Government & Military Smart Grids & Microgrids Symposium

1. Topical Report on DOE Smart Grid ARRA Microgrid Projects Steve Bossart Senior Energy Analyst April 9, 2014 Arlington, VA Government & Military Smart Grids & Microgrids Symposium

2. Topics DOE Topical Reports on Smart Grid ARRA Projects Microgrids Motivations and Challenges Results from DOE Microgrid Projects

3. Topical Reports

4. Topical Reports Analyze results from SGIG, SGDP, and RDSI • Summarize results • Report similarities, differences, and range of results • Rationalize results • Common best practices and lessons learned • Connect investments with functions with benefits • Connect smart grid with improved DER functionality • Educate

5. Topical Reports • Microgrids • Dynamic Line Rating • Phasor Measurement Units • Distributed Energy Resources • Transactive Energy Communications • Conservation Voltage Reduction • PUC Filing Review • Consumer Behavior Studies • AMI/smart meter • O&M • Peak load reduction • Volt/VAR optimization • Reliability • Applications and Benefits of Smart Meter/AMI • Others?

6. MicrogridsDefinition, Concepts, Motivations, Benefits, Technologies & Challenges

7. Microgrids & Smart Grids Microgrid Distributed Generation E-Storage Load Central Generation Load Transmission Distribution Includes DER & Load Defined electric boundaries Single controllable entity Connect and disconnect from grid Grid-connected or island-mode Distributed Generation E-Storage

8. A Possible Future Distribution Architecture Distribution Control Municipal Microgrid Utility Microgrid Industrial Microgrid Campus Microgrid Military Microgrid Commercial Park Microgrid

9. Motivations for Microgrids • Reliability • Impact on business • Grid reliability is worsening • Resiliency • Ability to withstand challenges and continue operation • Value of microgrids during Superstorm Sandy • Economic • Best energy mix is 80-89% from microgrid and 11-20% from main grid • Sustainability/emissions reduction

10. Why Microgrids? • Support integration of smart grid & renewables • Ease application of combined heat & power • Local generation reduces electricity losses • Disperses investments between central and local assets • Assist in reducing peak load • Serve critical loads • Provide local power quality & reliability • Promotes community involvement & energy independence • Provide local power during outages • Supports main grid • Provide ancillary services to main grid • Manage variability of loads and renewables locally

11. Cost of Electric Service • $363 billion is annual electric bill in US (2013) • $200 billion is paid by commercial and industrial firms • Value of business losses is $80 - $150 billion annually (LBNL and EPRI studies) • Interruption Cost Estimate Calculator (ICE) http://icecalculator.com/

12. Types of Microgrids End user Utility distribution Remote/island systems Size 2 MW to 40 MW are economical – average and above cost of electricity (COE) < 1 MW are economical where COE is higher • Hawaii, Alaska, Northeast Portfolio Mix Balance resources with high capital cost and low O&M with resources with low capital cost and high O&M

13. Common Technologies in Microgrid Projects Generation and Energy Storage Renewable energy (PV, wind) Distributed generation (microturbines, fuel cells, diesel) Combined heat and power Energy storage (thermal storage, batteries) T&D Communications (wireless, PLC, internet) Advanced metering infrastructure & smart meters T&D equipment health monitors (transformers) Power inverters Consumers Plug-in electric vehicles and charging stations (PHEV/PEV) Smart appliances & programmable thermostats (DR/DD) Home Area Networks & In-Home Displays Energy management systems

14. Barriers to End User Microgrid Deployment • Very young in financing lifecycle • Majority of microgrids involve third-party financing • Requires long-term service agreements (PPA) • Regulatory environment has not been favorable • Microgrids must be “good citizens” • Conflict in allocation of utility costs to accommodate microgrids • Value proposition may be unclear • Technology • Optimize controls to improve value • Rapidly improving technologies (e.g., energy storage) • Private wire laws

15. DOE OE Microgrid Demonstration Program

16. DOE-OE Primary Microgrid Field Projects • Renewable and Distributed Systems Integration Projects • 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 • Microgrid FOA released on January 31, 2014 • Proposals due April 28, 2014 • - Advanced control of microgrids

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

18. 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

20. 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%

21. San Diego Gas & Electric - Borrego Springs

22. San Diego Gas and Electric Borrego Springs Microgrid Substation Energy Storage 1 x 500kW/1500kWh Li Ion Distributed Energy Resources 2 X 1.8MW Diesel Customer Energy Management Microgrid Controller Home Energy Storage Feeder Automation Community Energy Storage 3 x 25kW/50kWh Li Ion

23. Customer Energy ManagementCapable of Responding to Price and Reliability Events

24. Field Demonstration Objectives • Load reduction • Reduce peak load of feeders • System reliability • Integration and management of DERs • Leverage various DG and energy storage assets • Enable customers to be active participants in managing their energy use

25. Energy Storage Peak Shaving Demo Main Grid Total Load

26. Island Demonstrations – 2/13/13

27. CES PV Smoothing Operation Red – PV power Blue – Impact of energy storage

28. Real World Experience

29. Damage to Power Infrastructure in Borrego Springs

30. Contact Information Merrill Smith & Dan Ton Program Managers Microgrid R&D U.S. Department of Energy Office of Energy Delivery and Energy Reliability Merrill.smith@hq.doe.gov (202) 586-3646 Dan.ton@hq.doe.gov (202) 586-4618 Steve Bossart Senior Energy Analyst U.S. Department of Energy National Energy Technology Lab Steven.bossart@netl.doe.gov (304) 285-4643 Key Microgrid Resources: DOE OE www.oe.energy.gov Smart Grid www.smartgrid.gov