DOE Microgrid Initiatives Networked Energy Concepts and Challenges

1. Defense Distributed Energy and Military Microgrids Steve Bossart, Senior Energy Analyst U.S. Department of Energy National Energy Technology Laboratory June 1, 2012 DOE Microgrid Initiatives Networked Energy Concepts and Challenges

2. Topics DOE OE Mission Microgrid Concepts Challenges DOE Microgrid Program & Projects Microgrid R&D Needs

3. DOE OE Mission

4. DOE OE Mission Office of Electricity Delivery and Energy Reliability Lead national efforts to modernize the electric grid; Enhance security and reliability of the infrastructure; and Facilitate recovery from disruptions to energy supply Accelerate the deployment and integration of advanced communication, control, and information technologies that are needed to modernize the nation‘s electric delivery network

5. DOD/DOE MOU Cooperation in a Strategic Partnership to Enhance Energy Security July 22, 2010 Energy efficiency, renewable energy, water efficiency, fossil fuels, alternative fuels, efficient transportation and fueling infrastructure, grid security, smart grid, storage, waste-to-energy, basic science, mobile/deployable power, small modular nuclear reactor

6. Microgrid Concepts

7. Microgrid and OE’s Performance Target Definition by Microgrid Exchange Group OE’s 2020 Performance Target 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. Develop commercial scale (<10MW) microgrid systems capable of reducing outage time of required loads by >98% at a cost comparable to non-integrated baseline solutions (UPS + diesel genset), while reducing emissions by >20% and improving system energy efficiencies by >20%

8. Various Microgrid Configurations Possible • Consumer Microgrid—single consumer with demand resources on consumer side of the point of delivery, (e.g. sports stadium) • Community Microgrid— multiple consumers with demand resources on consumer side of the point of delivery, local objectives, consumer owned, (e.g., campus, etc.) • Utility Microgrid—supply resources on utility side with consumer interactions, utility objectives Microgrids are “Local Energy Networks”

9. Microgrid Markets • Municipalities • 1327 in the US, 961 under 300,000 residents • University campuses • 8,520 in the US • Military facilities (25% renewables goal) • 440 facilities worldwide • Industrial and commercial parks • ~15,000 in the US with a capital size of $10M to $100M • Utilities with special needs • Over 900 rural electric cooperatives, over 1200 municipal utilities, ~250 investor-owned utilities, and many public power utilities • Other campuses (hospital, state agencies, etc) - Not quantified to date

10. Microgrids & Smart Grids Microgrid Distributed Generation E-Storage Load Central Generation Load Transmission Distribution Distributed Generation E-Storage

11. A Possible Future Distribution Architecture Municipal Microgrid Distribution Control UtiilityMicrogrid Industrial Microgrid Campus Microgrid Military Microgrid Commercial Park Microgrid

12. Some Challenges and Risks

13. Challenges to a Smart Grid • Businesses, state regulators, and consumer advocates are unconvinced of the value of smart grid technologies due to lack of performance data on costs and benefits • Insufficient or inadequate technologies, components, and systems to leverage IT potential of smart grid • No established standards for interoperability of systems and components • Insufficient cyber security for a smart grid architecture • Lack of a skilled workforce to build, install, operate, and maintain systems and equipment • Consumer understanding of the electrical infrastructure and opportunities enabled by smart grid technologies • Change management – vision, alignment, education, metrics • Future proofing – communications • Shift in regulatory paradigm – least cost, “used and useful”

14. OE Program Addresses Key Barriers Barriers to Smart Grid Inadequate Technologies & Components No Standards for Interoperability Insufficient Cyber Security Lack of a Skilled Workforce Uninformed Consumers Lack ofa Strong Business Case Smart Grid Stakeholder Books Federal Smart Grid Task Force Smart Grid R&D Cyber Security For Energy Delivery Smart Grid Investment Grants Energy Storage R&D Workforce Training Development Grants Interoperability Standards Smartgrid.com Smart Grid Websites Clean Energy Transmission Reliability OE Activities SGIG &SGDP Infrastructure Security and Energy Restoration Smart Grid Demonstration Program Smart Grid Information Clearinghouse Stakeholder Engagement Process Smart Grid Development NARUC FERC NIST Smart Response Collaborative DOE EERE Programs State Training - California - Arkansas - Colorado - Wyoming - Northern Plains and Rocky Mtn Consortium Utility Programs SmartGrid Consumer Collaborative NARUC DHS S&T DHS NCSD NIST DOD Spiders NERC EPRI NIST APPA DOE ARPA-E FERC Other Activities DOD Spiders NRECA EPRI The Galvin Initiative ISGAN PSERC

15. DOE OE Microgrid Field Projects

16. DOE-OE Primary Microgrid Field Projects Renewable and Distributed Systems Integration Projects Mon Power - West Virginia Super Circuit Chevron Energy Solutions - CERTS Microgrid Demo City of Fort Collins - 3.5 MW Mixed Distributed Resources Illinois Institute of Technology - IIT Perfect Power Demo San Diego Gas & Electric - Borrego Springs Microgrid Smart Grid Demonstration Projects (ARRA) Battelle – Pacific Northwest Smart Grid Demonstration LA Dept. of Water & Power Smart Grid Regional Demo Southern California Edison Irvine Smart Grid Demo

17. DOE OE Primary Microgrid Project Locations Battelle IIT Mon Power Chevron Ft Collins LADWP SCE SDG&E RDSI SGDP

19. Smart Grid Demonstration Program (SGDP) Number of Projects • Demonstrate emerging technologies (including energy storage) and alternative architectures • Validate business models • Address regulatory and scalability issues • Large projects: $20M-$89M Small projects: $720K-$20M (Federal share) • 4-year projects (average) SGDP Recipient Types Non-Profit, 9%

20. Common Objectives Among DOE’s Microgrid Projects • Reduce peak load • Benefits of integrated DER (i.e., DG, DR, e-storage) • Ability to integrate variable renewables • Operate in “islanding” and “grid parallel” modes • Import and export capabilities • Two-way communications (frequency, verification, data latency) • Data management • Price-driven demand response • Dynamic feeder reconfiguration • Outage management (i.e., number, duration, and extent) • Volt/VAR/frequency control • Balance distributed and central control • Cyber security • Interconnection and interoperability • Defer generation, transmission, and distribution investments

21. Common Technologies Among DOE’s Microgrid Projects • Renewable energy (PV, wind) • Distributed generation (microturbines, fuel cells, diesel) • Combined heat and power • Energy storage (thermal storage, batteries) • Communications (wireless, PLC, internet) • Advanced metering infrastructure & smart meters • T&D equipment health monitors (transformers) • Plug-in electric vehicles and charging stations (PHEV/PEV) • Smart appliances & programmable thermostats • Home Area Networks & In-Home Displays • Energy management systems

22. Microgrid R&D Program

23. CERTS Microgrid Test Bed Objective Expand CERTS Microgrid concepts to address system integration challenges presented by need to accommodate intermittent, distributed renewable electricity sources within utility distribution systems. Technical Scope The CERTS Microgrid Test Bed is being expanded through the addition of new hardware elements: (1) a CERTS compatible conventional synchronous generator; (2) a more flexible energy management system for dispatch; (3) intelligent load shedding; (4) a commercially available, stand-alone electricity storage device with CERTS controls; and (5) a PV emulator and inverter with CERTS controls. The concepts are explored initially through detailed simulation and bench-scale tests at UW and then demonstrated at full-scale using the CERTS Microgrid Test Bed operated by American Electric Power in Groveport, OH.

24. Smart Grid Interconnection and Interoperability Standards Development Objective To facilitate the evolution of the existing electric power system into a smart grid by supporting the development of standards and best practices (Insert graphic here) IEEE P1547.4 “MICROGRIDS” Technical Scope Development of national and international standards and best practices for electric power system interfaces, interconnection and interoperability requirements 24

25. Energy Surety Microgrids Objective • Use military bases to develop approaches for implementing high reliability microgrids because of immediate needs, interest, and funding to implement • Use cost/performance data and lessons learned from military efforts to accelerate commercial implementation • 12 Bases evaluated, several more in process Technical Scope • Use risk-based energy assessment to develop microgrids that: • Can use distributed and renewable energy resources • Will improve site energy infrastructure safety, security, and reliability • Enhance critical mission assurance at military bases

26. SPIDERS: Smart Power Infrastructure Demonstration for Energy, Reliability, and Security Objective STAIRWAY TO ENERGY SECURE INSTALLATIONS • Improve reliability for mission-critical loads by connecting generators on a microgrid using existing distribution networks. • Reduce reliance on fuel for diesel power by using renewable energy sources during outages. • Increase efficiency of backup generators through coordinated operation on the microgrid. • Reduce operational risk for energy systems through a strong cyber security for the microgrid. • Enable flexible electrical energy by building microgrid architectures that can selectively energize loads during extended outages. • TRANSITION • Template for DoD-wide implementation • CONOPS • TTPs • Training Plans • DoD Adds Specs to GSA Schedule • Transition to Commercial Sector • Transition Cyber-Security to Federal Sector and Utilities • CAMP SMITH ENERGY ISLAND • Entire Installation Smart Micro-Grid • Islanded Installation • High Penetration of Renewables • Demand-Side Management • Redundant Backup Power • MakanaPahili Hurricane Exercise • FT CARSON MICRO-GRID • Large Scale Renewables • Vehicle-to-Grid • Smart Micro-Grid • Critical Assets • CONUS Homeland Defense Demo • COOP Exercise • PEARL-HICKAMCIRCUIT LVL DEMO • Renewables • Hydrogen Storage • Hydrogen Fuel Cell • Energy Management • Cyber Test at INL Technical Scope • DoD, DOE, and DHS collaborate to design and implement three separate microgrids supporting critical loads at DoD bases. Each one is slightly larger and more complex in scope than the previous. The sites include: • Joint Base Pearl Harbor Hickam, Fort Carson, Camp Smith • A key part of the project is the standardization of the design approach, contracting, installation, security, and operation of these microgrids to support future applications. CYBER SECURITY BEST PRACTICES RIGOROUS ASSESSMENT WITH RED TEAMING IN EACH PHASE

27. Microgrid R&D Needs

28. Smart Grid & Microgrid R&D Sources

29. Development of Microgrid R&D Needs • Stakeholder Engagement • Convened a Workshop to further define: • Baseline performance • Areas of research needs • End goals (technical/cost targets and their significance) • Actionable plan to reach the targets (scope, schedule, participants, milestones) • Workshop Details • August 30-31, 2011 • University of CA, San Diego • 73 participants • Vendors, electric utilities, national labs, universities, research institutes, end users (including military bases, municipalities, and data centers), and consultants

30. List of High-Priority R&D Projects from the DOE Microgrid Workshop

31. Contact Information Merrill Smith Program Manager Microgrid R&D U.S. Department of Energy Office of Energy Delivery and Energy Reliability (202) 586-3646 Merrill.smith@hq.doe.gov Steve Bossart Senior Energy Analyst U.S. Department of Energy National Energy Technology Lab (304) 285-4643 Steven.bossart@netl.doe.gov