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On sustainable design and management of microgrids
Ratnesh Sharma, PhD, PE NEC Laboratories America
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Economic Social
Environmental
Three Pillars of Sustainability
Cost of ownership
Emissions
Planet
Profit Lifestyle Jobs People
Adoption limited Cost limited
Resource limited Financial Capital
Human Capital
Natural Capital
Ref. Andrew Savitz (partially)
NEC Laboratories America Inc., Energy Management Dept., CuperDno 2
Business Models
& Processes
People &
Culture
Science &
Technology
Three Pillars of Sustainable Business
NEC Laboratories America Inc., Energy Management Dept., CuperDno 3
environment
Microgrids “A microgrid is a group of interconnected loads distributed energy resources within clearly defined boundaries that act as a single controllable enDty 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.” Microgrid Exchange Group, Oct 2010
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controller
Distributed Energy Resources
Energy Storage
Microgrids – Ac,ve Distribu,on Par,cipants
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mgmt/ctrl interface
mgmt/ctrl interface
mgmt/ctrl interface
Ref. EPRI
Decentralized/Centralized operation
LMP/ACE based control
RPS goal-based mgmt
Market-driven mgmt
Energy Management System
Business Models & Processes
• Service paradigm for transacDon • Risk-‐based pricing • Pricing mechanisms (based on source and purpose)
– Renewables – Reserves – Arbitrage – Ancillary services – ReacDve Power
• Markets for control and management • ValuaDon of demand
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sector-based pricing is based on assumptions that may not be
true today
Microgrid design/mgmt (technology)
• State Management – Ease of characterizaDon – Managing risks/uncertainDes
• Network management – Reconfigurable power flows
• Device management – MulDfuncDonal – Reconfigurable
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End-‐use customer (people & culture)
• Management of risks is essenDal • Consumers and Providers are swappable • Energy usage paUerns show diversity • Configure to end-‐user needs • SaDsfy provider requirements • Timescales are important • Advanced control paradigms are needed
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Summary
• Sustainable microgrids can help us address the challenges of economy, emissions and efficiency in an interconnected energy infrastructure.
• Business models and technology are evolving to meet the needs of the end-‐users and providers.
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Supply-‐side Management of Microgrids
Peak Off-Peak
Islanded (Outage) Grid-tied (TOU)
32% cost saving compared to schedule-
based operation
13% cost saving compared to peak-shaving operation
A
sustainable business
Market Driven
Opera,on
Future Work
Tiered management : Advisory layer Real-time layer
Scalable solution for new market conditions
• Utility-scale applications, • Decentralized and service-based management
Pow
er (W
) Out
age
Differen,a,on
Economically Viable
