Community Microgrids: The Path to Resilience & Sustainability

1. Community Microgrids: ThePathtoResilience&Sustainability GregThomson Director, Community Microgrid InitiativeClean Coalition 415-845-3872 mobilegreg@clean-coalition.org MakingClean LocalEnergyAccessibleNow

2. CommunityMicrogrids:ThePathto Resiliency GregThomson Director, Community MicrogridInitiative 415-845-3872 mobilegreg@clean-coalition.org CommunityMicrogridProjects ProgramDesign GridModeling&Optimization Analysis & Planning Design andimplementation Procurementand interconnection FullcostandvalueaccountingforDER;siting analysis Powerflowmodeling;DER optimization • SanFrancisco,CA • LongIsland,NY • U.S.VirginIslands • LADWP,FortCollins,PSEG • Cityof PaloAlto(FIT andsolarcanopyRFP) • RAM,ReMAT • Rule21 &FERC • PG&E • PSEG • SCE • PG&E • PSEG • SCE Making CleanLocalEnergyAccessibleNow

3. Introduction:Energyiscriticalinfrastructure • Energyiscriticalinfrastructure. • Andyet,ourlegacy,centralizedenergyarchitecturecarriesmultiplecriticalrisks. • Thisarchitectureiscostly, aging, inefficient,andahighlyvulnerablesecurityrisk • Extremeweathereventsareoccurringmorefrequently,furtherdemonstratingthevulnerabilityandhigh cost • Cyberattacksare agrowing risk,and anattackonacentralizedsystemcanaffectmillions • Toaccomplishboth localandnationalsecurity,wemustmovemorequicklytoanewsolution • CommunityMicrogrids: • Cleaner,MoreReliable&Resilient,MoreAffordable Making CleanLocalEnergyAccessibleNow

4. WhyCommunityMicrogrids? ACommunity Microgriddeliversfour combinedbenefitstocommunities. These benefitsarenotprovidedbytoday’scentralizedenergysystem. LowerCosts:Byoptimizinglocalcleanenergy,energystorage,andotherDER,thecostof electricityis reducedbyeliminatingexpensivepeakperiods andallassociatedcosts Cleaner Energy:Highpenetrations of localcleanenergynotonlyreplaces fossil fuels,italsoprovides cleanenergyforlocaltransportation– andatlowerdeliverycosts Resilience&Security:Deliveringongoing,cleanpowertocritical&priorityloads incommunities,whileabletowithstandmultipledisasterscenarios AReplicableSolution:Coveringanentiresubstationarea,thissolutioncanbedeployedinanycommunityaroundtheworld–and alsoincreases localeconomic investment Making CleanLocalEnergyAccessibleNow

5. TraditionalMicrogridsfocusonsinglecustomers Source:OncorElectricDelivery Company Making CleanLocalEnergyAccessibleNow

6. CommunityMicrogridsserve thousandsofcustomers Source:OncorElectric DeliveryCompany Making CleanLocalEnergyAccessibleNow

7. CommunityMicrogridsfeature“LocalBalancing” LocalBalancing givesusamoreefficientwaytooperatethe grid Flattensandlowersloadshapesacross entirecommunityareas,therebyreducingsystem-widepeaksandthusthemostcostlyenergyandgridinfrastructure Managesvariability/volatilitylocally,ratherthanexportingvolatilityas anaggregatedissueuptothecentralizedsystem Providesenergyresiliency& securitytocities andcommunities viapowergenerated,delivered,andconsumedlocally Thedistribution&transmissiongridsbecome equalpartnersingridoperationsandefficiencies. Making CleanLocalEnergyAccessibleNow

8. LocalBalancing offers multiple economic benefits The six economic benefitsofLocalBalancingviaCommunityMicrogrids CostReductionsDuetoPeakManagement:Protectionagainstthehighcostof peakenergy CostReductionsDuetoDemandCharges:Protectionagainstadditionalfees chargedbyutilities forpeaks CostReductionsDuetoRate Management:Protectionagainstfutureratechanges,e.g.eveningramp CostReductionsDuetoInvestment Deferrals:Deferralofsubstantialcostsforcentralizedinfrastructure CostCertainty:Keepingrates andcosts constantforconsumers as wellas gridoperators. IncreasedEconomicInvestmentinCommunities These CostIssuesAre CausedbyOur MostlyCentralizedSystem Making CleanLocalEnergyAccessibleNow

9. CommunityMicrogrid Making CleanLocalEnergyAccessibleNow

10. CommunityMicrogriddesignsteps Step1– Goals Save ratepayersmoneyby deferringsubstantial investments incentralizedinfrastructurethroughLocalBalancing–localcleanenergyatoptimallocations,energystoragefor peakreductionandgeneration firming,andloadshifting& shaping Improvegridreliability,resilience, andsecurityby utilizinglocal cleanenergy andenergystoragetoprovideongoingbackuppowertocritical andprioritizedloads inthearea Modernizegridoperationstosupport andautomatetheabove,helping enableutilitiestotakeamuch-neededstepforward Feature energyefficiencyandhome improvements/ZNE,as keyadditional cost,health,andenergy performanceimprovements 10 Making CleanLocalEnergyAccessibleNow

11. CommunityMicrogriddesignsteps Step2:Baseline GridAnalysis Determinetheability ofthegridtoaccommodatenew DER:Inventory oftheexistinggridincludingloadprofiles,voltageregulation,feeder andtransformercapacities,andexistinggeneration Making CleanLocalEnergyAccessibleNow

12. CommunityMicrogriddesignsteps Step3:LocalCleanEnergySurvey Comprehensiveassessment ofthelocalcleanenergygenerationpotentialinthetarget area,specifictolocal resources andsitecharacteristics Making CleanLocalEnergyAccessibleNow

13. CommunityMicrogriddesignsteps Step4:DER Optimization TheDERWheel ofFortune!Unlockingoptimal andmostcost-effectiveDER portfolios. DerivedIncombinationwiththeotheroptimizations Morereliable, cost- predictable, cleaner Optimalfeederlocations LocalMarketValue– e.g.Rates Locallyconnectedfeeders Helpsachievelocal balance Also extendstosystem- wideavoided costs Unlocksoptimalcustomers andDER Localavoidedgridupgrades Local loadshapes and forecasts Making CleanLocalEnergyAccessibleNow

14. DEROptimization:advancedinverters • 1. 6AM: • NoPVimpact • 2. Noon: • 20MWPVcausesovervoltage • 3. Noon: • 20MWPVwith advanced inverterssetat • 0.9powerfactorstabilizesvoltage Making CleanLocalEnergyAccessibleNow

15. DEROptimization: Commercial &Industrial (C&I) C&Icustomers aretypicallythelargestelectricityusersandemittersofGHG.Guess what? Theyalsomatchwellwithsolar. MostGeneration:Largerroof &parkingspacesgeneratemoreenergy LowestSystem Costs:LargerPVsystems reduceoverallcosts BestGridLocations:Largeloads servedbyrobustfeedersegments MatchingLoadProfiles:Largerdaytimeloadsmatchsolargeneration FinanciallyMotivated:Largerbills includingdemandcharges,plus roof andparkingleaseopportunities Making CleanLocalEnergyAccessibleNow

16. CommunityMicrogriddesignsteps Step5:BenefitsAnalysis Hunters PointExample–50MWPVover20yrs. Energy Economic Environmental CostParity: $200M: $100M: 78Mlbs.:Annual reductionsinGHGemissions15MGallons:Annual watersavings 375:Acres oflandpreserved Solarvs.NG,LCOE Newregional impact Addedlocal wages $260M: Spent locallyvs.remote $80M: $30M: 1,700 Job-Years:Newnear-termandongoingemployment AvoidedtransmissioncostsAvoidedpower $10M: Site leasing income interruptions • Example:180NapoleanSt. • • PVSq.Ft = 47,600 • Systemsize=714kW • Example:1485Bay Shore • • PVSq.Ft = 37,800 • Systemsize=567kW • Example:50avg.rooftops • Avg.PV Sq.Ft = 343 • Avg.systemsize= 5kW Commercial:18 MW Parking Lots:2 MW Residential&MDU:10 MW Making CleanLocalEnergyAccessibleNow

17. CommunityMicrogriddesignsteps Step6:DeploymentPlan Finalsystem designandoperational planfortheCommunityMicrogrid. Includes sizingfor energystoragebasedonlocal generation,overall loads,andcritical loadrequirements. Alsoincludes targetedEE,loadshifting,EVcharging,etc. Features financialmodel andstreamlined/bulk deployment plan. Making CleanLocalEnergyAccessibleNow

18. Examples: NewYork – inefficiencies • New YorkState usespeakpower only100hourseachyear. Thiscostsratepayers $1.7billion–toserve less than1%ofthe system’sneeds. • Thebulkpowersystem,designedtomeet apeakdemand75percenthigherthanmostof America,isunderutilizedmostoftheday • NewYorkershavebeenpayingsomeofthehighestelectricalbillsinthenation,sothattheirairconditionerscanhavepowerduringthehottestsummerdays • NewYork’s antiquatedinfrastructurewas introublelongbeforehurricaneSandy • HurricaneSandyrevealedthevulnerabilitiesofthelow-lyingAtlanticstate’s grid Source:Renewable EnergyWorld.com,June2015 Making CleanLocalEnergyAccessibleNow

19. Examples: NY– newinitiative • On Jan2,2018,New YorkGov. Andrew Cuomoannouncedthatthestateislaunching an initiativetodeploy1,500MWofenergystorageby2025. • Stateenergyagenciesandauthoritieswillgenerateapipelineofstorageprojects • NYGreenBanktocommitatleast$200millionforstorage-relatedinvestments • TheNewYorkStateEnergyResearch andDevelopmentAuthoritywillinvestatleast$60Minstoragepilots • Includes utilityprocurements,changes inutilityrates andwholesaleenergymarkets,andstorageforlargescalerenewableprocurements Making CleanLocalEnergyAccessibleNow

20. Examples: NY– project • The Marcus Garveyaffordablehousingcomplex inBrooklyn,NYusesasolar+storage microgridsystem tocutcosts,improve gridreliability,andprovide resilientbackuppower for tenants • LeveragestheBrooklynQueens DemandManagementprogram, acommission-approved$200Mfundthathelps deferasubstationupgradeestimatedatcostingapproximately$1.2B • Alsoprovides aframeworkforfuture,market-based,“nonwires alternatives” suchas microgrids Source:https://www.cleanegroup.org/ceg-projects/resilient-power-project/featured-installations/marcus-garvey-apartments/ Making CleanLocalEnergyAccessibleNow

21. Examples: NY– financing • TheMarcus Garveyprojectis financedbytheNew YorkCityEnergyEfficiencyCorporation(NYCEEC),anon-profit,specialtyfinancecompanyfor cleanenergy • Develops financing solutionstoenableprojects thatsaveenergyorreducegreenhousegases • Theircustom-tailoredsolutionsclosefinancing gapsforbuildings andcleanenergyprojectdevelopers • Originallyfocusedonlyonthestateof NY,theorganizationis nowlookingto • financeprojectsupanddowntheEastCost– fromMarylandtoMaine Source:https://www.cleanegroup.org/ceg-projects/resilient-power-project/featured-installations/marcus-garvey-apartments/ Making CleanLocalEnergyAccessibleNow

22. Examples: NY– template • NYCEEC’ssuccessfulfinancing atMarcus Garveyservesasatemplate • Payoff is inapproximately10.5years,basedonthethreerevenuestreams:BQDMincentives,PeakShaving,andDemandResponse Source:https://www.cleanegroup.org/ceg-projects/resilient-power-project/featured-installations/marcus-garvey-apartments/ Making CleanLocalEnergyAccessibleNow

23. Examples:LongIslandCommunity MicrogridProject • “NYPrize”Community Microgridgrantaward • CollaborationwithPSEG LongIsland, LongIslandPowerAuthority (LIPA),andNYSERDAcoveringa substationinEast Hampton,NYthatserves thousands of customers • Combines15MWof localsolar (viaFeed-InTariff) witha5MW /25MWh batterysystemandtargetedloadmanagement • Reaches almost50%of totalannualenergyfromlocalrenewables. Minimizestheuseofexistingfossilgenerators includinglocaldieselpeakers anddieselbackupgenerators. • Provides ongoing powerbackuptomultiplecriticalfacilities as wellas otherpriorityloads across thearea Making CleanLocalEnergyAccessibleNow

24. Examples:LongIslandCommunity MicrogridProject • LICMPEconomicAnalysishighlights • TheLICMPwouldavoid$29-38Millionofnewtransmissioncapacityresultinginanetcostbenefit for all PSEG-LI utilityratepayers. • Thelocal generationcapacity providedby theLICMPPVandstoragefacilities will alsoreduceNYISO capacitycharges by$6Millionthrough2022,andat arateexceeding$1Millionannuallythereafter. • Inaddition,theenergystoragewill allowtheutilitytoshift wholesalepowerpurchases fromdaily peak pricingperiods tooffpeak periods,realizingnetsavings inenergy purchases of$2.5Millionby2022andmorethan$500,000annually thereafter. • Thesesavings wouldbereflectedinlowerelectricrates for all PSEG-LI utilitycustomers. Making CleanLocalEnergyAccessibleNow

25. LongIslandCommunityMicrogridConfiguration Solar Solar Solar Solar F F Tier1:OVPump Station Tier1: ES ES Springs Fire Station Tier2 Loads Diesel Diesel Solar 9EU-4N7 Solar (Bank 4) S Solar Solar Transmission F ES Tier3 Loads Tier1: BHPump Station EHGT Substation ES Tier2 Loads Diesel Diesel 9EU-4N8 (Bank 4) Solar U MC2 ControlLevel OtherDiagramElements ISO F Facility,autonomous capable Autonomously Controllable Microgrid Tier3 Loads Substation,autonomous capable S Relay/Switch(open,closed)Meter UUtility IndependentSystemOperators ISO Making CleanLocalEnergyAccessibleNow

26. CommunityMicrogrids provideresilience Making CleanLocalEnergyAccessibleNow

27. Examples: Massachusetts • Similarly, Massachusettshasannouncedanew modelforcommunity-scaleenergysystemscalledSMART (SolarMassachusettsRenewableTarget). • FullycompensatessolarPVforthetotaloutputof asystemratherthanrelyingonnetmetering,whichonlyaccounts fornetbillsavings • Thus, alargewarehouseroof orshoppingcenterparkinglotcanbefullycompensatedforallthesolargeneratedonthatsite,regardlessoftheamount ofelectricityusedonsite • As anexamplespecifictotheCommercial&Industrialsector, 250kW – 1,000kWsolarsystems wouldreceiveanincentivesof • $0.16 -$0.18/kWh overatermof 20years. • Thismethod iscommonly referredtoasaFeed-In-Tariff– orCLEANprogram– andhas beendeployedsuccessfully inotherlocations such as Germanytodeploymorelocalcleanenergysystems. Source:http://www.qatargreenleaders.com/news/sustainability-news/1668-unlocking-the-distributed-grid-with-flexibility-management-software Making CleanLocalEnergyAccessibleNow

28. Examples: Vermont • Vermontutility Green MountainPower now payscustomersalittle over$30permonthtoutilize theirbatterysystemsasaload-offsetting capacityresource. • Makes investments inbattery-based backupsystems moreattractiveforcustomers. • ForGreenMountainPower,access tothebatteries helpsaddress thesteeptransmissionaccess chargeassessedbyISONewEngland.Thatchargemorethandoubledfrom$3perkilowattpermonthin2016toover$7in2017.Thechargeisexpectedtoincreasetoover$9in2018. • And,as moresolaris installedonthedistributiongrid,accesstothatlocalsolarattimeswhenelectricityfromtransmissionis themostexpensiveis agridbenefitthatcansaveautilitymoney. Source:http://www.qatargreenleaders.com/news/sustainability-news/1668-unlocking-the-distributed-grid-with-flexibility-management-software Making CleanLocalEnergyAccessibleNow

29. Examples: Connecticut • Anew groupofmicrogridshasbeenproposedtohelpsupportConnecticut’s criticalfacilitiesintheeventofemergencies • Fundingopportunitiesunderthestate’s DepartmentofEnergyandEnvironmentalProtection(DEEP)microgridprogram • Newfocusonthegrowingmovementtoprovideresilientpowertoessentialbuildings duringemergencysituations • Includes aproposalforWestbrook, CTmiddleschoolandhighschools,whichhaverecentlybeendesignatedasemergency/evacuationshelterandsupportareas • AnotherproposalforCoventry, CTwouldislandacircuitloopforninecriticalfacilitiesinthetown,includingschools, acommunicationtower,andaseniorcarecenter Source:http://www.renewableenergyworld.com/articles/2018/01/this-is-what-microgrids-for-resilience-in-emergencies-look-like.html 29 Making CleanLocalEnergyAccessibleNow

30. Examples: Minnesota • LargestCommunitySolarprograminthecountry;helpingdouble the solar generationacrossthe state. • Morethandoubledthecommunitysolarcapacityin2017,nowto211megawattsinoperationtoday,demonstratingtheawareness andacceleratingsuccess • Provides monthlybillcredits tothosewhosubscribe. Anycustomercanparticipate. • Beginningtoofferpredictabilityandtransparencyduetoamatureprocessandtheexperienceand hardworkfromallstakeholders • TheneedforgridtransparencyhasbeenheardbythecommissionandXcelEnergy,theutility. Themosteffectiveprogramstrideshavebeenmadeinaccesstointerconnectioninformation. source:https://www.greentechmedia.com/articles/read/xcel-energy-community-solar-program-turns-three#gs.rPWCafg Making CleanLocalEnergyAccessibleNow

31. Examples: Minnesota • Thisprogram hasbeentransformativetotheMinnesotaenergymarket. • Startingpointforamajoroverhaulofthestateinterconnectionstandards • Broughtaboutcityandcountysolarordinancesand • permittingadvancements,therebyreducing costs • Encouragedcustomerstothinkabouttheirenergymixandaskforbetteroptions fromtheirutilities • Givingcustomers theoptionof subscribingtoclean,localenergyhas beenincrediblypopular– withindividuals andorganizations • Onepilotprojectwillpairenergy-efficiencyimprovementswithcommunitysolar,andthereis nowapushforthis modeltobeexpandedacross Xcel’s serviceterritory source:https://www.greentechmedia.com/articles/read/xcel-energy-community-solar-program-turns-three#gs.rPWCafg Making CleanLocalEnergyAccessibleNow

32. Examples:California • Setting aprecedent:CommunityMicrogridseliminategaspeakers • Thanks inparttoCleanCoalitioncostanalysis,theCaliforniaPublicUtilityCommissionis nowrejectingnewpeakerplants,suchas PuenteinOxnard,CA,infavorof solar+ storage • As partof this substantialchange,inJan2018theCPUCalsoannouncedthatPG&Ewillberequiredtouserenewablesandstorageinsteadofgas-firedplants runbyCalpine • This appearstobe“thefirsttimeautilitywillprocureenergystoragetoreplaceexistinggasplantsforlocalcapacityneeds.” • Leveragingthis importantanalysis canpreventfuturenewgas plants across thecountry Source:https://www.greentechmedia.com/articles/read/pge-must-solicit-energy-storage-ders-to-replace-three-existing-gas-plants?utm_source=Daily&utm_medium=email&utm_campaign=GTMDaily#gs.biWkmDY Making CleanLocalEnergyAccessibleNow

33. Homes & buildings are gridpartners Well-designedandwell-situatedZNEhomes are a valuablepartof theDERresourcemixincombinationwith largerPV arrays oncommercial &industrial structures Making CleanLocalEnergyAccessibleNow

34. Homes & buildings are gridpartners ResidentialPV arraysinacommunity microgrid canbesizedfor optimumcontributionandfaircompensationtoownersregardless oftheirsite-specificdemandthroughaCCA +PPAapproach Making CleanLocalEnergyAccessibleNow

35. MovingForward: PuertoRico PuertoRicoRe-buildHighlights –the “BuildBackBetter”Plan PuertoRicois a unique opportunitytorebuild and updatethepowersystemto21stcenturytechnologies and bestpractices,enablingtherethinkingof howpoweris generated anddistributed. • HurricanesMariaandIrmadecimatedT&D linesacross theislandandcausedwidespreadwindand floodingdamagetosubstations,generation,anddistributionfacilities • DamagefromthehurricanesresultedinthelongestdurationpoweroutageinUS history Making CleanLocalEnergyAccessibleNow

36. MovingForward: PuertoRico • PuertoRicoRe-buildHighlights –the “BuildBackBetter”Plan • Team:Features majorgrid andenergyexperts including:NYPowerAuthority,ConEd,EdisonInternational,EPRI,PSE&G LongIsland,DOE, SEPA,PuertoRicoElectricPowerAuthority,NavigantConsulting,NREL,PNNL,GridModernizationLabConsortium • Goal: Implementresiliencyandhardeningmeasures thataredesignedtoincreasethecapabilityofPuertoRico’selectricpowergridtowithstandfuturestorms • Recommendation:usemoderngridtechnologies andcontrolsystems,renewableenergyresources,andnewtechnologies suchasenergystorageandmicrogridstoenableenergytobecomeabundant,affordable,resilient,and sustainable.Ensures continuityofservicewhileloweringPREPA’sdependenceonlargecentralgeneratingstations. • This modernpowersystemdesignwillseta modelfor theindustry whilepromotingprivate investments intheuse ofclean energyfora lowcarbonfuture Making CleanLocalEnergyAccessibleNow

37. MovingForward: Sonoma Initiative CoffeyPark areaofSantaRosa–before andafter fires Making CleanLocalEnergyAccessibleNow

38. MovingForward: Sonoma Initiative PG&EFeeder Map –CoffeyPark andadjacentC&Iarea–idealfor Community Microgrid Fire-damagedarea Making CleanLocalEnergyAccessibleNow

39. Sonoma Community MicrogridInitiative Objective:makeenergyabundant,affordable,resilient,andsustainable Re-buildfire-destroyedareaswithhighlevelsofresilienceandsustainabilityinboththebuildingstockandthegrid,enablingamodern,distributed,andcarbonfreesystemthatdeliverssubstantialeconomic,environmental,andresiliencebenefits. Establishablueprintforre-buildingdisaster-destroyedareasina timelyandcost-effectivemannerthatalsomaximizes theeconomicandresiliencevalueof energyas acriticalresourcetoratepayers,property owners,andmunicipalities. Providea modelforoperating a moderndistribution gridcoveringanentiresubstationareathatincorporates optimal distributedenergyresources,cost-effectivelocalbalancing,fullinteractionwiththe transmissionsystem,andlocalenergymarkets– withresultingbenefitsacross bothgridoperationsandeconomics. Ensurethatbuilding codesareadvancedtoachievemoreresilient,safer,andcleanerbuildingstockandcommunities. Making CleanLocalEnergyAccessibleNow