1. Government & Military Smart Grids & Microgrids Symposium
Topical Report on DOE Smart Grid ARRA
Microgrid Projects
Steve Bossart
Senior Energy Analyst
April 9, 2014
Arlington, VA

2. Topics DOE Topical Reports on Smart Grid ARRA Projects
Microgrids Motivations and Challenges
Results from DOE Microgrid Projects

3. Topical Reports

4. Topical Reports Analyze results from SGIG, SGDP, and RDSI
Summarize results
Report similarities, differences, and range of results
Rationalize results
Common best practices and lessons learned
Connect investments with functions with benefits
Connect smart grid with improved DER functionality
Educate

5. Topical Reports Microgrids Dynamic Line Rating
Phasor Measurement Units
Distributed Energy Resources
Transactive Energy Communications
Conservation Voltage Reduction
PUC Filing Review
Consumer Behavior Studies
AMI/smart meter
O&M
Peak load reduction
Volt/VAR optimization
Reliability
Applications and Benefits of Smart Meter/AMI
Others?

6. Microgrids Definition, Concepts, Motivations, Benefits, Technologies & Challenges

7. Microgrids & Smart Grids
Central
Generation
Transmission
Load
Distributed Generation
E-Storage
Distribution
Microgrid
Includes DER & Load
Defined electric boundaries
Single controllable entity
Connect and disconnect from grid
Grid-connected or island-mode

8. A Possible Future Distribution Architecture
Municipal Microgrid
Distribution Control
Utility Microgrid
Military Microgrid
Industrial
Microgrid
Campus Microgrid
Commercial Park
Microgrid

9. Motivations for Microgrids
Reliability
Impact on business
Grid reliability is worsening
Resiliency
Ability to withstand challenges and continue operation
Value of microgrids during Superstorm Sandy
Economic
Best energy mix is 80-89% from microgrid and 11-20% from main grid
Sustainability/emissions reduction
Microgrids during Sandy
Brevoort Toweer – CHP microgrid
NY Presbyterian Hospital
Fairfield University Campus
Co-Op City Campus
Princeton University

10. Why Microgrids? Support integration of smart grid & renewables
Ease application of combined heat & power
Local generation reduces electricity losses
Disperses investments between central and local assets
Assist in reducing peak load
Serve critical loads
Provide local power quality & reliability
Promotes community involvement & energy independence
Provide local power during outages
Supports main grid
Provide ancillary services to main grid
Manage variability of loads and renewables locally

11. Cost of Electric Service
$363 billion is annual electric bill in US (2013)
$200 billion is paid by commercial and industrial firms
Value of business losses is $80 - $150 billion annually
(LBNL and EPRI studies)
Interruption Cost Estimate Calculator (ICE)

12. Types of Microgrids
End user
Utility distribution
Remote/island systems
Size
2 MW to 40 MW are economical – average and above cost of electricity (COE)
< 1 MW are economical where COE is higher
Hawaii, Alaska, Northeast
Portfolio Mix
Balance resources with high capital cost and low O&M with resources with low capital cost and high O&M

13. Common Technologies in Microgrid Projects
Generation and Energy Storage
Renewable energy (PV, wind)
Distributed generation (microturbines, fuel cells, diesel)
Combined heat and power
Energy storage (thermal storage, batteries)
T&D
Communications (wireless, PLC, internet)
Advanced metering infrastructure & smart meters
T&D equipment health monitors (transformers)
Power inverters
Consumers
Plug-in electric vehicles and charging stations (PHEV/PEV)
Smart appliances & programmable thermostats (DR/DD)
Home Area Networks & In-Home Displays
Energy management systems

14. Barriers to End User Microgrid Deployment
Very young in financing lifecycle
Majority of microgrids involve third-party financing
Requires long-term service agreements (PPA)
Regulatory environment has not been favorable
Microgrids must be “good citizens”
Conflict in allocation of utility costs to accommodate microgrids
Value proposition may be unclear
Technology
Optimize controls to improve value
Rapidly improving technologies (e.g., energy storage)
Private wire laws

15. DOE OE Microgrid Demonstration Program

16. DOE-OE Primary Microgrid Field Projects
Renewable and Distributed Systems Integration Projects
Chevron Energy Solutions - CERTS Microgrid Demo
City of Fort Collins MW Mixed Distributed Resources
Illinois Institute of Technology - IIT Perfect Power Demo
San Diego Gas & Electric - Borrego Springs Microgrid
Smart Grid Demonstration Projects (ARRA)
Battelle – Pacific Northwest Smart Grid Demonstration
LA Dept. of Water & Power Smart Grid Regional Demo
Southern California Edison Irvine Smart Grid Demo
Microgrid FOA released on January 31, 2014
Proposals due April 28, 2014
- Advanced control of microgrids

17. DOE OE Primary Microgrid Project Locations
SDG&E
Battelle
SCE Ft
Collins
Chevron
IIT
LADWP
RDSI
SGDP

18. Common Objectives Among DOE’s Microgrid Projects
Reduce peak load
Benefits of integrated DER (i.e., DG, DR, e-storage)
Ability to integrate variable renewables
Operate in “islanding” and “grid parallel” modes
Import and export capabilities
Two-way communications (frequency, verification, data latency)
Data management
Price-driven demand response
Dynamic feeder reconfiguration
Outage management (i.e., number, duration, and extent)
Volt/VAR/frequency control
Balance distributed and central control
Cyber security
Interconnection and interoperability
Defer generation, transmission, and distribution investments

20. Smart Grid Demonstration Program (SGDP)
Number of Projects
Selected Projects
Total Funding
$1,647,637,256
Total Federal Funding
$620,027,274
Total Number of Projects 32
Demonstrate emerging technologies (including energy storage) and alternative architectures
Validate business models
Address regulatory and scalability issues
Large projects: $20M-$89M Small projects: $720K-$20M (Federal share)
4-year projects (average)
SGDP Recipient Types
The 600 million dollars for the demos focus primarily on
EMERGING TECHNOLGIES
And validating these technologies and the business case for them
Non-Profit, 9%

21. San Diego Gas & Electric - Borrego Springs

22. San Diego Gas and Electric Borrego Springs Microgrid
Substation Energy Storage
1 x 500kW/1500kWh Li Ion
Distributed Energy
Resources
2 X 1.8MW Diesel
Customer Energy Management
Microgrid Controller
Home
Energy Storage
Feeder Automation
Community Energy Storage
3 x 25kW/50kWh
Li Ion

23. Customer Energy Management Capable of Responding to Price and Reliability Events

24. Field Demonstration Objectives
Load reduction
Reduce peak load of feeders
System reliability
Integration and management of DERs
Leverage various DG and energy storage assets
Enable customers to be active participants in managing their energy use

25. Energy Storage Peak Shaving Demo
Main
Grid
Total Load

26. Island Demonstrations – 2/13/13

27. CES PV Smoothing Operation
Red – PV power
Blue – Impact of energy storage

28. Real World Experience

29. Damage to Power Infrastructure in Borrego Springs

30. Contact Information
Merrill Smith & Dan Ton Program Managers Microgrid R&D U.S. Department of Energy Office of Energy Delivery and Energy Reliability (202) (202)
Steve Bossart Senior Energy Analyst U.S. Department of Energy National Energy Technology Lab (304)
Key Microgrid Resources:
DOE OE
Smart Grid