Community Microgrids: The Path to Resilience & Sustainability · • LADWP, Fort Collins, PSEG •...

MakingCleanLocalEnergyAccessibleNow

Community Microgrids:The Path to Resilience & Sustainability

Greg ThomsonDirector, Community Microgrid InitiativeClean Coalition415-845-3872 [email protected]

MakingCleanLocalEnergyAccessibleNow 2

Community Microgrids: The Path to Resiliency

Greg Thomson

Powerflow modeling;DERoptimization• PG&E• PSEG• SCE

Procurementandinterconnection• LADWP,FortCollins,

PSEG• CityofPaloAlto(FIT

andsolarcanopyRFP)

• RAM,ReMAT• Rule21&FERC

Designandimplementation• SanFrancisco,CA• LongIsland,NY• U.S.VirginIslands

Analysis&PlanningProgramDesign

CommunityMicrogridProjectsGridModeling&

Optimization

FullcostandvalueaccountingforDER;sitinganalysis• PG&E• PSEG• SCE

Greg ThomsonDirector, Community Microgrid Initiative415-845-3872 mobile [email protected]


Introduction: Energy is critical infrastructure

• Thisarchitectureiscostly,aging,inefficient, andahighlyvulnerablesecurityrisk

• Extremeweathereventsareoccurringmorefrequently,furtherdemonstratingthevulnerability andhighcost

• Cyberattacksareagrowingrisk,and anattackonacentralizedsystemcan affectmillions

• Toaccomplishboth localandnationalsecurity,wemustmovemorequicklytoanewsolution

Energyiscriticalinfrastructure.

Andyet,ourlegacy,centralizedenergyarchitecturecarriesmultiplecritical risks.

CommunityMicrogrids:Cleaner,MoreReliable&Resilient,MoreAffordable


1. LowerCosts:Byoptimizinglocalcleanenergy,energystorage,andotherDER,thecostofelectricityisreducedbyeliminatingexpensivepeakperiodsandallassociatedcosts

2. CleanerEnergy:Highpenetrationsoflocalcleanenergynotonlyreplacesfossilfuels,italsoprovidescleanenergyforlocaltransportation– andatlowerdeliverycosts

3. Resilience&Security:Deliveringongoing,cleanpowertocritical&priorityloadsincommunities,whileabletowithstandmultipledisasterscenarios

4. A Replicable Solution:Coveringanentiresubstationarea,thissolutioncanbedeployedinanycommunityaroundtheworld–andalsoincreaseslocaleconomicinvestment

Why Community Microgrids?

ACommunityMicrogriddeliversfourcombinedbenefitstocommunities.

Thesebenefitsarenotprovidedbytoday’scentralizedenergysystem.


Source:OncorElectricDeliveryCompany

Traditional Microgrids focus on single customers


Community Microgrids serve thousands of customers

Source:OncorElectricDeliveryCompany


1. Flattens andlowersload shapes acrossentirecommunityareas,therebyreducingsystem-widepeaksandthusthemostcostlyenergyandgridinfrastructure

2. Managesvariability/volatilitylocally,ratherthanexportingvolatilityasanaggregatedissueuptothecentralizedsystem

3. Providesenergyresiliency&securitytocitiesandcommunitiesviapowergenerated,delivered,andconsumedlocally

Community Microgrids feature “Local Balancing”

Thedistribution&transmissiongridsbecomeequalpartnersingridoperationsandefficiencies.

LocalBalancinggivesusamoreefficientwaytooperatethegrid


Local Balancing offers multiple economic benefits

1. CostReductionsDuetoPeakManagement:Protectionagainstthehighcostofpeakenergy

2. CostReductionsDuetoDemandCharges:Protectionagainstadditionalfeeschargedbyutilitiesforpeaks

3. CostReductionsDuetoRateManagement:Protectionagainstfutureratechanges,e.g.eveningramp

4. CostReductionsDuetoInvestmentDeferrals:Deferralofsubstantialcostsforcentralizedinfrastructure

5. CostCertainty:Keepingratesandcostsconstantforconsumersaswellasgridoperators.

6. IncreasedEconomicInvestmentinCommunities

ThesixeconomicbenefitsofLocalBalancingviaCommunityMicrogrids

TheseCostIssuesAreCausedbyOurMostlyCentralizedSystem


Community Microgrid


Community Microgrid design steps

Step1– Goals

1. SaveratepayersmoneybydeferringsubstantialinvestmentsincentralizedinfrastructurethroughLocalBalancing– localcleanenergyatoptimallocations,energystorageforpeakreductionandgenerationfirming,andloadshifting&shaping

2. Improvegridreliability,resilience,andsecuritybyutilizinglocalcleanenergyandenergystoragetoprovideongoingbackuppowertocriticalandprioritizedloadsinthearea

3. Modernizegridoperationstosupportandautomatetheabove,helpingenableutilitiestotakeamuch-neededstepforward

4. Featureenergyefficiencyandhomeimprovements/ZNE,askeyadditionalcost,health,andenergyperformanceimprovements


Step2:BaselineGridAnalysisDeterminetheabilityofthegridtoaccommodatenewDER:Inventoryoftheexistinggridincludingloadprofiles,voltageregulation,feederandtransformercapacities,and

existinggeneration



Step3:LocalCleanEnergySurveyComprehensiveassessmentofthelocalcleanenergygenerationpotentialinthetarget

area,specifictolocalresourcesandsitecharacteristics



OptimalDER

Portfolio

Optimalfeederlocations

Locallyconnectedfeeders

Localloadshapesand

forecasts

Localavoidedgrid

upgrades

LocalMarketValue–e.g.Rates

Helpsachievelocalbalance

UnlocksoptimalcustomersandDER

Alsoextendsto

system-wide

avoidedcosts

Morereliable,

cost-predictable,

cleaner

DerivedIncombinationwiththeotheroptimizations

Step4:DEROptimizationTheDERWheelofFortune!Unlockingoptimalandmostcost-effectiveDERportfolios.



DER Optimization: advanced inverters

1. 6AM:• NoPVimpact

2. Noon:• 20MWPVcauses

overvoltage

3. Noon:• 20MWPV with

advancedinverterssetat0.9power factorstabilizesvoltage


DER Optimization: Commercial & Industrial (C&I)

1. MostGeneration:Largerroof&parkingspacesgeneratemoreenergy

2. LowestSystemCosts:LargerPVsystemsreduceoverallcosts

3. BestGridLocations:Largeloadsservedbyrobustfeedersegments

4. MatchingLoadProfiles:Largerdaytimeloadsmatchsolargeneration

5. FinanciallyMotivated:Largerbillsincludingdemandcharges,plusroofandparkingleaseopportunities

C&IcustomersaretypicallythelargestelectricityusersandemittersofGHG.

Guesswhat?Theyalsomatchwellwithsolar.


Energy

CostParity:Solarvs.NG,LCOE$260M:Spentlocallyvs.remote$80M:Avoidedtransmissioncosts$30M:Avoidedpowerinterruptions

Economic

$200M:Newregionalimpact$100M:Addedlocalwages1,700Job-Years:Newnear-termandongoingemployment$10M:Siteleasingincome

Environmental

78Mlbs.:AnnualreductionsinGHGemissions15MGallons:Annualwatersavings375:Acresoflandpreserved

Example:180Napolean St.• PVSq.Ft=47,600• Systemsize=714kW

Example:1485BayShore• PVSq.Ft=37,800• Systemsize=567kW

Example:50avg.rooftops• Avg.PVSq.Ft=343• Avg.systemsize=5kW

Commercial:18MW ParkingLots:2MW Residential&MDU:10MW


Step5:BenefitsAnalysisHuntersPointExample– 50MWPVover20yrs.


Step6:DeploymentPlanFinalsystemdesignandoperationalplanfortheCommunityMicrogrid.Includessizingfor

energystoragebasedonlocalgeneration,overallloads,andcriticalloadrequirements.AlsoincludestargetedEE,loadshifting,EVcharging,etc.Featuresfinancialmodeland

streamlined/bulkdeploymentplan.



Examples: New York – inefficiencies

NewYorkStateusespeakpoweronly100hourseachyear.Thiscostsratepayers$1.7billion– toserveless

than1%ofthesystem’sneeds.

• Thebulkpowersystem,designedtomeetapeakdemand75percenthigherthanmostofAmerica,isunderutilizedmostoftheday

• NewYorkershavebeenpayingsomeofthehighestelectricalbillsinthenation,sothattheirairconditionerscanhavepowerduringthehottestsummerdays

• NewYork’santiquated infrastructure wasintroublelongbeforehurricaneSandy

• HurricaneSandyrevealedthevulnerabilities ofthelow-lyingAtlanticstate’sgrid

Source:RenewableEnergyWorld.com,June2015


Examples: NY – new initiative

OnJan2,2018,NewYorkGov.AndrewCuomoannouncedthatthestateislaunchingan

initiativetodeploy1,500MWofenergystorageby2025.

• Stateenergyagenciesandauthoritieswillgenerateapipelineofstorageprojects

• NYGreenBanktocommitatleast$200millionforstorage-relatedinvestments

• TheNewYorkStateEnergyResearchandDevelopmentAuthoritywillinvestatleast$60Minstoragepilots

• Includesutilityprocurements, changesinutilityratesandwholesaleenergymarkets, andstorageforlargescalerenewable procurements


Examples: NY – project

TheMarcusGarveyaffordablehousingcomplexinBrooklyn,NYusesasolar+storage microgridsystemtocutcosts,improvegridreliability,and

provideresilientbackuppowerfortenants

• LeveragestheBrooklynQueensDemandManagementprogram,acommission-approved$200Mfundthathelpsdeferasubstationupgradeestimatedatcostingapproximately$1.2B

• Alsoprovidesaframeworkforfuture,market-based,“nonwiresalternatives”suchasmicrogrids

Source:https://www.cleanegroup.org/ceg-projects/resilient-power-project/featured-installations/marcus-garvey-apartments/


Examples: NY – financing


The MarcusGarveyprojectisfinancedbytheNewYorkCityEnergyEfficiencyCorporation (NYCEEC),anon-profit,specialtyfinance

companyforcleanenergy

• Developsfinancingsolutionstoenableprojectsthatsaveenergyorreducegreenhousegases

• Theircustom-tailoredsolutionsclose financinggapsforbuildingsandcleanenergyprojectdevelopers

• OriginallyfocusedonlyonthestateofNY,theorganizationisnowlookingtofinanceprojectsupanddowntheEastCost– fromMarylandtoMaine


Examples: NY – template


NYCEEC’ssuccessfulfinancingatMarcusGarveyservesasatemplate

• Payoffisinapproximately10.5years,basedonthethreerevenuestreams:BQDMincentives,PeakShaving,andDemandResponse


Examples: Long Island Community Microgrid Project

“NYPrize”CommunityMicrogridgrantaward

• CollaborationwithPSEGLongIsland,LongIslandPowerAuthority(LIPA),andNYSERDAcoveringasubstationinEastHampton,NYthatservesthousandsofcustomers

• Combines15MWoflocalsolar(viaFeed-InTariff)witha5MW/25MWh batterysystemandtargetedloadmanagement

• Reachesalmost50%oftotalannualenergyfromlocalrenewables.Minimizestheuseofexistingfossilgeneratorsincludinglocaldieselpeakers anddieselbackupgenerators.

• Providesongoingpowerbackuptomultiplecriticalfacilitiesaswellasotherpriorityloadsacrossthearea


Examples: Long Island Community Microgrid Project

LICMPEconomicAnalysishighlights

• TheLICMPwouldavoid$29-38MillionofnewtransmissioncapacityresultinginanetcostbenefitforallPSEG-LIutilityratepayers.

• ThelocalgenerationcapacityprovidedbytheLICMPPVandstoragefacilitieswillalsoreduceNYISOcapacitychargesby$6Millionthrough2022,andatarateexceeding$1Millionannuallythereafter.

• Inaddition,theenergystoragewillallowtheutilitytoshiftwholesalepowerpurchasesfromdailypeakpricingperiodstooffpeakperiods,realizingnetsavingsinenergypurchasesof$2.5Millionby2022andmorethan$500,000annuallythereafter.

• ThesesavingswouldbereflectedinlowerelectricratesforallPSEG-LIutilitycustomers.


Long Island Community Microgrid Configuration

EHGTSubstation

ES

Tier2Loads

S

Tier2Loads

Tier3Loads

Tier3Loads

9EU-4N7(Bank4)

Transm

ission

9EU-4N8(Bank4)

Diesel

Solar

Tier1:OVPumpStation

ES

F

Diesel

SolarSolar

U

MC2 ControlLevelFacility,autonomouscapableSubstation,autonomouscapableUtilityIndependentSystemOperators

F

ISO

SU

ISOOtherDiagramElements

AutonomouslyControllableMicrogridRelay/Switch(open,closed)Meter

Tier1:SpringsFireStation

ES

F

Diesel

SolarSolar

Tier1:BHPumpStation

ES

F

Diesel

SolarSolar

Solar

Solar


Community Microgrids provide resilience


Examples: Massachusetts

Similarly,Massachusettshasannouncedanewmodelforcommunity-scaleenergysystemscalledSMART(Solar

MassachusettsRenewableTarget).

• FullycompensatessolarPVforthetotaloutputofasystemratherthanrelyingonnetmetering,whichonlyaccountsfornetbillsavings

• Thus,alargewarehouserooforshoppingcenterparkinglotcanbefullycompensatedforallthesolargeneratedonthatsite,regardlessoftheamountofelectricityusedonsite

• AsanexamplespecifictotheCommercial&Industrialsector,250kW– 1,000kWsolarsystemswouldreceiveanincentives of$0.16- $0.18/kWhoveratermof20years.

• ThismethodiscommonlyreferredtoasaFeed-In-Tariff – orCLEAN program– andhasbeendeployedsuccessfullyinotherlocationssuchasGermanytodeploymorelocalcleanenergysystems.

Source:http://www.qatargreenleaders.com/news/sustainability-news/1668-unlocking-the-distributed-grid-with-flexibility-management-software


Examples: Vermont

VermontutilityGreenMountainPowernowpayscustomersalittleover$30permonthtoutilizetheirbatterysystemsasaload-offsettingcapacityresource.

• Makesinvestmentsinbattery-basedbackupsystemsmoreattractiveforcustomers.

• ForGreenMountainPower,accesstothebatterieshelpsaddressthesteeptransmissionaccesschargeassessedbyISONewEngland.Thatchargemorethandoubledfrom$3perkilowattpermonthin2016toover$7in2017.Thechargeisexpectedtoincreasetoover$9in2018.

• And,asmoresolarisinstalledonthedistributiongrid,accesstothatlocalsolarattimeswhenelectricityfromtransmissionisthemostexpensiveisagridbenefitthatcansaveautilitymoney.

Source:http://www.qatargreenleaders.com/news/sustainability-news/1668-unlocking-the-distributed-grid-with-flexibility-management-software


Examples: Connecticut

Anewgroupofmicrogrids hasbeenproposedtohelpsupportConnecticut’scriticalfacilitiesintheevent

of emergencies

• Fundingopportunitiesunderthestate’sDepartmentofEnergyandEnvironmentalProtection(DEEP)microgridprogram

• Newfocusonthegrowingmovement toprovideresilientpower toessentialbuildingsduringemergencysituations

• IncludesaproposalforWestbrook,CTmiddleschoolandhighschools,whichhaverecentlybeendesignatedasemergency/evacuationshelterandsupportareas

• AnotherproposalforCoventry,CTwouldislandacircuitloopforninecriticalfacilitiesinthetown,includingschools,acommunicationtower,andaseniorcarecenter

Source:http://www.renewableenergyworld.com/articles/2018/01/this-is-what-microgrids-for-resilience-in-emergencies-look-like.html


Examples: Minnesota

LargestCommunitySolarprograminthecountry;helpingdoublethesolargenerationacrossthestate.

• Morethandoubledthecommunitysolar capacityin2017,nowto211megawattsinoperationtoday,demonstratingtheawarenessandacceleratingsuccess

• Providesmonthlybillcreditstothosewhosubscribe.Anycustomercanparticipate.

• Beginningtoofferpredictabilityand transparencyduetoamatureprocessandtheexperienceandhardworkfromallstakeholders

• TheneedforgridtransparencyhasbeenheardbythecommissionandXcelEnergy,theutility.Themosteffectiveprogramstrideshavebeenmadeinaccesstointerconnectioninformation.

source: https://www.greentechmedia.com/articles/read/xcel-energy-community-solar-program-turns-three#gs.rPWCafg

IsCommunityStoragenext?Yes– CommunityMicrogrids…


Examples: Minnesota

ThisprogramhasbeentransformativetotheMinnesotaenergymarket.

• Startingpointforamajoroverhaulofthestateinterconnectionstandards

• Broughtaboutcityandcountysolarordinancesandpermitting advancements,therebyreducingcosts

• Encouragedcustomerstothinkabouttheirenergymixandaskforbetteroptionsfromtheirutilities

• Givingcustomerstheoptionofsubscribingtoclean,localenergyhasbeenincrediblypopular– withindividualsandorganizations

• Onepilotprojectwillpairenergy-efficiencyimprovementswith communitysolar,andthereisnowapushforthismodeltobeexpanded acrossXcel’sserviceterritory

source: https://www.greentechmedia.com/articles/read/xcel-energy-community-solar-program-turns-three#gs.rPWCafg


Examples: California

Settingaprecedent:CommunityMicrogrids eliminategaspeakers

• ThanksinparttoCleanCoalitioncostanalysis,theCaliforniaPublicUtilityCommissionisnowrejectingnewpeaker plants,suchasPuenteinOxnard,CA,infavorofsolar+storage

• Aspartofthissubstantialchange,inJan2018theCPUCalsoannouncedthatPG&Ewillberequiredtouserenewablesandstorageinsteadofgas-firedplantsrunbyCalpine

• Thisappearstobe“thefirsttimeautilitywillprocureenergystoragetoreplaceexistinggasplantsforlocalcapacityneeds.”

• Leveragingthisimportantanalysiscanpreventfuturenewgasplantsacrossthecountry

Source:https://www.greentechmedia.com/articles/read/pge-must-solicit-energy-storage-ders-to-replace-three-existing-gas-plants?utm_source=Daily&utm_medium=email&utm_campaign=GTMDaily#gs.biWkmDY


Homes & buildings are grid partners

Well-designedandwell-situatedZNEhomesareavaluablepartoftheDERresourcemixincombinationwithlargerPVarraysoncommercial&industrialstructures


Homes & buildings are grid partnersResidentialPVarraysinacommunitymicrogridcanbesizedforoptimumcontributionandfaircompensationtoownersregardlessoftheirsite-specificdemandthroughaCCA+PPAapproach


Moving Forward: Puerto Rico

PuertoRicoRe-buildHighlights– the“BuildBackBetter”Plan

PuertoRicoisauniqueopportunitytorebuildandupdatethepowersystemto21stcenturytechnologiesandbestpractices,enablingtherethinkingofhowpowerisgeneratedand

distributed.

• HurricanesMariaandIrmadecimatedT&Dlinesacrosstheislandandcausedwidespreadwindandfloodingdamagetosubstations,generation,anddistributionfacilities

• DamagefromthehurricanesresultedinthelongestdurationpoweroutageinUShistory


Moving Forward: Puerto Rico

PuertoRicoRe-buildHighlights– the“BuildBackBetter”Plan

• Team:Featuresmajorgridandenergyexpertsincluding:NYPowerAuthority,ConEd,EdisonInternational,EPRI,PSE&GLongIsland,DOE,SEPA,PuertoRicoElectricPowerAuthority,NavigantConsulting,NREL,PNNL,GridModernizationLabConsortium

• Goal:ImplementresiliencyandhardeningmeasuresthataredesignedtoincreasethecapabilityofPuertoRico’selectricpowergridtowithstandfuturestorms

• Recommendation:usemoderngridtechnologiesandcontrolsystems,renewableenergyresources,andnewtechnologiessuchasenergystorageandmicrogrids toenableenergytobecomeabundant,affordable,resilient,andsustainable.EnsurescontinuityofservicewhileloweringPREPA’sdependenceonlargecentralgeneratingstations.

This modern power system design will set a model for the industry while promoting private investments in the use of clean energy for a low carbon future


Moving Forward: Sonoma Initiative

CoffeyParkareaofSantaRosa– beforeandafterfires


Moving Forward: Sonoma Initiative

PG&EFeederMap– CoffeyParkandadjacentC&Iarea– idealforCommunityMicrogrid

Fire-damagedarea


Sonoma Community Microgrid Initiative

Objective:makeenergyabundant,affordable,resilient,andsustainable

1)Re-buildfire-destroyedareaswithhighlevelsofresilienceandsustainability inboththebuildingstockandthegrid,enablingamodern,distributed,andcarbonfreesystemthatdeliverssubstantialeconomic,environmental,andresiliencebenefits.

2)Establishablueprintforre-buildingdisaster-destroyedareasinatimelyandcost-effectivemannerthatalsomaximizestheeconomicandresiliencevalueofenergyasacriticalresourcetoratepayers,propertyowners,andmunicipalities.

3)Provideamodelforoperatingamoderndistributiongridcoveringanentiresubstationareathatincorporatesoptimaldistributedenergyresources,cost-effectivelocalbalancing,fullinteractionwiththetransmissionsystem,andlocalenergymarkets– withresultingbenefitsacrossbothgridoperationsandeconomics.

4)Ensurethatbuildingcodesareadvancedtoachievemoreresilient,safer,andcleanerbuildingstockandcommunities.

Community Microgrids: The Path to Resilience & Sustainability · • LADWP, Fort Collins, PSEG •...

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