2012 2000-201209 www.sandc.com

The Watt, Why, and How of Microgrids

ASME Webinar David Chiesa Director of Microgrids

2

Agenda

Solving Problems

Future of the Grid

What is a Microgrid?

Why do I want to implement a Microgrid?

What are the types of Microgrids?

How to we pay for our Microgrid?

What does it take to build a Microgrid?

Questions

3

The Onward March of Technology

4

Examples How do we eliminate most power outages?

How do we optimize the grid and power generation?

How do we create a more resilient, secure and even

self-healing power grid?

How do we diversify and integrate renewable energy

into the grid?

How do we support customers who choose rooftop solar, electric vehicles and smart appliances?

How do we achieve all this and still keep monthly bills

affordable?

5

16 Central Power Plants

6

16 Central Power Plants + 1000 local DG

and 20% Wind Penetration (6000 WTGs)

7

What is a Microgrid?

Per U.S. Department of Energy, a microgrid is:

A localized grouping of distributed electricity sources, loads, and storage mechanisms which can operate both as part of the central grid or independently as an island.

8

Microgrid Levels

L1

L2

L3

L4

DA

+

1 or more

DG unitsStandalone

Generator

Microgrid

Controller

+

Thermal

Assets

+

Renewables

+

Energy

Storage

L3 Microgrid

Controller

+

Load

Management

L4 Microgrid

Controller

+

Weather

Forecasting

+

Generation

Forecasting

+

Economic

Dispatching

(via inputs &/

or algorithm

developed &/

or acquired)

S1 S2 S3 S4 S5

Coordinated

Microgrid

Coordination

&

Optimal

Control of

Multiple

Microgrids

S6

L5

L6

1

2

3

4

5

Utility Microgrid .

Commercial Industrial .

Military .

Campus .

Potential

Microgrid

6

Mic

rog

rid

Co

mp

lexity L

eve

l

9

How Are Microgrids Formed?

Grid Connected Mode Normal Operations

Unintentional You Go Dark

Open Transition

Ability to Reform Grid

Intentional - Very Little Loss of Service

Utility Triggered

Self Islanded

Could be Open or Closed Transition

Load Preservation is Key

Large Distributed Generation or Energy Storage

Near UPS

Closed Transition (No Loss of Service)

Very Large Reserve Standby Power

10

Why Would Anyone Want to Build One of These?

Incorporate low cost solar, CHP and other Distributed Energy Resources

Implement net-zero projects, reducing carbon footprint

Store energy for stability and grid services

Green Energy

Reliable Energy

Ability to proactively island from utility and reconnect

Preserve critical loads 24/7/365

Repurposing grid tied inverters for island mode

operation

Determine root cause of outages and restore power

quickly

Green Energy

Customize DERs to deliver enhanced reliability; efficiency and

optimization; and environmental benefits.

Efficiency & Optimization

Minimize energy costs

through fuel switching, load

control and grid services

Prioritize most critical loads

Have energy flexibility with the grid

Harness combined heat and power, maximize incentives

11

How Do You Pay for Microgrids?

Government Funding (Temporary?)

Grants

Subsidies

Distributed Generation Benefits

Renewable

Tap into Existing Resources

Ancillary Market Participation

Cost Avoidance

Capital Expenditure Savings

ICE Calculator for Customer Savings

Reliability Improvements

Fuel Savings

12

How are your Customers going to pay for a microgrid? DERCAM from LBNL does this analysis (LBNL)

2012 2000-201209 www.sandc.com

Oncors Microgrid

13

14

ONCOR Microgrid

Designed to Display

Immersion Room

Demonstration Center

Proof of Concept

15

ONCOR SOSF Microgrid

Additional information available at:

sandc.com @SandC_US microgrid@sandc.com

Questions?

16

David B. Chiesa

Director Microgrids Mobile (630) 291-5749

Office (773) 338-1000, x2959

David.Chiesa@SandC.com

Microgrids@SandC.com

17

So Where Should I Put My Microgrid?

Look for Reliability Challenged Locations

Look for High Cost to Deliver Power

Look for Capital Avoidance Opportunities at 1&2

Look for Locations with Non-Monetary Benefits

Try to Find All Three!

18

AK # 2

22.2

cents/kWh

SSE East Team

C A #5

13.3

kWh

TX #44

7.13 cents/kWh

NY # 9

.118

cents/kWh

13

9.52 kWh

MI 11

10.1 cents

/kWh

WI # 15

9.4 cents

Microgrid Opportunity

3,4,7,8, 10

@ 13.96 11.37 cents/kWh

MA 6, NJ 9, DE

12 @ 14.,12.7,

9.6 cents/kWh

# 17

9.0

kWh

# 16

9.1

LA

49

6.1

HI # 1

33.35

cents/kWh AZ # 18

kWh 8.9

NV # 19

kWh 8.9

AL # 20

kWh 8.9

Ability to Monetize:

Power Costs

Ability to Monetize:

Grid Services

CHP Growth

19

Whats It Take to Build a Microgrid

Create and follow a proper Preconstruction and Design plan

Know your drivers - source and uses

Understand constraints and goals

Identify the critical and less critical loads

Model the System Before You Build

Understand control operations in each Sequence of Operations

Investigate Transitent Stability

Review Protection Schemes for Non-Island and Island Modes

Design Your Control & Monitoring System Early

Permitting and Interconnect

Involve the Utility Early

Drawings will be Required

20

Whats It Take to Build a Microgrid (Contd)

Factory Acceptance Testing

Construction

Commissioning

Monitoring & Performance Verification Plan

Set up your O&M plan

Pick Established Suppliers

21

Military Microgrid Experience Dyess Air Force Base

S&C furnished:

Paralleling switchgear

EPC services for three generators

14 Scada-Mate Switches

5801 Automatic Switch Controls

IntelliTeam II System

Results: Increased power reliability and security for critical functions

22

Residential Community Microgrid Experience Presidio, Texas

Power quality and high number of outages were major problems

Pre-contingency voltage could drop below 95%, post-contingency voltage could drop below 90%

Repairs to troublesome 69-kV line took a long time to complete

Peak loads can exceed the weather-normalized load forecast

23

Residential Community Microgrid Experience Presidio, Texas

S&C furnished:

4-MW, 24-MWh PureWave Storage Management System, installed indoors

IntelliRupter PulseClosers

24

Residential Community Microgrid Experience Presidio, Texas

Results:

System can back up and island entire town for 6 hours

Uses alternate utility source for additional backup power

25

Campus Microgrid Experience Santa Rita Jail, Dublin, California

One of the largest correction facilities in the U.S., with average daily power demand of 3 MW

Needed a way to store excess power produced by on-site generation, and operate indefinitely without connection to local grid

Needed a way to purchase power off-peak and use it during high-cost peak demand periods

26

Campus Microgrid Experience Santa Rita Jail, Dublin, California

S&C furnished:

2-MW PureWave Storage Management System, can power jail for up to 2 hours

All engineering services

Project management

Results: Jail expects to save nearly $100,000 a year

27

Campus Microgrid Experience Santa Rita Jail, Dublin, California

http://www.acgov.org/smartgrid.htm