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1 Theme 2 Planning, optimization and regulatory issues Geza Joos, McGill University

2 Definition/features – microgrid Geographically delimited Connected to the main grid at one point – fed from one substation May operate islanded Includes distributed generation (DG) – renewables (inverter interfaced): wind, solar – fossil fuel based (synchronous generators): CHP Includes an energy management system – controlling power exchanges, generation and load – with storage and demand response

3 Distributed generation – renewables Generation close to the load – siting Advantages/benefits – Green energy – reduced environmental impact – Enhanced reliability and flexibility – Energy cost – competiveness (generated/delivered) New issues/differences – Output variability – energy and power (ramp rates) – Not schedulable/controllable – must run at MPPT – Impacts – power quality (voltage variations, ramp rates) – Grid integration and operational impact (loading, faults) – Responsibility – maintenance, faulted operation

4 Microgrid implementation issues Business proposition for the microgrid owner – Economic justification – kW cost, reliability, resiliency – Participation in market/energy supply Ownership – Private/IPP – Utility Role and benefit for utilities – Grid support – impact on the transmission system – Role in power system restoration Operational/regulatory issues – Responsibilities and jurisdiction – right to disconnect

5 Expected developments – smart grids Smarter distributed energy resources (DER) More communications between DER New grid topologies – from point to point (generation to load) to distribution supply points, – from radial to looped Active DER – voltage/Var regulation – Note: not all of the smart distribution grid technologies are necessary/applicable to smart microgrids

6 Issues addressed in Theme 2 Business case – Justifying the setting up of a new microgrid, optimizing operation, configuring existing distribution systems into microgrids, regulatory issues Energy supply security Load management and demand response – Making better use of the energy resources Case studies – benchmarks, typical systems and use cases

7 Application examples/justification Isolated/offline microgrids – Remote communities – reducing the cost of electric energy, reliability, environment impact – Canada north – Remote and movable military bases – supply security Industrial, community and commercial microgrids – Large campuses – GHG reduction (green energy), energy independence – grid support and energy exchanges – BCIT – Military bases – alternative energy supply, benefits of storage (EVs)

8 Projects and personnel in Theme 2 Cost-benefits framework – secondary benefits and ancillary services – Lead: G Joos, McGill University – HQPs: 2 MEng and 1 PhD (equivalent full time); total trained: 3 MEng, 2 PhD Energy and supply security considerations – Lead: R Iravani, University of Toronto – HQPs: 2 MEng and 1 PhD (equivalent full time); total trained: 2 MEng, 4 PhD

9 Theme 2 projects and personnel Demand response technologies and strategies – energy management and metering – Lead: K Bhattacharya, University of Waterloo – HQPs: 2 MEng and 1 PhD (equivalent full time); total trained: 5 MEng, 3 PhD Integration design guidelines and performance metrics – Organization to be determined

10 Solutions and deliverables Methodology for cost-benefit analysis of microgrids (P2.1) – Application to remote communities Microgrids energy management (P2.2) – Quantification of impacts and benefits of the microgrid and electrically-close multiple microgrids Demand response (P2.3) – Load models, taking into account temporal and locational electricity prices, for demand management

11 Linkages – Industrial network partners NRCan – P2.1 – remote communities, business cases (on going) – P2.3 – demand response (on going) Hydro-Quebec/IREQ – P2.1 – remote communities (on going) BC Hydro – P2.1 – business cases (discussions) Hydro One – P2.3 – demand response management (on going) Schneider Electric – P2.3 – demand response controller (potential)

12 Linkages – Industrial network partners CYME – P2.2 – network simulation – P2.4 – benchmarks and use cases (potential) Manitoba HVDC – P2.2 – network simulation, BCIT microgrid (on going) – P2.4 – benchmarks and use cases (potential)

13 Linkages – other themes/researchers Theme 1 – P2.1 with P1.4 – remote communities (on going) – P2.1 with P1.1 – control of DER (on going) Theme 3 – P2.1 with P3.4 – operation of the grid (discussions) – P2.2 with P3.2 – operation of microgrid (potential) – P2.1 with P3.2 – energy management (potential) Within Theme 2 – P2.1 with P2.3 – demand response (potential) – P2.2, P2.2 with P2.4 – models, benchmarks (potential)

14 Relevance to Canadian industry/utility Deliverables include – Methodologies for evaluating business cases – Control approaches for the operation microgrids – DER control and energy management – Configuration of microgrids and interaction between microgrids – evaluation towards an intelligent distribution grid Differences with other jurisdictions – Distribution system configuration (single phase feeders) – Urban, rural and remote microgrids have differing requirements – European microgrid solutions do not generally apply

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