Government & Military Smart Grids & Microgrids Symposium
Topical Report on DOE Smart Grid ARRA Microgrid Projects
Steve BossartSenior Energy Analyst
April 9, 2014 Arlington, VA
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Topics
DOE Topical Reports on Smart Grid ARRA Projects
Microgrids Motivations and Challenges
Results from DOE Microgrid Projects
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Topical Reports
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Topical Reports
Analyze results from SGIG, SGDP, and RDSI
1. Summarize results Report similarities, differences, and range of results Rationalize results Common best practices and lessons learned Connect investments with functions with benefits Connect smart grid with improved DER functionality
2. Educate
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Topical Reports• Microgrids• Dynamic Line Rating• Phasor Measurement Units• Distributed Energy Resources• Transactive Energy Communications• Conservation Voltage Reduction• PUC Filing Review• Consumer Behavior Studies• AMI/smart meter
– O&M– Peak load reduction– Volt/VAR optimization– Reliability
• Applications and Benefits of Smart Meter/AMI• Others?
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Microgrids
Definition, Concepts, Motivations, Benefits,
Technologies & Challenges
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Includes DER & Load
Defined electric boundaries
Single controllable entity
Connect and disconnect from grid
Grid-connected or island-mode
Microgrids & Smart Grids
Central Generation
Transmission Load
Distributed Generation E-Storage
Distribution
E-StorageDistributed Generation
Load
Microgrid
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A Possible Future Distribution Architecture
Distribution Control
IndustrialMicrogrid
Utility Microgrid
Commercial Park Microgrid
Campus Microgrid
Municipal Microgrid
Military Microgrid
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Motivations for Microgrids
• Reliability – Impact on business– Grid reliability is worsening
• Resiliency – Ability to withstand challenges and continue operation – Value of microgrids during Superstorm Sandy
• Economic– Best energy mix is 80-89% from microgrid and 11-
20% from main grid• Sustainability/emissions reduction
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Why Microgrids?• Support integration of smart grid & renewables• Ease application of combined heat & power• Local generation reduces electricity losses• Disperses investments between central and local assets• Assist in reducing peak load• Serve critical loads • Provide local power quality & reliability• Promotes community involvement & energy independence• Provide local power during outages• Supports main grid
– Provide ancillary services to main grid– Manage variability of loads and renewables locally
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Cost of Electric Service
• $363 billion is annual electric bill in US (2013)
• $200 billion is paid by commercial and industrial firms
• Value of business losses is $80 - $150 billion annually
(LBNL and EPRI studies)
• Interruption Cost Estimate Calculator (ICE)
http://icecalculator.com/
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Types of Microgrids
End user
Utility distribution
Remote/island systems
Size
2 MW to 40 MW are economical – average and above cost of electricity (COE)
< 1 MW are economical where COE is higher- Hawaii, Alaska, Northeast
Portfolio Mix
Balance resources with high capital cost and low O&M with resources with low capital cost and high O&M
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Common Technologies in Microgrid Projects
Generation and Energy Storage Renewable energy (PV, wind) Distributed generation (microturbines, fuel cells, diesel) Combined heat and power Energy storage (thermal storage, batteries)
T&D Communications (wireless, PLC, internet) Advanced metering infrastructure & smart meters T&D equipment health monitors (transformers) Power inverters
Consumers Plug-in electric vehicles and charging stations (PHEV/PEV) Smart appliances & programmable thermostats (DR/DD) Home Area Networks & In-Home Displays Energy management systems
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Barriers to End User Microgrid Deployment
• Very young in financing lifecycle– Majority of microgrids involve third-party financing– Requires long-term service agreements (PPA)
• Regulatory environment has not been favorable– Microgrids must be “good citizens”– Conflict in allocation of utility costs to accommodate
microgrids• Value proposition may be unclear• Technology
– Optimize controls to improve value– Rapidly improving technologies (e.g., energy storage)
• Private wire laws
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DOE OE Microgrid Demonstration Program
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DOE-OE Primary Microgrid Field Projects
Renewable and Distributed Systems Integration ProjectsChevron Energy Solutions - CERTS Microgrid DemoCity of Fort Collins - 3.5 MW Mixed Distributed ResourcesIllinois Institute of Technology - IIT Perfect Power DemoSan Diego Gas & Electric - Borrego Springs Microgrid
Smart Grid Demonstration Projects (ARRA)Battelle – Pacific Northwest Smart Grid DemonstrationLA Dept. of Water & Power Smart Grid Regional DemoSouthern California Edison Irvine Smart Grid Demo
Microgrid FOA released on January 31, 2014Proposals due April 28, 2014
- Advanced control of microgrids
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SDG&E
Battelle
SCE
Ft Collins
Chevron
IIT
LADWP
RDSI
SGDP
DOE OE Primary Microgrid Project Locations
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Common Objectives Among DOE’s Microgrid Projects
• Reduce peak load• Benefits of integrated DER (i.e., DG, DR, e-storage)• Ability to integrate variable renewables• Operate in “islanding” and “grid parallel” modes• Import and export capabilities• Two-way communications (frequency, verification, data latency)• Data management • Price-driven demand response• Dynamic feeder reconfiguration• Outage management (i.e., number, duration, and extent)• Volt/VAR/frequency control• Balance distributed and central control• Cyber security • Interconnection and interoperability• Defer generation, transmission, and distribution investments
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Smart Grid Demonstration Program (SGDP)
Demonstrate emerging technologies (including energy storage) and alternative architectures
Validate business models Address regulatory
and scalability issues Large projects: $20M-
$89M Small projects: $720K-$20M (Federal share)
4-year projects (average)
Selected ProjectsTotal Funding $1,647,637,256
Total Federal Funding $620,027,274
Total Number of Projects 32Large
Projects, 12 (37%)Small
Projects, 20 (63%)
Number of Projects
IOU, 41%
Municipal Utilities,
13%
Electric Co-ops, 3.0%
Technology/ Manufac-
turing Company,
34.0%
Non-Profit, 9%
SGDP Recipient Types
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San Diego Gas & Electric - Borrego Springs
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San Diego Gas and Electric Borrego Springs Microgrid
Distributed Energy Resources
2 X 1.8MW Diesel
Substation Energy Storage
1 x 500kW/1500kWh Li Ion Customer Energy
Management
Home Energy Storage
Community Energy Storage3 x 25kW/50kWh
Li Ion
Feeder Automation
Microgrid Controller
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Customer Energy ManagementCapable of Responding to Price and Reliability Events
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Field Demonstration Objectives
• Load reduction– Reduce peak load of feeders
• System reliability
• Integration and management of DERs– Leverage various DG and energy storage assets– Enable customers to be active participants in
managing their energy use
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Energy Storage Peak Shaving Demo
Main Grid
Total Load
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Island Demonstrations – 2/13/13
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CES PV Smoothing Operation
Red – PV power Blue – Impact of energy storage
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Real World Experience
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Damage to Power Infrastructure in Borrego Springs
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Contact InformationMerrill Smith & Dan Ton
Program Managers
Microgrid R&D
U.S. Department of Energy
Office of Energy Delivery and Energy Reliability
(202) 586-3646
(202) 586-4618
Steve Bossart
Senior Energy Analyst
U.S. Department of Energy
National Energy Technology Lab
(304) 285-4643
Key Microgrid Resources:DOE OE www.oe.energy.govSmart Grid www.smartgrid.gov