MICRO GRIDS Uses and Value

Transcription

1 MICRO GRIDS Uses and Value Panelists: Lee Ragsdale, Senior Vice President, Grid Infrastructure & Compliance, NCEMC Brian Levite, Microgrid Application Director, S&C Electric Company David Jones, Manager, ICF Moderator: Venkat Banunarayanan, Senior Director, Distributed Energy, NRECA

2 The Growing Importance of Resiliency With increasing amounts of extreme weather events like Superstorm Sandy, Irma and the recent Bomb Cyclone this winter, resiliency in the electric grid during grid disturbances is of paramount importance 2

3 Severe weather event frequency and severity and resulting power outages appears to be on the rise 3 Ken Horne, Navigant presentation to CEATI SOIG meeting 2016

4 Role of the Utility is becoming more interesting Options from Poles & Wires to a full service Multiple Energy Services Provider and everything in between Need to innovate business models to assure safe, reliable and affordable electric power while participating in grid transformation CapEx and OpEx decisions more challenging due to increasing load and generation uncertainty Managing the performance of, and optimizing the grid (Transmission and Distribution) increasingly challenging with DERs, potential two-way power flows, grid stability considerations. 4 Ken Horne, Navigant presentation to CEATI SOIG meeting 2016

5 Increasing need to integrate Distributed Energy Resources in a sustainable fashion Source: Navigant Research 5 Ken Horne, Navigant presentation to CEATI SOIG meeting 2016

6 Wide range of DER s 6

7 Definition of a Microgrid 7 Ken Horne, Navigant presentation to CEATI SOIG meeting 2016

8 Microgrids Opportunities & Challenges One solution for increasing resilience Enable utilities to provide various energy service models Increase integration and optimization of DER Contribute to a flexible and agile grid Lack of sustainable, scalable, and attractive financing/business models Some value propositions not easy to monetize Each microgrid is currently custom designed (no off the shelf solutions) Still a niche market application 8

9 MICRO GRIDS Uses and Value David Jones Manager, ICF

10 Microgrids State of the Market David Jones, ICF 10

11 Microgrids in the United States 1,623 operational microgrids, 3.2 GW of capacity in U.S. (GTM, 2017) Majority rely on utility power, only operating in island mode during outage events Diesel engines are most commonly deployed technology (GTM, 2017) Primarily for emergency/backup power when operating in island mode Many microgrids use Combined Heat and Power (CHP) or natural gas engine generators for resilient baseload power Solar (PV) and energy storage gaining momentum Most large microgrids are deployed at campuses, using CHP for baseload heat and power Universities, hospitals, military bases Incentive programs are leading to more community microgrids to provide resiliency to critical infrastructure 11

12 (source:gtm) 12

13 Microgrids Benefit from Energy Storage ICF is analyzing how energy storage is being used in microgrids, and how it can be cost-effectively utilized, in a study for CEATI Takeaway 1: There are a number of ways that storage can be cost-effectively utilized Takeaway 2: The cost-effectiveness of storage depends on site-specific needs, connected energy resources, and local energy markets Takeaway 3: Energy storage is an enabling technology that is most effective when combined with other DERs Technology is improving and cost of energy storage is decreasing Storage can balance variable renewable loads, participate in energy and ancillary service markets New FERC rules: energy storage access to RTO/ISO wholesale energy, ancillary markets CHP can provide the resilient baseload anchor for the microgrid 13

14 Example: CHP + PV + Storage Microgrid Source: ICF 14

15 New Business Models: Microgrids as a Service Microgrids include multiple energy resources serving variable loads Custom-engineered logic controller with inverters, relays, and switchgear Business owners do not understand the complexity Large capital investment Developers are beginning to offer microgrids as a service Power purchase agreements with long-term contracts Developers engineer, finance, install, operate and maintain the microgrid Schneider Electric, PowerSecure (Southern Company), Siemens and more Carlyle Group set up Dynamic Energy Networks to create this offering, $500M initial backing Could utilities offer microgrids as a rate-based service? Benefits for both utilities and customers in local, resilient power Utilities continue to serve their customers full power needs 15

16 Questions? David Jones Manager, ICF

17 MICRO GRIDS Uses and Value Brian Levite Microgrid Application Director, S&C Electric Company

18 Microgrids: Exploring Uses and Value S. Lee Ragsdale, Jr. Senior VP, Grid Infrastructure & Compliance

19

20 Cooperative Strategic Focus Infrastructure Innovation Engagement Traditional infrastructure will be challenged Innovation will drive how services are provided Services Operations Communications Success requires robust and timely engagement 20

21 Integrated Coordination Regional Transmission Operator EMC Regional Transmission Operator / Transmission Owner EMC Market activity of assets Generation, DER or Demand Response Transmission Owner EMC Microgrid EMC T-D Interface DER EMC Provide forecasts Coordinate interconnections in transmission and distribution Impacted by DER utilization EMC (as Distribution Operator) Manage consumer needs End-use Consumers + Behind-the meter DER Integrate DER utilization upstream Manage assets for distribution stability and resiliency 21

22 Ocracoke Microgrid Key Components Carina Ecobee Ocracoke Island Microgrid Controller NCEMC Operation Center 200+ Thermostats 50 Water Heater Controls Member-Consumers 3 MW Diesel Generator 500 kw / 1 MWh Tesla Battery Storage 15 kw Rooftop Solar Ocracoke Video: youtu.be/vkv9t74bw9e 22

23 Microgrid Value Propositions Use Cases Tested: Demand Response, Ancillary Services, Capacity Firming/ Renewables, Islanding and Resiliency, Asset Deferment and Power Quality Validate Replicate Integrate Validate Microgrid provides economic and operational value Testing helps future use cases Replicate Member cooperatives can replicate microgrid solutions Integrate Optimize value from upstream to retail 23

24 NCEMC Consumer Microgrid Project Reclosers and Sectionalizers Microgrid Controller NCEMC Operation Center 250 kw 750 kwh battery storage 185 kw swine-waste generator 20 kw solar 100 kw diesel Butler Farms Butler Farms Video: youtu.be/hnnvb61soau 24

25 NCEMC Consumer Microgrid Project Why Agribusiness? Key to rural economies Active members of the cooperative family Environmentally-focused Existing investments in distributed energy Benefits of this Microgrid Shared benefit to the portfolio Increased renewable resource Improved community reliability 25

26 26