Microgrids & Leveraging Campus Utility Infrastructure

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1 Microgrids & Leveraging Campus Utility Infrastructure Using fuel cells as the generation backbone Michael Palmer Director, Business Development FuelCell Energy, Inc. October 18, 2016

2 Learning Outcomes 1. Classify fuel cell power generation by giving brief overview on technology and its attributes. 2. Describe modern micro-grid application that utilizes fuel cells as power source. 3. Illustrate how fuel cell micro-grids are suitable for college campuses. 4. Explore specific case studies on University micro-grid projects.

3 Agenda What is a Microgrid What is a Fuel Cell Why a Fuel Cell Microgrid for college campus Case studies

4 What is a micro-grid? Definition: U.S. Department of Energy Microgrid Exchange Group: A microgrid is a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode. In summary: Separate generation sources Can be isolated from the utility grid

5 Microgrid Components Fuel Cell/CHP Microgrid Controller Controllable Loads Point of Interconnect Renewable Generation Energy Storage Backup Gen Sets Utility Grid

6 Micro-grid Modes Grid Connected Mode Power plant synchronizes to local utility grid and reduces local power demand or exports power to grid. Grid must meet stringent requirements for voltage and frequency or power plant will disconnect and go into grid independent mode. Baseload, Full Power Production Current Control Mode Match & Follow Grid Voltage UL-1741 Anti-Islanding Detection Abnormal Volt. & Freq. Active anti-islanding algorithm 6

7 Microgrid Modes Here the FC is generating electricity for the microgrid Microgrid Mode Power plant synchronizes to microgrid either as a baseload current source, reducing output from local power generation systems, or as a load following voltage source in parallel with other local generators or as a stand-alone generator Current Source Microgrid Mode Gen set connects to bus at rated voltage and frequency DFC syncs with gen set and connects to bus with wider V&F relay settings and active anti-islanding disabled. Voltage Source Microgrid Mode Multiple fuel cells or fuel cell / gen set combination. No master sync setting, units synchronize autonomously Compliant with CERTS philosophy 7

8 Microgrid Modes Critical Supply Mode Power plant is not connected to grid, generates its own frequency signal. Supports power plant parasitic loads in standby mode, and can support local critical loads Upon detection of abnormal Voltage & Frequency: Tie Breaker Opens Switch to Voltage Control Mode Parasitic and Critical loads recovered <4 cycles 8

9 Reactive Power Capabilities Local VAR Control Frees up capacity in the local grid or micro-grid. Reduces total electric system losses Fast and precise power factor correction 9

10 Fuel Cell Technology Fuel Cell Technology Types: Polymer Electrolyte Membrane Fuel Cell (PEMFC) Alkaline Fuel Cell (AFC) Molten Carbonate Fuel Cell (MCFC) Phosphoric Acid Fuel Cell (PAFC) Solid Oxide Fuel Cell (SOFC) Types typically used in university campus applications: Molten Carbonate Fuel Cell (MCFC) Phosphoric Acid Fuel Cell (PAFC) Solid Oxide Fuel Cell (SOFC)

11 How a fuel cell works Electrochemical Conversion of Fuel to Electricity Consists of two electrodes a negative electrode (or anode) and a positive electrode (or cathode) sandwiched around an electrolyte Fuel and water is fed to the anode and air is fed to the cathode A catalyst at the anode separates hydrogen molecules into protons and electrons, creating a flow of electricity between cathode and anode The chemical reaction also produces water and heat 11

12 Fuel Cell Stack Configuration Individual fuel cell component 400 components are used to build one 350 kw fuel cell stack 4 stacks are combined to build a 1.4 MW plant Two modules are used for a 2.8 MW power plant The stacks are enclosed, creating the fuel cell module 12

13 Why Fuel Cells CO2 (lb/mwh) Baseload Power Heat Efficiency NOX SOX PM10 (module 250 F % LHV (lb/mwh) (lb/mwh) (lb/mwh) Electric w/heat nameplate kw) (MMBtu/h) only recovery Average US Grid 33% ,408 Average US 36% ,031 Fossil Fuel Plant 1,400 47% 0.01 Negligible Negligible MCFC (*) 2,800 47% 0.01 Negligible Negligible ,700 60% 0.01 Negligible Negligible SOFC (*) % 0.01 Negligible ** ** n/a PAFC % 0.01 Negligible Negligible 1, * - fuel flexible (i.e. natural gas, H2, biogas, propane) ** - data unavailable

14 Why a fuel cell micro grid for college campus Why consider a microgrid? Reliability and resilience Reduce energy costs Deliver improved energy value Why consider a fuel cell as the backbone for your microgrid? Reliable, grid independent operation Clean, quiet and efficient Permitting and siting ease A real world laboratory

15 Campus microgrid success factors Barrier TECHNICAL REGULATORY FINANCIAL STAKEHOLDER Issues Dual-mode switching Fuel Cell Solution Microgrid control to manage modes of operation VAR control Integrated relaying and protection Ease of siting Power quality Grid protection Interconnection rules Prohibition of bi-directional power Regulatory expertise flow Costs falling Financing most popular option is High investment costs the PPA (Power Purchase Agreement) Long service life if properly Replacement Costs maintained Operational awareness unmanned Expertise to manage operations Comprehensive O&M services

16 University of Bridgeport The University of Bridgeport, an independent and non-sectarian institution, offers career-oriented undergraduate and graduate degrees. Comprised of 5,500 students with 1,250 on-campus residents. 52 buildings including Academic, Administrative, Dormitory and Apartments equaling approximately 1.5M square feet. Over 53 acres crossing several city streets

17 University of Bridgeport Project Overview 1.4 MW combined heat & power fuel cell power plant Supplies 80% of campus power needs Waste heat converted to hot water and supplied to three locations on campus Connecticut Microgrid Program Award Benefits Cost savings Maintain power to critical facilities Renewable Energy Research Lab Emissions reductions: 7,000 T CO2, 64 T SOx, 28 T NOx

18 University of Bridgeport Fuel Cell - Only 1.4 MW Fuel Cell Load Follow Capable Black-Start Capable Grid Connected Operation Base Load, Net Metering Heat to Campus Microgrid Operation Drop & Pickup Microgrid controller sequences critical facilities Inverter follows microgrid load Load Leveler maintains fuel cell power constant

19 University of Bridgeport The fuel cell provides dependable, clean electricity and heat for the campus, in various operational modes - either alone or in parallel with other generation sources Grid Connected mode Synchronized to Utility Offsets part or all of the demand Microgrid mode Loads see a brief interruption after Utility outage Loads are reconnected in a controlled manner to fuel cell and other generation sources Critical Supply mode Utility outage causes disconnect from grid Seamless, hardwired loads utilize up to 85% of fuel cell output Load Leveler operation profile: microgrid established in ~30 seconds

20 University of Bridgeport Additional incentives: Renewable Energy Credits (RECs) Federal Investment Tax Credit (ITC) Heat Use Resulting LCOE ~ $0.10/kWh

21 UC San Diego Project Overview Grid-connected 2.8 MW fuel cell powered by Directed Biogas providing electricity and absorption chilling to campus grid Benefits Cost savings during normal operations Microgrid satisfies 90% of campus electric needs Carbon neutral by utilizing directed biogas PPA delivers sustainability, resiliency & cost savings with no up-front expense A fuel cell powered by directed biogas is the cornerstone of the micro-grid operation

22 UC San Diego Generator Dominant 30 MW CCGT 2.8 MW Fuel Cell 3 MW Roof-top Solar Operation Load following by turbine-generators Fuel Cell base-load contribution. (treats turbine generators as grid). Solar PV intermittent contribution. A fuel cell powered by directed biogas is the cornerstone of the micro-grid operation

23 Town of Woodbridge, CT Project Overview 2.2 MW combined heat & power fuel cell power plant Power to UI grid during normal operation Supplies 100% of Town microgrid power needs during grid outage Heat supplied to Amity High School Connecticut Microgrid Program Award Benefits Helps UI achieve its Class I RPS goals In a grid outage, power to critical facilities police, fire, community services Savings to Amity High School ~ $100K per year from avoided natural gas Enabled upgrade to local gas grid delivery infrastructure

24 Town of Woodbridge, CT Fuel Cell - Only 2.2 MW Fuel Cell Load Follow Capable Black-Start Capable Municipal/Utility Microgrid Grid Connected Operation Base Load Heat to High School Microgrid Operation Drop & Pickup Microgrid controller sequences critical loads Inverter follows microgrid load Load Leveler maintains fuel cell power constant A fuel cell powered by directed biogas is the cornerstone of the micro-grid operation

25 PFIZER Project Overview Grid-connected 5.6 MW fuel cell powered by Natural Gas Provides electricity and steam to Pfizer Groton campus Seamless grid independent capability Private, Critical Facility Microgrid Benefits Closes electrical generation gap with a more reliable source than the commercial grid makes site independent year round PPA structure with no up-front capital cost, A fuel cell powered by directed delivers energy cost savings to Pfizer biogas is the cornerstone of the Enhances site sustainability profile (green energy micro-grid operation source) Clean profile reduces permitting hurdles

26 PFIZER Fuel Cell Gas Turbine 10 MW Gas Turbine (2) 2.8 MW Fuel Cells Load Follow Capable 2 Levels of Seamless Backup Grid Connected Operation Fuel Cells Base Loaded Heat to Campus Gas Turbine follows campus load to maintain zero utility import/export Microgrid Operation Loss of Utility Seamless disconnect from utility FC base load Turbine Load Following Loss of Gas Turbine & Utility Seamless disconnect from Campus. FC maintains critical building loads

27 Conclusions Microgrids offer many benefits: Savings, GHG reduction, and improved Resiliency Complex projects requiring staged development with CHP as the cornerstone CHP friendly regulations favor Microgrid development as well Net metering, virtual net metering, streamlined interconnection rules, and reasonable standby/demand charges Fuel cells provide an excellent generation backbone for microgrids: clean, quiet, efficient and financeable

28 References