Theme 2 Planning, optimization and regulatory issues Geza Joos, McGill University

1. Theme 2 Planning, optimization and regulatory issues Geza Joos, McGill University

2. Definition/features – microgrid • Geographically delimited • Connected to the main grid at one point • fed from one substation • May operate islanded • Includes distributed generation (DG) • renewables (inverter interfaced): wind, solar • fossil fuel based (synchronous generators): CHP • Includes an energy management system • controlling power exchanges, generation and load • with storage and demand response

3. Distributed generation – renewables • Generation close to the load – siting • Advantages/benefits • Green energy – reduced environmental impact • Enhanced reliability and flexibility • Energy cost – competiveness (generated/delivered) • New issues/differences • Output variability – energy and power (ramp rates) • Not schedulable/controllable – must run at MPPT • Impacts – power quality (voltage variations, ramp rates) • Grid integration and operational impact (loading, faults) • Responsibility – maintenance, faulted operation

4. Microgrid implementation issues • Business proposition for the microgrid owner • Economic justification – kW cost, reliability, resiliency • Participation in market/energy supply • Ownership • Private/IPP • Utility • Role and benefit for utilities • Grid support – impact on the transmission system • Role in power system restoration • Operational/regulatory issues • Responsibilities and jurisdiction – right to disconnect

5. Expected developments – smart grids • Smarter distributed energy resources (DER) • More communications between DER • New grid topologies • from point to point (generation to load) to distribution supply points, • from radial to looped • Active DER – voltage/Var regulation • Note: not all of the smart distribution grid technologies are necessary/applicable to smart microgrids

6. Issues addressed in Theme 2 • Business case • Justifying the setting up of a new microgrid, optimizing operation, configuring existing distribution systems into microgrids, regulatory issues • Energy supply security • Load management and demand response • Making better use of the energy resources • Case studies – benchmarks, typical systems and use cases

7. Application examples/justification • Isolated/offline microgrids • Remote communities – reducing the cost of electric energy, reliability, environment impact – Canada north • Remote and movable military bases – supply security • Industrial, community and commercial microgrids • Large campuses – GHG reduction (green energy), energy independence – grid support and energy exchanges – BCIT • Military bases – alternative energy supply, benefits of storage (EVs)

8. Projects and personnel in Theme 2 • Cost-benefits framework – secondary benefits and ancillary services • Lead: G Joos, McGill University • HQPs: 2 MEng and 1 PhD (equivalent full time); total trained: 3 MEng, 2 PhD • Energy and supply security considerations • Lead: R Iravani, University of Toronto • HQPs: 2 MEng and 1 PhD (equivalent full time); total trained: 2 MEng, 4 PhD

9. Theme 2 projects and personnel • Demand response technologies and strategies – energy management and metering • Lead: K Bhattacharya, University of Waterloo • HQPs: 2 MEng and 1 PhD (equivalent full time); total trained: 5 MEng, 3 PhD • Integration design guidelines and performance metrics • Organization to be determined

10. Solutions and deliverables • Methodology for cost-benefit analysis of microgrids (P2.1) • Application to remote communities • Microgrids energy management (P2.2) • Quantification of impacts and benefits of the microgrid and electrically-close multiple microgrids • Demand response (P2.3) • Load models, taking into account temporal and locational electricity prices, for demand management

11. Linkages – Industrial network partners • NRCan • P2.1 – remote communities, business cases (on going) • P2.3 – demand response (on going) • Hydro-Quebec/IREQ • P2.1 – remote communities (on going) • BC Hydro • P2.1 – business cases (discussions) • Hydro One • P2.3 – demand response management (on going) • Schneider Electric • P2.3 – demand response controller (potential)

12. Linkages – Industrial network partners • CYME • P2.2 – network simulation • P2.4 – benchmarks and use cases (potential) • Manitoba HVDC • P2.2 – network simulation, BCIT microgrid (on going) • P2.4 – benchmarks and use cases (potential)

13. Linkages – other themes/researchers • Theme 1 • P2.1 with P1.4 – remote communities (on going) • P2.1 with P1.1 – control of DER (on going) • Theme 3 • P2.1 with P3.4 – operation of the grid (discussions) • P2.2 with P3.2 – operation of microgrid (potential) • P2.1 with P3.2 – energy management (potential) • Within Theme 2 • P2.1 with P2.3 – demand response (potential) • P2.2, P2.2 with P2.4 – models, benchmarks (potential)

14. Relevance to Canadian industry/utility • Deliverables include • Methodologies for evaluating business cases • Control approaches for the operation microgrids – DER control and energy management • Configuration of microgrids and interaction between microgrids – evaluation towards an intelligent distribution grid • Differences with other jurisdictions • Distribution system configuration (single phase feeders) • Urban, rural and remote microgrids have differing requirements • European microgrid solutions do not generally apply