Post on 15-Feb-2016
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Project 2.1Cost-benefits framework –Secondary Benefits and Ancillary ServicesDr. Géza JoósStudent: Greg MorrisMcGill University
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Introduction• Project provides a framework for
comparing the costs and benefits of Smart Microgrids.
• Microgrid brings new functionality to a distribution network.– This has many potential benefits...– But it also has costs.
• Who does the Microgrid benefit and by how much?
• Need to know this to build business cases and get buy-in from all affected parties.
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2011 •Direct benefits framework
2012
•Quantification methodology
2013 •Ancillary svcs. framework
2014 •Optimization of benefits
2015
•Application of methodology
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Canmet
Energy-
NRCan
Hydro One
BC Hydro
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Impacts vs. Benefits• Impacts– The system changes that result from the
Microgrid.– Can range from technical to economic to
social or environmental.• Benefits– The economic gain that results from
impacts.– Much more limited in scope than impacts.
• Distinction gives clarity and allows a modular approach.– Additional considerations can be easily
included.
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StakeholdersAll entities affected by the Microgrid,
including:• Microgrid Developer or IPP• Microgrid Customers (μGCs)• Grid Customers outside Microgrid
(GCs)• Distribution Network Operator (DNO)• Utilities or Bulk Energy Suppliers
(BESs)• Society
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Traditional View of Benefits• Technical– Increased power quality and reliability
(PQR)– Reduction in losses– Efficiency improvements
• Economic– Optimization of resources– Provision of ancillary services
• Environmental/Social– Emissions reductions– Creation of employment?– Reduced reliance on depleting resources?
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A Different Perspective• μGCs benefit from energy cost
reductions and PQR improvements.• GCs benefit from PQR improvements.• IPPs benefit from sales profits incl.
ancillary services.• DNOs benefit from reduced O&M,
reduced energy costs, and reduced PQR costs.
• BESs may benefit from reduced O&M.• Society benefits from positive
externalities, e.g. reduced emissions.
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Benefit Functions• Map from one set to another set like
mathematical functions.• Map Microgrid impacts onto
Stakeholder benefits.• E.g.– Reduced Electricity Purchased Cost– Investment Deferral– Reduced Emissions– Ancillary Services Provision– Reliability Improvement
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Impacts• The changes that are
expected to result from the Microgrid.
• Some must be known a priori, called “known impacts”.
• Some must be calculated or simulated, “discovered impacts”.
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An Overview of the Framework
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Ongoing and Future Work
• Comparison methodology is nearing completion.
• Ancillary service valuation is in the early stages.
• Collecting data for case studies.– Ideally based on Canadian Microgrids.
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Thank you!
For further information contact gregory.weyrichmorris@mail.mcgill
.ca