Microgrids: Expanding Applications, Implementations, and Business Structures

Transcription

1 Microgrids: Expanding Applications, Implementations, and Business Structures 2017 NASEO Western Regional State and Territory Energy Office Meeting Boise, ID April 19, 2017

2 Electric Power Research Institute 2

3 Research Context Historically, microgrids employed to provide another layer of reliability for customers in remote locations with limited grid access, or for institutions managing campus-style energy systems. However, new interest in the systems has emerged. Drivers of Interest 1. Efforts to modernize the grid to leverage rising penetrations of interconnected DER. 2. Desire to meet increased customer choice. 3. Need to provide critical or emergency services and enable greater grid resiliency in response to more frequent extreme weather events. Core Questions Can microgrids be justified across a wide variety of use cases? What are the value drivers and challenges? What business models can support microgrid development? 3

4 Moving beyond the hype cycle Microgrids The Gartner Hype Curve Understanding the facts will help us to move beyond the peak of the hype cycle 4

5 What Is A Microgrid? Examples of Microgrid Architecture on a Radial Distribution System a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that act as a single controllable entity with respect to the grid, and that can connect and disconnect from the grid to enable it to operate in both grid-connected and island mode. Summary Report: 2012 DOE Microgrid Workshop 5

6 Drivers of Microgrid Adoption Value Drivers Resiliency / Reliability Energy / Capacity / Grid Services DER Integration / Aggregation Emissions Reduction Energy Independence / Security Investment Alternative / Deferral Technology / Policy Drivers Technology & Cost Improvements Advanced Controls & Power Electronics Public Policy & Environmental Regulation Energy User Awareness Value drivers offer monetizable benefits; synonymous with applications a microgrid can deliver. Technology/policy drivers contribute to the attractiveness of available applications. When combinations of drivers exist, a well-designed microgrid may increase reliability and reduce emissions at a relatively low incremental cost. 6

7 Microgrid Implementation Types Examples Implementation Type Commercial / Industrial Community / City / Utility Campus-Style General Characteristics Primary goal during normal operations: reduce demand- and consumption-related costs During outages: the operation of critical functions is paramount Improve the reliability of critical infrastructure, defer asset investment, meet emission and energy policy targets, and promote community participation Meet high reliability needs of research labs, businesses, and campus housing Reduce costs for large heating and cooling demands Leverage existing assets (e.g., partially or completely owned distribution infrastructure and backup resources) Public / Institutional Military TK Rural / Remote Communities Improve reliability / enable lower energy consumption at public health and safety facilities Achieve high reliability for mission-critical loads Meet pressing needs for cyber, physical, and fuel security at operating bases Satisfy GHG emission reduction goals Microgrids provide prime options for incorporating renewable energy, thereby improving system reliability targets, deferring investments, and reducing supply chain risk 7

8 Barriers & Challenges Establishing a Generation/Load Portfolio Connection and Protection Grid Transitioning System Stability and Control Power Quality Technical Challenges* *Further microgrid controller development expected to solve many of the technical challenges. Economic & Regulatory Challenges Regulatory and market uncertainties Affect upfront costs / life cycle economics of microgrids and DER technologies. Difficult-to-monetize / non-monetizable microgrid costs and avoided costs (benefits) complicate value stream calculations 8

9 Microgrid Business Models 9

10 Representative Microgrid Projects Enhanced reliability is a common objective across all microgrid projects Applications and technologies may overlap too But each project embodies unique design/operational characteristics that are the result of their business models 10

11 Conclusions Business Models Implementation Types Applications (Value Drivers) Microgrid Matrix: Business Models, Implementation Types, and Applications Microgrids can be justified across various use cases based on specific set of drivers. Behind these use cases, ownership and control of the component technologies range along a continuum, resulting in numerous potential business models. Microgrids will continue to proliferate based on the unique served loads, targeted drivers, and deployed technologies. The ability of multiple ownership models to exist and persist will be important 11

12 Questions? Together Shaping the Future of Electricity Nadav Enbar Principal Project Manager, Integration of DER Electric Power Research Institute (EPRI) Microgrids: Expanding Applications, Implementations, and Business Structures: 12

13 Overview of EPRI Microgrid Research 13

14 EPRI Developing Consistent Approaches for Evaluating Microgrid Adoption Understanding microgrid technologies: strengths, weaknesses, costs, benefits, challenges Developing framework and tools Facilitating integration and operation of grid-ready microgrid solutions through engineering studies, demonstrations Microgrids can make sense - if - the technical and economic advantages add up and can be valued by both end-user and in the power system benefits Cost of T&D Better DER Technologies PQ & Reliability Ancillary Services Power Electronics Revolution Public Policy Cost Competitive Business Models 14

15 EPRI Project Portfolio in Microgrids DOE/DoD Funded Microgrid Controller R&D Vendor Partnership Lab Testing, Field Trial Communications Microgrid Controller Architecture DMS and controller requirements Transportable systems Utility Collaboration Feasibility Study Host Community BCA Detailed Design Host Community Modeling Technical Specification and Guide Integrated Grid Pilot Field Trials Demo Performance Evaluation BCA analysis Integration Guides Communications, Cyber Security & Privacy Utility Level Engagement Xcel, WeEnergies, NCEMC Supported by EPRI s P94 & P174 Programs 15

16 EPRI Microgrid Feasibility & Design Projects Load Type Objectives Medical Services Commercial/Retail Industrial Education/Research R Resiliency/ Reliability Cost Savings Emissions Reduction Century City R OPG BNMC R Concordville Residential Washington University R St. Elizabeth R R UC Irvine Cherokee Farms R R UMMC R 16

17 Consistent Approaches to Evaluate Microgrid Projects Feasibility (Techno-Economic) Study Understanding of technologies: strengths, weaknesses, costs, benefits, challenges DER sizing & Optimal dispatch First-order analysis of Costs & Benefits Develop framework and tools Microgrids can make sense - if - the technical and economic advantages add up and can be valued by both end-user and in the power system benefits Cost of T&D Better DER Technologies PQ & Reliability Ancillary Services Power Electronics Revolution Public Policy Cost Competitive Business Models 17

18 Microgrid Design Analysis Data Collection Modeling Impact Studies Commissioning & Operation o Network models o Scenarios o Steady state o Model validation Load types DER types Operation o Model validation o Grid impact o Fault analysis o Protection o Stability studies o Real time ops & monitoring o Protection info 18

19 Integrated Solutions are key to access full range of DER Benefits Planned residential demo with multiple roof-top PV and a single storage system Need to develop integrated control and management systems for distribution systems Address high penetrations of interconnected DER Planned commercial demo with co-located PV and energy storage system 19

20 Filling Research Gaps: Key Research Questions Planning Optimal locations to deploy microgrid communities Distribution resource planning (DRP) to drive optimized operations Customer Models: How will adoption of technologies impact load shapes? Operations How do we balance real-time dispatch of loads and DER? End-to-end integrated controls that will enable positive impacts on operations Cost-Benefit Analysis Technologies and controls that offer the best value Improve value propositions of DERs within a community by extending the benefits beyond customer premises? What innovative financing strategies or business models can be used? How can we measure value of individual technologies from multiple viewpoints system operator, customer, ratepayer and society? 20