DOE Microgrid Initiatives Networked Energy Concepts and Challenges Defense Distributed Energy and Military Microgrids Steve Bossart, Senior Energy Analyst U.S. Department of Energy National Energy Technology Laboratory June 1, 2012

Topics DOE OE Mission Microgrid Concepts Challenges DOE Microgrid Program & Projects Microgrid R&D Needs

DOE OE Mission

Office of Electricity Delivery and Energy Reliability DOE OE Mission Office of Electricity Delivery and Energy Reliability Lead national efforts to modernize the electric grid; Enhance security and reliability of the infrastructure; and Facilitate recovery from disruptions to energy supply Accelerate the deployment and integration of advanced communication, control, and information technologies that are needed to modernize the nation‘s electric delivery network Three divisions in OE R&D – modernize grid Permitting, Siting, and Analysis – ensure reliability and security Infrastructure Security and Energy Restoration – restore energy supply Goal of R&D is to accelerate the transition to a smart grid by integrating grid data, communications and controls.

DOD/DOE MOU Cooperation in a Strategic Partnership to Enhance Energy Security July 22, 2010 Energy efficiency, renewable energy, water efficiency, fossil fuels, alternative fuels, efficient transportation and fueling infrastructure, grid security, smart grid, storage, waste-to-energy, basic science, mobile/deployable power, small modular nuclear reactor

Microgrid Concepts

Microgrid and OE’s Performance Target Definition by Microgrid Exchange Group OE’s 2020 Performance Target A microgrid is a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode. Develop commercial scale (<10MW) microgrid systems capable of reducing outage time of required loads by >98% at a cost comparable to non-integrated baseline solutions (UPS + diesel genset), while reducing emissions by >20% and improving system energy efficiencies by >20% Definition developed by the Microgrid Exchange Group (MEG)—a group of individuals working on microgrid deployment and research Key attributed are underlined. Doe developed long term performance targets as the first step in a microgrid research effort Required loads include such things as hospitals, police & fire, data centers, military facilities, telecom switch centers, some industrial processes 7

Various Microgrid Configurations Possible Consumer Microgrid—single consumer with demand resources on consumer side of the point of delivery, (e.g. sports stadium) Community Microgrid— multiple consumers with demand resources on consumer side of the point of delivery, local objectives, consumer owned, (e.g., campus, etc.) Utility Microgrid—supply resources on utility side with consumer interactions, utility objectives Microgrids are “Local Energy Networks”

Microgrid Markets Municipalities University campuses 1327 in the US, 961 under 300,000 residents University campuses 8,520 in the US Military facilities (25% renewables goal) 440 facilities worldwide Industrial and commercial parks ~15,000 in the US with a capital size of $10M to $100M Utilities with special needs Over 900 rural electric cooperatives, over 1200 municipal utilities, ~250 investor-owned utilities, and many public power utilities Other campuses (hospital, state agencies, etc) - Not quantified to date

Microgrids & Smart Grids Central Generation Transmission Load Distributed Generation E-Storage Distribution Microgrid

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

Some Challenges and Risks

Challenges to a Smart Grid Businesses, state regulators, and consumer advocates are unconvinced of the value of smart grid technologies due to lack of performance data on costs and benefits Insufficient or inadequate technologies, components, and systems to leverage IT potential of smart grid No established standards for interoperability of systems and components Insufficient cyber security for a smart grid architecture Lack of a skilled workforce to build, install, operate, and maintain systems and equipment Consumer understanding of the electrical infrastructure and opportunities enabled by smart grid technologies Change management – vision, alignment, education, metrics Future proofing – communications Shift in regulatory paradigm – least cost, “used and useful” All that sounds easy. But there are barriers whenever you introduce new technologies to an existing system There are no well defined benefits – yet Standards for interoperability are under development Cyber security is a concern New skills are needed in the existing workforce

OE Program Addresses Key Barriers Barriers to Smart Grid Inadequate Technologies & Components No Standards for Interoperability Insufficient Cyber Security Lack of a Skilled Workforce Lack of a Strong Business Case Uninformed Consumers Federal Smart Grid Task Force Smart Grid R&D Cyber Security For Energy Delivery Smart Grid Stakeholder Books Smart Grid Investment Grants Energy Storage R&D Workforce Training Development Grants Interoperability Standards Smartgrid.com Smart Grid Websites OE Activities Clean Energy Transmission Reliability Smart Grid Demonstration Program Infrastructure Security and Energy Restoration SGIG &SGDP In the work that we are doing, we are addressing and hopefully diminishing some of the primary barriers For example To make the business case we are collecting and analyzing data from our projects We are demonstrating these new technologies We are working with NIST on standards We are developing workforce through our grants program Stakeholder Engagement Process Smart Grid Information Clearinghouse Smart Grid Development NARUC FERC NIST Smart Response Collaborative DOE EERE Programs EPRI DHS S&T DHS NCSD NIST DOD Spiders NERC State Training - California - Arkansas - Colorado - Wyoming - Northern Plains and Rocky Mtn Consortium Utility Programs SmartGrid Consumer Collaborative NARUC NIST APPA DOE ARPA-E FERC Other Activities NRECA DOD Spiders EPRI The Galvin Initiative ISGAN PSERC

DOE OE Microgrid Field Projects

DOE-OE Primary Microgrid Field Projects Renewable and Distributed Systems Integration Projects Mon Power - West Virginia Super Circuit 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

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

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%

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

Common Technologies Among DOE’s Microgrid Projects Renewable energy (PV, wind) Distributed generation (microturbines, fuel cells, diesel) Combined heat and power Energy storage (thermal storage, batteries) Communications (wireless, PLC, internet) Advanced metering infrastructure & smart meters T&D equipment health monitors (transformers) Plug-in electric vehicles and charging stations (PHEV/PEV) Smart appliances & programmable thermostats Home Area Networks & In-Home Displays Energy management systems

Microgrid R&D Program

CERTS Microgrid Test Bed Objective Expand CERTS Microgrid concepts to address system integration challenges presented by need to accommodate intermittent, distributed renewable electricity sources within utility distribution systems. Technical Scope The CERTS Microgrid Test Bed is being expanded through the addition of new hardware elements: (1) a CERTS compatible conventional synchronous generator; (2) a more flexible energy management system for dispatch; (3) intelligent load shedding; (4) a commercially available, stand-alone electricity storage device with CERTS controls; and (5) a PV emulator and inverter with CERTS controls. The concepts are explored initially through detailed simulation and bench-scale tests at UW and then demonstrated at full-scale using the CERTS Microgrid Test Bed operated by American Electric Power in Groveport, OH. The CERTS Microgrid test bed was set up several years ago to demonstrate the viability of the microgrid concept and the CERTS microgrid controls. We are now expanding this effort by adding intermittent sources, storage and load shedding. The Consortium for Electric Reliability Technology Solutions (CERTS) was formed in 1999 to research, develop, and disseminate new methods, tools, and technologies to protect and enhance the reliability of the U.S. electric power system and efficiency of competitive electricity markets. DER integration is one of the five research areas (the other four are: real-time grid reliability management, reliability and markets, load as a resource, and reliability technology issues and needs assessment). Research performers are drawn from 4 national labs, 9 universities, and 8 industry entities. 23

Smart Grid Interconnection and Interoperability Standards Development Objective To facilitate the evolution of the existing electric power system into a smart grid by supporting the development of standards and best practices (Insert graphic here) IEEE P1547.4 “MICROGRIDS” Technical Scope Development of national and international standards and best practices for electric power system interfaces, interconnection and interoperability requirements Objective: To facilitate the evolution of the existing electric power system (EPS) into a smart grid supporting the development of standards and best practices. These standards and best practices are related to the advancement of smart grid technologies and implementation via standardized interconnection, integration, and interoperability requirements, conformance test procedures, operating practices, and consumer education. Technical Scope: Develop, maintain, & harmonize national and international standards and best practices for electric power system interfaces, interconnection and interoperability requirements among the electric transmission and distribution systems, system markets, EPS operators, distributed energy resources (DER), customers, end-use applications and loads, including electric vehicles, energy storage and operations. 24

Energy Surety Microgrids Objective Use military bases to develop approaches for implementing high reliability microgrids because of immediate needs, interest, and funding to implement Use cost/performance data and lessons learned from military efforts to accelerate commercial implementation 12 Bases evaluated, several more in process Technical Scope Over the last 3 years we have partnered with Sandia and a number of military facilities to explore microgrid viability and conceptual designs. I would like to think that this work was the launching pad for SPIDERS Use risk-based energy assessment to develop microgrids that: Can use distributed and renewable energy resources Will improve site energy infrastructure safety, security, and reliability Enhance critical mission assurance at military bases

SPIDERS: Smart Power Infrastructure Demonstration for Energy, Reliability, and Security Objective CAMP SMITH ENERGY ISLAND Entire Installation Smart Micro-Grid Islanded Installation High Penetration of Renewables Demand-Side Management Redundant Backup Power Makana Pahili Hurricane Exercise PEARL-HICKAM CIRCUIT LVL DEMO Renewables Hydrogen Storage Hydrogen Fuel Cell Energy Management Cyber Test at INL FT CARSON MICRO-GRID Large Scale Renewables Vehicle-to-Grid Smart Micro-Grid Critical Assets CONUS Homeland Defense Demo COOP Exercise CYBER SECURITY BEST PRACTICES TRANSITION Template for DoD-wide implementation CONOPS TTPs Training Plans DoD Adds Specs to GSA Schedule Transition to Commercial Sector Transition Cyber-Security to Federal Sector and Utilities STAIRWAY TO ENERGY SECURE INSTALLATIONS RIGOROUS ASSESSMENT WITH RED TEAMING IN EACH PHASE Improve reliability for mission-critical loads by connecting generators on a microgrid using existing distribution networks. Reduce reliance on fuel for diesel power by using renewable energy sources during outages. Increase efficiency of backup generators through coordinated operation on the microgrid. Reduce operational risk for energy systems through a strong cyber security for the microgrid. Enable flexible electrical energy by building microgrid architectures that can selectively energize loads during extended outages. 3 Microgrids of varying complexities with rigorous cyber security controls. Dr. Jason Stamp of Sandia will be presenting the SPIDER project in detail tomorrow. Technical Scope DoD, DOE, and DHS collaborate to design and implement three separate microgrids supporting critical loads at DoD bases. Each one is slightly larger and more complex in scope than the previous. The sites include: Joint Base Pearl Harbor Hickam, Fort Carson, Camp Smith A key part of the project is the standardization of the design approach, contracting, installation, security, and operation of these microgrids to support future applications.

Microgrid R&D Needs

Smart Grid & Microgrid R&D Sources Much of this presentation is derived from the DOE OE multiyear R&D plan covering 2010-2014. It was originally published in 2010 and an update is under review prior to release. The original smart grid R&D plan was created from discussions held at a smart grid roundtable meeting in December 2009 that included multiple types of stakeholders (e.g., national laboratories, utility commissioners, utilities, vendors). Stakeholders were divided into five R&D groups to focus on particular topics. Guides R&D solicitations Sets priorities Sets interim goals Measures progress

Development of Microgrid R&D Needs Stakeholder Engagement Convened a Workshop to further define: Baseline performance Areas of research needs End goals (technical/cost targets and their significance) Actionable plan to reach the targets (scope, schedule, participants, milestones) Workshop Details August 30-31, 2011 University of CA, San Diego 73 participants Vendors, electric utilities, national labs, universities, research institutes, end users (including military bases, municipalities, and data centers), and consultants

List of High-Priority R&D Projects from the DOE Microgrid Workshop Impactful R&D Areas High-priority R&D Projects Standards and Protocols Universal Microgrid Communications and Control Standards Microgrid Protection, Coordination, and Safety Systems Design and Economic Analysis Microgrid Multi-objective Optimization Framework System Integration Common Integration Framework for Cyber Security/Control/Physical Architectures Switch Technologies Legacy Grid-Connection Technologies to Enable Connect/Disconnect from Grid Requirements based on Customer and Utility Needs Control and Protection Technologies Best Practices and Specifications for Protection and Controls Reliable, Low-cost Protection Inverters/Converters Topologies & Control Algorithms for Multiple Inverters to Operate in a Microgrid Advanced Power Electronics Technologies These will be the areas that guide future microgrid R&D FOA.

Contact Information Merrill Smith Program Manager Microgrid R&D U.S. Department of Energy Office of Energy Delivery and Energy Reliability (202) 586-3646 Merrill.smith@hq.doe.gov Steve Bossart Senior Energy Analyst U.S. Department of Energy National Energy Technology Lab (304) 285-4643 Steven.bossart@netl.doe.gov