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Government & Military Smart Grids & Microgrids Symposium Topical Report on DOE Smart Grid ARRA Microgrid Projects Steve Bossart Senior Energy Analyst April.

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Presentation on theme: "Government & Military Smart Grids & Microgrids Symposium Topical Report on DOE Smart Grid ARRA Microgrid Projects Steve Bossart Senior Energy Analyst April."— Presentation transcript:

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

3 3 Topical Reports

4 4 Analyze results from SGIG, SGDP, and RDSI 1.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 2.Educate

5 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 6 Microgrids Definition, Concepts, Motivations, Benefits, Technologies & Challenges

7 7 Includes DER & Load Defined electric boundaries Single controllable entity Connect and disconnect from grid Grid-connected or island-mode Microgrids & Smart Grids

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

9 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

10 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 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 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 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 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 15 DOE OE Microgrid Demonstration Program

16 16 DOE-OE Primary Microgrid Field Projects Renewable and Distributed Systems Integration Projects Chevron Energy Solutions - CERTS Microgrid Demo City of Fort Collins - 3.5 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 17 SDG&E Battelle SCE Ft Collins Chevron IIT LADWP RDSI SGDP DOE OE Primary Microgrid Project Locations

18 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

19 19

20 20 Smart Grid Demonstration Program (SGDP)  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) Selected Projects Total Funding$1,647,637,256 Total Federal Funding$620,027,274 Total Number of Projects32 Number of Projects Non-Profit, 9% SGDP Recipient Types

21 21 San Diego Gas & Electric - Borrego Springs

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

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

24 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 25 Energy Storage Peak Shaving Demo Main Grid Total Load

26 26 Island Demonstrations – 2/13/13

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

28 28 Real World Experience

29 29 Damage to Power Infrastructure in Borrego Springs

30 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) 586-3646 (202) 586-4618 Steve Bossart Senior Energy Analyst U.S. Department of Energy National Energy Technology Lab (304) 285-4643 Key Microgrid Resources: DOE OE Smart Grid

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