Setting the Stage for Microgrid Discussions NGA Energy Resilience Retreat June 29, 2017
What is a Microgrid? US Department of Energy Microgrid Exchange Group Definition: 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 2
Utility Microgrid: Ocracoke Project Components Battery Storage (installed at Ocracoke Generating Plant): 1 MWh / 500 kw Solar Array (on roof of Plant): 15 kw AC / 19.2 kw DC solar cells Ecobee3 thermostats (150 distributed to TEMC members, target 300-500) Batteries Water heater controls Solar Panels 3
A Utility Microgrid Ecobee Carina Ocracoke Island Microgrid Controller Operations Center 200+ Thermostats 50 Water Heater Controls Member-Consumers 3 MW Diesel Generator 500 kw / 1 MWh Tesla Battery Storage 15 kw Rooftop Solar NCEMC 4
Project Objectives Phase 1: Confirm on-site operation and commissioning Phase 2: Full dispatch and control of all resources from NCEMC s Operations IOC in Raleigh Phase 2A: Engage with the Transmission Operator (PJM) on microgrid interface 5
Project Considerations Communications Remote/unmanned site Telecommunications/fiber Camera Integration Existing system/controls Use cases Metering 6
Other Considerations Resiliency Adverse weather Emergency capacity Equipment/warranty Scope Adding additional facilities Future load growth Firmware/software changes 7
Using Microgrid Resources Economics 8
Demand Response 9
Questions? 10
Duke Energy - Building a Smarter Energy Future North Carolina Retreat on Enhancing Lead-by- Example Efforts Bobby Simpson, PE Director, Power Quality & Reliability - Carolinas June 29, 2017
12 Power/Forward Carolinas Building a Smarter Energy Future MODERNIZE THE ENERGY GRID ENGAGE STAKEHOLDERS $13B 10-YEAR POWER/FORWARD CAROLINAS INITIATIVE ANNOUNCED APRIL 12 Communication Network Upgrades $0.5B BUILDING A BETTER ENERGY FUTURE FOR NORTH CAROLINA Distribution Hardening & Resiliency $3.5B Enterprise System Upgrades $0.1B Self- Optimization $1.3B $13B Transmission Improvements $2.2B Targeted Undergrounding $4.9B AMI $0.5B WHILE GENERATING JOBS AND STIMULATING ECONOMIC GROWTH PEOPLE/POWER 13,907 Average jobs ECONOMIC/POWER $21.5 billion 10-year total economic output FUTURE/POWER A smarter, safer energy system for our customers and communities
Why We Must Improve Our Grid. Why Now Is the Time. Power outages are disruptive and expensive o o o Growing intolerances for interruptions Customers expect power to always be available Expect interruptions to be minimized (even in extreme weather) Dynamic demands on Carolinas aging grid escalating risk of failure o Tsunami of renewables already exposing limits of legacy grid o Customers demand modern customer experiences and data-informed options the legacy grid cannot support o Cyber and physical security requirements tightening to protect energy independence MAKING THE RIGHT IMPROVEMENTS NOW IS CRITICAL. 13
Our Performance Trend Duke Energy Carolinas 14
Our Performance Trend Duke Energy Progress 15
Reliability through the Lens of the Customer Our View of Reliability Customer View of Reliability
Grid Improvement Plan Why this Program? This Grid Improvement Plan will greatly improve customer satisfaction by meeting dynamic demands; Enables step change in system reliability performance Essential for maintaining high reliability while integrating distributed energy resources Scope: More Reliable System Self-Optimizing Grid Advanced Operating Systems Smarter Grid Hardening and Resiliency Targeted Undergrounding Communication Uplift Enable Growth of Utility Scale and Private Solar Physical and Cyber Security CUSTOMER BENEFITS Decreases outages and Enables faster, more automated restoration Provides new data and information our customers value Enables higher levels of renewable energy resources 17
A Balanced Approach to Improving Reliability Improved system performance (reduced outage frequency and duration) Improvements in restoration time after major events (greater ability to withstand and recover) Ability to reliably and effectively absorb distributed energy resources (both small distributed energy and variable renewable resources) 18
Energy Storage/Microgrids at Duke Energy Adam Nygaard, Business Development Manager June 29 th, 2017
How are utilities responding to batteries? Utilities have moved with varying speeds to invest in battery opportunities In 2005, most utilities were simply watching technologies In 2015, many utilities had demonstration projects By 2020, some utilities plan to own and operate substantial amounts of batteries This movement is highly dependent on: Technology development Locational needs Regulatory/policy drivers Field experience has been critical in understanding battery technologies But we must develop system integration and operational experience
Duke Energy Battery & Microgrid Projects Mt. Sterling 10kW / 95 kwh
Spectrum of Battery Use-Cases Single Service Multiple Services Grid-Tied Microgrid Off-Grid Microgrid Technical Complexity Varies
Microgrid Use Case Example: Critical Facilities Substation Recloser Solar Point of Common Coupling - Circuit 2414 Normal Operation (>99%): Power flow to/from grid from solar + storage Emergency Operation (<1%): Power flow from battery to Host Site Customer Transformer Battery Solar Switch Bulk Grid Critical Facility Host Site Copyright 2016 Duke Energy All rights reserved. 23
McAlpine Microgrid Site Overview Substation Control House Recloser Point of Common Coupling - Circuit 2414 Customer Transformer Solar Battery Solar Inverter DER Transformer Customer Generator Fire Station 24 Copyright 2016 Duke Energy All rights reserved. 24
McAlpine Microgrid Video Substation Control House Recloser http://wpc.42c6.edgecastcdn.net/8042c6/cms.ipressroom/264/files/20169/57ff95fd2cfac276311507cf_fenimoremicrogridill uminationcut/fenimoremicrogridilluminationcut.mp4 Point of Common Coupling - Circuit 2414 Customer Transformer Solar Solar Inverter DER Transformer Customer Generator Fire Station 24 Copyright 2016 Duke Energy All rights reserved. 25