPeakManagement:Protectionagainstthehighcostofpeakenergy

2. CostReductionsDuetoDemandCharges:Protectionagainstadditionalfeeschargedbyutilitiesforpeaks

3. CostReductionsDuetoRateManagement:Protectionagainstfutureratechanges,e.g.eveningramp

4. CostReductionsDuetoInvestmentDeferrals:Deferralofsubstantialcostsforcentralizedinfrastructure

5. CostCertainty:Keepingratesandcostsconstantforconsumersaswellasgridoperators.

6. IncreasedEconomicInvestmentinCommunities

ThesixeconomicbenefitsofLocalBalancingviaCommunityMicrogrids

TheseCostIssuesAreCausedbyOurMostlyCentralizedSystem

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Local Balancing optimizations

OptimallocationsforPV,tohelpreducedaytimepeaksacrossthesystem:

1. Matchingloadtypes: e.g.higherloadsduringdaytimemeansbettermatchforPV

2. Robustfeederlocations:lessresistance(lowerOhms)meansmorecapacityforlocalgeneration

3. Avoidedcosts:servicetransformers,etc.

PVlocations&sizes

ResistanceinOhms

ExistingloadsizesFeedermapbasedonresistance(Ohms)

Source:TheCleanCoalition’s HuntersPointCommunity MicrogridProject

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Local Balancing optimizations

Theformulaforlowcarboncities:

Example:solaron25%ofC&Irooftops=25%+localannualenergyuse

ü Largestfinancialopportunity – largestDERsystemsü Largestrooftops&parking lots– mostgenerationü Largestdaytimeloads– matchingsolarü Largestutilitybillsincl.demandcharges– motivatedü Bestsolution forgrid– systempeakreduction, strong feedersü Mostcarbonemissionswithincities

Opportunity:VastlyUntappedCommercial&IndustrialEnergyAssets

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Local Balancing optimizations

Connectedfeedersenablessubstation-wideoptimizationsandbalancingacrossasubstation,suchas:

1. “Crossfeeding,”e.g.over-generationoncertainfeedersconsumedbyloadonotherfeederswithinthesubstationarea

2. OptimizingDERsuchasstorageanddemandresponseacrossthesubstationfeeders3. Optimizingsettings,e.g.loadtapchangers,acrossthesubstationfeeders

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Example: New York

Superstorm Sandy.And,NewYorkStateusespeakpoweronly100hourseachyear– costingratepayers

$1.7billiontoservelessthan1%ofthesystem’sneeds.

• Inresponse,onJan2,2018Gov.AndrewCuomoannouncedthatthestateislaunchinganinitiativetodeploy1,500MWofenergystorage by2025.

• Includesutilityprocurements, changesinutilityrates andwholesaleenergymarkets, andstorageforlargescalerenewable procurements

• TheMarcusGarveyaffordablehousingcomplexinBrooklyn,NYusesanewsolar+storage microgrid systemtocutcosts,improvegridreliability,andprovideresilient backuppower

• NYGreenBanktocommitatleast$200millionforstorage-relatedinvestments

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Example: New York

LongIslandCommunityMicrogridDesign

• TheLICMPwouldavoid$29-38Millionofnewtransmissioncapacityresulting inanetcostbenefit forallratepayers.

• ThecombinedSolar+StoragesystemwouldalsoreduceNYISOcapacitychargesby$6Millionthrough 2022,andatarateexceeding$1Millionannuallythereafter.

• Thesystemwouldalsoshiftwholesalepowerpurchasesfrompeaktooffpeakperiods, realizingnetenergysavingsof$2.5Millionby2022andmorethan$500,000annuallythereafter.

• Resiliencysavingsfromavoidedoutageswould exceed$330,000peroutageday

• ThesesavingswouldbereflectedinlowerelectricratesforallPSEG-LIutilitycustomers.

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Long Island Community Microgrid Design

EHGTSubstation

ES

Tier2Loads

S

Tier2Loads

Tier3Loads

Tier3Loads

9EU-4N7(Bank4)

Transm

ission

9EU-4N8(Bank4)

Diesel

Solar

Tier1:OVPumpStation

ES

F

Diesel

SolarSolar

U

MC2 ControlLevelFacility,autonomouscapableSubstation,autonomouscapableUtilityIndependentSystemOperators

F

ISO

SU

ISOOtherDiagramElements

AutonomouslyControllableMicrogridRelay/Switch(open,closed)Meter

Tier1:SpringsFireStation

ES

F

Diesel

SolarSolar

Tier1:BHPumpStation

ES

F

Diesel

SolarSolar

Solar

Solar

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Moving Forward: Sonoma Initiative

Area1:CoffeyParkandtheBicentennialCorridor– idealforCommunityMicrogrid

Fire-damagedarea

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Moving Forward: Sonoma Initiative

Area2:Larkfield andtheOldRedwoodHighwayCorridor– idealforCommunityMicrogrid

Fire-damagedarea

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Sonoma Community Microgrid Initiative

Objective:makeenergyabundant,affordable,resilient,andsustainable

1)Re-buildfire-destroyedareaswithhighlevelsofresilienceandsustainability inboththebuildingstockandthegrid,enablingamodern,distributed,andcarbonfreesystemthatdeliverssubstantialeconomic,environmental,andresiliencebenefits.

2)Establishablueprintforre-buildingdisaster-destroyedareasinatimelyandcost-effectivemannerthatalsomaximizestheeconomicandresiliencevalueofenergyasacriticalresourcetoratepayers,propertyowners,andmunicipalities.

3)Provideamodelforoperatingamoderndistributiongridcoveringanentiresubstationareathatincorporatesoptimaldistributedenergyresources,cost-effectivelocalbalancing,fullinteractionwiththetransmissionsystem,andlocalenergymarkets– withresultingbenefitsacrossbothgridoperationsandeconomics.

4)Ensurethatbuildingcodesareadvancedtoachievemoreresilient,safer,andcleanerbuildingstockandcommunities.