Design and control of microgrids- typical applications, impact on your business

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1 Design and control of microgrids- typical applications, impact on your business European Utility World, Amsterdam / November 5 th 2014 Ullrich Jakobi, Siemens AG Siemens AG 2014 All rights reserved.

2 Key challenges drive implementation of Microgrids Microgrid Technical challenges Efficient energy use - power and heat Reliability / Security Integration of renewables Customer challenges Economical index: cost/kwh, Energy security (reliability of infrastructure, energy import dependency, energy efficiency use), presence of remote areas Positive Business Case Political index: Taxes on fuel/co 2, Environment targets, Subsidies scheme, regulatory framework for renewable (feed-in tariffs) Long term investment, Sustainability Page 2

3 Typical Microgrid Customer Segments Campuses optimized use of intermittent generation and increased efficiency by combining heat and electricity generation. Remote Locations and Islands Industries with critical processes increased stability of supply and grid resilience through on- and off-grid functionality. Critical Infrastructures / Military Institutions optimized energy management for reduced or better controlled energy costs and CO 2 footprint. optimized economic performance of energy system through peak load management and limitation of grid extensions. Page 3

4 Typical Microgrid Customer Segments Individual Solutions Campuses Remote Locations and Islands Industries with critical processes Critical Infrastructures / Military Institutions Requirements on solution design in general Individual solution to meet customer targets Flexible architecture and components - Change of boundary conditions, technical/commercial, own targets/ external framework, Integrated and consistent solution - Control center, substation automation, protection, power generation, storage, Page 4

5 Smart Polygeneration Microgrid Savona Campus System Overview Challenges: High cost of (electrical) energy supply Seasonal demand Solution: Microgrid Management System in combination with storage systems (electricity, heat), combined heat and power (CHP), concentrated solar plant (CSP), photovoltaic, ecar charging stations and controllable loads to improve efficiency of traditional generation and better exploit renewable generation Benefits: Electricity savings Optimization of energy production cost Technical: 1 Photovoltaic plant (80 kw), 1 Battery storage (140 kwh), 3 ecar charging posts, 3 Micro-CHP (1 x 30 kwe/57 kwth, 2 x 65 kwe/120 kwth), 2 Heat storages (500 kwth), 3 Concentrated solar plants (1 kwe/kwth), 1 Absorption chiller (100 kwth) Page 5

6 British Columbia Institute of Technology, Canada System Overview Challenges: High cost of electrical energy supply High cost of fuel transport Seasonal demand Solution: Microgrid Management System in combination with battery storage system, photovoltaic plant, ecar charging stations and controllable loads to better exploit renewable generation Benefits: Electricity savings Optimization of energy production cost Island capability Grid support Technical: 1 Photovoltaic plant (250 kw), 1 Battery storage (500 kwh), 2 ecar charging posts Page 6

7 Typical Island Microgrid Challenges: High cost of energy supply Seasonal demand Power interruptions Increasing renewable generation causes power quality issues Solution: Microgrid Management System in combination with a Storage System to improve efficiency of traditional generation and better exploit renewable generation Benefits: Fuel savings Maintenance savings Reduce penalties related to power interruptions Avoid loss of renewable production Page 7

8 Excess residential Photovoltaic's in Australia requires a Microgrid solution Challenges: Residential Renewable Integration White Paper, Victoria: -> Integrated approach to reduce cost pressures on households and business Degree of deregulation and privatization various across states and territories Excess residential photovoltaic's Regulation preference to RI Bi-directional power flow (grid set-up) Fluctuating loads & generation Complicate financial planning Solution: Create microgrid community Bundle generation to communal storage Benefits: Reduction of grid overloads / collapse Renewable energy harnessed Better network planning Single point of coupling for utility Community benefit in case of grid blackout Improvement of Power Quality Page 8

9 Typical Critical Infrastructure (City) Microgrid Application Challenges: Diesel max. 3 hours due polluting requirements and nameplate thermal ratings ( stand-by rating only), hence resiliency only for hours Integration and use of energy generated locally by CHPs and PV Feed local grid in island mode Solution: Deploy Siemens microgrid controller platform for energy management in islanded mode Install recloser switches at interface with local distribution company to isolate microgrid Option for further improvements using electrical energy storage (EES) Benefits: Long time resiliency in case of outage Optimized energy exchange to main grid in normal operation Optimized CAPEX / OPEX, combining renewable and fossil generation Page 9

10 Island Application Typical challenges and drivers Economical High total cost of energy supply, due to impact of fossil fuels transportation costs Penalties related to power interruptions Penalties related to polluting emissions Targets on power production from renewable sources Technical Increasing integration of renewable sources causes increasing power quality issues in the grid Seasonal demand peaks impact on power supply reliability, increasing the risk of power outages Continuous disconnection from main grid requires redundancy in the grid and spinning reserve in order to maintain grid stability 8MW 7MW Example of seasonal demand 6MW 5MW 4MW 3MW 2MW Spring Summer 1MW Autumn Winter 0MW 00:00 03:00 06:00 09:00 12:00 15:00 18:00 21:00 00:00 Page 10

11 Island Application Technical functionalities and potential solution Technical Functionalities needed Potential Solutions Blackstart of the island grid Transition Island Mode / Grid Connected Mode Synchronization of the U/f-Inverters in the grid & Control interaction Handling and protection of short circuits and faults Fast/High load and generation variations/fluctuations management Handling outage of generation Handling outage of load Voltage maintenance Reserve supply / Spinning reserve Optimize operation of fossil fueled generators in combination with a Storage System and a Microgrid Management System Optimize usage of traditional and renewable generation Introduce load management Page 11

12 Island Application Solution Variant Features Monitoring & control Generator control (electrical & thermal) Storage control Load Control Generation forecast Load forecast Optimization & Unit Commitment Online control SICAM TM SICAM SGU SICAM SGU SICAM Microgrid Manager SICAM SGU SICAM MIC SICAM SGU SICAM MIC SICAM SGU Page 12

13 Island Application Main benefits Fuel Savings Increasing share of renewable and use of battery storages allow to reduce cost of fossil fuels Maintenance Savings Battery storage technology requires less maintenance compared to Diesel Generators Environmental Footprint Increasing share of renewable and use of battery storages impact positively on polluting emissions Loss of Renewable Production Avoid curtailment of renewable production, through the introduction of energy storage systems Page 13

14 Microgrids - Conclusion the implementation of microgrids requires a wide range of integrated competences ü Consultative, iterative solution approach ü Brought portfolio of proven products (covering e.g. energy management*, power generation, storage) Optimal integrated and flexible microgrid solution to meet your individual requirements in terms of functionality and economics as well *) Control Center, Substation Automation, Protection Page 14

15 Thank you for your attention! Ullrich Jakobi Head of Microgrid Solution Design EM EA MG SD Humboldtstrasse Nuremberg, Germany Phone: +49 (911) Fax: +49 (911) Mobile: +49 (173) Page 15