POWER DIESEL INTER-UTILITIES CONFERENCE, MAY Considerations for Remote and Island Microgrids. Matthew Nejat i, ABB

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1 POWER DIESEL INTER-UTILITIES CONFERENCE, MAY Considerations for Remote and Island Microgrids Matthew Nejat i, ABB

2 Key considerat ions f or remot e/ island renewable microgrid development Agenda Introduction to ABB Microgrids Economic optimization The integration challenge Logist ics Technical considerat ions

3 ABB in remote microgrids A compelling case in cost reduct ions Resident ial loads Solar power Industrial loads Diesel generat ion Wind power Reduce Levelized Cost of Elect ricit y (LCOE) by replacing fossil fuel wit h renewables Providing access to electricity in remote location Reduce environment al impact

4 ABB Microgrids and renewable energy Expert s in microgrid cont rol and syst em st abilizat ion Hybrid Renewable Microgrid Renewable Int egrat ion and Optimization Ancillary Power Syst em Services Ref erence Marble Bar (s o la r/ d ies el) Hopetoun (wind/ dies el) Coral Bay (wind/ dies el) Bremer Bay (wind/ dies el) Cocos (Keeling) Is la nd (wind/ dies el) Denham (wind / d ies el) Esperence (wind / d ies el) Sandfire Degrussa (PV/ diesel) Laing O Rourke (s o la r/ d ies el) Gorona del Viento (wind/ pumpedhydro/ diesel) Ross Island (wind/ dies el) Rottnest (wind/ dies el) Maws o n (wind/ dies el) Robben Is la nd (solar/ battery/ dieselsystem) Marsabit (wind / d ies el offgrid system) AECOM (battery energy storage system) Le g io n (Biogas/ battery system) Chugach (Wind/ Flywheel/ battery) Carnegie (wave) Kalbarri (wind) Faial (wind/ dies el) Flo res (wind/ hydro/ diesel) SP Ausnet (GESS) Lanzarote (grid s t abilizing system) Kodiak Island (grid s t abilizing system) La Gom era (grid s t abilizing system) Leinster Mine (peak lopping) Alint a Mine (spinning reserve) More than 30 projects worldwide

5 Microgrid solutions Integration technologies Cust omer Load Economic Dispat ch CHP Solar power Diesel power Wind power Design Tools Automation Syst em Remot e Service St orage / Stabilization

6 Economic optimization Main microgrid drivers: Remote / off-grid Fossil fuel cost is volatile Fuel cost is very volat ile and has a significant impact especially on remot e communities Decreasing cost s of renewables Steady decline of renewable energy cost is enabling new opportunities for new and exis t ing m icrog rid s. Lower cost of electricity and fuel independence Sources: 1) US Energy Information Administration Independent Statistics and Analysis 2) Alliance for Rural Electrification (ARE). Projections made from a case study based in Ecuador with real natural conditions.

7 Economic optimization Microgrid economics: Low, medium and high penet rat ions 10.0 Higher penetration systems = higher value Wind-diesel system CAPEX, NPV Capex, NPV (M$) Low Medium High (FW) Minimal LCOE reduction Capex NPV 5-10% LCOE reduction 15-20% LCOE reduction Key modeling assumptions: 2.5MW peak, 1.4MW average system Penetration levels: Low = 250kW, Medium = 750 kw, High = 1600 kw 8 m/s average wind resource Integration: Low = Simple controls, Medium = Microgrid Plus, High = PowerStore FW

8 Economic optimization Opt imal renewable penet rat ion level Economics vary by renewable resource and cost but hockey stick curve applies IRR [%] Renewable Penet rat ion [%] Annual renewable energy contribution Annual renewable energy contribution Source: HOMER ENERGY Newslet t er

9 The int egrat ion challenge Managing power output fluctuations for renewable energy Inherent volatility of renewable energy can compromise grid stability The renewable energy integration solution must address req uirem ent s t rad it ionally fulfilled b y d iesel g enerat ion (base lo a d ) Frequency and voltage control Sufficient sp inning reserve Sufficient act ive and react ive p ower sup p ly Peak shaving and load levelling Load sharing between generators Fault current p rovision Solar power variations Wind power variations Renewable generation capacity should be sized to maximize ret urn on invest ment and fuel savings

10 Economic optimization Low Medium High No integration required Microgrid Control System Microgrid Controls Storage/Stabilization MW MW MW MWh MWh MWh 15% 30% 70% 100% - 50% 5% Diesel Wind 30% 15% Diesel Wind 50% - 30% Diesel 50% Wind Diesel Solar Diesel Solar Diesel Solar

11 The int egrat ion challenge The 8S applications in microgrids Stabilizing: Frequency regulation Seamless: Transition Spinning Reserve STATCOM: Power qualit y St andalone: Island mode Power Shaving: Peak lopping Smoothing: Capacity firming Shift ing: Load leveling ms GRID STABILIZATION Time (energy) hrs ENERGY STORAGE

12 The integration challenge: Renewable smoothing Chugach Elect ric, PowerSt ore/ Wind/ Diesel ABB solut ion The resulting m icrog rid system consists of: PowerStore Battery (1 x 2 MW) PowerStore Flywheel (1 x 1 MW) Wind (11 x 1.6 MW) Cust omer benefit s Project name Chugach Hybrid Storage Location Alaska, USA Customer Chugach Electric Completion date 2017 Red uce ram p rat e violat ions on exis t ing wind farm Reduce Area Control Error(ACE) violations Allow for additional wind capacity to be constructed About t he project Combination of PowerStore Battery and Flywheel are in ratio to best absorb cycling duty from wind farm fluctuation

13 Annual ramp violat ions Calculation of total time (minutes) of violation in one year based on hist orical dat a Reduction of violation time of 99.56% between Base Case and Opt ion 1 Reduction of violation time of 99.96% between Base Case and Opt ion 2 Violat ion is defined by a Ramp Rat e great er t han 2.5 MW minute.

14 Energy sharing Battery Flywheel

15 Logistics Challenging logistics in remote locations Access limited to certain times of the year Winter Roads Frozen Seas Delivery and construction can be more costly Port facilities and off-loading Delivery distance Road and Construction conditions Local construction capabilities can be absent or minimal Construction resources (cranes, tools, etc.) may have to be brought in How do you design and prepare effectively?

16 Logistics Ross Island wind/ diesel ABB solut ion Integration of wind turbines into the microgrid with PowerStore grid-s t ab ilizat ion and Microg rid Plus Sys t em Implement a frequency converter to connect a 50Hz network to a 60Hz one The resulting system consists of: Diesel (9 x 125kW), WTG (3 x 330kW), PowerStore-flywheel (1 x 50 0 kw), Microgrid Plus System, frequency converter Project name Ross Island Country Ross Island, Antarctica Customer New Zealand s Antarctic Division USA McMurdo Station Completion date 2009 Cust omer benefit s Minim ize d ies el cons um p t ion Reduced environmental risk of transporting diesel 463,0 0 0 lit ers o f d ies el fuel s a ved a nnua lly 2,800 tons CO2 avoided annually Up to 70% wind power peak penetration About t he project Integration of the southernmost wind farm in the world into a dual 50 and 60Hz microgrid

17 Technical considerations: Inverter capability Wide range of st orage invert er t echnologies Act ual Island Fault Event Invert er and cont rol capabilit y is crit ical Lat ency/ Response Speed Fault Current 4 Quadrant vs 2 Quadrant Inert ia

18 Technical considerations: High renewable penetration Running an islanded system with inverters only In order to run an islanded system without any online fuel-based generat ion, t he following must be considered: A volt age & f requency ref erence must be present t o enable renewables t o operat e (grid-forming) Act ive & React ive power regulat ion to mitigate renewable fluctuations Reduced fault current may cause prot ect ion coordinat ion issues Spinning reserve must be available t o cover a drop in renewable out put

19 Technical considerat ions Cent ra l vs. distributed control systems Central control systems Distributed control systems Controller failure Syst em maint enance Failure of the central master controller can be catastrophic System maintenance requires complete shutdowns Fa ilure of one controller has a minimal impact. Replacement capacity can be brought online immediately Parts of the system can be shut down while the rest of the system continues to operate independently Upgrades Modification requires extensive testing Easy upgrades thanks to independence and m o d ula rit y Fut ure ext ensions Scalability and expansion is a complex and expensive task The system is more scalable and extendable (not lim it ed t o on-board I/ O of central master co nt ro ller) Distributed control systems provide more reliability and flexibility

20 Q&A and cont act information If you have quest ions, please cont act me Speakers Matthew Nejat i ABB Microgrid Solutions m atthew.nejati@ca.abb.com

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