John B. Wharton, PETechnical Executive

Baltimore, MarylandOctober 16, 2013

Perspectives on Grid-Integrated MicrogridsMaryland Clean Energy Summit

2© 2013 Electric Power Research Institute, Inc. All rights reserved.

Microgrids in the News

3© 2013 Electric Power Research Institute, Inc. All rights reserved.

MicrogridsWhat is a microgrid?

DER

DER

Feeder

Other Feeders

DERDER

• Interconnected loads and distributed energy resources

• Acts as a single controllable entity

• Connects and disconnects from the grid

Bulk supply connection Single

Customer Microgrid

Distribution Substation

Full Substation Microgrid

Full Feeder MicrogridPartial Feeder Microgrid

4© 2013 Electric Power Research Institute, Inc. All rights reserved.

Why Microgrids?

$-

$0.05

$0.10

$0.15

$0.20

$0.25

$- $2 $4 $6 $8 $10 $12 $14 $16

LCO

E

Price of Natural Gas ($/MMBTU)

LCOE for DG in Commercial Applications

50 kW Microturbine1 MW Industrial Turbine400 kW PureCell200 kW SOFC

Impact of Natural Gas

Resiliency

Remote Power Systems

5© 2013 Electric Power Research Institute, Inc. All rights reserved.

Other Drivers for Increased Interest

• Improved Technology

• Opportunities for Combined Heat and Power

• Energy Security

• Public Policy

6© 2013 Electric Power Research Institute, Inc. All rights reserved.

What is happening in Japan?

• $32M Subsidy for application of Building Energy Management Systems (BEMS) and Home Energy Management Systems (HEMS)

• Feed in Tariff for PV Applications (approx 40 cents/kwh)

• Residential and commercial storage applications also subsidized (Orix storage leasing program $50/month)

• Electric vehicle charging with two way capability

7© 2013 Electric Power Research Institute, Inc. All rights reserved.

Utility Challenge – Integration

8© 2013 Electric Power Research Institute, Inc. All rights reserved.

Summary – Where do microgrids fit?

1. The Economics of Local Generation• Optimize energy source based on market • Ability to participate in ancillary services and demand response• Combined heat and power opportunities

2. Additional Benefits of a Microgrid• Continuity of Service – Resiliency

3. Additional Costs and Challenges of a Microgrid• Additional costs and complexity for interconnection and protection• Requirements for safety• Requirements for control and capacity during island operation, and

maintaining power quality

8

9© 2013 Electric Power Research Institute, Inc. All rights reserved.

EPRI Related Research

• Draft Primer on Microgrid Technology and Applications

• Investigation of the Technical and Economic Feasibility of Micro-Grid-Based Power Systems 1003973.

• Distributed Renewable Energy Generation Impacts on Microgrid Operation and Reliability, 1004045

• Program on Integrating Distributed Generation into the grid

• Program on Energy Storage Systems and Distributed Generation Technologies

• Distribution and Transmission Grid Resiliency

10© 2013 Electric Power Research Institute, Inc. All rights reserved.

Together…Shaping the Future of Electricity