Military Installations are Virtual Smart Cities

Transcription

1 Military Installations are Virtual Smart Cities Why Military Bases Should be Able to One-Up Smart Cities October 6, 2016

2 Agenda What does it mean to be a smart city? How do cities become secure and resilient? What are the major difficulties in achieving security and resiliency? How can the military apply these lessons to become secure and resilient?

3 What does it mean to be a smart city? I know it when I see it. Integrated planning, digitalization and communications Technological collaboration and risk sharing between public and private sectors, including financial institutions Transformative innovation through integrated, scalable smart systems that drives higher outcomes through place-based strategies

4 How do cities become secure and resilient?

5 How do cities become secure and resilient?

6 How do cities become secure and resilient?

7 From centralized, unidirectional grid

8 to distributed energy and bidirectional energy balancing Smart building & thermal storage Private wind or solar Increased Reliability Reduced Energy Microgrid Costs Heater, chiller, heat station controller Microgrid Improved Grid Resilience Storage solutions Lower Emissions Diesel generator Electrical vehicle infrastructure Controllable transformer Enhanced Control Financed SolutionsBuilding / data center Nanogrid DC grid

9 Distributed Energy System (DES)

10 Distributed Energy System (DES) Cogeneration / Combined Heat & Power Small-scale power generation Microgrids Energy Storage Description Combined generation of electricity behind the meter and heat near the point of use Description Generation assets <100MW connected to the MV/HV grid for flexibility of supply delivery Description Grid operating independently or in conjunction with the main utility grid Description Storage of energy, producing electricity on demand, connected to grid, microgrid or generation source Value Delivers lower cost electricity and thermal energy, independently from utilities Increased energy efficiency Value Power supply where grid may be unreliable unavailable or expensive Reduced cost of electricity Value Integrates various generation components; manages energy demand Enables low cost, independent supply Value Reduces peak generation needs, enables load shifting Reduces cost and increases reliability of electricity supply

11 Distributed Energy System (DES) Cogeneration / Combined Heat & Power Small-scale power generation Microgrids Energy Storage Description Combined generation of electricity behind the meter and heat near the point of use Description Generation assets <100MW connected to the MV/HV grid for flexibility of supply delivery Description Grid operating independently or in conjunction with the main utility grid Description Storage of energy, producing electricity on demand, connected to grid, microgrid or generation source Value Delivers lower cost electricity and thermal energy, independently from utilities Increased energy efficiency Value Power supply where grid may be unreliable unavailable or expensive Reduced cost of electricity Value Integrates various generation components; manages energy demand Enables low cost, independent supply Value Reduces peak generation needs, enables load shifting Reduces cost and increases reliability of electricity supply

12 Microgrids the key to DES value A microgrid is: a group of interconnected loads, and distributed energy resources in a clearly defined geographic area that can connect to or disconnect from the grid. Microgrid controllers are: sophisticated digital software systems that orchestrate the microgrid s energy supply from several possible on-site energy sources, such as: the central grid solar wind reciprocating engines combined heat and power (CHP) energy storage

13 Microgrids the key to DES value

14 Who are the stakeholders of microgrids? Residents Businesses Industrials Communities Governments Universities Investors Utilities Nations

15 Utility companies must be involved

16 Utility companies must be involved

17 What are difficulties in achieving resiliency? It s easier to do nothing - Cities make decisions only after excruciating deliberation and often resist change as long as possible. John Chambers, who spent 20 years at the helm of Cisco, offers three suggestions for leaders based on his experience running the networking giant: 1) Disrupt or be disrupted; 2) Have a bold vision, and 3) Move fast, but with discipline. "Today we re at an inflection point as the world moves into the Digital Age, and one in which the ability to think boldly and then move with speed is absolutely critical. With a vision, no-fail attitude and discipline, leaders can move at the speed and scale necessary to come out on top.

18 What are difficulties in achieving resiliency? It s challenging to obtain funding - Power plants or energy efficiency programs offer straightforward project value: energy or energy savings. Funding energy resiliency infrastructure is much more difficult. Difficult to monetize the benefits for investment Difficult to establish relative value of resiliency failures No microgrid design standard complicates valuation for investors Conflicting short term strategies with utility providers "Every solar company can now quickly crank out a project s value based on a few parameters and price a PPA for a customer. The microgrid industry wouod benefit tremendously from a similar model. Establishing a ubiquitous way to determine ROI would go a long way in helping the financing community develop such a model. Sally Jacquemin, Siemens Microgrid Business Manager

19 How can the military apply lessons learned?

20 How can the military apply lessons learned? Value energy reliability a microgrid s ability to keep power flowing when the central grid fails is one of the most important, and most difficult, values to prove. At the University of Texas, energy reliability is valued highly because 80% of the campus is dedicated to research worth about $500 million. Its microgrid boasts 35 MW electric capacity (62 MW peak) and 1.2 million lb/hr steam generation (300K peak). Data centers, supermarkets and industrial customers risk steep losses from power outages that can be estimated based on historical data. Military bases tend to focus on securing energy for critical missions. The National Renewable Energy Laboratory (NREL) analyzed the value of electrical energy security at Fort Belvoir military base and pegged it at $2.2 million to $3.9 million annually.

21 How can the military apply lessons learned? Utilize the myriad of alternative funding models available: Energy savings performance contracting (ESPC, UESC, etc.) is perhaps the least risky mechanism to finance resiliency improvements since long term savings can contribute to less calculable benefits. Public-private partnerships can offer stability for new investments. Public assets can be converted to working capital to fund measures. Concessions allow public agencies to lease infrastructure to private companies such that the company will own, operate and maintain the asset to meet specified performance objectives. Where possible, resilience criteria should also be integrated within normal maintenance and upgrade routines, thereby entirely avoiding the need to justify unusual project investments.

22 How can the military apply lessons learned? What does a microgrid cost? Distributed generation assets (as much as 50% of the total cost, although existing generation assets are often leveraged) Grid automation Microgrid optimization software (10% - 15% of total cost, but drives the financial value streams of the investment) Development / installation costs Energy storage (potential) Revenue sources for microgrids Ancillary services, like frequency control and black start capabilities to local utility or ISO/RTO Participating in utility demand response programs (reducing power use when grid under strain)

23 How can the military apply lessons learned?

24 Algonquin College benefits from Siemens comprehensive energy services Challenge Water and energy reduction measures Fuel management and optimization, energy supply planning, utility bill management CHP project development: cogen, solar PV, power storage, EV charging and microgrid energy management Solution $3.2M in annual cost savings Siemens Advantage Navigator $52 million in improvements 2MW reciprocating engine 24% reduction in annual fuel costs $232k annual savings through rate optimization and Improved contract structure

25 Small CHP power system saves Wesleyan University $1,000 per day Challenge Need for reliable source of power and heat Lower power rates yet assure reliable source CHP project maintenance a must Solution 676 kw Guascor reciprocating engine CHP gas-fired solution integrated into a microgrid project saves $1,000 / day Siemens partner maintenance team access assured 676 kw reciprocating engine is CHP solution for athletic facility 95% availability achieved

26 Thank You Matthew Ridley Sr. Account Executive Field ESCO / Pensacola 1011 W. Garden Street Pensacola, FL Phone: Fax: Mobile: matthew.ridley@siemens.com siemens.com