Scott Haase, NREL Ian Baring Gould, NREL. April 25, 2016
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1 Remote Community Renewable Energy Partnership Alaska Microgrid Partnership Scott Haase, NREL Ian Baring Gould, NREL April 25, 2016 NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.
2 Remote Community Renewable Energy Partnership (RCRE) Update Alaska energy context Large global need Current approach to hybrid power system design and deployment for isolated communities Department of the Interior project update Tokelau (First all solar nation): 1 MW stand alone PV system, SMA inverters, 1344 batteries Meets all electrical needs for 1,411 people. 2
3 Continued Energy Challenges in Alaska s Remote Communities Remote Alaskan villages 200+ remote coastal and interior Alaskan communities As much as $1.00/kWh (10x U.S. average) As much as $12.00/gallon diesel fuel ~30 wind diesel systems installed by numerous companies and partners Most systems are in the range of 20% 30% renewable energy contribution Current budget crisis limits institutional funding from State Renewable Energy Fund, Emerging Energy Technology Fund 3
4 Global Need Globally thousands of communities with small diesel power systems 1.3 billion people with no electricity, 85% in rural areas million people best served by mini grid hybrid power systems Hundreds of renewable energy/diesel hybrid systems deployed, but RE contribution typically only 20% 30% Disproportionate costs and complexity to increase RE contribution to 50%, 75%, 100% 1 IEA, World Energy Outlook en.htm 4 4
5 Technical Challenges Lack of data on communities, existing systems, current costs Customized, unique system designs and engineering Underperforming, expensive hardware No common understanding of accurate performance metrics Lack of performance data once systems installed Lack of agreement on development path, preferred architecture, performance standards Limited funding for technology development Even less funding for follow up, evaluation, impact assessment, and technology improvement 5 5
6 Economic/Institutional Challenges Little precedent for streamlined project financing, component cost reduction, procurement, construction, and operation and maintenance Business models and financing strategies need development, expansion, and risk reduction Lack of trained workforce to develop, implement, and maintain complex systems High risk markets mean companies increase system costs to cover travel, warranties, user error, outages, etc. Minimal coordinated outreach targeted to industry or user groups Limited industrywide standards (technical & financial) 6
7 DOE and Other Agency Related Efforts Funding Entity Description Status RCRE DOE Indian Energy DOE DOE OE DOE International DOE/FEMP DOI/OIA World Bank Many others Department of the Interior funded effort focused on opportunities to develop more standardized scalable, modular hybrid power systems START Program: Funding ReOpt modeling and other detailed analysis in 5 Alaska communities Sustainable Energy for Rural Alaska: LBNL and RAP Alaska Microgrid Partnership: Detailed analysis of 2 3 communities including business case analysis; 4 national Labs, ACEP, REAP, Intelligent Energy Systems Microgrid Cost Study: Identify the costs of components, integration and installation of commercial microgrids, project cost improvements and technical accelerators over the next 5 years and beyond. Quality Assurance Framework for mini grids Updated control protocols for Alcatraz solar battery hybrid system (currently saving 50% diesel fuel over baseline) American Samoa Ofu Islands system modeling, RFP development, vendor selection, installation of % renewable system for two small islands Mini grid program, system standards, de risking investment lending On going On going Kick off meeting late April 2016 in Alaska Project planning On going Operating Ongoing Ongoing
8 Remote Community Renewable Energy (RCRE) Partnership (Department of the Interior Funding) Ultimate goal: Develop consistent framework to reduce diesel fuel usage and energy costs in remote power systems by at least 50%, while maintaining current levels of system reliability Pathways towards development of modular, scalable, open access systems Initial focus on Alaska without losing site of global market Implementation by NREL, ACEP, CSU Partnership/stakeholder engagement and techno economic analysis Ongoing efforts: Conduct detailed system modeling and lab simulations for 1 2 community Develop technical and financial design specs to achieve ~50% reduction Financing and funding options analysis Document process and lessons learned Coordinate with DOE efforts: 1) Office of Indian Energy START and 2) Grid Modernization Alaska Microgrid Partnership (AMP) 8
9 RCRE Three Primary Focus Areas 1) Technology Initial Focus of RCRE Effort Collect climate specific load profile data, design basis for hybrid systems, modular and scalable, controls and intelligent communication, system optimization and integration, intelligent demand response 2) Partner and stakeholder engagement Coordinate and leverage efforts in this sector working across government agencies, universities, labs, foundations, private companies, rural utilities, NGOs, target communities 3) Market/economic/institutional Promote opportunities for U.S. business by better defining the overall market, developing business and financing models, de risking investments to support broader private sector engagement TIME 9 9
10 DOE Grid Modernization Laboratory Consortia Alaska Microgrid Partnership Goals: Bring together the diverse organizations that are working on power systems for islanded communities Develop accessible pathways to achieve 50 % (hoping for 75 %) total fuel import reductions for energy usage in isolated communities 10
11 Key Themes Total energy including electricity, heating, transportation Inclusive of all options including conservation, efficiency, performance increases, renewable energy, transportation Pathways with defined examples going from initial community readiness through development of financing proforma Building on extensive work already underway by the private sector, AEA, ACEP 11
12 Partnership National Laboratories : NREL, LBNL, PNNL, SNL (note; Lab consortia) Alaska microgrid leaders: IES and Chaninik Wind Group, ACEP, AVEC Statewide development/coordination leadership : REAP & AEA Subject matter experts: Steering committee Community Stakeholders: Active engagement 12
13 2015 Energy Bill 13
14 Industry Cost Trends Battery Costs US Residential Installed PV Costs 1 Source: storage about to get big and cheap/ Inverter Costs png 1 Source: DOE Sunshot Q4 14 Market Update 14
15 Questions?
16 Backup Slides
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