The Case for Caribbean Microgrids

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1 OCTOBER 15, 2018 AIEQ Symposium - Montreal The Case for Caribbean Microgrids Matt Nejati

2 What is a microgrid? Control is the key Microgrid definition Distributed energy resources and loads that can be operated in a controlled, coordinated way either connected to the main power grid or in islanded * mode. Microgrids are low or medium voltage grids without power transmission capabilities and are typically not geographically spread out. Grid Operator Can view and control microgrid as a single entity Grid -connected Microgrid Off -grid Microgrid

3 Market overview Segments and drivers Segments Typical customers Main drivers Social Economic Environmental Operational Access to electricity Fuel & cost savings Reduce CO 2 footprint and pollution Fuel independence Uninterrupted supply Island utilities (Local) utility, IPP* ( ) Off -grid Weak grid Grid -connected Remote communities Industrial and commercial Defense Urban communities Institutions and campuses (Local) utility, IPP, Governmental development institution, development bank Mining company, IPP, Oil & Gas company, Datacenter, Hotels & resorts, Food & Beverage ( ) Governmental defense institution ( ) ( ) (Local) utility, IPP ( ) Private education institution, IPP, Government education institution * Independent Power Producer : Main driver ( ) : Secondary driver ( ) ( )

4 Why are microgrids so popular in the Caribbean? Isn t it obvious? Matthew Semark Islands Physical and Electrical Renewable Resource Rich Ian Cumming/Getty Images Diesel Dependent

5 The Business Case Value Stacking Reliable Power NPV Positive Avoided O&M Microgrid Capex/ Opex Spinning Reserve Avoided Fuel

6 Economic Optimization What is the right solution? Economics vary by renewable resource and cost but hockey stick curve applies Source: HOMER ENERGY Newsletter Annual Renewable Energy Contribution

7 GBPC Load Smoothing Project Minimizing frequency deviation from industrial loads Customer: Grand Bahama Power Company Solution: 9.5MW/7.3MWh BESS Fast Response Controls Project Drivers: Uninterrupted Supply Fuel and Cost Savings CO 2 Reductions Applications: Frequency Management Renewable Integration

8 GBPC Load Smoothing Highly volatile load Project

9 GBPC Load Smoothing Projected daily solar shape Project

10 GBPC Load Smoothing Project Applying storage with desired control parameters Storage affected load profile Current load profile

11 GBPC Load Smoothing Ramp rate differential Project 1.3MW change over 35 Seconds Storage affected load profile Current load profile 6MW decrease followed by 2.5MW increase

12 WEB Aruba IGMS Project Building a foundation for increased renewables Customer: WEB Aruba Project Drivers: Uninterrupted Supply Fuel and Cost Savings CO 2 Reductions Applications: Renewable Integration Frequency Management Intelligent Load Shedding Load and Generation Forecasting Generation Optimization

13 WEB Aruba IGMS Project Generation Automation Scalable Controls Generator Optimization Airport Solar? Future Expansion Gas Turbine Dynamic Load Shed Vader Piet Renewable Forecasting Industrial Reciprocating Engines M+ Control System Port Steam Community Urirama Renewable Integration and Stability Future Solar Battery

14 WEB Aruba IGMS Project Distribution load shedding granular and dynamic Microgrid S+ Engineering Plus Client 1 (EWS 1) 24" 24" System Frequency Dynamic Load Shed Algorithm Steam Header Pressure ELMAR SUB 1 ELMAR SUB 2 ELMAR SUB 3 ELMAR SUB 4 ELMAR SUB 5 ELMAR SUB 6 ELMAR SUB 7 Critical Load Critical Load Critical Load

15 Key Takeaways Very strong potential business cases built on diesel offset and integration of renewable generation Many of the same drivers and challenges in the Caribbean as we see in Northern Canadian communities Likely continued growth in this market as countries create and pursue clean energy targets

16 Questions? Do not hesitate to contact me... Contact Info Matt Nejati ABB Microgrids and Energy Storage ca.abb.com