NYSDPS

WG-2: Platform Technology

Subcommittee on Microgridsand Community Grids

New York State Department of Public Service

July 10, 2014

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Agenda

• Overview

• Background

• Issues

• Next Steps

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Overview – Microgrid Committee Objective

Identify the technical and regulatory issues and barriers that need to be addressed to better enable the development of single- and multi-customer microgrids (including community microgrids) in New York State.

• Address questions raised in April 25 REV DPS Staff Report and Proposal

• Identify issues not already specified in the REV Report

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Overview – Subgroups

Subgroups were formed to investigate the following subject areas as they pertain to microgrids:

• Regulatory

• Economic and Financial

• Interconnections

• DSPP Planning

• Ownership and Control

• Intrinsic and Extrinsic Values and Worth

• Social, Environmental, and Community Implications

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US Department of Energy 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.

Background – Definitions

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• Single-customer Microgrid• e.g. NYU

• Multi-customer Microgrid• e.g. Burrstone Energy Center

• Community Microgrid• a type of multi-customer microgrid where the community is

actively engaged in its design and implementation

• Stand Alone, Dynamic, and Regional “Microgrids”

Background – Examples

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Background – Benefits from a holistic approach

• Within the microgrid, enhanced:• Efficiency• Reliability and resiliency• Affordability• Environmental sustainability

• Grid support• Elastic demand, capacity, ancillary services

• Community Implications• Reduce impact when the grid is interrupted• Local enablement

• Unique investment opportunities• Ratepayer support for resiliency of critical infrastructure• Private investment driving innovation without risk to ratepayers

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Findings

• Economics - financial feasibility

• Regulatory

• Interconnection

• Community

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Findings

Economics - financial feasibility

• Value of microgrids not recognized• Lack of opportunity for market participation (wholesale and

retail)• Standby rates, demand charges, net metering

• Presently, microgrid assets are perceived as high risk financing.

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Findings

Regulatory

• There is a complex interrelationship of NY State law, rules for market participation (including ISO rules), and utility policy and practice that lead to uncertainty, higher risk, and delayed development of multi-user and community microgrids.

• The existing regulatory paradigm needs to be modified to further accommodate microgrids and foster mutually beneficial utility interaction.

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Findings

Interconnections

• Approval procedures not standardized statewide

• Evolving solutions and standards• Standards (NYS SIR and industry standards)• Control, communications, and bi-directional flow of power• Microgrid controllers

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Findings

Community Education and Expectation

• Leaders and members of communities must be engaged in design and implementation of community microgrids

• Education on the process and resulting expectations of microgrid performance

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Next Steps

Staff should, with members of the working group as necessary, address the specific issue regarding a microgrid developer’s need to seek exemption from Public Service Law to develop a multi-customer microgrid.