ARCTIC ENERGY SUMMIT, SEPTEMBER 19 TH, HELSINKI Microgrid solutions Integration of renewables and reliable power supply in Alaska Erika Velazquez, Global Product Marketing Manager Microgrid www.abb.com/microgrids
Microgrid Generation at the point of consumption and always available Microgrid definition Distributed energy resources and loads that can be operated in a controlled, coordinated way either connected to the main power grid or in islanded * mode. Solar PV power plant Wind power plant Remote asset management and data analytics Commercial loads Microgrids are low or medium voltage grids without power transmission capabilities and are typically not geographically spread out. Conventional power Grid connection Distributed control system Advanced power distribution and protection Industrial loads Residential loads Modular scalable energy storage and grid stabilization Slide 2 Islanded mode: ability to provide power independently from the main power grid
Grid-connected Weak grid Off-grid 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 Fuel independence Uninterrupted supply Island utilities (Local) utility, IPP* ( ) Remote communities (Local) utility, IPP, Governmental development institution, development bank Industrial and commercial Mining company, IPP, Oil & Gas company, Datacenter, Hotels & resorts, Food & Beverage ( ) Defense Governmental defense institution ( ) ( ) Urban communities (Local) utility, IPP ( ) Institutions and campuses Private education institution, IPP, Government education institution ( ) ( ) Slide 3 IPP: Independent Power Producer ( ) : Main driver : Secondary driver
Total cost ($US) Driver: Fuel independence and lower LCOE Secure power generation and fuel cost savings Average Oil price USD$/Barrel is volatile 280 $133.88/Barrel 240 $13,000/kW 200 160 $7,000/kW 120 80 $93/Barrel 40 0 2005 2006 2007 2008 2009 2010 2011 1,250,000 1,000,000 750,000 500,000 250,000 2012 2013 2014 2015 2016 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Hybrid PV-Wind Diesel Generator - 0.7$/L LCOE: Levelized Cost of Electricity $5,000/kW $3,500/kW Year Diesel Generator - 1$/L Diesel Generator - 1.5$/L $48.65/Barrel Fossil fuel cost is volatile Steady decline of renewable energy cost, making it economically viable An optimized energy mix leads to a lower cost of electricity Slide 4 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
Driver: Uninterrupted power supply Managing power fluctuations from renewables Solar power variations Power [kw] Hz 51.0 Wind power variations Power [kw] 6000 10000 50.5 5000 4000 5000 50.0 49.5 3000 2000 1000 0 16:10:00 Wed 30-Jul-08 19:56:40 Thu 31-Jul-08 Time [days] 23:43:20 Fri 01-Aug-08 49.0 0 4 5 6 7 8 9 10 Time [hours] Inherent volatility of renewables can compromise grid stability Grid stability requirements are traditionally fulfilled by diesel generation (base load) Optimized microgrid solution maximizes ROI* and fuel savings Slide 5 ROI: Return of Investment
How microgrids create value in Arctic locations Increasing renewable penetration requires enhanced microgrid control capabilities Microgrid Integration Technologies Controlled system Energy contribution (Fuel reduction) Power penetration (At peak wind/solar) Limited control/ basic fuel saving No Renewables control, negative load Power control and optimisation Controlling renewables + generator Power control and forecasting Controlling renewables + generator Power control and grid stabilisation Controlling renewables + generator + storage Power control and load management Controlling renewables + generator + storage + load 7-10% 20-30% 10-15% 20-50% 15-30% 50-70% 25-40% 100% 60-80% 100% Power control + energy storage Controlling renewables + storage + load 100% 100% Broad range of solutions possible design choice based on economic and technical criteria Slide 6 Note: For illustration only. Percentages vary between wind/ diesel and solar/ diesel
Power The integration challenge Matching storage medium to application Flywheel Frequency Regulation Battery STATCOM Smoothing Duty Cycle tends to increase Spin Reserve Shaving Shifting Millseconds-seconds minutes hours Time Slide 7
ABB - the global microgrid solution partner A leading provider of microgrid products and end-to-end microgrid solutions Leading global expertise Broad portfolio of products & services 25+ 25+ years experience 40+ executed projects Renewable power Energy storage and grid stabilization Innovation, technology & productization leadership AND Microgrid control system Conventional power Power distribution and protection Global sales & service network Consulting Service 3 rd party financing Slide 8
ABB in Microgrid Grid stabilization and energy storage PowerStore Containerized plug-and-play solution in various ratings Fully productized and scalable to address all market segment applications. - Seamless transition from grid connected to islanded mode - Stabilizes against voltage and frequency variations - Virtual Generator can form the grid, integrating up to 100% of renewable energy - Microgrid Plus Controller Maximizes fossil fuel savings and 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 Slide 9
Integration of renewables Kodiak Island, PowerStore/Wind/Hydro/Diesel ABB solution Two PowerStore flywheels act in parallel to shave off peak load and to reduce the stress placed on an existing battery energy storage system The resulting Microgrid system consists of: PowerStore Flywheel (2 MW/ 33 MWs) Wind (6 x 1.5 MW) Hydro (3 x 11 MW) Diesel (1 x 17.6 MW, 1 x 9 MW, 1 x 3.6 MW, 1 x 0.76 MW) Project name Kodiak Island Location Alaska, USA Customer Kodiak Electric Association (KEA) Completion date 2015 Customer benefits Stabilizing - frequency regulation Provide frequency support for a new crane Help to manage the intermittencies from a 9 MW wind farm Reduced reliance on diesel generators About the project Two PowerStore Flywheels act in parallel in order to deliver optimal grid stabilization on Kodiak Island Slide 10
Microgrid solution Reduced peak demand, improved power quality and minimized fuel consumption Slide 11
Integration of renewables Chugach Electric, PowerStore/Wind/Diesel ABB solution Two PowerStore flywheels act in parallel to shave off peak load and to reduce the stress placed on an existing battery energy storage system The resulting Microgrid system consists of: Wind (11 x 1.6 MW) PowerStore Flywheel (1 x 1 MW) PowerStore Battery (1 x 2 MW) Diesel (1 x 17.6 MW, 1 x 9 MW, 1 x 3.6 MW, 1 x 0.76 MW) Project name Chugach Hybrid Storage Location Alaska, USA Customer Chugach Electric Completion date Customer benefits Reduce ramp rate violations on existing wind farm Reduce Area Control Error (ACE) violations Allow for additional wind capacity to be constructed About the project Combination of PowerStore Battery and Flywheel are in ratio to best absorb cycling duty from wind farm fluctuation Slide 12
Microgrid solution Improved power quality and relieved stress on existing battery storage 99.9% annual ramp rate violation reduction Energy sharing: optimizing battery lifetime through hybrid storage solution Slide 13
Questions? Slide 14