Pablo Astorga, ABB, June Key considerations for island renewable microgrid development. ABB Slide 1

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1 Pablo Astorga, ABB, June Key considerations for island renewable microgrid development Slide 1

2 Key considerations for remote/island microgrids Agenda Island microgrids in context Overview and drivers Integration technologies Penetration vs contribution Typical project scenarios Slide 2

3 Microgrid segments and main drivers Covering a diverse range of applications Main drivers Social Economic Environmental Operational Segments Typical customers Access to electricity Fuel & cost savings Reduce CO2 footprint and pollution Fuel independence Uninterrupted supply Island utilities (Local) utility, IPP* P P P (P) Off-grid Weak grid Grid-connected Remote communities Industrial and commercial Defense Urban communities (Local) utility, IPP, Governmental development institution, development bank Mining company, IPP, Oil & Gas company, Datacenter, Hotels & resorts, Food & Beverage P P P P (P) P P Governmental defense institution (P) (P) P P (Local) utility, IPP (P) P Institutions and campuses Private education institution, IPP, Government education institution (P) P (P) IPP: Independent Power Producer Slide 3 P: Main driver (P): Secondary driver

4 Islanded microgrid Lower cost and environmental impact Group June 22, 2016 Slide 4 Residential Solar Industrial Battery Storage Stabilization Wind Conventional CHP Islanded microgrid example Slide 4 CHP: Combined Heat and Power

5 Driver: fuel independence and lower LCOE Secure power generation and fuel cost savings Average Oil price USD$/Barrel is volatile $13,000/kW $ June 16 $50.03 $7,000/kW $93/Barrel $5,000/kW $3,500/kW Fuel cost is volatile Renewable energy cost is less volatile and decreases over time Renewable energy is economically competitive today Steady decline of renewable energy installation costs is opening new market opportunities An optimized energy mix leads to a lower cost of electricity LCOE: Levelized Cost of Electricity Slide 5 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.

6 Hybrid power systems Integration technologies Industrial loads Residential loads Diesel power 6/22/2016 Slide 6 Design Tools Automation System Remote Service Storage / Stabilization Solar power Wind power

7 Renewable energy integration Energy contribution & Power penetration Microgrid Integration Technologies Controlled system Energy contribution Max power penetration Limited control / basic fuel saving Renewables control only Power control and optimisation Controlling renewables + generator Power control and grid stabilisation Controlling renewables + generator + storage Power control and load management Controlling renewables + generator + storage + load Power control + energy storage Controlling renewables + storage + load 7-10% % 10-15% % 25-40% 100 % 60-80% 100 % 100% 100 % Average energy contribution reflects fuel savings over a year Maximum power penetration reflects maximum share of renewable power injected into the system at any moment in time without causing stability issues Slide 7 Note: Percentages vary between wind/diesel and solar/diesel

8 Automation and grid stabilization Technology overview Microgrid Plus system Specially designed networked control system responsible for efficient and reliable power flow management PowerStore Compact and versatile grid stabilizing system capable of stabilizing power systems against fluctuations in frequency and voltage Maximizes fuel savings Optimizes use of renewable energy Guarantees optimum loading and spinning reserve in fossil fuel generators Distributed logic enhances reliability and scalability for future system expansions Modular and scalable Stabilizes an electricity network by rapidly absorbing/injecting power in order to maintain voltage and frequency Battery or flywheel based. Includes stateof-the-art inverters and virtual generator control software Applicable to isolated grids or in grid support mode Slide 8

9 Consulting and remote service Proper design and maintenance are key Consulting and Design tools Our experience, capabilities and tools enable your resources to plan and operate the microgrid reliably and at maximum economic benefit. Remote services for Operation and Maintenance A comprehensive solutions for unattended sites to increase productivity, improve energy efficiency and reduce operation costs. Consulting is offered through out the complete lifecycle of a project with the goal to find the optimal solution that maximizes the value of the assets and financial investment. Feasibility studies and simulations Grid studies Renewables engineering Management of customers and plants from the same web portal, providing Energy production reports Interventions Energy production forecasts Real time data production List of customers and plants Slide 9

10 Optimized microgrid integration Faial, wind/diesel Logos sd ABB solution Design, supply, installation and commissioning of a Microgrid Plus System The control system optimizes the wind penetration into the microgrid and helps dispatch the HFO generators optimally Project name Faial wind/diesel stabilization Country The Azores, Portugal Customer Electricidade dos Acores (EDA) Completion date 2013 Customer benefits Optimized wind penetration to ensure minimum fuel consumption and grid stability Reduced maintenance through automatic management of the wind farm power setpoint About the project The integration of wind energy combined with ABB s innovative solution will save an estimated 3.5 million liters of fuel per year Slide 10

11 Ancillary power system services La Gomera, grid stabilizing system ABB solution Supply, install and commission of a PowerStore-flywheel 500 kw grid stabilizing solution Solution upgradable to 1MW PowerStore adds inertia in the 22MW isolated power system of La Gomera Project name La Gomera PowerStore Country Canary Islands, Spain Customer Endesa Completion date 2014 Customer benefits Reduced frequency and voltage deviations Reduced load shedding events Slide 11

12 Ancillary power system services Kodiak Island, grid stabilizing system ABB solution Deliver two PowerStore-flywheel units to stabilize the power grid and increase renewable energy Customer benefits Provide voltage and frequency support for a new crane Extend the life of the battery systems by up to 6 years Help to manage the intermittencies from a 9 MW wind farm Reduced reliance on diesel generators Image by, Karl Musser, created t based on USGS data. {{self cc-by-sa- 2.5}} Category:Maps of Alaska Project name Kodiak Island Country Alaska, United States of America Customer Kodiak Electric Association (KEA) Completion date 2015 About the project Two PowerStores act in parallel in order to deliver optimal grid stabilization on Kodiak island Not only will the ABB PowerStores allow us to shave the peaks off our cranes load, it will also reduce the stresses placed on our battery systems and extend their lifespans, which was a key deciding factor to move forward with this project. Darron Scott, president and CEO of Kodiak Electric Association Slide 12

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