Lessons Learned – Key Characteristics of a Microgrid · Lessons Learned – Key Characteristics...

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1 Lessons Learned Key Lessons Learned Key Characteristics of a Microgrid St P lli P id t Steve Pullins, President September 2012

Transcript of Lessons Learned – Key Characteristics of a Microgrid · Lessons Learned – Key Characteristics...

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Lessons Learned – KeyLessons Learned  Key Characteristics of a Microgrid

St P lli P id tSteve Pullins, President

September 2012

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The future requires a shift from passive grid management to active grid management…and the future is here.

CHALLENGING THE PARADIGM

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Old Paradigms Challengedg g• US average outage duration is 120 minutes and getting worse; rest of industrialized world is < 10getting worse; rest of industrialized world is < 10 minutes and getting better“ ld l ” h ld d l• “Build mentality” has yielded < 45% capital asset utilization (generation, transmission, distribution) and 

h d dgetting worse…at the same time outage duration and frequency is increasing

• Top down electric power system is not meeting the challenge.  Consumers are embracing distributed resources (> 5 GW/year) and participation in peak reduction programs (DR, PTR, CPP, etc)

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Decreasing Grid Reliability

Source: Dr. S. Massoud Amin, IEEE Spectrum, January 2011

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Decreasing Capital Asset Utilizationg p

60.0%

Fleet Average Capacity Factor Trend 60.0%

Fleet Average Capacity Factor Trend To deliver 1 MW to a customer we are building

45.3%

y = ‐0.0082x + 0.551940.0%

50.0% 45.3%

y = ‐0.0082x + 0.551940.0%

50.0%

customer, we are building and paying for 2.2 MW

generation and R² = 0.83949

20.0%

30.0% R² = 0.83949

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30.0% transmission.

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NERC‐wide Re rements & New Construc on

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NERC‐wide Re rements & New Construc onSource: EIA Electric Power Annual 2010

A long-term increasing generation capacity with a long- 10000

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generation capacity with a longterm decreasing capacity factor is an unsustainable business model

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Coal & Natural Oil Water Other Total0

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Coal & Natural Oil Water Other Totalmodel. Lignite Gas

Re rements 2008‐2011 (MW) New Construc on 2008‐2011 (MW)

Lignite Gas

Re rements 2008‐2011 (MW) New Construc on 2008‐2011 (MW)

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C&I DG Installations since 2004 (MW)( )

In 2010, EIA started counting only DG < 1 MW2010 32 504 it i t ll d t t l it 4 972 MW2010: 32,504 units installed, total capacity = 4,972 MW

Source: DOE EIA Electric Power Annual 2009 and 2010 data

DOE BUGS report (2010) shows total DG capacity is greater, ~230 GW

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Dispatching Demand Side on the Risep g

Demand Side Participation in the PJM Capacity MarketDemand Side Participation in the PJM Capacity Market Source: PJM Interconnection

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LESSONS…SO FAR

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Utility Distribution Microgrid UsesUtility Distribution Microgrid Uses

• Somewhat remote communities– Highly concentrated PV communities– Address variability of high renewables targets

• Custom power offerings tailored to customers with p gspecific economic, reliability, and emissions objectives

• Active management to drive improved reliabilityActive management to drive improved reliability• Local resource mix hedge to a single grid supply

Municipals and Cooperatives– Municipals and Cooperatives 

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Future Distribution Architecture

Utility Control Area

Community X Microgrid Community Z Utility Microgrid 

DER in the cloudDER in the cloud

g

Community Y Microgrid Campus B 

MicrogridCoordination

MicrogridCampus A Microgrid

Commercial Park 1 Microgrid

pMicrogrid

g

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Lessons ‐Microgrid Characteristicsg• Most interest is behind the meter• Economically viable

– Commercial & Industrial consumers – 4 to 40 MW– University campuses – 2 to 40 MW

• Significantly improves on site reliability; a MUST• Significantly improves on‐site reliability; a MUST• All solutions (to date) reduce emissions footprint, but not the 

major objectivej j• All solutions (to date) include energy storage and 3 to 6 other 

resource typesAll l ti (t d t ) i l d i t ti t b ildi t l• All solutions (to date) include integration to building controls and price‐driven load management

• Most selected Scenario: MaxSavingsg– 80% to 86% self‐generation, rest from grid– Always grid connected

S l t id t i i l– Sales to grid: zero to minimal

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Lessons on Typical ProjectLessons on Typical Project• Design and Integrate Multiple Resources

– DG, PV, Wind, CHP, FC– Utility‐scale and distributed storage

• Automate Distribution• Grid Interconnection and Islanding• Price‐Driven Load Management

– Intelligent load managementD d– Demand response

• Multiple Revenue StreamsPrimary energy and demand– Primary energy and demand

– Utility peak load programs– Utility ancillary servicesy y

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Lessons on Optimization DesignLessons on Optimization Design• Industry‐leading converged energy and financial model• Commercial and industrial businesses, and university campuses are focused and looking for solutions

• Four main scenarios– MaxSavingsg– MaxRenewables– MaxDiversityMaxDiversity– Grid Independence

• Incorporate federal state and utility tax credits and• Incorporate federal, state, and utility tax credits and incentives

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Microgrid vs Traditional Supplier RolesMicrogrid vs Traditional Supplier Roles

Table 3, Assessing Power Supply: Environment and Energy Efficiency, gy yPerfect Power Institute, July 2012

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Case Study: 11 MW ShipyardCase Study: 11 MW Shipyard

Shipyard will save ~$23 million in the first 10 years py yof the microgrid operations.

$25,000,000

Annual Electric Bill Comparison$25,000,000

Annual Electric Bill Comparison

$15,000,000

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$ , ,

Current Trend

Horizon Microgrid $10,000,000

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Current Trend

Horizon Microgrid

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$0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

$0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

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Case Study: 3 5 MW Engineering CenterCase Study: 3.5 MW Engineering Center

The campus will save almost $10M in the first 10 years of the microgrid

tioperations

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Case Study: What if ConEd?Case Study: What if ConEd?Compare 500 MW over 20 years ConEd BAU ConEd MicrogridCompare 500 MW over 20 years ConEd BAU ConEd Microgrid

Amount of microgrids ‐‐ 500 MW

R li bilit ( t tReliability (avg customer outage minutes/year)

120 12

Power Plant Capacity Factor 45 3% 83 2%Power Plant Capacity Factor 45.3% 83.2%

Emissions (NOX, SOX, CO2) ‐‐ 532,727 Tons less

i $ hi hConsumer Savings ‐‐ $2,091 M higher

Distr. Marginal Cost $600/kW‐year <$250/kW‐year

Case Study based data from an 11 MW industrial microgrid design.y g g

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Conclusions

• Must move distribution network from passive to active management

• Most microgrid action is behind the meterg• Business and university consumers are motivated• For the consumer well developed microgrids are• For the consumer, well developed microgrids are more capital efficient, energy efficient, and reliable than traditional servicethan traditional service

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Th k !Thank you!

Questions?

Contact info:Steve [email protected] 300 7395865.300.7395www.horizonenergygroup.com