1. Mike Hightower Energy Surety Engineering and Analysis Department Sandia National Laboratories Albuquerque, NM Phone: 505-844-5499 Cell phone: 505-850-8630 Email: mmhight@sandia.gov Energy Surety and the Smart Grid: Approaches and Benefits with Microgrids Sandia is a multiprogram laboratory operated by Sandia Corporation, a Lockheed Martin Company, for the United States Department of Energy’s National Nuclear Security Administration under contract DE-AC04-94AL85000.

2. Energy System Reliability and Vulnerability Issues Southwest Army base served by two feeders May 2002 forest fire took out both feeders Base down for 16 hours –Est. cost $3M –Loss of mission capability During hurricanes in 2005 base power outages of 3 weeks Southwest semiconductor plant served by two feeders Forest fire 2005 takes out both feeders Chip fab shuts down for 3 months High-value customers cancel orders due to delay Economic loss forces plant to shut down permanently Competitor with on-site generation and storage was down less than one day

3. Generator Transmission Substation Distribution Loads Energy Surety Microgrid With distributed generation and storage, electric power can be provided when the grid is down X Storage and generation on load side sized to match electric power performance needs

4. Enabling the 21 st Century Grid with Enhanced Reliability and Security Major Issues and Challenges –Future electric grid incorporating extensive distributed generation will require more complex system control and integration to ensure energy safety, security, and reliability including: Real-time or near real-time assessment, control, and optimization of extensive distributed generation resources while maintaining power quantity and quality Significantly improved control system cyber security Improved intermediate and large-scale energy storage technologies to maintain renewable energy delivery reliability Bidirectional power flow requires new advanced safety standards for distributed generation connection and operation in grid-tied and islanded modes System control and hardware design and operational standards scalable for micro, intermediate, and utility-scale grid applications Extensive testing and monitoring of control and operations approaches to verify cost and performance to reduce operational and safety risks to utilities and the public

5. Energy Surety Concept Improving Energy Safety, Security, Reliability Safety Security Reliability Sustainability Cost Effectiveness Safely supplies energy to end user Maintains power in a malevolent environment Maintains power when and where needed It can be maintained for mission duration Produces energy at lowest predictable cost Energy Surety Elements Distributed Infrastructures (like the Energy Infrastructure) are Hard to Protect

6. Risk-based Assessment Approach for Energy Systems Characterize Facilities Define Threats Determine Consequences Identify Safeguards Analyze System Make Changes & Reassess PAPA PEPE R Sufficient Protection ? Y N Risk = P A x (1-P E ) x C C End Until Change Risk Compare to System Protection and Performance Goals

7. Grid 480V Microgrid Center for Control System Security Other Remote DER sites Distributed Energy Resources Various Loads MicrogridTest and Validation Sandia Distributed Energy Technology Laboratory

8. December 2008 Renewable and Distributed System Integration and Microgrids for DOE Objective Life-cycle Funding Summary ($K) FY 09 to FY 11 FY12, authorized FY13, requested Out-year(s) ~$2000K$870K$1000K Technical Scope To address current shortcomings of power reliability and security, Sandia is investigating advanced microgrid approaches to locate more secure and robust distributed energy generation and storage sources near loads as a way to better manage power generation and to improve overall power reliability and security. Microgrids are equally applicable to military, industrial, and utility distribution applications. Sandia’s microgrid research utilizes smart grid technologies to enable distributed energy generation and storage to be operated in both ‘grid-tied and ‘islanded’ modes. This enables energy demand/response management, increased use of distributed and renewable energy technologies, and improved cost-effectiveness, and reliability. The program leverages DoD, DOE, and industry funding to develop and evaluate smart grid technologies at DoD and other sites and testbeds. 8

9. December 2008 NEDO Project Energy storage (small) Gas Engine (240 kW) Fuel Cell (80 kW) PV (50 kW) Demand response? 100 kW Dummy load Electric Chiller/Thermal storage MicroGrid Significance and Impact 9 Studio Substation Studio Substation Other Load And PV Residential (under construction) PNM Project Large-scale PV (500 kW) Large-scale Storage 250 kW 4 hr. energy battery 500 kW, 40 min power battery Smart Grid / SCADA integration Studio 14 Feeder (12.47 kV) 115 kV System Utility Helping to accelerate Commercial Smart Grid Testing

10. December 2008 Significance and Impact Consequence modeling shows that significant reliability and security improvements available with advanced microgrids Automated microgrids show great flexibility - control, safety, and cyber security issues are not insurmountable Can improve energy reliability in remote areas and on congested feeders Advanced microgrids able to operate “islanded” and “grid – tied” can greatly improve the ROI of distributed energy Demand/response and ancillary services opportunities can be significant Combined cooling, heat, and power (CCHP) have large potential Multiple microgrids are often the best energy reliability approach at bases (coupling/networking can be even more beneficial and cost effective) 10

11. December 2008 Technical Approach & Transformational R&D CAMP SMITH ENERGY ISLAND Entire Installation Smart Microgrid Islanded Installation High Penetration of Renewables Demand-Side Management Redundant Backup Power Makana Pahili Hurricane Exercise 4 MW Demo Mar 2014 PEARL HARBOR / HICKAM AFB CIRCUIT LEVEL DEMONSTRATION Renewables (20% PV) Storage – Flow battery Energy Management Peak Shaving 1 MW Demo Dec 2012 FT CARSON ADVANCED MICROGRID Large Scale PV (50% ) Vehicle-to-Grid Only Critical Assets CONUS Homeland Defense Demo 3MW Demo May 2013 CYBER-SECURITY 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

12. December 2008 Technical Accomplishments 12 From Miloitary Base Evaluations Advanced microgrid Concept of Operations (CONOPS) developed for broad range of microgrid sizes (FY09-FY12) Defined approaches and costs for addressing critical mission, priority, and non-priority loads (FY09-FY12) Developing training manuals and guidance on advanced microgrids evaluation and conceptual design with West Point (9/12) From Microgrid Testing and SPIDERS program Four final designs to assess if major improvements in conceptual designs are needed (FY12) and assess operational issues (10/12-FY14) Developed microgrid cyber security strategy (FY11)  DoD compliant, working on CyberCOM and NSA approval Evaluating protective relaying design for safety (5/12) Integrated Dynamic Simulation Consequence modeling to enable stakeholder input for critical and priority load shedding issues (FY11)

13. Energy Surety Microgid Summary Energy Surety Microgrids are an example of energy risk management - matching energy supply reliability and security within a community energy assurance context Consequence analysis and assessment can illustrate the effect of energy improvements on critical mission capability –Different from stating 9’s of reliability – which does not factor in the erosion of critical energy needs for extended outages Supports energy assurance for extended operations as needed during either loss of utility power or as a stand alone small distributed energy grid Permits integration of renewables and storage into power supply infrastructure for ‘islanded’ and ‘grid-tied’ operations to increase electric power system safety and reliability to meet community critical energy needs