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Microgrids: A Critical
Component of U.S.
Energy Policy
May 20, 2010
2 Copyright The Galvin Project. All rights reserved.
Galvin Initiative Background
Started by former Motorola Chairman Robert Galvin in response to the 2003 Northeast Blackout
The initiatives goal is to develop, demonstrate and open source an improved design for the delivery of electric power, a design that:
will not fail the consumer, or Perfect Power is based on smart microgrid, or consumer focus is a journey of continuous improvement
The Galvin Initiative is developing prototypes of smart microgrids
3 Copyright The Galvin Project. All rights reserved.
Consumer Have the Right to:
Reliable power
Choose electricity service and participate in
markets
Access electricity pricing and usage data
Hold their supplier to performance standards
4 Copyright The Galvin Project. All rights reserved.
Electricity System Waste
Waste TypeWasted $,
BillionsWasted,$/MWh
Wasted fuel ~ $150 $40
Outages/Repair ~ $100 $25
Wasted Capital ~ $40 $10
Emissions Cost ~ $65 $15
Water Cost ~ $75 $20
Total Waste ~$430 $110
5 Copyright The Galvin Project. All rights reserved.
5
Microgrid Transformation
Area SubstationLocal Substation
Central Power
Transmission
Area Substation
Smart Switch
Renewable,
waste heat,
no carbon
Natural Gas
Smart Switch
Microgrid
6 Copyright The Galvin Project. All rights reserved.
Microgrids Concept
Backup, CHP, Solar, UPS
Rapid PrototypingIIT Smart Distribution Prototype
Smart
Switch
Smart
Loop
Smart
Meter
10 MW
7 Copyright The Galvin Project. All rights reserved.
Naperville Microgrid
Outage Duration (minutes) per Customer, 1996 - Present
8 Copyright The Galvin Project. All rights reserved.
Innovative Policies
Microgrid aggregation
Microgrid long-term property assessed
financing (PACE)
Energy districts
Allow local government to build, own and
operate new smart microgrids
Allow local governments to invest in and direct
utilities to make smart grid improvements
If all else failsmunicipalize
9 Copyright The Galvin Project. All rights reserved.
Investment and Impacts Estimates
MetricInvestment
$ millions
Source Energy,
mmbtu
Carbon,
Tons,Delta Cost, ~$/MWh
Baseline Total Current Usage 4,700,000 245,000Grid Reliability Improvements 100 70% reduction 12Community Aggregation
Wind, 30MW 60 -13% -9% 2CCCT, 20 MW 60 -6% -20% 8Bio-energy, 5MW 30 -10% -9% 2Lower cost and revenue -15
Clean Energy Financing, PACESolar PV, 7.5 MW 60 -2% -2% 9Efficiency/DR/Home Automation 50 -20% -16% -8Cogeneration , 15MW 30 -4% -9% 0Storage/DG, 10MW 20 0% -4% 0
Total 410 -54% -69% 10
10 Copyright The Galvin Project. All rights reserved.
Federal Policy Reform Ideas
Federal reliability and performance metric
standards
Make the consumer principles in EISA 2007
mandatory
Federal matching of low interest loans for
local governments to direct smart microgrids
Encourage FERC to expand consumer choice
and ISO markets that value consumer
participation
Ensure new legislation like cap and trade
values consumer participation