DE36 Narrative

7/28/2019 DE36 Narrative

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Project Narrative Biosphere 2 Microgrid with PV and Storage

DE-FOA-0000036 - Smart Grid DemonstrationsProgram Area 2 - Utility-Scale Energy Storage

Sub-Program 2.3 - Distributed Energy Storage for Grid Support

Table of Contents

1 Project Objectives..........................................................................................................................2

2 Merit Review Criterion Discussion ..........................................................................................6 2.1 Project Approach.................................................................................................................................. 6 2.2 Significance and Impact ...................................................................................................................16 2.3 Interoperability and Cyber Security ............................................................................................18 2.4 Project Team ........................................................................................................................................24

2.4.1 University of Arizona....................................................................................................................................24 2.4.2 Industrial partners.........................................................................................................................................28 2.4.3 Utility Companies ...........................................................................................................................................282.4.4 CDO Ranching and Development Inc ..........................................................................................................2.4.5. Letters of Support

2.5 Other Selection Factors ....................................................................................................................47

3 Relevance and Outcome/Impacts ......................................................................................... 48 3.1 Uniqueness ...........................................................................................................................................49 3.2 Outcome/Impact .................................................................................................................................50

4 Role of Participants.................................................................................................................... 51

4.1 University participants .....................................................................................................................51 4.2 Business agreements.........................................................................................................................51 4.3 Integration and management.........................................................................................................52

5 Project Performance Site ......................................................................................................... 53 5.1 General ...................................................................................................................................................53 5.2 Photovoltaic farm array location ..................................................................................................54 5.3 Storage batteries.................................................................................................................................56 5.4 Office space...........................................................................................................................................56

6 Statement of Project Objectives (SOPO).............................................................................. 57 A. Project Objectives .................................................................................................................................57 B. Project Scope (Scope of Work) .........................................................................................................57 C. Deliverables ............................................................................................................................................60 D. Reporting, Briefings and Technical Presentations ...................................................................60


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1 Project Objectives

In response to the United States Department of Energy Smart Grid Demonstrations FundingOpportunity number: DE-FOA-0000036 project area:

2.3: Distributed Energy Storage for Grid Support

The University of Arizona proposes to implement a multifaceted power generation, energystorage and control system at the Biosphere 2 (B2) facilities located north of Tucson, which canbe operated either as an independent power island or interactively with the existing power gridstructure. This project title and PI are:

Project Title: Biosphere 2 Microgrid with Photovoltaic and StorageName of Applicant, PI: The University of Arizona, Pierre Meystre

This demonstration site has many elements of a municipal grid, including variable residentialand industrial loads of up to 2.5 MW. The B2 laboratories, conference center, and casitas

village (28 residential units) now consume up to 8,000,000 kWh annually. The planincorporates the existing fossil fuel-based power infrastructure already present at B2 includinga 1.5 MW diesel generator and a 1.5 MW natural gas generator. The proposal also adds a largecomponent (3MW) of photovoltaic generation to the existing 40 kW of photovoltaic panelsalready at B2.

This multi-source generating system will be combined with a proposed three-pronged energystorage system that includes a large 12 MWh-2MW NaS battery, a 25kWh-100kW Vehicle-to-Grid (V2G) hybrid electric vehicle battery storage system, and a 46 kWh-20kW pumped hydroenergy storage/generating system that will use the existing 500,000 gallons of water storagetanks at B2. In addition, the quasi-periodic 150 kW (2 MWh) electrical demand associated withpumping ground water into the storage tanks will be re-scheduled to maximize solar power

utilization. This system is summarized in Figure 1.

The B2 facility is uniquely situated to operate the proposed smart grid demonstration because itis a stand-alone facility operated and occupied exclusively by the University of Arizona.Because it presently obtains electrical power from a spur-line exclusively dedicated to B2operations, various generating and demand scenarios can be simulated with minimal risk of cascade impacts on the external power grid. Representative months from summer and winter can be simulated at any time, as can conditions in hospitals, army bases, small towns andfactories. Crises and accidents (power failures) can be artificially simulated without anysignificant impact on other electrical grid users.

Currently, B2 obtains power from the rural electricity distribution grid of the San Carlos Irrigation

Project (SCIP), an electric utility that is part of the Bureau of Indian Affairs. B2 is already on theFederal List of power generation facilities and has been a source of power for SCIP in the past.The connection to SCIP is configured so that the generation and storage systems proposedhere can both support and augment the existing rural electrical distribution grid, and allow theB2 facility to deliberately operate as an independent power island. In fact, B2 has had to run itsbackup generators 150 hours this year because power from SCIP is this unreliable. Wetherefore are in an excellent position to improve the reliability of a rural grid by using distributedenergy storage.


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The three utility partners for this smart grid demonstration site are SCIP, TRICO and AEPCO.Other corporate partners include SOLON Corporation, S&C Electric Company, NGK insulators,Young Power Electric, Raytheon Corporation, Tucson Water, and The University of Arizona.Letters of support are in Section 2.4.5 and in the separate Letters of Commitment document.

The proposed control systems will be cyber-secure thanks to the collaboration with RaytheonCorporation. The NaS batteries will be controlled with hardware from S&C Electric Company.The PV modules are being fabricated in Arizona by SOLON America. The top-level SCADAsystem shall be developed jointly with key personnel from the Arizona Research Institute for Solar Energy, The University of Arizona, and SOLON America.

This Smart Grid demonstration will advance the arts of renewables integration, deployment of distributed energy storage, electric vehicle - grid interactions, solar power, pumped hydrostorage, cyber-secure interactive load control, grid modernization, and energy efficiency. Anoverview is shown in Figure 1.

Figure 1. Schematic of the proposed smart grid. Blue indicates existing assets. Redindicates proposed new assets.

Specific Project Objectives:

1) The chief aim of the proposed work is to build an industrial-scale logically controlledpower generation/energy storage/and load system heavily weighted towards PVgeneration, and explore its stability, reliability, durability, weaknesses and behavior


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under a range of generation/storage/load configurations for both power-islanding andgrid-connected conditions. This is a Smart Grid.

2) Installation of a 3MW-peak photovoltaic system with grid-tied inverters.3) Installation of a 2 MW-12 MWh NaS battery energy storage system. This component will

be installed with an AC-DC power conversion system and a distributed staticcompensator (DSTATCOM) unit to provide ancillary power services and to regulatepower flow into and out of the NaS battery.

4) Installation of a 25 kWh-100kW hybrid electric vehicle battery energy storage system.50 new and used nickel metal hydride (NiMH) car-batteries will be incorporated into theproposed B2 photovoltaic-shaded car-park area, to simulate a likely Vehicle-to-Grid(V2G) implementation scenario. A bipolar AC-DC inverter system with controlled by acentral computer (see aim #6) will regulate power flow into and out of the car batteries.

5) Installation of a 46 kWh-20kW closed system pumped-hydro energy storage/generatingsystem. Switch gear and load control systems for the turbine/generator will beconducted by the Smart-Grid SCADA system (specific aim # 6). This system will use theexisting 500,000 gallon water storage reservoirs, but will require the addition of a Peltonturbine with synchronous drive and 3-phase 480V generator. In Phase 2 of thisdemonstration project the connecting plumbing between the two reservoirs will beincreased from 6 to 12 diameter gauge to increase output power.

6) Installation of a Smart-Grid Supervisory Control And Data Acquisition (SG-SCADA)system to regulate components of the microgrid. This system will be based on anexisting Solon SCADA system, but smart-grid algorithms for management and controlwill be developed and implemented using emerging standards for Distributed Generationand Energy Storage (DG) as well as Cyber-Security, and Demand Management.

7) Installation of interactive sensors and signal devices to securely monitor and controleach element of the microgrid remotely.

8) Integration of these systems with the existing electrical resources at the Biosphere 2research laboratory, including a 1.5 MW diesel generator, a 1.5 MW natural gasgenerator, existing 40kW-peak PV array, and the electrical substation on a ruralelectrical grid operated by the Bureau of Indian affairs.

9) Establishment of software and protocols required to securely monitor, evaluate, andcontrol each element of this microgrid on site and remotely.

10) Optimization of the system configuration in the context of costs and rate structures tominimize the energy costs, or maximize the financial value of storing and generatingenergy.

11) Optimization of the system plus grid to minimize CO2 emissions.12) Demonstration for industrial partners of the value of PV and storage systems.13) Application of case studies from industrial-sized partners such as The University of

Arizona or Tucson Water to scenarios empirically tested at the B2 microgrid.14) Generation of empirically tested proposals for how to run the University of Arizona

campus entirely on solar power.15) Generation of empirically tested proposals for how Tucson Water, the city utility can

maximize its utilization of solar energy.16) Making the PV plus storage dispatchable by a rural electrical utility company .17) Making load-cutting measures part of a dispatchable energy source/customer on a rural

electrical grid.18) Realization of a a unique and world-class facility for educating future engineers and

scientists in distributed renewable energy systems as well as establishment of anaccessible facility for the public to learn about the smart grid, renewable energy systems,and use and demand management.


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Detailed milestones, assessment criteria, impacts and timelines for these objectives aredescribed in the project narrative below. The highlights are:

Coordinated operation of a 3 MW photovoltaic system combined with a 2 MWbattery to make the rural electrical distribution system more reliable.

On-demand power-islanding of an industrial-scale smart-grid heavily weightedtowards photovoltaics.

Operation of 3 MW of PV in cooperation with the Bureau of Indian Affairs

Demonstrations for the University of Arizona, the City of Tucson, Tucson ElectricPower, Tucson Water, and several other industrial partners to evaluate whatenergy storage systems they can use as they install more photovoltaic systems.

Outreach and education for over 60,000 visitors from the general public each year.

Synergistic research coordinated by the Arizona Research Institute for Solar Energy that will leverage the research and teaching activities of over 30 facultyand 30 research students at the University of Arizona.


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2 Merit Review Criterion Discussion

2.1 Project Approach

Comprehensiveness and Completeness of the Statement of Project Objectives

The project objectives have specifically been identified (Section 1.) to address the goalsof the Smart Grid Demonstration Initiative and Area of Interest 2 to address the EnergyStorage Competitiveness Act and to leverage the unique opportunity offered by theBiosphere 2 facility to allow comprehensive and rigorous testing and evaluation of thecombination of renewable generation and storage technologies in a smart grid. Toachieve these project objectives a detailed Project Management Plan (attached to thisapplication package as a separate document - pmp.pdf) has been developed thatoutlines the scope of work, schedule, staffing, and budgeting required with specificreference to the stated objectives. The Statement of Project Objectives (Section 6.)summarizes the important features of the Project Management Plan (PMP) for executivereview and public distribution.

Completeness of the Proposed DemonstrationThe proposed demonstration project specifically addresses the stated goals. The goalsfrom the DE-FOA-0000036 Area 2, Project 2.3 description that are addressed in thisapplication are summarized in Table 1 below. The specific project features are aligned tothe DOE objectives and are referenced either to the Work Breakdown Structure (WBS)or to the specific project Task that will achieve the desired objective.

Table 1 Relation of Project Goals and Features to DOE Objectives

DOE Objectives (From FOA pp. 15-16)Biosphere 2 Microgrid withPhotovoltaic and StorageProject Features

Energy storage to improve the feasibility of

microgrids (islanding) or transmission anddistribution capability to improve reliabilityin rural areas

Biosphere 2 microgrid in rural

area using 2 MW NaS battery for storage (WBS 1.3.1)Islanding capability of microgridfor controller experimentationunder varying load scenarios(Task 2.8.1)Remote switching to providestored power to the Utility whenneeded (Task 2.8.2)

Integration with intermittent renewableenergy production, at the source or anywhere on the grid

Integration with 3 MW PV Solar (WBS 1.2.3)Integration with 40 kW PV Solar

(WBS 1.2.4)Integration with a 38 kWh-3kWclosed system pumped-hydroenergy storage/generatingsystem (WBS 1.3.2)

Use of energy storage to provide ancillaryservices, such as spinning reserveservices, for grid management

2 MW NaS battery for storageintegrated with gridmanagement (WBS 1.3.1)

Advancement of power conversion Demand Management of


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systems to make the systems smarter,more efficient, able to communicate withother inverters, and able to control voltage

Industrial load using smart gridmanagement and control (WBS1.4.1)

Use of advanced energy storage for peakload management of residentialcomplexes, businesses, and the grid

25kWh-100kW V2G distributedenergy storage systemcomprised of 50 new and usednickel metal hydride (NiMH) car-batteries (WBS 1.3.3)

Use of energy storage devices to storeenergy during non-peak generation periodsto make better use of existing grid assets

2 MW NaS battery for storage(WBS 1.3.1)46 kWh-20kW closed systempumped-hydro energystorage/generating system(WBS 1.3.2)25kWh-100kW V2G distributedenergy storage systemcomprised of 50 new and usednickel metal hydride (NiMH) car-batteries (WBS 1.3.3)

Adequacy to Demonstrate Quantifiably Advance Program Metrics

The Advanced Program Metrics stated by DOE include benefits related to economicfactors, reliability and power quality, environmental, and energy security and aresummarized in DE-FOA-0000036 Table A.5. This table is referenced below with specificreference to the scope task and report where the information will be reported.


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Table 2. Summary of Benefits, the Sources of these Benefits and the Data whichthe Recipient can Expect to Report (From DE-FOA-00036 Table A.5.)

BenefitCategory

Benefit Source of Benefit Information Reportedby Biosphere 2Microgrid with PVand Storage Project

Lower electricity cost

Lower peak demand

Flatter load curve(from load shifted tooff-peak periods,e.g., from consumer behavior and smartappliances that can

respond to pricesignals)

Lower electricityrates (reflectingreduced generationcosts with flatter load curve)

Lower totalelectricityconsumption

Hourly load data, bycustomer (Task2.1.1 and 3.1.1,Deliverable Reportin Task 3.4.1 and3.4.2)

Monthly electricitycost, by customer (Task 3.4.4,Deliverable Report)

Tariff description, bycustomer (Task3.4.2, DeliverableReport)

Demographic andother informationaffecting demand -Case studies inTasks 3.4.5-3.4.8)

For B2, squarefootage and SICcode

Types of smart

appliances andindustrial machinesin use

Lower T&Dlosses

Optimized T&Dnetwork

Generation closer toload (DG)

T&D System losses(MWh) (Task 3.4.2)

% of MWh served byDG (Task 3.4.2)

Economic

Lower O&M

costs

Reduced O&Mactivity

Lower equipmentfailure

Activity based O&Mcosts (Task 3.4.1,Deliverable Report)

Equipment failure

incidents (Task3.4.1, DeliverableReport)

Reduced costof power interruptions

Fewer shortages Shorter shortages

SAIFI SAIDI or CAIDI

(Task 3.4.1)

Reliabilityand Power Quality

Reduced costs Fewer momentary MAIFI (Task 3.4.1)


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BenefitCategory

Benefit Source of Benefit Information Reportedby Biosphere 2Microgrid with PVand Storage Project

from better power quality

outages Fewer severe sags

and swells Lower harmonic

distortion

Lower electricityconsumption from:

o Intelligentappliances

Hourly consumptionagainst baseline /control group

(Task 3.4.1 basedon experiments inTask 3.2)

Lower T&D lossesfrom:

o Optimized T&Dnetwork

o Generation closer to load (DG)

% of MWh served byDG (Task 3.4.1,Deliverable Report)Environ-

mental

Reduceddamages as aresult of lower GHG/carbonemissions

Lower emissionsfrom generationfrom:

o CHPo Renewable energy

(RE)o Avoiding additional

generator dispatchwith load response

MW of CHP installed(Task 3.4.3,Deliverable Report)

% of MWh served byRE (Task 3.4.3,

Deliverable Report) % of feeder peakload served by RE(Task 3.4.3)

EnergySecurity

Greater energysecurity fromreduced oilconsumption

Electricitysubstituting for oilby smart-gridenabled electricvehicles

Vehicle-to-Griddemonstration

Likelihood of Success Based in Technology Maturity and Stakeholder Acceptance

The project proposed in this application utilizes relatively mature technology to ensuresuccess in meeting the stated project goals and providing the desired data and analysis toassess the benefits, impacts, and issues. The solar and NaS battery technologies aremature and proven. The 25kWh-100kW residential scale energy storage is proventechnology in an innovative application. The 46 kWh-20kW closed system pumped-hydroenergy storage/generating system is mature technology.


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Table 3 Technology MaturityBiosphere 2 Microgridwith PV and StorageProject Components Technology Maturity

Existing 40kW PV Solar Proven and operating technology3 MW PV Solar New installation of proven technologyNaS battery Proven technology with seven (7) installations in

the United States and well over one hundred(100) installations internationally. Theseinstallations are successfully operating andhave proven to be reliable

25kWh-100kW energystorage systemcomprised of 50 nickelmetal hydride (NiMH)car-batteries

New installation utilizing a proven technologyin an innovative vehicle-to-grid application for residential scale storage or grid support.

46 kWh-20kW closedsystem pumped-hydroenergy storage /generating system

New installation using existing hydro storagecapability utilizing a proven generator technology. Establishes a pathway toincreased capacity in Phase II. Effectivelydemonstrating capability and economics of using existing hydro pumping system togenerate energy

1.5 MW diesel and 1.5MW natural gasgenerators

Existing and proven operating technology.Provides direct measure of CO2 emissionsfor comparison.

Biosphere 2 DemandManagement/Enterprise System

New installation of new technology. Datacollection technology is proven, but controltechnology is new and innovative.

SG-SCADA System

Base system is proven technology (SOLON)that supports wide variety of communicationsmedia and protocols.Base system capable of controlling allcomponents in the system.Base system capable of collecting system data,statistics, reports, and other informationrequired for reporting (Task 2.7).System provides APIs for custom software for smart grid control. Algorithms and software tobe developed in Tasks 2.8

ATaRS wireless cyber-secure communications

Proven cyber-secure communicationstechnology with applications in Department of Defense (Raytheon)

Appropriateness and completeness of the demonstration plan including performanceobjectives of the demonstration, the criteria and requirements used in selectingdemonstration site(s), the data collection and evaluation plan, the metrics for success,and the measurements that will be made to confirm success

Appropriateness and Completeness of the Demonstration Plan


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The Commissioning and Operating Plan includes specific operational profiles where thegeneration and load can be varied to evaluate the ability and effectiveness of a smartmicrogrid to respond to events and operating situations. This is a capability onlyavailable with a facility like Biosphere 2, where there is no general public dependence onthe generation or the load. Experiments have been defined to test PV alone, storagealone, PV and storage, and many other combinations in highly controlled and observableexperiments all conducted during normal operations in cooperation with the Utilitypartners.

Delivering Demonstration Project Data and Information

The project has been defined specifically to collect data using the SG-SCADA systemthroughout normal and PV-Storage based operations. This data will be used to analyzeand demonstrate system behavior, including stability, reliability, and power quality, under structure operating profile scenarios on a monthly basis. These data reports will becompiled into formal final deliverables (Tasks 3.4). In addition, this demonstration projecthas a significant outreach component for industry and the public. As such, the faculty and

staff members supporting the project will provide academic, educational, and informationalarticles, seminars, courses, and media programs to share the knowledge and informationdeveloped.

Suitability and Availability of the Proposed Project Site

The B2 facility is uniquely situated to operate as the proposed micro-scale demonstrationfacility because it is a stand-alone facility operated and occupied exclusively by theUniversity of Arizona. Because it presently obtains electrical power from a spur-lineexclusively dedicated to B2 operations, various generating and demand scenarios can besimulated with minimal risk of cascade impacts on the external power grid.Representative months from summer and winter can be simulated at any time, as can

conditions in hospital, army bases, small towns and factories. Crises and accidents(power failures) can be artificially simulated here at B2 without any significant impact onother electrical grid users.

Currently, B2 obtains power from the rural electricity distribution grid of the San CarlosIrrigation Project (SCIP), an electric utility that is part of the Bureau of Indian Affairs. B2is already on the Federal List of power generation facilities and has been a source of power for SCIP in the past. The connection to SCIP is configured so that the generationand storage systems proposed here can both support and augment the existing ruralelectrical distribution grid, and allow the B2 facility to deliberately operate as anindependent power island.

Plans for Data Collection and Analysis of Project Costs and Benefits

Sensors listed in the Equipment Appendix will be installed by Raytheon and University of Arizona engineers at all strategically important nodes of the microgrid. The cyber securecommunication system enabled by the ATaRS hardware will transfer this information to acentral computer located at Biosphere 2.

In the six months preceding the commissioning of the micro-grid battery components and new


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SCADA system, data will be collected in the B2 Energy Center with the existing computer control system. Following commissioning, data will be collected in real time while the entirefacility is run in different modes: with/without battery, with/without PV, with/without interactiveload control, etc. A typical duty cycle for one month is shown in figure 2.

Figure 2. A proposed monthly cycle of asset utilization. This will catalogue power qualityin several different modes of micro-grid operation. Repetitions of this schedule in summer and winter months will help to develop the smart-grid management protocols.

Power quality measurements will be made many several strategic locations as the PV andNaS systems are used. The types of measurements, the locations, and the PV and NaSuse schedule will be briefly described next.

Data will be obtained from a list of 145 sensors described in Appendix 1 and in the letter of support from Raytheon Corporation. The data will include measurements every 1second of AC voltage, the absolute phase of the voltage, the current-voltage phase angle,

AC current, VARs, power harmonics. Such measurements can be obtained from therevenue grade Shark 200 power meter from EIG Inc. Locations where thesemeasurements will be made include: at the well pumps, at the booster pumps, at thecentral chiller, at the residential units, at the grid connection sub-station, at the generator stations, at the output of the PV farm inverters, and at the output of the battery controlstation that will be installed by S&C. This data will be collected with the cyber-secure

ATaRS communication network to be installed by Raytheon Corporation.

The schedule of operations in a typical demonstration of power-islanding with PV andbattery is shown in Figures 3 and 4. Here, measured PV output from a few days in March2009, and an informed simulation of the time-series of electrical demand are used topredict a duty cycle for the NaS battery that would enable the entire facility to be operated24-hours per day as a power island.


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Examples of Data to be Obtained

Scenario A:

To compensate for clouds, the NaSbattery simulates capacitors, Li-ionbatteries or flywheels. Power provided tothe micro-grid is shown in red.

Scenario B:To shave peak-loads from 2 to 6pm, theNaS battery simulates long-duration fly-wheels, fuel cells, lead-acid batteries, or small-scale CAES or pumped hydro

systems.

Scenario C:Solar energy at night is provided with aNaS battery. We will also demonstrateCAES and pumped hydro to accomplishthis.

Figure 3: Stabilized PV power time-series that we will demonstrate.

Figure 4.

Examples of data to becollected. This graphshows measured PVoutput from February2009 in Tucson (scaled upto simulate output fromthe proposed 3 MW field).This graph also shows asimulated load for thebiosphere, and the power into/out of the NaSbattery, as well as its stateof charge.


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Figure 5. A power-islanding scenario for 10 days. After sunny days, the NaS battery ischarged and can power the facility overnight. After cloudy days, the natural gasgenerator is needed to add energy to the battery. After particularly sunny days,additional power is available for the interactive (controllable) loads such as the water pumps. Empirical verification of this scenario will be documented.


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Figure 6. PV-output measured at The University of Arizona on two different days.Intermittent PV power due to clouds is a major reason why batteries are needed.

The types of sensors, the locations of sensors, and the numbers of various sensors needed toprovide this data are described in Appendix1 -- Equipment. Raytheon engineers will procureand install the majority of the sensors, along with the cyber-secure communications platform.

Price signals regarding the daily schedule of power costs for the regional grid will be obtainedfrom AEPCO and TRICO. The opportunity to get more rapid price scheduling information, viatransmission of fuel adjuster data from AEPCO is currently being discussed. It is via thesesignals that TRICO and AEPCO will be able to dispatch power from the Biosphere 2 smart grid.Part of the challenge for this interaction is the regulatory framework under which AEPCO isrestricted from sending real time price information to distributed generators. Professor of Law,Kirsten Engle, a key personal in the proposal, will work on this topic.

We will develop protocols to restrict the depth and rate of discharge for the different batterysystems in the micro-grid in order to simulate different amounts and different types of energystorage resources. That is, without needing to buy capacitors o flywheels, we can simulate their performance with the NaS battery and smart-grid SCADA system. This will enable us toempirically demonstrate the value of different types of energy storage.

These data will be shared openly with the corporate partners, Department of Energy, Universityof Arizona researchers, and whenever possible, the public.

Data will be saved on a relational data base such as MySQL on a secure server and output toexcel spreadsheets on demand for analysis on different computer platforms. Support for database and computer system administration is built into the budget. The Program Manager will work to make sure that all participants and consultants have access to the updated versionsof reports, analysis, raw data files, protocols, lists of materials, and signaling languages for operating the smart grid.


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2.2 Significance and Impact

Significance vs. current practices

Current use of PV is largely limited to the installation of panels on rooftops and other

structures, but generally without energy storage. In this model, up to 5% of the municipalenergy supply may be provided by PV before intermittencies due to weather and nighttime becomes a major problem. The cost of maintaining spinning reserves, backup power source and power quality ancillary services will remain high unless solar is combined withstorage. The comparative study of various storage methods and of their integration into asmart grid is therefore of tantamount importance in scaling solar (and other renewable)energy sources to a significant level.

Broad Applicability and Adaptability

It is widely recognized that the American Southwest finds itself at ground zero when itcomes to the expected effects of global climate change, and that it needs to address these

issues in the face of a growth rate amongst the largest in the country. To face thischallenge, this region benefits from one major weapon, plentiful photons. Thedevelopment of solar energy is therefore both natural, and also necessary to that region.The economic and societal impacts of becoming a major provider of energy in the 21 st century and beyond are simply enormous. However, transitioning to a solar energy basedeconomy is far from trivial, and storage is the only way out of that problem. It is needed tomake renewables dispatchable in order to reduce peak loads and defer capital upgrades.

The proposed demonstration project is truly unique, in that it will benefit from theremarkable facilities available on the Biosphere 2 campus. These facilities put us in anextraordinary position to address a number of key questions. The unique characteristics of the proposed microgrid project are listed in detail in section 3.1. At the same time, though,

and very importantly, the proposed microgrid is scalable, and as such of immediate andconsiderable relevance to the American West. We also recall that Biosphere 2 obtainspower from the rural electricity distribution grid of the San Carlos Irrigation Project (SCIP),an electric utility that is part of the Bureau of Indian Affairs and is also currently on theFederal List of power generation facilities and has been a source of power for SCIP in thepast.

The planned collaboration with Tucson Water will insure that energy use for water management is implemented at the municipal scale and integrated with renewable energysources as they come on line. An even grander vision could include case studies relatedto running the entire Central Arizona Project (CAP) water canal from the Colorado River toPhoenix and Tucson region entirely with solar power. We will empirically demonstrate

how much storage is needed to accomplish such a task.

In truth, it is difficult to imagine another existing facility in the country that is as perfectlysuited and ready to perform the necessary work to develop and study a PV and storagebased microgrid. It is to our knowledge the first project in the US that combines a large,multi-MW PV solar farm with a multi-MW-scale energy storage demonstration projectbased on large NaS batteries, distributed networks of NiMH electric vehicle batteries, andhydroelectric turbines and pumps, and may be the first multi-megawatt solar energystorage project in the United States. While the battery and PV technology are both well


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developed the challenge is to put them together into a well-functioning system that can beremotely monitored and dispatched.

Public outreach

The relevance and potential impact of the proposed Arizona B2 Microgrid Project areimmediate, and include components that extend far beyond its simple technical aspectsand are likely to be completely unique. This is because this project will be developed infront of the public, with considerable outreach and education components. In addition tobeing a research and educational facility associated with a major Research I University,Biosphere 2 is a popular tourist attraction in Southern Arizona, attracting well over 60,000visitors per year, not to mention numerous K-12 school groups, as well as the conferencesand workshops taking place in the B2 Student Village. By developing a broad spectrum of outreach and education activities that will complement already existing outreach andeducation activities, we are be in a unique position to provide a major education andtraining component, two aspects that are crucial in obtaining buy-in into renewable energyfrom the general population.

Completeness of the proposed commercialization strategy

Our corporate partners have indicated considerable interest in this project as it will provide ashowcase opportunity to showcase their equipment and integrate in a complex smart grid.Specifically, SOLON Co. will develop a SG-SCADA system that they plan on implementing inother settings; S&C will develop storage management that couples PV-based renewable withNaS storage and the grid, a new development in their corporate strategy; Raytheon is hopingto use the ATaRS hardware and software in many additional smart grids and in doing somaking energy management at the municipal level a new branch of their business plan.

In addition, CDO Ranching and Development LC hopes to build 1500 homes as a modelgreen development featuring PV and energy storage technologies and healthy living.

Finally, The University of Arizona is committed to transforming its entire campus into ashowcase green campus, and expects to learn a great deal from the Biosphere 2 smart griddemonstration.

Letters of support from all parties involved in this collaboration are attached in xxxx

Demonstration of research and development objectives

The proposed smart grid will demonstrate the benefits of energy storage for a rural regionalgrid. It will integrate smart grid technology in existing electric networks, improve reliability,monitoring and flow control protocols for energy savings and fossil fuel emission reductions.One unique aspect of the proposed micro grid is that we will be in a position to simulate

variable loads, blackouts, and a combination of generation and storage media in small urbanand industrial setting.

Viability and practicality for target market

PV based electricity generation is a fast growing industry. For instance SOLON Co has now abillion dollars in annual revenues for PV systems. Future sustained growth in this area needsto address fundamental questions in the integration of generation with storage, as well ascyber security issues. The proposed Biosphere 2 microgrid is a showcase opportunity to


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identify potential difficulties and to demonstrate the successful and secure management of PVgeneration and storage and successful dispatching of power into a rural grid.

2.3 Interoperability and Cybersecurity

Interoperability

Interoperability is vitally important to the performance of the proposed Arizona B2Microgrid (Smart Grid), which enables integration, effective cooperation, and two-waycommunication among the many interconnected elements. The proposed Arizona B2Microgrid will be guided by major evolving frameworks for interoperability standards for aSmart Grid, such as1) one led by NIST together with the Federal Energy Regulatory Commission (FERC)

and the Electric Power Research Institute (EPRI) (Dollen, 2009) and2) GridWise Interoperability Context-Setting Framework by the GridWise Architecture

Council (GWAC) (2008).

In the proposed demonstration of the Arizona B2 Microgrid, interoperability will beaddressed across technical, informational, and organizational aspects in a comprehensivemanner. To this end, layered interoperability categories proposed by the GridWise

Architecture Council (2008) will be employed, where the categories include:

1) basic connectivity,2) network interoperability,3) syntactic interoperability,4) semantic understanding,5) business context,6) business procedures,7) business objectives, and

8) economic/regulatory policy.

Exemplary standards for each of these categories include:

1) Ethernet, 100BaseTX, WiFi, EIA-232 for basic connectivity,2) FTP, TCP, UDP, IP/IPv6, ARP, IPSec for network interoperability,3) HTML, XML, ASN.1, SOAP, SNMP for syntactic interoperability,4) IEC 61970 (Common Information Model (CIM) power model), object models

based on the IEC 61850 substation automation standard, object modelsbased on OPC Unified Architecture, object models based on XML schemadefinition (XSD), tModels based on UDDI for semantic understanding,

5) ICCP (IEC 60870-6/TASE 2), MultiSpeak, OpenADR/OASIS Energy Interop,

OpenHAN for business context,6) Measurement & Verification (NAESB WEQ015), DNP3, FixML, OpenADR,CIP 004-1 Reliability Standards, NAESB (OASIS), Web stuff-Discovery,Web Services for business procedures,

7) FERC 888, ANSI C12.19, ANSI C12.1, ANSI C12.20 for businessobjectives, and

8) IEC 61968, Measurement & Verification (NAESB WEQ015), CIP ReliabilityStandards, FERC 888, AMI-SEC, Open Han, UL Safety Standards, ANSIC12 for economic/regulatory policy.


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Figure 6. Components and Interfaces of Arizona B2 Microgrid.

As shown in Figure 6, elements (hardware, software, functions, proximity, data) pertainingto the Arizona B2 Microgrid are highly diverse and heterogeneous. To enablecomprehensive interoperability of them, many of the above-mentioned interoperabilitystandards will be selected and implemented based on 1) common smart grid applicationrequirements, 2) availabilities, and 3) guidelines from the evolving frameworks (i.e. NISTframework, GridWise Interoperability Context-Setting Framework).

In particular, the B2 Microgrid demonstration project will address a few specific Smart Gridfunctional priorities that have been identified based on the FOA (DE-FOA-0000036) of DOE and the framework led by NIST, including

1) demand response,2) electricity storage,3) renewable system integration,4) micro-grid operations, and5) congestion reduction.


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For each of these applications, the developed architecture will address significant usecases (Dollen, 2009) and demonstrate interoperability of the involved components. For the demand response application as an example, use cases that will be considered are

1) customer uses smart appliances and industrial machines,2) voltage, VAR, and Watt control with demand response, distributed energy

resources, and electric storage devices,3) direct load control,4) demand response management system manages demand in response to

pricing signal,5) customer reduces their usage in response to pricing or voluntary load

reduction events, and6) customer uses an energy management system or in-home display.

To enable the above mentioned use cases, we will employ

1) A common price model involving NAESB, EMIX, OpenADR, IEC 61850-7-420standards (synthetic and semantic interoperability in the GWAC multi-layer framework),

2) OpenHAN, ANSI C12.19, Smart Energy Profile standards (object modeling;messaging in the GWAC layer) to provide energy usage information to thecustomers energy management system,

3) IEC 61850-7-420, OpenADR, Smart Energy Profile for distributed energyresources (e.g. PV, diesel generators, natural gas generators, batteries in our case), and

4) IEC 61968 and eBusiness to integrate distributed energy resources with theenterprise. In our Arizona B2 Microgrid, Autonomic Tracking and ResponseSystem (ATARS) will be provided by Raytheon and will facilitatecommunications among the components.

For the electric storage application, the considered use cases include 1) energy is storedfrom the power system, 2) energy is discharged into the power system, 3) electric storageis used to provide fast voltage sag correction, 4) energy usage is optimized using electricstorage, 5) storage is used to meet to support intentional islanding (micro-grid). To enablethese use cases, several interoperability standards will be employed such as IEEE 1547(1547.1 for test procedures; 1547.2 for interconnection; 1547.3 for monitoring, informationexchange and control), IEC 61850, ANSI C12.19, BACnet, OpenADR, ANSI C12.22,DLMS/COSEM, and Smart Energy Profile.

Table 4 depicts interoperability standards (semantic layer of the GWAC framework) for each of the components (distributed resources, consumers, generators, management andcontrol, and market) of the Arizona B2 Microgrid. For the network and synthetic

interoperability, flexible Autonomic Tracking and Response System (ATARS) will beprovided by Raytheon and will facilitate communications among all the components (seeFigure 6).


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Table 4: List of standards for semantic interoperability considered in the projectComponents Standards for Semantic Interoperability

Distributed resources(PV, Diesel, NG,Batteries)

IEEE 1547; IEC 61850

Consumers (B2;residences)

ANSI C12, NAESB WEQ015, ZigBee SEPv2, ISO/IEC18012, ASHRAE 135-2008, IEC 60929, OpenHAN, IEC61850

Management and controlIEC 61968, IEC 61850, IEC 61970, ICCP, MultiSpeak,ZigBee, ASHRAE 135-2008, ISO/IEC 14908-1, OpenADR,NAESB OASIS

Market MultiSpeak, IEC 61970, NAESB OASIS, IEC 61970

Cybersecurity and Protection Approach

As the utilities start to integrate information technology with electricity infrastructure to buildwhat is known as smart grid. According to the Department of Energy, a smarter grid usedadvanced computing and communications technologies to bring knowledge to power grid tooperate far more efficiently. However, this make the energy infrastructure a prime target for acts of terrorism and cyberattacks. For example, in January 2008, a CIA analyst reportedthat hackers controlled foreign utilities and control lights in several cities.http://www.washingtonpost.com/wp-dyn/content/article/2008/01/18/AR2008011803277_pf.html

Because of interdependence of our critical infrastructures on the electric grid, any attack onthis infrastructure can lead to catastrophic impacts on all aspects of our economy.Consequently, is it critically important to secure and protect the electrical grid infrastructure.

The researchers at the NSF Center for Autonomic Computing, http://nsfcac.arizona.edu , hasdeveloped an Autonomic Network Defense (AND) System that is currently beingcommercialized by Avirtek, www.avirtek.com and integrated with Raytheon AutonomicTracking and Respond System (ATaRS)The ATaRS modules will beused to make each system in the proposed Biosphere 2 Smart Gridcontrollable and observable such that any anomalous behavior in anyof the systems that could be triggered by cyber attacks, insider attacks, failures in system components, or even unstable loads will beimmediately detected and the appropriatecontrollers will carry the appropriate actions.For further detail about the overview of our approach, refer to Figure ? that shows how

ATaRS modules will control and manage and inparticular secure and protect their operations.In what follow, we will briefly highlight our anomaly based approach that will beincorporated into the controller and observer modules of the ATaRS module as shown inFigure 1. Then we will show how the ATaRS can protect and secure the B2 smart gridinfrastructure and operations.

Multi-level Anomaly Behavior Analysis


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Traditional detection methods have focused on detecting network attacks, but haveprovided no real effective solutions to protect against applications attacks. Attackdetection techniques can be classified into three categories: signature-based , post-mortem forensics , and norm-based detection . Signature-based detection and forensicsare reactive approaches to security. To be effective, signature-based systems rely onlarge databases of known attacks, which require continuous updates as new exploits areidentified. If an attack does not match closely enough a known signature, the signature-based system will miss it entirely. Norm-based systems rely on training data representingnormal behavior profiles in order to detect activity that is outside the norm. While thesesystems are good at detecting new exploits, they require collecting large body of data tobuild their models of normal behavior. In addition, norm-based systems suffer from highfalse positives.

The current prototype of the AND system utilizes multiple levels of anomalous behavior analysis to decrease the incidence of false alarms, while achieving a high detection rate.During each observation period, T, Application behavior, Rule-based behavior, Protocolbehavior, and Link behavior analysis are used to detect anomalous events in networkoperations at different levels of granularities. Figure 8 shows the multi-level behavior analysis. For further information about our approach, please refer tohttp://acl.ece.arizona.edu/projects/mlids/

The AND system can accurately detect anomalous network activity, alert networkoperators to anomalous activity and minimize the impact of network attacks. Further development of the AND system is currently carried out by Avirtek and will beincorporated into Raytheon ATaRS module that will be used to secure and protect the proposed Biosphere 2 Smart Grid.

Cybersecurity Implementation Strategy An effective cybersecurity strategy will be end to end and will be based on the NISTrecommended Defense-In-Depth Architecture [ref].

Guide to Industrial Control Systems (ICS) Security, Special Publication 800-82, FinalPublic Draft, National Institute of Standards and Technology, U.S. Department of Commerce.The ATaRS system will provide capabilities to protect 1) B2 physical security; 2) Enforceidentity and access control policies; 3) Harden communication network devices (routers,firewalls, modems) and servers; 4) Perform continuous vulnerability analysis; 5) Developthreat defense strategies; and 6) Secure and Protect data storage and transmission. Inwhat follows, we briefly describe how the ATaRS can implement these important securitycapabilities.

The ATaRS sensors (video surveillance, cameras, motion sensors, electronic access

control) and secure communications will keep the intruders off the premises. The 24 by 7continuous monitoring will significantly reduce the amount of time it takes facilitiespersonnel and operations teams to respond to incidents across the grid.

The observer and controller modules of ATaRS will play a critical role in the overallsecurity strategy. Access to the systems, be it local or remote, should be granted only toparties who are authorized to access these resources. By continuously monitoring who isaccessing the system resources and verifying their access rights, we will be able detectany unauthorized access or malicious activities.


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By continuous monitoring and analysis of the configurations of the routers, firewalls and servers,we can automatically change their configurations, security policies, and update their firmware tomake them more secure and remove any vulnerabilities that can be exploited by new types of cyberattacks.

The multilevel behavior analysis to be performed by the ATaRS observers will implement aneffective layered detection and consequently defense through the controller actions againstDenial of Service (DoS) attacks, Control Application Attacks, Network based attacks, and Hostbased Attacks. The AND system developed by UA researchers and Avirtek has successfullybeen used to protect against all cyberattacks known or unknown with high detection rates andlow false alarms.

The ATaRS provide a very secure and encrypted communication services that will be critical tosecure the data storage and transimission. In addition, the ATaRS observer and controller willenforce muli-level in-depth defense to secure the access to the data; intruders will need to breakinto many layers of defense mechanisms before they can access the data. Our multi-levelanomaly behavior analysis will provide us with effective mechanisms to detect any sophisticatedmalicious attack on the data.


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2.4 Project Team

Figure 7 shows an organizational chart for the Biosphere 2 smart-grid project. TheUniversity of Arizona team members (project manager, staff, research faculty) aredescried in Section 2.4.1. The industrial partners for this project, shown on the secondrow of the organizational chart) are described in Section 2.4.2. Utility companies aredescribed in the separate Section 2.4.3. The CDO Ranching and Development agency isdescribed in Section 2.4.3. Letters of support from many of these partners are presentedin Section 2.4.5.

Figure 7. Organization Chart.

Qualifications Of The Proposed Project Team

2.4.1 University of Arizona Personnel

The key participants include the project manager, technical staff, research faculty andsupport staff at the University of Arizona, as well as employees of several corporatepartners. The partners each bring unique expertise to the project, and will work in closecollaboration at all stages of the project.

Pierre Meystre , a Regents professor of Optical Sciences and Physics and Director of theB2 Institute, will serve as lead PI. He will organize the advisory boards, the educationaloutreach, and the project management oversight. Pierre Meystre will be supported for 2months per year on this project.

Warren Beck , a Professor of Physics, will be in charge of the pumped hydro energystorage components. He will also collaborate on the commissioning and operation of theV2G NiMH electric vehicle battery storage system for this component of the smart griddemonstration. He will be in charge of


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Report 6 Case study: pumped hydro applications to Tucson Water distribution Report 7 Case study: solar energy applications to Tucson Water

Alex Cronin , an Associate Professor of Physics and Optical Sciences , will be in charge of the PV monitoring equipment, the irradiance data processing, the degradation ratesstudies for the PV system and the batteries, and the interface between the sensors, the

ATaRS transponders, and the SCADA system for the PV components, the pumped hydrocomponents, and the inverters, and the batteries. Cronin will help coordinate the PVsystem installation.

Larry Head , Associate professor and Head of the Department of Systems and IndustrialEngineering, will be the chief systems engineer for our smart grid demonstration. Hisresponsibilities will include algorithm design, SCADA system management andimprovement, and engineering personnel coordination. He will be in charge of the reports:

Report 8 Large customer (The University of Arizona) Use of PV and storage Report 9 Scalability of PV and storage methods for Tucson Electric Power Co.

Young Jun Son , an Associate professor of Systems and Industrial Engineering, will serveas a systems engineer for the smart grid operation. He will collaborate closely andinteractively with the utility companies to help manage our smart grid demonstration site tomake it of maximum benefit to their engineering knowledge. Dr. Son will be in charge of

Report 2 Operation of a MW-scale power island with PV Report 3 Dispatched energy storage in rural applications Report 4 Minimization of CO2 emission using PV and storage Report 5 Managing energy costs using PV and storage

Kirsten Engel , a Professor of Law, will research regulatory issues and other markettransformation barriers that affect replicating similar systems in other states, and withother utility companies. The impact of current and future laws affecting storage and PVgeneration components will be part of her research. She will use this project as a casestudy for how the uneven value of Renewable Energy Credits in different power distribution districts affect the adoption of large-scale solar installations. She will alsoresearch the legislative and regulatory impact of the findings from this demonstrationregarding the value of energy storage for reducing CO2 emissions in various legislativescenarios, such as a cap and trade mandate.

Johnny Hsieh , a Professor of Physics, will be in charge of sub-systems interconnects.He will coordinate interoperability and cyber security, and communications with the USDepartment of Energy

Travis Huxman , an Associate Professor of Ecology and Environmental Biology and theDirector of Biosphere 2 and B2 Earthscience, will coordinate the interplay between energystorage research and other major research programs at Biosphere 2.

Tom McMahon will be the project manager. He has considerable experience in managinglarge projects, such as recently the Large Binocular Telescope at The University of


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Arizona. He will be in charge of revising project management plans, schedules,milestones, go/no-go decision trees, and scheduling project reports. He will ensure thateach subsystem is being developed and operated in a way that is consistent with theoverall project goals at each phase of the smart grid demonstration. He will ensure that allof the corporate partners and research staff have the correct expectations, guidelines, andincentives to accomplish their tasks in a timely and transparent manner.

Nathan Allen is the Sustainability Coordinator at Biosphere 2. He will be in charge of theliaison between corporate partners, the research faculty, and the advisory boards. Natewill maintain a database of reports, presentations, and project management plans asneeded to coordinate these different entities. He will coordinate data sharing andcalibration techniques to facilitate all of the reports and operational demonstrations.Nathan will also have major responsibilities in the coordination of the public education andcorporate outreach components of the smart grid demonstration.

Hassan Hijazi , the Director of External Affairs at Biosphere 2, will be in charge of government and corporate relations. He will facilitate collaboration between the City of Tucson, the University of Arizona, Tucson Water, TRICO, AEPCO, SCIP, various stateand federal government agencies, and our smart grid demonstration project.

TBA A staff member to be announced from UA campus Facilities Management will join the team to better coordinate studies of smart grid operations on the entire Universityof Arizona Campus.

John Adams is a Senior Facilities Management and Planning Staff member at B2

Joe Martinez is Support Coordinator for Information Technology at Biosphere 2. His roleHis role includes maintaining the computers, internet, and wireless facilities on theBiosphere 2 campus

Matt Adamson , the Director of Outreach at the Biosphere 2 will coordinate educational

outreach. Adamson will also coordinate business to business outreach so as to developnew partnerships that can benefit from Smart Grid Demonstrations. Adamson willcoordinate board meetings.

Steve Littler is a senior facilities management natural gas and diesel generator expert.

Doug Cline is the facilities HVAC and refrigeration mechanic.

A Database Administrator will be hired for this project

Two Lab Technicians will be hired for this project to manage data loggers, sensors, the ATaRS transponders and smart grid components and to facilitate their interconnection

with the SCADA system. These technicians will be trained by our partner companiesS&C, Young Power, by Raytheon, and SOLON on how to operate various sub-systems inorder to assist the research staff to efficiently enact the proposed smart griddemonstration.

An Accountant will work on this project to facilitate audits and financial oversight.


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One Administrative Assistant is needed to coordinate purchasing, reimbursements,communications, conferences, and meetings. This position will be half-time for theduration of the project.

Table 5 summarizes the University of Arizona team members.

Table 5. Summary of the B2 Staff, Facilities Engineers, and Research FacultyPrincipal Investigators

Meystre Director, B2 Institute, Lead PI.Beck Pumped hydro and hybrid battery systems designer Cronin PV system monitoring and power forecastingHead Chief systems engineer, industrial engineer, SCADA designSon Systems engineer, SCADA development

KEY PERSONNELEngel Regulatory Issues Research

Hsieh Interoperability and industrial partner liaisonHuxman Director, Biosphere 2McMahon Smart Grid Project Manager

APPOINTED PERSONNELAllen Sustainability Coordinator, Utility company liaison Hijazi External and Governmental Relations TBA Engineer from Univ. of Arizona main campus Facilities Management Adams Senior Facilities Manager & Planning,Martinez B2 Information technology

CLASSIFIED STAFF

Adamson coordinator for business outreach, education, board meetings Littler B2 Facilities LeadCline HVAC MechanicTBA Database Mgr TBA Lab CoordinatorsTBA AccountantTBA Admin Assistant

STUDENTSGraduate Student (3) focused on data analysis and report writingUndergraduate student worker) (6) supporting construction, analysis, reports

As described in the Budget and Budget Justification, many of these University of Arizonastaff, and faculty are already employed and will work part-time on this project. TheProject Manager and technical staff are some of the few University of Arizona teammembers who will work full-time on the Smart Grid Demonstration.


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2.4.2 Industrial partners

We will partner with 4 major industrial partners in developing our microgrid system, whohave provided letters of support and additional material describing their roles in thecollaboration. Here we briefly summarize key elements of their contributions. Our major partners include

SOLON Corporation

SOLON Corporation will collaborate closely with the University of Arizona team regardingthe design, installation, integration and engineering of Biosphere 2s microgrid SCADAsystem to monitor and control the set of PV systems and various storage devices that willbe commissioned. As explained in their letter of support, SOLON is also keenly interestedin the modeling efforts and the experimental verification of high penetration deploymentsof PV on the rural electrical distribution grid as well.

S & C Electric Company

S&C is the only company that has successfully installed NaS batteries in the UnitedStates, having already successfully installed 6 similar systems. As described in their letter of support they will provide a 2 MW / 2.5 MVA PureWave SMSTM Storage ManagementSystem (SMS) prepackaged and factory tested in a 27 ft. ISO container with DCconnections for two 1 MW NGK NaS battery modules. S&C responsibilities will include on-site start-up services and operator training. In addition, they will provide turnkeyconstruction services for the installation of the SMS, including assembly of two 1.0 MWNaS battery systems.

Raytheon Corporation

Raytheon Corporation is a technology leader specializing in defense, homeland security,and other government markets throughout the world. With a history of innovation spanningmore than 80 years, Raytheon provides state-of-the-art electronics, mission systemsintegration, and other capabilities in the areas of: sensing; effects; command, control,communications and intelligence systems; as well as a broad range of mission supportservices. Raytheon consistently delivers superior performance, relationships andsolutions to our customers, helping them meet their national security and defense needs,both at home and abroad. Our technology, systems engineering expertise, processes,tools and world-class talent enable us to identify, synthesize and deliver all the elementsneeded to meet urgent mission needs of our customers in an integrated, manageableform.

Raytheon Corporation has been developing solution sets focused on logistics and

associated asset tracking information systems and is pleased to provide the followingtechnical approach utilizing Raytheons Autonomic Tracking and Response System(ATaRS) to fulfill the requirements for the Biosphere2 Micro Grid pilot.

2.4.3 Utility Companies

We will finalize power purchase agreements (PPA) with local utility companies, includingTRICO and AEPCO. We will also work closely with The University of Arizona, Tucson


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Water, and municipal-size power customers to develop and investigate case studies inwhich the B2 microgrid will simulate various scenarios of power demands.

2.4.4 CDO Ranching and Development, LP

CDO Ranching and Development intends to build a large Conservation Community in andaround the Biosphere 2 activities. This could include 1,500 residential units, associatedamenities and infrastructure. The electric utility company and grid expansion for theseunits is still under negotiations. The findings from the Biosphere 2 microgrid will inform theplanning of this new residential development. CDO is in an excellent position to observethe new technologies of solar smart grid and storage in a unique private public partnershipwith The University of Arizona.

2.4.5 AzRISE

Joseph Simmons is Professor and Head of the Department of Material Sciences andEngineering and serves as Director of the Arizona Research Institute for Solar Energy(AzRISE). He will consult with our project staff to maximize our collaboration with other solar power initiatives that are going on in the Tucson region and the State of Arizona, arecoordinated by the University of Arizona, and/or have common components and goalswith our proposed smart grid demonstration.

2.4.6 Letters of Support

Letters of support from team members are attached here. These letters are from

1. TRICO2. SCIP3. University of Arizona Vice President for Business Affairs4. University of Arizona Vice President for Research and Economic Development5. University of Arizona Dean o the College of Science6. SOLON corporation7. City of Tucson from the Mayor 8. CDO Ranching and Development LP9. KR.Saline / Electric Outfitters10. S&C Electric Company


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2.5 Other Selection Factors

Technical Diversity

Large scale use of PV needs to work in combination with significant storage. The typeof storage of choice will depend on a number of circumstances. This proposal isdiverse in that we explore the use of 4 energy storage mechanisms: NaS batteries,plug-in hybrid vehicle batteries, pumped hydro, and interactive load control.

Complementary and synergistic efforts

What works at the Biosphere 2 microgrid will be leveraged by the entire University of Arizona as well as by Tucson Water. Immediate collaboration with engineers from theseagencies is an integral part of the proposal.

Science education is a high priority of the University of Arizona where Biosphere 2already excels, and the proposed PV and storage microgrid provides a platform that

can be immediately and easily adapted to the task at hand. It will be a strongcomplement to our myriad other research efforts in renewable energy technologies,helping to promote and extend the University of Arizonas strong focus inenvironmental science and sustainable energy research and development.

American Recovery and Reinvestment Act

This project will promote and enhance the goals of the American Recovery andReinvestment Act in several immediate ways. First, with regard to enhancing

American job creation and preservation, the PV modules used in this proposal will bemanufactured by SOLON Corporation, a Tucson-based corporation that locallyemploys 100 people and is a rapidly growing and increasingly important local industry.

Hence the fabrication of the PV modules creates American jobs and promotes thegrowth and stability of an industry whose future cannot be overemphasized. SOLON,will hire local construction companies to do the earth moving, assembly and wiring of the 3MW PV field. This will generate a number of local jobs, and train more techniciansin the art of PV installation -- and maintenance of the smart grid once commissioned.

The Pelton turbine proposed in this initiative is from Canyon Hydro, a WashingtonState based manufacturing, again stimulating American job growth. Its installation,including piping, will be additional contract labor coordinated by The University of

Arizona.

S&C Electric Company has established a schedule for professional engineers to work

on this job and will exploit the experience acquired in this project to expand itsactivities from wind and traditional generating sources to solar power. Additionalconsultants from regional electric power industries such as K. R. Saline Inc., YoungPower Electric, and TRICO will be hired by S&C to insure interoperability of thecomponents of the microgrid.

Raytheon will engage professional engineers from several American branches of their company to adapt the ATaRS system from its current defense-oriented applications tosmart grid technology and demonstrations. This launches the opportunity to develop a


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new business thrust for thousands of engineers and technicians at Raytheon.

One of our major corporate partners in this proposal, CDO Ranching., a local realestate corporation which oversees the Biosphere 2 property, is carefully observing theprogress of this project and has preliminary plants to install such systems on up to1500 new homes in properties adjacent to Biosphere 2, again generating jobs in boththe construction and technology sectors.

The project will also employ University of Arizona students, faculty and researchscientists, help strengthen energy security, stimulate the rapidly growing solar energyeconomy, and help reduce American dependence on foreign oil.

3 Relevance and Outcome/Impacts

The chief relevance of this work is as a demonstration of paths towards stable, secure, andefficient ways to integrate renewable energy generation into the energy markets using energystorage. Of particular relevance is a demonstration to electric utilities that large capacity NaS

battery systems can easily be integrated into the US grid infrastructure as a cost effective wayto mitigate PV or wind power intermittency. Our PV/pumped hydro system demonstration maybe of relevance to the many US public water utilities regarding use of such systems for loadshifting or for energy storage partnerships with local electric utilities. One particular outcomethat has already arisen from this work is a white paper proposing to implement large scale PVand pumped-hydro energy storage system in central Arizona to move water along the Central

Arizona Water Project Canal (Delivering Central Arizona Project (CAP) Water with PhotovoltaicPower. A Utility scale135 MW ac PV Generating Facility With NaS Battery and Pumped HydroEnergy Storage W. Beck, A. Cronin, J. Ruiz, 2009). Similar proposals could be generated for several California canal systems. Our demonstration of parking structure Vehicle-to-Grid (V2G)plug-in electric vehicle (PEV) energy storage will certainly be of general relevance to electricutilities as a strategy for load shifting or stabilizing PV or Wind power intermittency. Our V2G

demonstration has additional broad relevance, in that it shows the utility of used PEV and HEVbatteries. These used batteries have a huge potential market for energy storage, even after they no longer have sufficient energy density to be used for transportation. In 2008 alone, morethan a half million hybrid vehicles were sold, which at ~22kW/4.5Ah each, represents apower/energy storage resource of circa 10GW/0.5GWh. As such vehicles become morecommon, this potential used-battery resource will grow at the same time as energy storage inactive plug-in hybrid batteries.

This project has relevance and impacts beyond its simple technical aspects as well, whichare likely to be completely unique. This is because this project will be developed in front of

the public, with considerable outreach and education potential. In addition to being aresearch and educational facility associated with a major Research I University, Biosphere2 is a popular tourist attraction in Southern Arizona, attracting well over 60,000 visitors per year, not to mention numerous school groups, as well as the conferences and workshopstaking place in the B2 Student Village. By developing a broad spectrum of outreach andeducation activities in parallel to the development and study of a smart-grid system, wewill be in a unique position to provide a major education and training component, twoaspects that are crucial in obtaining buy-in into renewable energy from the general


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population. Before elaborating further on these aspects, we briefly outline the componentsof the project that make it uniquely timely and important.

3.1 Uniqueness

The proposed demonstration project is unique in a number of ways:

it is to our knowledge the first project in the US that combines a large, multi-MW PVsolar farm with a multi-MW-scale energy storage demonstration project based on NaSbatteries, NiMH batteries, and hydroelectric turbines and pumps.

This may be the first multi-megawatt solar energy storage project in the United States.To date, only seven large-scale NaS batteries are in operation in the country, and noneof these are operated with a photovoltaic array. Yet the battery and PV technology areboth well developed. The challenge is to put them together into a well-functioningsystem that can be remotely monitored and dispatched.

The unique location and facilities at the Biosphere 2 research facility several uniqueadvantages. They include the following:

o This demonstration site has many elements of a municipal grid, including variableresidential and industrial loads of up to 2.5 MW.

o The B2 laboratories, conference center, and casitas village (28 residential units)now consume up to 8,000,000 kWh annually.

o The plan incorporates existing fossil fuel-based power infrastructure alreadypresent at B2, including a 1.5 MW diesel generator and a 1.5 MW natural gasgenerator.

o The B2 facility is uniquely situated to operate as the proposed micro-scaledemonstration facility because it is a stand-alone facility operated and occupiedexclusively by the University of Arizona. Because it presently obtains electricalpower from a spur-line exclusively dedicated to B2 operations, variousgenerating and demand scenarios can be simulated with minimal risk of cascadeimpacts on the external power grid.

o Biosphere 2 obtains power from the rural electricity distribution grid of the SanCarlos Irrigation Project (SCIP), an electric utility that is part of the Bureau of Indian Affairs.

o Biosphere 2 is also currently on the Federal List of power generation facilitiesand has been a source of power for SCIP in the past

In truth, it is difficult to imagine another existing facility in the country that is as perfectlysuited and ready to perform the necessary work to develop and study a PV and storagebased microgrid facility.

The proposed demonstration project is a remarkably close collaboration betweenuniversity research teams from departments of electrical engineering, systemsengineering, atmospheric sciences, optical sciences, physics, geoscience, chemistry,materials science, law, and public policy and several major industrial partners who are

world leaders in solar energy harvesting, large scale energy storage, remote dataacquisition and control, and power inversion systems. The University of Arizona has along tradition of interdisciplinary research and has considerable experience insuccessfully carrying out large-scale research programs involving major industrialpartners, as evidenced most recently by the successful management of the MarsPhoenix mission.

Biosphere 2 offers superbly developed public outreach and education facilities. It alreadyprovides tours and lectures to over 60,000 people from all over the world each year.


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3.2 Outcome/Impact

Energy storage will make solar energy dispatchable, and thus enable the large scalepenetration of PV into the electrical distribution grid. But the protocols and logic tocombine photovoltaic systems with storage still need to be demonstrated for MW-scaleinstallations. Proper sizing of the batteries for various solar energy systems also needs tobe demonstrated. As for the specific outcome of the project, it includes, but is not limited,to the following:

We will empirically demonstrate how much energy storage is needed in order to captureand utilize all of the available solar energy provided by a 3 MW PV system, combining thePV plus battery systems by using a DSTATCOM and a SCADA system with newhardware and software from S&C, SOLON America, and engineering support from theUniversity of Arizona and several rural utility companies will be a major outcome of thisproject.

We will provide a complete list of equipment needed to make such a combinedsystem and will create new value based on this demonstration project Throughthe development of currently largely missing software and control. We will alsocreate a full bill of materials, components, configurations, protocols, and regulatorycompliances for everything that is needed to reliably operate an industrial load asa power island

By working with several major corporate partners who will learn from thesedeployments, the Arizona B2 microgrid with PV and storage will serve as a modelsystem for how to interface large-scale batteries with PV generation facilities. Thiswill accelerate the large-scale adoption of clean solar energy technologiesthroughout the United States, and thus diversify the Nations electricity supplyoptions, while increasing national security and reducing CO2 emissions.

Storage is crucial for making PV a dispatchable resource for rural utilities. We willwork with TRICO and EPCO, as well as with SCIP and TEP to demonstrate how todo this.

The development of this demonstration facility in an open environment, combinedwith large scale outreach and education programs at Biosphere 2 will provide anadditional essential component, a buy-in from the public and large and anincreased general understanding of the problems and promise of renewableenergy sources in an especially fragile and changing environment. We believe thatsuch a holistic approach is essential in paving the way to the future of solar energy.

In addition we will demonstrate

- On-demand power-islanding of an industrial-scale smart-grid heavilyweighted towards photovoltaics. This will demonstrate successfulmaintenance of electrical services during grid blackouts. Note: thisremains a challenge both from regulations and standards, as well as logicalprotocols and equipment design.

- Operation of 3 MW of PV in cooperation with the Bureau of Indian Affairs


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- Demonstrations for the University of Arizona, the City of Tucson, TucsonElectric Power, Tucson Water, and several other industrial partners toevaluate what energy storage systems they can use as they install morephotovoltaic systems.

- Outreach and education for over 60,000 visitors from the general publiceach year.

4 Role of Participants

4.1 University participants

Eight Academic Units and four Colleges of The University of Arizona will be involved in theproject. They are

Arizona Research Center for Solar Energy (Joseph Simmons, Ardeth Barnhart) Biosphere 2 (Nathan Allen, Hassan Hijazi, Travis Huxman, Pierre Meystre) College of Optical Sciences (Alex Cronin, Pierre Meystre) College of Law (Kirsten Engel) Department of Ecology and Evolutionary Biology (Travis Huxman) Department of Geosciences (Warren Beck) Department of Physics (Warren Beck, Alex Cronin, Johnny Hsieh, Pierre Meystre) Department of Systems and Industrial Engineering (Larry Head, Young-Jung Son)

The role of the various participants is described in more detail in Section III.D, MeritReview/Project Team). That so many departments are involved is testimony to the longtradition of The University of Arizona in interdisciplinary science and engineering.Collaborations across departments and colleges are common at the University, and manymechanisms are in place to support such collaborations.

The University of Arizona has also considerable experience in carrying out large scaleprojects in collaboration with industrial partners, with recent examples including thePhoenix Mars Mission and the Large Binocular Telescope.

One key element for the successful is the role played by an experienced and powerfulProject Manager. Tom McMahon, who is expected to take over this role, has considerableexperience in leading large-scale University/Industrial collaborations, even of a larger scale than being considered here. For example, he has recently been project manager for the Large Binocular Telescope built on Mt Graham under the leadership of The Universityof Arizonas Stewart Observatory. He will be in charge of revising project managementplans, schedules, milestones, go/no-go decision trees, and scheduling project reports. Hewill ensure that each subsystem is being developed and operated in a way that is

consistent with the overall project goals at each phase of the smart grid demonstration.He will ensure that all of the corporate partners and research staff have the correctexpectations, guidelines, and incentives to accomplish their tasks in a timely andtransparent manner.

4.2 Business agreements

We have in place business agreements with the three major companies that will developand built the key components of the microgrid: SOLON Corporation, S&C, and Raytheon.


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These agreements will be finalized as soon as the project is approved for funding. Lettersof intent are attached to the proposal, with a detailed description of the contribution of each participating company.

4.3 Integration and management

An administrative structure will be put in place to guarantee the integration andmanagement of the project. It will consist of an Executive Committee, the B2 MicrogridBoard and four subcommittees that will concentrate on the key components of the project,and 2 Advisory Boards.

Executive Committee/B2 Microgrid Board

This Board will be chaired by the project PI. Its membership will include the projectmanager, who will serve as vice-chair, the chairs of the four subcommittees,representatives of the major industrial partners, of CDO, of our utility partners, as well as arepresentative of the University Administration. It will also invite representatives from theUS Department of Energy to join its discussions as needed, That committee will meet on abiweekly basis, either on site or via video-conferencing, to hear reports from thesubcommittees, integrate their work, decide on future steps, and help distribute resourcesand documents as needed.

Power generation subcommittee

This subcommittee will be chaired by a University of Arizona faculty member expert on PVsystems. Its membership will include the project manager as vice-chair, key participantsfrom the University and industrial and commercial partners in charge of the various power generation components, including PV, existing diesel and natural gas power supplies, aswell as the utility companies involved in the B2 microgrid integration. It will also have arepresentative from the storage subcommittee and a representative from the gridmanagement subcommittee. This committee will meet on a biweekly basis and report tothe Executive Committee.

Storage subcommittee

The storage subcommittee will be chaired by an S&C interconnect specialist and includethe project manager as vice-chair, as well as key participants from the University andindustrial and commercial partners in charge of the various storage components, includingNaS, and metal hydride batteries as well as pumped hydro storage. It will also include amember of the power generation subcommittee and a representative from the gridmanagement subcommittee. This committee will meet on a biweekly basis and report tothe Executive Committee.

Grid management subcommittee

This subcommittee will be chaired by the University of Arizona Systems and IndustrialEngineering department head, and vice-chaired by the program manager. It will includekey university and industrial representative in charge in the installation and managementof the microgrid and of its integration into the regional electricity grid. It will also includeone representative each from the power generation and storage subcommittees.


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Education and outreach subcommittee

The education and outreach subcommittee will be charged with all aspects of the projectrelated to public and stakeholders outreach and k-20 education. It will work closely will allother subcommittees, and promote Biosphere 2 and University outreach and educationpartnerships develop world-class educational programs on the Biosphere 2 campus andelsewhere.

In addition to this committee structure, the project will benefit from the support and adviceof two External Advisory Boards.

The Technical Advisory Committee will be a scientific and engineering boardcomprising about 15 national and international experts on solar energy, energystorage, and smart grid systems.

The Industry/Public Outreach Committee will be comprised of stakeholders,including but not limited to elected officials, representatives of utility companies,city planners, and educators. It will w

DE36 Narrative

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