UH PACOM Energy Partnership Presented to the Pacific Operational Science and Technology Conference March 21, 2012 Richard Rocheleau Director Hawaii Natural Energy Institute University of Hawaii at Manoa

Outline of Talk Hawaii Energy Situation PACOM-UH-ONR and Energy Select UH Research Activities Grid Systems and Storage Hydrogen Ocean Energy Biofuels

Estimated US Energy Usage: 2010 Oil provides 37% of all primary energy Oil used for less than 1% of electricity generation Renewables provides ~ 8% of all primary energy Natural gas offers flexibility across energy sectors

Estimated HI Energy Usage: 2008 Oil provides 84% of all primary energy (vs 37% US) Oil provides 73% of electricity generation (vs 1% US) Renewables provides 8% of all primary energy Renewables for electricity ~10%

Electricity Production in Hawai‘i by Source, 2010

More Renewables than Demand but Grid Issues Limit use 75MW Isolated grid systems with no interisland connections Significant transmission and distribution issues - sparse system, mountainous terrain. 1300MW 5MW Intermittency of wind and solar and substantive difference between peak load and base load leads to curtailment of renewable energy sources Excellent test-bed for modern grid technologies Here is the map 200MW

Hawaii Clean Energy Initiative (HCEI) Rationale and Objectives The most petroleum-dependent state in the US is on track to increase its clean energy (efficiency and renewables) to 70% by 2030 and will have the greatest penetration of variable renewables on a grid in the US Objectives The State of Hawaii and US DOE launched HCEI in January 2008 to help transform Hawaii to a 70% clean energy economy by 2030 and reap economic and environmental benefits: Increasing Hawaii’s economic and energy security Fostering and demonstrating Hawaii’s innovation Developing Hawaii’s workforce of the future Becoming the clean energy model for the U.S. and the world Rationale Hawaii is, by far, the most petroleum-dependent state in the U.S. Hawaii is burdened with high energy prices that have dramatic and potentially devastating impacts on the State’s economy Hawaii is blessed with excellent renewable energy resources and climate Ranked #1 in petroleum dependence Petroleum-fired power plants supply more than three-fourths of Hawaii’s electricity generation. Ranked #1 in electricity prices 0.26 /kWhr Often #1 in gasoline prices $4.48 regular gasoline 4/12/11 Imports nearly all consumer products – including 85% of food Tourism (visitor industry) is a major economic driver – when fuel prices go up – ticket prices rise – Hawaii economy gets slammed. Scenario Analysis Capacity Solar 900 MW Wind 1000 MW Biomass 80 MW Geothermal 100 MW Ocean 50 MW Efficiency 500 MW 2351 MW capacity 1691 MW peak demand 328 MW Existing Renewable Gen 853 MW, 128 MGPY under dev today $1.3B rev ($158M tax rev) & 2600 jobs construction $220M rev ($12M tax rev) & 500 jobs sustained OAHU Annual energy production is approximately 8000 GWh system load typically ranges from a peak of 1200 MW to a minimum of 600 MW. T he total generating capacity of the system is 1756 MW

HCEI Roadmap Key Strategic Planning Document Four Energy Sectors aligned with HCEI Working Groups: End-Use Efficiency Electricity Transportation Fuels Overall energy-sector goals Accomplishments Strategic Pathways Interim Targets Near-term critical actions

HCEI 70 % Clean Energy Goal Energy Sectors and HCEI Roadmap End Use Sector 30% Greater Energy Efficiency by 2030 Strategies: Align regulatory and policy framework Retrofit residential and commercial buildings Strengthen new constructions policies / building codes Identify non-building related energy efficiency measures Accelerate EV and H2 vehicle and infrastructure deployment Increase renewable fuel use in the transportation sector Improve vehicle fleet efficiency Reduce vehicle miles traveled Align regulatory and policy framework with clean energy goals Increase process certainty in developing new RE Deploy RE and grid infrastructure Explore next gen technologies and new applications Electricity Sector 40% Renewable by 2030 Transportation Sector Displace 70% Petroleum by 2030 Fuels Sector Meet In-State Demand for Renewable Fuels Support development of local agricultural industry Invest in key infrastructure at scale Evaluate and develop renewable fuel processing infrastructure Match potential fuel supply with in-State demand Island interconnection central to electricity and transportation goals

PACOM-UH-ONR and Energy PACOM - Seeking energy solutions to meet federal mandates Energy goals well aligned with HCEI objectives UH – HNEI serves as focal point for Energy Research at Univ. of Hawaii at Manoa Primary funding from Office of Naval Research and US Department of Energy UH-PACOM partnership – established 2011 ONR – Asia Pacific Technology and Education Program Promoting sustainability through alternative energy research, technologies development & education Providing a cleantech workforce by linking energy education & research institutes with cleantech companies

3 universities & 7 community colleges Over 53,000 students Established in 1907 3 universities & 7 community colleges Over 53,000 students Manoa is the largest and main research campus 14000 undergraduate students 6000 graduate students Hawaii Natural Energy Institute (HNEI) Organized research unit at UH Manoa Established in statute to work with state to reduce use of fossil fuel Added this slide

UH-PACOM Partnership “Strengthening Stability and Resilience in the Asia-Pacific: Opportunities in the Energy, Environment, and Disaster Management” (January 4, 2011) Senior Leadership from the U.S. Pacific (PACOM) and the University of Hawaii (UH) meet at East West Center, Honolulu to discuss topics on Energy, Environment and Water Security UH-DOD are two largest energy users in state UH-PACOM share common goals that could contribute to regional security in the areas of sustainability. “UH-PACOM Collaboration agreement signed at PACOM headquarters (May 3, 2011)” Formalized collaboration in alternative energy, water, and disaster management. Energy Focus on: Grid systems and Storage Ocean Energy Biofuels

Hawaii Natural Energy Institute Organized research unit in School of Ocean and Earth Science and Technology, University of Hawaii at Manoa Basic and applied research (R&D) across many energy technologies Testing and evaluating (T&E) renewable generation technologies Supporting State of Hawaii energy assessments and policy development Establishing public-private partnerships to validate technologies in real world (on-grid) settings Contributing to STEM and workforce development HNEI programs are multi-disciplinary efforts with strong collaboration and cost share with industry and DOD 15 15

HNEI Program Areas Hydrogen: Fuel Cells: Photovoltaics: Hawaii Hydrogen Power Park Fuel Cells: Materials and component development Photovoltaics: Thin film solar cells, deployment, testing, and analysis Electrochemical Power Systems: Batteries and electric vehicles Ocean Resources: Seabed methane hydrates, ocean thermal and wave energy Biofuels and biotechnology: Biomass conversion - solid, liquid and gaseous fuels Biofuels fit-for-use Grid Analysis and Smart Grids Technology Validation, Energy Assessment and Policy CIGS – Copper Indium Gallium Selenium 16

Hawaii Grid Analysis Hawaii Island Integration Studies Quantify impacts of high penetration renewables including interconnecting islands via undersea cable Identify solutions to mitigate impacts of variability from renewables Inform decision making through groundbreaking use of analytical tools (GE) Hawaii Grid Analysis Smart Grid & Grid Storage Demo DOE Maui Smart Grid Demonstration Project NEDO Smart Grid Solar Energy Grid Integration (DOE) Grid scale Li-ion battery evaluation Coconut Island Smart Microgrid Test advanced microgrid technologies: PV, building controls, efficiency Unique learning environment High-visibility project within state Policy Support Analysis to support decisions by PUC, RSWG, DBEDT, and legislature EV integration, Smart grid, Interconnection Standards, RPS

Hawaii Island Integration Studies Develop rigorous analytic models of electricity grids on each island Analyze alternative scenarios for deployment of new energy systems including additional renewables, end-use efficiency, and new transportation systems Identify and analyze mitigating technologies (e.g., DSM, storage, advanced controls, forecasting) to address systems integration issues (e.g. stability) and intermittency of wind and solar renewable technologies Develop demonstration projects to validate proposed technology solutions Talk about big island projects as an example

Hawaii Island Integration Studies Analysis, testing, and evaluation, Kauai Energy Roadmap - Future roadmap for possible increased penetration of renewable energy. Oahu Grid Study - Oahu Wind Integration Transmission Study – island interconnection via undersea cable Analysis of high penetration solar Maui Grid Study Validated power systems model used to address impacts of increased wind and the necessary mitigation technologies Smart Grid Demonstration Projects Big Island Energy Roadmap Identify strategies for increased energy security and the penetration of renewable energy Battery storage demonstration project Hydrogen integration for grid management 19 19

HELCO Grid System Initial Study Site (2007) Isolated grid, ~ 200MW peak demand High penetration of renewables including geothermal, wind, and solar Imbalances between demand and generation results in frequency error Small frequency bias, 2-3.5 MW/0.1 Hz Loss of generation can result in underfrequency load shed Increased renewables (intermittent) reduces availability of units to regulate voltage and frequency Limited or no forecasting available Impacts of intermittend renewables are system and operator dependent As an island grid, we see the impact of renewable energy in ways that will not be seen on larger interconnected utiities. In addition, the impact of renewable energy on our system is affected by the present generation mix. HELCO has a unique generation mix with a large proporiton of units that are not responsive to frequency changes and do not help support voltages.

Big Island Energy Storage - Fast Storage Mitigates Negative Effects of Increased Wind Penetration 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 59.85 59.9 59.95 60 time [s] [Hz] Frequency comparison f nom +real storage +inf storage Hz Significant Wind Fluctuation on May 23rd 2007 No storage Storage (1 MW, 60 seconds) Storage (1 MW, infinite) No storage Storage ( No storage Storage (60MWs) Storage ( inf MWs ) Storage (60MW-sec) Time (seconds)

Energy Storage/Demand Control for Generation Smoothing, Frequency Regulation, and Power Quality Research, Test & Evaluate (RT&E) Energy Storage Systems to validate performance and assess value of grid-scale storage to address power quality and control issues for high penetration distributed energy generation and advanced EVs Select and deploy grid-scale energy storage systems as operational test beds Develop and deploy closed-loop control systems (CCS) and algorithms to support research into power quality, reliability, and power management

Wind-Smoothing/Frequency Regulation 1MW, 250kW-hr Li-ion titanate battery energy storage system located at Hawi Renewable Development’s 10.6 MW wind farm Grid-connected on low side of 1.5MVA 480V/34.5V transformer Team developing closed-loop control system and real time algorithms to optimize wind smoothing and frequency regulation Analysis SCADA (grid) and battery performance data BESS Performance and Health characterizations Power quality characteristics (SEL 735) including high resolution waveform capture, and interruptions, sags, swells, harmonics, and unbalance Wind and frequency spectra analysis with ALTI-ESS connected and disconnected from grid to assess ESS as tool to manage intermittency

Grid-connected Battery Projects Altairnano (ALTI) 1 MW/250kWhr Battery Energy Storage System

BESS Specifications Power Performance Ability to respond to full power dispatches Guaranteed less than 1% degradation per year Energy – sustain full power with minimum of 250kW-hr. Round-trip Efficiency – 80% or better at 480V PCS output State-of-Health Test – capacity and impedance health measurements of all cells Discharge / Charge Sequence – no limit on ramp rate or number of cycles Monthly and Tri-annual Field Tests, Data Collection, Assessment, and Reports

HELCO/Hawi Project Schedule Overview BESS Vendor selected (Altairnano and Parker) Agreements signed, equipment ordered and pre-shipment testing completed – 2/10/12 Site Ground Breaking at Hawi Site – 3/29/12 Site commissioning – 3Q 2012 Acceptance Testing – 3Q 2012 Control Algorithm Control system development - 3Q/4Q 2012, Operational by late 4Q 2012 Analysis Data collection, analysis, and assessment thru 4Q 2015

Ancillary Services for Distributed PV ALTI 1MW, 250kW-hr Li-ion titanate battery energy storage system at Waiawa Substation on distribution line with high penetration (900KW) distributed PV Grid-connected, sited on low side of 1.2MVA 480V/12.47 KV transformer Closed-loop control system and real-time algorithms to optimize: Voltage and frequency regulation, VAR injection, Load Tap Change control, and Power quality

HECO Project Schedule Overview BESS Vendor selected (Altairnano and Parker) Equipment ordered Pre-shipment testing – 2Q 2012 Site Ground Breaking at Waiawa Site – 3Q 2012 Site Commissioning – 4Q 2012 Equipment Acceptance Testing – 4Q 2012 Control Algorithm RT&E Control System development in 3Q/4Q 2012, Operational by late 4Q Data Collection, Analysis, Assessment, and reports and publications through 4Q 2015

Electrolyzers as Grid Management Tools Service Electrolyzer Battery Up Reserve Yes Down Reserve Up Regulation Down Regulation Fuel Production No Voltage/VAR Support Electrolyzers to be operated dynamically to assess any degradation and loss in performance Test protocols based on BESS experiments

Big Island Hydrogen Infrastructure Hydrogen Dispensing under Grid Management Program H2-fueled shuttle buses Hydrogen Delivery Trailer with cascade fill process that eliminates onsite compressor Geothermal Powered Hydrogen Production Hydrogen Dispensing under Hawaii Power Park Program

Maui Smart Grid Projects Maui Smart Grid Demonstration Project (DOE to HNEI) DOE Renewable Distributed Systems Integration (RDWI) project In-home smart-grid management and utility storage Japan-US Island Grid Initiative (NEDO to Hitachi) Result of US-Japanese …… NEDO funded Hitachi led consortium Focus on PV, Smart Inverters, and EV management Smart Grid Enabled PV Inverters Demonstration of advanced grid functionality in smart grid environment Three projects have partners in common and propose to share hardware, results, and lessons learned

DOE RDSI MAUI SMART GRID PROJECT Sentech, Inc.

Maui Smart Grid Maui Key Objectives: Reduce peak demand 15% Kahului Maui Meadows Kihei Wailea Wailea Substation Key Objectives: Reduce peak demand 15% Improve reliability and power quality Inform consumer decision making Integrate variable renewables Project will use 2 circuits @ Wailea Sub. Maui Meadows: 650+ homes Other circuit with resorts and commercial

DOE RDSI Maui Smart Grid Solar PV monitoring Smart Thermostat Load Control Switches In-home display Home Area Network Demand response Monitor PV Customer feedback Advanced Metering Infrastructure Two-way comms Voltage monitoring Outage detection SSN Data Center MECO Data Center Wailea Sub Station Internet MECO Backhaul Maui Meadows SSN Mesh Voltage Monitor DMS Areva EMS Distribution Management System Aggregate DER Decision support Volt / VAr Control Improve visibility Battery Energy Storage System Current monitoring device Distribution Monitoring Current measurements 34

RDSI Project Schedule Overview AMI, HAN Back office setup started, equipment ordered and shipping, installations begin in late March BESS Vendor selected, system operational late 2012 Outreach. Siting Ongoing outreach for community acceptance Over 100 volunteer homes (goal is 200) DMS System development in Q1/Q2 2012, Operational by late Q2

DOE Solar Energy Grid Integration Systems (SEGIS) Development and Demonstration of Smart Grid-Enabled PV Inverters

Fronius Inverters with Advanced Grid Functionality (AGF) Reactive power supply Fixed power factor value Power dependent control Voltage dependent control algorithms Remote controlled reactive power Frequency dependent behaviour Dynamic behaviour during faults Remote power reduction Fronius IG Plus Martin Heidl 1st Inverter and PV System Technology Forum 2011

PV Inverters Integrated into Home Area Network (HAN) enabling two-way communication and grid support features Smart Grid-Enabled Inverter Integrate into Utility Software Applications SSN Smart Meter Fronius Inverter: 3 kW - 5 kW Grid support features developed to meet German grid codes Taking advantage of advanced inverter development in Europe

SEGIS-AC Project Schedule Overview Year 1 (2012) Design, integrate, test, and assess Smart Inverter communications hardware, software, and firmware. Detailed scoping of demonstration sites. Year 2 (2013) Field deployments of new systems at Japan-US Island Grid Project site and at Oklahoma Gas and Electric Year 3 (2014) Field tests, data collection, analysis, assessment, and reports and publications

Japan-US Island Grid Initiative Utility Operations Control Center Wind turbine Photovoltaic Task (I) Electric Vehicle (EV) Based Remote Island Smart Grid Model on Maui Substation Information Power Transmission Grid Substation Distribution Grid Task (II) Smart Grid Model at a Substation with One Distribution Grid Level DMS Information Power Distribution Grid November 2009 President Obama and then Prime Minister Hatoyama signed “US-Japan Cooperation on Clean Energy Technologies μ-DMS EV/PHEV Task (III) Smart Grid Project for Low-voltage Transformer Level Systems e-Parking Rent cars

Elements of Biomass Research at the Hawaii Natural Energy Institute

Research and the Bioenergy Industry Value Chain Feedstock Production Feedstock Logistics Conversion Distribution End Use Agriculture ---- Industry ---- Investors ---- Government ---- Community Feedstock Production - CTAHR Gasification & Contaminant Removal - HNEI Fuel Fit for Purpose – ONR Biofuel supply requires a value train approach shown in the green box on top and the pictures below Also requires development of supporting business components etc. as shown in the blue box Our activities include the feedstock/conversion coordinated development effort with CTAHR Biomass/biofuel/bioenergy resource assessment efforts Technology assessments in support of biofuel industry Technology development Biofuel fit for purpose Technology Assessments HC&S Resource Assessment – DOE GIS Tools Development Technology Development Life Cycle Assessment – NSF Center for Bioenergy Research & Development

Current Biofuels Activities Resource Assessment/Planning Hawaii Bioenergy Master plan GIS-based analysis of bioenergy production potential Technology Development Thermochemical and biochemical processing Separations High value product development Biofuel Evaluation (Fit-for-use) Microbial Activity Corrosion Storage Stability Life Cycle Analysis Assessment of supply chain elements Feedstock production

Hawaii National Marine Renewable Energy Center Facilitate development of Wave Energy Conversion devices Support grid connected in-water testing by developers to achieve higher TRLs; Support developers with resource data and models for concept and design evaluation; environmental characterization Working with DOE and Navy develop Wave Energy Test Site (WETS) at Marine Corps Base HI NavFAC sponsored Industry Day, March 26, 2012 Reduce Risk of Ocean Thermal Energy Conversion (OTEC) Component Technologies Testing of innovative heat exchangers at NELHA by Makai Ocean Engineering Resource and environmental assessments to support industry