8/24/2011 1National Academy of Engineering - BMED

December 2008www.oe.energy.govU.S. Department of Energy – 1000 Independence Ave., SW Washington, DC 20585

DOE Goal of Microgrid Development and “Setting the Stage” for the WorkshopPresented at the DOE Microgrid Workshop

Dan Ton and Merrill Smith

Smart Grid R&D Program

August 30-31, 2011

December 2008

Outline

DOE/OE and Its Smart Grid R&D Program

Ongoing Microgrid Projects

Planning for Microgrid R&D Initiative

Setting the Stage for the Workshop

2

December 2008

OE’s Mission to Lead National Efforts in Grid Modernization…

(Dollars in Thousands)

FY 2010 FY 2011 FY 2012

Appropriation Operating Plan Planning

Research and Development

Clean Energy Transmission and Reliability 37,373 26,000 48,000

Smart Grid Research and Development 31,541 29,000 29,000

Smart Grid Research and Development 31,541 23,000 23,000

Power Electronics 0 6,000 6,000

Energy Storage 13,608 20,000 25,000

Cyber Security for Energy Delivery Systems 38,880 30,000 30,000

SUBTOTAL Research and Development 121,402 105,000 132,000

Permitting, Siting, and Analysis 6,400 6,000 6,300

Infrastructure Security and Energy Restoration 6,187 6,100 6,200

Program Direction 21,420 27,610 28,000

Congressionally Directed Activities 13,075 0 0

TOTAL 168,484 144,710 172,500

3

December 2008

Dollars in Thousands

FY 2011 FY 2012 Planning

23,000 23,000

Smart Grid Research and Development

Promotes the development of anefficient, fully integrated “smart”grid through the adaptation andintegration of digital informationand communication technologiesinto the Nation’s electricitydelivery system.

R&D Areas Guided by MYPP* on:

› Renewable & distributed systems integration

› Microgrids

› Integration of Plug-in Electric Vehicles (PEVs)

› Modeling & Analysis

› Advanced communications & controls

› Foundational standards and best practices

› Demand response and consumer acceptance

4

* MYPP available at:

http://www.smartgrid.gov/sites/default/files/oe_mypp.pdf

December 2008

MYPP Implementations via Funding

Opportunity Announcement (FOA)

5

FY10 Smart Grid RD&D FOA addressing three high-priority

MYPP topic areas

1. Integrated Distribution Management Systems for

Distribution Automation

2. Advanced Sensing, Monitoring, and Control Technologies

for Enhanced Asset Utilization and Grid Reliability

3. Voltage Regulation and Overvoltage Protection for High

Penetration of Renewable Generation

Five Awards announced in November 2010 for $30M+

in total public-private investment (DOE share: $19M+)

December 2008

FY 2011 Electric Charging Infrastructure

for PEV (DE-FOA-0000554) RD&D to significantly reduce charging infrastructure cost to support the goal of millions of PEVs by 2020

Proposal review/selection in progress

Smart Grid Consumer EngagementCreate and operate sustainable community, State, and regional consumer engagement programs

FY11-12 Smart Grid R&D Funding Opportunity Areas

6

FY 2012-2013 Microgrid Development

RD&D to reach 2020 targets on costs, reliability, system energy efficiencies, and emissions

Industry workshop on August 30-31, 2011, to define R&D activities

Renewable Systems Integration TBD

December 2008

Ongoing Microgrid Projects

7

December 2008

Renewable and Distributed Systems Integration (RDSI)

0%

20%

40%

60%

80%

100%

0% 20% 40% 60% 80% 100%

Percentage of YearL

oa

d F

acto

r (

%)

Electric Generation Distribution Asset

5%

5% = ~400 hrs/yr

75%

90%

Lower Peak Demand Reduces Infrastructure Investments

25% of distribution & 10% of generation assets (transmission is similar), worth 100s of billions of US dollars, are needed less than 400 hrs/year!

9 demonstration projects in 8 states to integrate use of distributed resources to provide power during peak load periods (minimum of 15% reduction in peak load on distribution feeder or substation) and for other functions/services

Projects are either microgrids or are developing technologies that will advance microgrids

Systems must be capable of operating in both grid parallel and islanded modes

$55 million of DOE funds over five years (total value of awards will exceed $100 million, including participant cost share)

8

December 2008

RDSI Projects

Chevron Energy Solutions—CERTS Microgrid Demo at the Santa Rita Jail - large-scale energy storage, PV, fuel cell

SDG&E—Beach Cities Microgrid - demand response, storage, outage management system, automated distribution control, AMI

U of HI—Transmission Congestion Relief, Maui - intermittency management system, demand response, wind turbines, dynamic simulations modeling

UNLV—“Hybrid” Homes - Dramatic Residential Demand Reduction in the Desert Southwest - PV, advanced meters, in-home dashboard, automated demand response, storage

ATK Space System—Powering a Defense Company with Renewables - Hydro-turbines, compressed air storage, solar thermal, wind turbines, waste heat recovery system

City of Fort Collins—Mixed Distributed Resources - PV, bio-fuel CHP, thermal storage, fuel cell, microturbines, PHEV, demand response

Illinois Institute of Technology—The Perfect Power Prototype - advanced meters, intelligent system controller, gas fired generators, demand response controller, uninterruptable power supply, energy storage

Allegheny Power—WV Super Circuit Demonstrating the Reliability Benefits of Dynamic Feeder Reconfiguration -biodiesel combustion engine, microturbine, PV, energy storage, advanced wireless communications, dynamic feeder reconfiguration

Con Ed—Interoperability of Demand Response Resources - demand response, PHEVs, fuel cell, combustion engines, intelligent islanding, dynamic reconfiguration, and fault isolation 9

December 2008

Role of Microgrids in Facilitating Integration of Distributed Renewable Electricity Sources

Objective

Technical Scope

Expand CERTS Microgrid concepts to address system integration challenges presented by need to accommodate intermittent, distributed renewable electricity sources within utility distribution systems.

The CERTS Microgrid Test Bed is being expanded through the addition of new hardware elements: (1) a CERTS compatible conventional synchronous generator; (2) a more flexible energy management system for dispatch; (3) intelligent load shedding; (4) a commercially available, stand-alone electricity storage device with CERTS controls; and (5) a PV emulator and inverter with CERTS controls.

The concepts are explored initially through detailed simulation and bench-scale tests at UW and then demonstrated at full-scale using the CERTS Microgrid Test Bed operated by American Electric Power in Groveport, OH. 10

December 2008

Renewable Systems Integration

Objective

Technical Scope

(Insert graphic here)

Provide algorithms, controls, software, analysis, and international exchanges that facilitate and accelerate the development and deployment of microgrids, and

Commercialize the controls and software

– Mathematical models for controls and software for microgrids

– Web-optimization using a software as a service (SaaS)

– Consider key technologies as heat pumps, CHP, storage, electric vehicles

– Organize meetings, microgrid symposiums, international conferences,and collaborate with international researchers

11

December 2008

Energy Surety Microgrids

Objective

Technical Scope

Use risk-based energy assessment to develop microgrids that:

– Can use distributed and renewable energy resources

– Will improve site energy infrastructure safety, security, and reliability

– Enhance critical mission assurance at military bases

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13 Bases evaluated – 30 microgrid designs

Use military bases to develop approaches for implementing high reliability microgrids because of immediate needs, interest, and funding to implement

Use cost/performance data and lessons learned from military efforts to accelerate commercial implementation

December 2008

SPIDERS: Smart Power Infrastructure Demonstration for Energy, Reliability, and Security

Objective

Technical ScopeDoD, DOE, and DHS collaborate to design and implement three separate microgrids supporting

critical loads at DoD bases. Each one is slightly larger and more complex in scope than the previous.

The sites include:

– Joint Base Pearl Harbor Hickam

– Fort Carson

– Camp Smith

A key part of the project is the standardization of the design approach, contracting, installation, security, and operation of these microgrids to support future applications. 13

Improve reliability for mission-critical loads by connecting generators on a microgrid using existing distribution networks.

Reduce reliance on fuel for diesel power by using renewable energy sources during outages.

Increase efficiency of backup generators through coordinated operation on the microgrid.

Reduce operational risk for energy systems through a strong cyber security for the microgrid.

Enable flexible electrical energy by building microgrid architectures that can selectively energize loads during extended outages.

December 2008

Demand Side Management

(NREL, ORNL)• Energy Efficiency Technologies

• Dynamic Voltage Regulators

• Smart Sockets

• Automated Load Shedding Energy Storage

(NREL)• Vehicle-to-Grid

• Hydrogen

• Batteries

Renewable Integration

(NREL)• Photovoltaic

• Wind

• Fuel Cells

• Biofuel

Cyber Security (INL)• Virtual Secure Enclave

• Live Action Network

• Secure Distributed Monitors

• Situational Awareness

Dynamic Control

(SNL, ORNL)• Load Control Systems

• Islanding Control System

• Energy Management System

• Seamless Grid

Synchronization

Microgrid (SNL)• Advanced Metering Infrastructure

• Substation & Distribution Automation

• Two-Way Communications & Control

• Adaptive Relaying

Energy Secure Installation

SPIDERS National Lab Team

Assistant

Technical Manager

(SNL)

Operational Test Agency

(PNNL)

Assistant

Transition Manager

(PNNL)

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December 2008

Planning for Microgrid R&D Initiative

15

December 2008

R&D Initiative Justifications

Defined cost/performance targets within a time frame so as to make the U.S. secure and globally competitive

Transformational R&D

DOE role, value added, and funding leveraged by the private sector

Significance, impact, and uniqueness of the project

16

December 2008

DOE Planning Process for Microgrid R&D

Envisioning

Jointly with national lab team (LBNL, NREL, ORNL, SNL) formulated microgrid technical performance/cost targets and identified key microgrid components where R&D would impact

Conducted preliminary analysis on baseline and needed R&D

Engaging

Workshop to seek input from microgrid developers, experts, and users to further define, for each priority R&D area identified by the group:

― Baseline performance

― End goals (technical/cost targets) and why (significance)

― Actionable plan to reach the targets (scope, schedule, participants, milestones)

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December 2008

OE’s 2020 Target for Microgrid

OE’s Microgrid Initiative to develop commercial scale* microgrid systems capable of reducing outage time to required loads by >98% at a cost comparable to non-integrated baseline solutions**, while reducing emissions by >20% and improving system energy efficiencies by >20%, by 2020.

* Commercial scale refers to any systems with a capacity of <10MW that meet the definition of a microgrid by the Microgrid Exchange Group

**Non-integrated baseline solutions are UPS plus diesel genset

Measurable & Trendable Targets over Baseline Performance18

December 2008

Smart Grid R&D Program Goals

Self-healing Distribution Grid for Improved Reliability

Integration of DER/DR/PEVfor Improved System Efficiency

Long-term Goals

2020 Targets

>98% reduction in outage time of required loads

20% load-factorimprovement

20% SAIDI reductionin distribution outages

2020 Target

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December 2008

Major Cost Components of a Microgrid

Energy

Resources

(30-40%)

Switchgear

Protection &

Transformers

(20%)

SG

Communications

& Controls

(10-20%)

Site

Engineering &

Construction

(30%)

Operations &

Markets

Energy storage;

controllable

loads; DG;

renewable

generation; CHP

Switchgear

utility

interconnection

(incl. low-cost

switches,

interconnection

study,

protection

schemes, and

protection

studies)

Standards &

protocols;

Control &

protection

technologies;

Real-time signals

(openADR); Local

SCADA access;

Power electronics

(Smart Inverters,

DC bus)

A&E (System

design and

analysis);

System

integration,

testing, &

validation

O&M; Market

(utility)

acceptance

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December 2008

DOE Microgrid Workshop Planning Committee

Planning Committee Roster

SNL: Jason Stamp; Mike Hightower; Abbas Akhil

ORNL: Tom King

LBNL: Joe Eto; Chris Marnay

NREL: Ben Kroposki; Greg Martin

E2RG: Paul Wang

DOE (Lead): Dan Ton; Merrill Smith

Slide 21

Outcome and Product

Define actionable plan for the DOE to consider implementing

Draft workshop report planned for your input in October

Publish final workshop report in November as a guide for the DOE FOA topic areas

Committee Functions

Defined purpose with supporting agenda and session topics

Nominated experts and practitioners for DOE to invite

Defined workshop outcome and product

21

December 2008

Microgrid R&D Initiative Development Process Leading to R&D Execution

22

R&D Execution

December 2008

Setting the Stage for the Workshop

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December 2008

Workshop Breakout Groups

Group 1 Technical Sessions(Lead: Tom King, ORNL)

Switch technologies

Control and protection technologies

Inverters

Group 2 Technical Sessions(Lead: Jason Stamp, Sandia)

Standards and protocols

System design and economic analysis

Systems integration

Technical Session Discussion Checklist

Consensus on prioritized R&D Topic Areas

Definition of the following, for each R&D area in a priority order:

Baseline

Targets and their significance

Actionable plan for reaching the targets

Election of spokesperson for report-out the next day24

December 2008

Technical Session Ground Rules

All participants to equally share session discussion time

No long speech or dominance of speaking time by any individual

Allow one person to speak at a time

Stay with your breakout group throughout the three technical sessions

Engage in discussions

Turn cell phones off, or turn to mute

Start and end on time

Enjoy the process

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December 2008

Contact Information

For more Smart Grid information:

OE: www.oe.energy.gov

Smart Grid: www.smartgrid.gov

Smart Grid Information Clearinghouse: www.sgiclearinghouse.org26

Smart Grid R&D ProgramOffice of Electricity Delivery and Energy ReliabilityU.S. Department of Energy

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

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