CLEAN ENERGY MICROGRIDS

Hype or Reality?

Own your power

Energy Management in Buildings and Cities -Trends, Opportunities & Barriers

April 13th, 2-4 PM, Porter School of Environmental Studies, Tel Aviv University

What is a Microgrid?

Controls load and generation onsite

Includes distribution wires

Connects or disconnects (island) from central grid with black-start capability

Provides energy 24/7, 365 days a year

2Think Microgrid A Discussion Guide for Policymakers, Regulators and End Users 2014, Energy Efficiency Markets, LLC

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Who owns them?

Customer or third-party owned

Commercial and industrial areas

Educational campuses

Communities and neighbourhoods

4Think Microgrid A Discussion Guide for Policymakers, Regulators and End Users 2014, Energy Efficiency Markets, LLC

The University of Texas microgrid

140MW

100 percent of power

heating and cooling to 150 campus buildings

20 million square feet

Operating 40 years with 99.9998% reliability 5

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Why microgrids?

1. Improves asset profitability

2. Avoids rising costs of main grid

3. Meets rising peak demand at lower cost

4. Control during unplanned outages

5. Reduces carbon emissions

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1. Improves property profitability

Continue to generate revenue regardless of whether the main grid is operating or not

Utility costs available for resale rather than as a pass through cost paid to utility

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2. Avoids rising costs

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3. Meets rising peak demand

Defers costly and lengthy transmission upgrades

Increases reserve margins

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Duck shaped demand curve

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4. Greater control of supply and costs

Severe weather such as Superstorm Sandy leading cause of power outages in USA

Losses risen to $200 billion per year in the last decade, globally

Unplanned outages also due to under investment, lack of maintenance, substation and transmission line equipment failures

12Major Power Outages in the US, and around the World IEEE Reliability Society 2009 Annual Technology Report, James McLinn Rel-Tech Group

4. Unplanned outages trends

Major power outages increasing everywhere, over the last 20 years

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Major Power Outages in the US, and around the World IEEE Reliability Society 2009 Annual Technology Report, James McLinn Rel-Tech Group

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5. Reduces carbon emissions

Cost effectively lowers carbon emissions by using waste heat, demand response, solar, wind, fuel cells and batteries

Improved access to climate change financing, meets national environmental laws and emissions reduction targets

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The Micro(grid) Solution to the Macro Challenge of Climate Change

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Can microgrids operate legally?

South Carolina state has jurisdiction over

the sale of power from rooftop solar

panels to a host

Connecticut allows microgrids to sell

across power across public streets

17March 2013 Public Utilities Fortnightly article, “Peaceful Co-Existence,” Sara Brown and Paul McCary

Why Israel should get onboard

1,437 microgrids worldwide, 13 GW

$40 billion annually by 2020, up from $10 billion in 2013

Clean energy investment in China, Africa, the US, Latin America and India $328.9bn in 2015

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Source: Q4 2015 Microgrid Deployment Tracker released by Navigant Research and Bloomberg, January 2016

Microgrid EcoSystem

19http://www.greentechmedia.com/articles/read/cumulative-us-microgrid-investments-will-surpass-3.5-billion-from-2015-thro

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What’s the ROI of microgrids?

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Pay for themselves due to cost savings

Avoidance of transmission upgrade and

Continual operations

Texas U Microgrid, Princeton U MG and many others have achieved net savings

Timing is right

Bankable energy storage (batteries)

Solar PV costs reduced by 95% over 10 years

Improved microgrid power control software (IoT)

Operations and regulations simplified

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Barriers to exponential growth

Reform energy, capacity and ancillary markets

Allowed to serve as their own balancing authority when in island mode

Provide compensation for congestion relief

Recognize value of black start capabilities

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Opportunities for Israeli Companies

“it is more economically viable for a hybrid PV-CSP power plant with Molten Salt storage to operate baseload in comparison to hybrid PV-diesel” or PV-battery

This is true for Chile and South Africa, North Africa, Australia, East Africa, India and China

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Solar PV-CSP Hybridisation for Baseload Generation - A Techno-economic Analysis for the Chilean Market - Kevin Larchet, Master of Science Thesis KTH School of Industrial Engineering and Management Energy Technology

Current microgrid R&D activity

US DoE goals for R&D activities

reducing outage time by more than 98% at a cost comparable to non-integrated baseline solutions

reducing emissions by more than 20% and

improving system energy efficiencies by more than 20% by 2020.

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Microgrid R&D focus

Planning and design

Operations and control

Standardization of design, contracting, installation, security, and operation

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The Smart Power Infrastructure Demonstration and Energy Reliability and Security (SPIDERS) project a Joint Capability Technology Demonstration between Departments of Energy, Defense and Homeland Security (at SANDIA and NREL)

Project Example

Project Location

Simulation Model inputs

Load Profile

Location Abuja Nigeria

Latitude 9 degrees 4.59 minutes North

Longitude 9 degrees 4.59 minutes North

Time zone Africa/Lagos

Data source Synthetic

Daily noise 5%

Hourly noise 5%

Scaled annual average load 25,131.744 kWh/d

Scaled peak load 2,786.1260kW

Load factor 37.58%

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Proposed Configuration

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PV Generic flat plate PV 5,550 kW

Generator Autosized 3,500 kW

Battery Generic 1kWh Lead Acid 2,500 Strings

Converter System Converter 2,300 kW

Grid None 0 kW

Dispatch Strategy

Cycle Charging

System architecture

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Sources

• http://microgridknowledge.com/mice-microgrids-profile-one-us-largest-microgrids/

• http://www.csemag.com/single-article/case-study-microgrid-at-princeton-university/a852c6c36420f738c8ecf66de7aa3dd1.html

• http://www.demandresponsesmartgrid.org/resources/Documents/Case%20Studies/SDGE%20Borrego%20Springs%20Case%20Study%20FINAL.pdf

• Aggregating Levelized Cost Functions In Microgrids For Transmission Grid Operation Jhi-Young Joo, Sriram Raghavan, and Pourya ShamsiDepartment of Electrical and Computer Engineering Missouri University of Science and Technology Rolla, Missouri

• Unplanned outages according to a 2008 estimate by the World Energy Council

• According to a GE report “SAN DIEGO – February, 2015

• http://www.hobokennj.org/2013/06/city-of-hoboken-us-department-of-energy-nj-board-of-public-utilities-pseg-partner-to-develop-resilient-electric-grid/

• ECONOMIC BENEFITS OF INCREASING ELECTRIC GRID RESILIENCE TO WEATHER OUTAGES Executive Office of the President August 2013

• The New Economics of Battery Storage

• http://www.rmi.org/elab_accelerator_2015_hoboken_microgrid_development

• https://building-microgrid.lbl.gov/sites/all/files/santiago_canizares.pdf

• DNV KEMA points out in its August 2013 paper, “Microgrids for Fun and Profit”.

• Costs of Utility Distributed Generators, 1-10 MW Twenty-Four Case Studies 1007760 EPRI

• Backup Power Cost of Ownership Analysis and Incumbent Technology Comparison J. Kurtz, G. Saur, S. Sprik, and C. Ainscough National Renewable Energy Laboratory Prepared under Task No. H279.1710

• Major Power Outages in the US, and around the World IEEE Reliability Society 2009 Annual Technology Report, James McLinn Rel-Tech Group

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THANKS!

• Daniel Schwab

• +972 544800 146

• Daniel@brightmerge.com

• Linkedin: https://il.linkedin.com/in/danielschwab

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