Hawaiian Islands Energy Systems Transitioning to Renewable Energy

Isolated Power Systems, Connect 2015 Richard Rocheleau

Hawaii Natural Energy Institute

School of Ocean and Earth Science and Technology

University of Hawaii at Manoa

18 November, 2015

2 2

Hawaii Today

Primary energy: 90% fossil fuel, most of it crude oil refined

Electricity: 80% fossil fuel, most of it refined crude oil

ELECTRICITY 32%

JET FUEL 34%

GASOLINE/ 27%

MARINE FUEL

OTHER 7%

3

Crude Oil Supplies to Hawaii

100% of the

crude oil for

the State is

imported

Hawaii Department of

Business, Economic

Development &

Tourism

4

Approximately 75% of oil from foreign countries

Energy Insecurity

Oil Drives Electricity Costs and Volatility

Source: Hawaiian Electric Company

Hawaii ranks #1 in U.S. electric energy costs: 46.4 cents/kWh Molokai 46.3 cents/kWh Lanai 42.2 cents/kWh Hawaii 37.8 cents/kWh Maui 34.6 cents/kWh Oahu (Avg. residential rates for 2013)

11 - 12 cents/kWh U.S. avg.

High Cost of Service

5

Fuel costs make up more than 70 percent of

the typical bill

A Paradigm Shift Is Required Energy insecurity > Energy security

Economic drain > Economic engine

Price volatility > Price stability

Environmental harm > Environmental compatibility

6

How do we change our energy system at reasonable cost

without reducing reliability and stability of the system?

Opportunity for Sustainability

in Hawaii is Abundant

7 Renewable Energy as the Driver for New Energy System

Hawaii has Aggressive Clean Energy Goals

• Highest RPS target in the

United States (45% by 2030)

• State and federal tax incentives

• Net metering

• Feed in tariffs

Strong Policies

8

Hawaii Clean Energy Initiative (HCEI)

The State of Hawaii, US DOE, and local utility launched HCEI in January 2008 to transform Hawaii to a 70% clean energy economy by 2030:

• Increasing Hawaii’s economic and energy security

• Fostering and demonstrating Hawaii’s innovation

• Developing Hawaii’s workforce of the future

• Becoming a clean energy model for the U.S. and the world

2008

2009 - 2015 Policy Evolution Reflecting

Market Realities

• New RPS targets – 100% by 2045

• Changes to net metering

• Community solar

• Changes to tax incentives

Isolated Grids Complicates Renewable Integration

1300MW

80MW

5MW

270MW

197MW

• Resources not aligned with

population

• Wind and solar dominating

development (nameplate capacity)

5MW

• Grid capacity from 5 to 1300MW

• Over 70% of electricity use is on

Oahu

Issues

• System: Reserves, curtailment, reliability, stability

• Distribution: Power quality, voltage transients

• Cost: Increased system complexity and operations

System and distributed resources have to work together

4

Hawaii Natural Energy Institute (HNEI)

• Organized Research Unit in School of Ocean and Earth Science

and Technology, largest graduate education and research

organization at University of Hawaii

• 2007 - Established in statute to work with state government organizations to reduce dependence of fossil fuels

• Diverse staff (90)- engineers, scientists, lawyers, postdocs, students

• Primary funding from

• Dept of Defense

• US Dept of Energy

• State of Hawaii

Grid Systems Technologies Advanced Research

Team

11

• Interdisciplinary team of faculty, professionals, post-doctoral fellows and

students at HNEI (includes over 100 years cumulative utility and regulatory

experience)

• Serves to integrate HNEI efforts across other technology areas: biomass and

biofuels, fuel cells and hydrogen, energy efficiency, renewable power

generation

• Expertise includes grid modeling and analysis; smart grid and micro-grid

R&D; application of grid storage; power system planning and operations;

energy policy

• Strong partnerships with Hawaii, national and international organizations

(especially Asia-Pacific)

Established team to develop, test and evaluate advanced grid architectures,

enabling policies, and new technologies and methods for effective integration

of renewable energy resources and power system optimization

HAWAII ISLAND INTEGRATION STUDIES

System and distribution level analysis

supporting decision making and project

development

SMART AND MICRO-

GRID DEMONSTRATIONS

• Maui Smart Grid Project

• Japan-US Smart Grid

Demonstration Project

• Smart Grid Inverter Project

• Coconut Island microgrid

• Molokai microgrid

opportunity

TECHNOLOGY VALIDATION • Grid-scale storage

• Photovoltaics

• Small wind systems

• Advanced grid controls

• Ocean energy systems

• Demand response technology

• Energy efficiency

Inform Policy

Work-force Training

Regulatory Infrastructure

Integration

12

PEAKING •Most expensive units

•Quick response to generation shortfall

PEAKING •Most expensive units

•Quick response to generation shortfall

CYCLING •Cycled on and off as necessary

•Must be committed in advance

CYCLING •Cycled on and off as necessary

•Must be committed in advance

BASELOAD •Usually the most economic

•Fixed operating schedules

BASELOAD •Usually the most economic

•Fixed operating schedules

Island Grid Operation? Thermal unit characterization

A WEEK OF TYPICAL OPERATION

MW

BASELOAD

CYCLING

PEAKING PV WIND

13

Low renewable penetration

High renewable penetration

MW

MW

Curtailment when

thermal units cannot

meet reserve

requirements

A WEEK OF OPERATION

System Dispatch with Renewables

Increased cycling of

thermal units to

accommodate

intermittency

Generation-load balance

essential for frequency

control

14

24 Hour Load Profile with High Renewable Penetration (example)

210 MW

ramp in 3-

hours

440 MW

ramp in 3-

hours 290 MW

ramp in 3-

hours

Leads to

curtailment

Potential Issues: Curtailment, mid-day transients (stability),

reliability of evening capacity, ramp rates

Potential Issues: Curtailment, mid-day transients (stability),

reliability of evening capacity, ramp rates

15

• Postulate new energy systems and analyze impact on production cost,

curtailment, stability, and reliability

• Different resource mixes (wind, central and distr PV, other)

• Alternative fuels (LNG, hydrogen, biofuels)

• Changes due to load and load-profiles (end-use efficiency, alt transportation)

• Grid configuration (independent or connected)

• Identify and analyze mitigation methods

• Advanced controls, unit cycling, reduced minimum run, improved forecasting

• Energy storage, smart grids, advanced inverter technology, microgrids,

demand response, integration with transportation

Approach to Power System Planning

Production Cost

Modeling

Power Flow

Analysis Mitigations

Mitigating technologies help integrate renewable energy but may

not reduce overall load. Their cost and value depends on the

details of grid operation

16

Models for Multiple Purposes and Timescales

Production Cost

Modeling

Cost / Benefit

Analysis

Power Flow

Analysis Mitigations

• Production Cost Modeling • Hour-by-hour economic dispatch of all generation

• Follow grid operating rules and PPA agreements

• System Reliability model • Adequacy of generators to meet load (most challenging at evening peak)

• Power Flow Analysis (dynamic simulation) • Stability of grid during contingency and large ramp events (voltage and

frequency)

• Analysis of Cost and Long-term Impact on State • Transparent analysis of cost to add renewables and upgrade grids

17

Good Data is Critical

• Operating characteristics of utility generators including purchased power (heat

rates, ramping capability, minimum run constraints, controls, outage rates, etc.)

• Characteristics of transmission and distribution networks

• Utility operating rules (must run, cycling, loading order, reserve requirements, etc.)

• Forecasts (load, load shape, fuel price, etc.)

Utility data updated regularly to assure accuracy of grid model

• Wind maps validated against meteorological tower data and wind farm operations

• Hourly and sub-hourly solar data sets developed using mesoscale atmospheric

models calibrated with sensors spread over Maui and Oahu

• UH Atmospheric Sciences Dept developing multiyear assessments to evaluate

yearly resource variability

Renewable Resources – spatial and temporal models of wind and solar

NDA’s signed where necessary to obtain data while assuring that

reporting of results is not constrained

18

Grid Changes Enable Renewable

Integration

1

9

Increased renewable integration will require grid investment

and unit modifications

Increased renewable integration will require grid investment

and unit modifications

Oahu Only Growth

Gen-Tie Only

Maui Grid-Tie Only

Gen-Tie and Maui Grid-Tie

Source: Hawaii RPS Study

Enablers

• Flexible thermal fleet

–Faster quick starts

–Deeper turn-down

–Faster ramps

• Wind forecasting

• More spatial diversity of wind/solar

• Grid-friendly wind and solar

• Demand response ancillary services

• Energy storage and electric vehicles

The Economics of Renewable Integration Analysis of Production Cost Savings

2

0

Production

Cost

PPA

Cost

Annual

Savings

Baseline with

Renewables

New Thermal Units/

Energy Efficiency/

Demand Response

Savings from wind and solar may be partially or wholly offset by

necessary grid upgrades

Savings from wind and solar may be partially or wholly offset by

necessary grid upgrades

Initial Study of Higher Penetration

• 2016 Baseline (125 MW wind, 150 MW central solar, 400 MW

distributed solar)

• Evaluate baseline plus three scenarios providing ~ 50% total

available energy (Oahu) from wind and solar

• High solar: 1394 MW additional solar

• High wind: 902 MW additional wind

• Mixed: 722 MW additional solar, 435 MW additional wind

• Use curtailment to examine mitigation needs

21

Estimate impact of very high penetrations of wind and solar

including curtailment (Oahu only)

Wind and Solar Resources High day-to-day variation

Po

wer

ou

tpu

t

Wind Solar

Sorted day in the year 22

Day in the year

Sorted day in the year

Day in the year

Po

wer

ou

tpu

t

Base: 0 GWh High solar: 1061 GWh

Mixed: 487 GWh High wind: 519 GWh

Total annual curtailment:

Sorted day in the year

Cu

rtai

lmen

t /

GW

h/d

ay

Base Solar Wind Mixed

30

15

0 % C

urt

aile

d

23

Curtailment Based on modified grid, 50% W&S availability on Oahu

Day to day curtailment

varies widely

Solar – larger (2x wind) but more uniform day to day

• Solar: Large mid-day peak, none beyond midday

• Wind: Curtailment can occur at all hours

• Mixed: Reduced daytime peak, nighttime curtailment

avoided

Curtailment by Hour of Day (ave)

24 Hour in the day

Curt

ailm

ent

/ G

Wh

Average Hourly Curtailment

25

Technology

• Battery Energy Storage – Evaluation of grid scale BESS for grid ancillary services

(ONR, USDOE); lab testing to validate lifetime expectations

• Smart Grid Inverter Project – Development and testing of advanced inverter

functionality and communications in a smart grid to manage power and power

quality at high PV penetration (ONR, USDOE, SOH)

Microgrid Demonstrations

• Molokai Renewable Microgrid – Integration of grid scale battery and distributed

generation controls to allow very high penetration of intermittent distributed

resources (ONR, MECO)

• Coconut Island Renewable Microgid – Small renewable microgrid for testing of

emerging technologies and advanced controls, in collaboration with NRL (ONR)

Smart Grid Demonstration

• Maui Smart Grid Project – Demonstration of integrated control of distributed

resources and energy storage for peak demand reduction (USDOE, ONR)

Technology Development and Demonstration

photos courtesy of Altairnano

Grid Scale BESS Projects (HNEI)

Haw‟i 10 MW Wind farm at Upolu Point Hawaii Island

(1MW)

• Frequency regulation and wind smoothing

Molokai Secure Renewable Microgrid (2MW)

• Operating reserves, (fault management), frequency

regulation, power smoothing, and peak shifting

Cambell Park industrial feeder with high penetration

(1MW)

• Power smoothing, voltage and VAr support, and

frequency regulation

26

• Assess performance and lifetime of the BESS

• Conduct experiments to optimize algorithms for high value grid

applications

HNEI is testing cells in the laboratory to determine

expected lifetime under real world conditions

Hawaii Island BESS

• Fast response 1MW, 250kW-hr, nanostructured lithium-titanate BESS on a 150MW grid

• To date, over 3,000 MWh passed through BESS – equivalent to 6000 full charge-discharge cycles

• No significant degradation to date

7

Reduces frequency variability by up to 40% Wind smoothing helps meet PPA

requirements

Results have helped convince reluctant utility of value

28

OBJECTIVES

Develop and deploy advanced Smart Grid Inverters

Utilize Inverter Management Control Software (IMCS)

Utilize standards-based controls and communications

Employ detailed distribution modeling and high-resolution

field data to develop advanced inverter settings

Research Project lead

• Project oversight, management and direction

• Smart Inverter application design; performance and data analytics

Inverter technology leads

• Leads for communications integration into inverter

• Develop control functionality in inverter; implement control programs sent from IMCS

Communications Technology Lead

• Mesh Communication System; IMCS

• Customer Engagement via PV Customer Portal

Co-Services lead

• Sales, marketing, installation, project management, customer service

Host utility in Washington DC

• Inverter operations for field pilot; performance evaluation

Host utility in Hawaii

• Inverter operations for field pilot; performance evaluation

Inverter Testing Facility

• Site of functional requirements and inverter testing

Co-Services lead

• Sales, marketing, installation, project management, customer service

Distribution Circuit PV Penetration Grid Saturation?

29

Utility Circuits >100% Daytime

Minimum Load Total Circuits % of Total

HECO 127 465 27%

HELCO 28 136 21%

MECO 25 136 18%

KIUC 0 35 -

Total 180 772 23%

Circuits where generation from

distributed solar is at or above

100% of daytime minimum load

Hawaiian Electric recently announced a 250% distribution

circuit penetration target for distributed solar (Jan. 20, 2015; Docket No. 2014-0192)

Test Remotely Controllable Functionality

Voltage support functionality

• Leveraging inverter settings and setting response curves that make the smart inverter

a voltage support device (via Volt-VAR or Volt-Watt manipulation)

Power curtailment

• Reducing power output of inverters (to different levels) via a command sent by the

utility

Frequency support functionality

• Leveraging inverter settings and setting response curves that make the smart inverter

a frequency support device (via Frequency-Watt manipulation) .

Remotely set trip limits (and „ride through‟ testing)

• Setting frequency and voltage trip limits remotely and / or testing of inverters to remain

online (‘ride through’) at various levels of off-frequency or off-voltage operation

• Note: While this functionality is factory settable in some inverters, it is not generally

available as a remotely settable parameter. Concern raised that it may cause an

inverter to be IEEE-1547 non-compliant and impact the UL listing status.

Coordinated and remote “clustered control” of multiple inverters

Development and Demonstration of Smart Inverters

for High-Penetration PV Applications

31

HNEI Microgrid and Remote Island Grid Projects

Coconut Island is an opportunity

to test advanced technologies

and microgrid control strategies

for high reliability loads in a

challenging marine environment

UH Mānoa campus is

an opportunity to

evaluate advanced

systems for energy

management,

efficiency and control

of distributed energy

resources aimed at

energy cost reduction

Moku o Lo’e Microgrid

(Coconut Island)

University of Hawaii –

Mānoa Campus Microgrid

MOLOKAI

~ 2.5 MW of Distributed

Rooftop PV Molokai is an

opportunity to

address very high

levels of distributed

PV while

maintaining grid

reliability and

resiliency

32

500 kW Grid

5 MW Grid 25 MW Grid

Molokai Island Grid

Moku o Lo’e DC Microgrid (Coconut Island)

Test advanced clean energy technologies and integrated control strategies such as:

Coconut Island offers a unique opportunity

for technology and material testing:

• Scale: ~0.5 MW grid connected microgrid

• UH owned/controlled island facility

• High penetration of distributed renewable

energy resources (particularly rooftop PV)

• Marine research laboratory with critical loads

and high energy reliability needs

• Persistent coastal winds result in a highly

corrosive marine environment yielding a

micro-climate representative of harsh island

conditions

• DC distribution, motors, & lighting

• Photovoltaic systems

• Small-scale wind turbines

• Energy storage systems

• Fuel cells

• Alternative fuel vehicles (EV car/boat)

• Building controls & energy efficiency

• Load management

• Advanced communications and

microgrid control

• And more ….

33

Background

• University of Hawaii Institute of Marine Biology utilizes the

island to conduct marine research with life support equipment

for the marine organisms under study and other critical energy

needs

• Service interruptions result in significant efforts to get systems

running again and poses risks to active research

• Coconut Island’s peak system demand is approximately 500

kW

• Current system includes 200 kW of PV installed on rooftops at

present (per PPA with Solar City) and two diesel generators

(200 kW and 240 kW) on island for emergency back-up power

to select load centers 5

Project Objectives

• Reduce electricity costs

• Understand and address power quality issues

• Implementation of renewable energy technologies

• Provide reliable service to select critical loads in the event

of loss of grid power while minimizing diesel fuel use

• Demonstrate the use and value of DC distribution systems

• Demonstrate the use and value of a microgrid control

system

• Fuel cell test – PV, water source (fresh / salt), O2 usage

• Assess salt laden coastal environment impacts on

microgrid equipment

6

36

37

Minimize use &

Maximize efficiency

Molokai Sustainable Development Demonstration

5MW

System-wide battery storage system for reliability

Grid stabilization for high penetration distributed PV

Managing system frequency and voltage

PV and battery system for critical load site

Water pumping station

‒ Secure water supply in event of power outage

Molokai High School

‒ On-site generation to support disaster shelter

(disaster preparedness)

Microgrid system for small and remote locations

Support self-sufficiency utilizing microgrid controller

Optimizing grid operation with diverse and distributed

energy resources

38

Objective: Increase use of renewables while reducing

the operating cost of electricity on the island.

HNEI is Key Performer for Technology Research and

Evaluation in Support of ONR‟s APTEP

39

Asia Pacific Technology and Education Partnership (APTEP)

promotes commerce and partnerships in the Asia-Pacific region

through advancements in alternative energy research, technology

development and education.

• Research and development

• Testing and evaluation of

emerging energy technologies

• Integration of renewable energy

systems

• Energy analysis

• Contribute to STEM and

workforce development

MAHALO

For more information, contact:

Rick Rocheleau

Hawaii Natural Energy Institute

1680 East-West Road, POST 109

Honolulu, Hawaii 96822

Office: (808) 956-8346

Mobile: (808) 389-9944

E-mail: rochelea@hawaii.edu

Website: www.hnei.hawaii.edu