Microgrid 101 Micro Grid 101 The Intersection of

Microgrid 101 Micro. Grid 101 – The Intersection of Reliable Energy Supply & Smart Energy

Microgrid 101 • • • Micro. Grid 101 – The Intersection of Reliable Energy Supply & Smart Energy Terminology What is a Microgrid? How Does a Microgrid Work? Barriers of a Microgrid Qualitative & Quantitative Benefits of a Microgrid System Typical Strategies for Reducing Energy Use & Costs in Lighting, HVAC & Office Equipment Commercial Real Estate Energy Efficient Microgrid Technologies Who Uses Microgrids & Why? The Future of Microgrids Microgrid Resources & Information

Microgrid 101 Micro. Grid 101 – The Intersection of Reliable Energy Supply & Smart Energy Some Basic Terminology: - DRE / Distributed renewable energy DER / Distributed energy resources RE / Renewable energy Maa. S / Microgrid-as-a-Service CHP / Combined heat and power VAR / Value At Risk T&D / Transmission and distribution AMI / Advanced Metering Infrastructure CSP / Concentrating Solar Power SAIDI / System Average Interruption Duration Index SAIFI / System Average Interruption Frequency Index - THD / Total harmonic distortion - EES / Electric Energy Storage - PCC / Point of common coupling - DPGS / Distributed power generation system - EV / Electric Vehicles - PV / Photovoltaic modules - UPS / Uninterruptable power supplies - MGCC / Microgrid Central Control - GHG / Green House Gas

What Is A Microgrid? According to the US Department of Energy: An integrated energy system consisting of distributed energy resources (DER) and multiple energy loads operating as a single controllable entity in parallel to or islanded from the existing power grid. According to State of California Microgrids are comprised of localized load and generation resources which normally operate connected to and synchronous with the traditional centralized grid but can disconnect and function autonomously as an island within the macrogrid. According to the Microgrid Institute: A micro grid is a small energy system capable of balancing captive supply and demand resources to maintain stable service within a defined boundary. Microgrids are defined by their function, not their size. Micro grids combine various distributed energy resources (DER) to form a whole system that’s greater than its parts.

What Is A Microgrid? (A) Traditional Power Generation (B) Microgrid Power Generation

What Is A Microgrid? Basic Example of a Microgrid System Battery Storage Solar-PV Utility Plant Wind Turbines Electric Veh. Chg. DG-CHP

What Is A Microgrid? Five Categories of Microgrids: 1. Off-Grid Microgrids 2. Community Microgrids 3. Campus Microgrids 4. District Energy Microgrids 5. Nanogrids

What Is A Microgrid? Three Key Features Characterize a Microgrid 1. A microgrid is local – It creates energy for itself or nearby customers. 2. A microgrid is independent – It can disconnect from the central grid & operate by itself. 3. A microgrid is intelligent – The “Central Brain” or microgrid controller is where the intelligence originates.

What Is A Microgrid? Other Types of Supply Generation 1. 2. 3. 4. Geothermal Microturbines Fuel Cells Distributed Generation 5. Hydro Simple Diagram of a Microgrid Network

How Does A Microgrid Work? Image source: Siemens, Inc. Common Coupling

How Does A Microgrid Work? Includes computers, Emergency equipment, etc. Includes task lighting, fans, etc. Includes appliances such as refrigerators, washers, etc.

Microgrid Barriers

Strategies for Reducing Energy Use & Costs Typical Strategies for Reducing Energy Use & Costs From Loads in Lighting, HVAC, and Building Design

Strategies for Reducing Energy Use & Costs Four Energy Efficient Strategies Typically Used in Commercial Buildings 1. Reduction of “Base-Load” Using Micro-turbines 2. Reduction of “Gas Usage” Using Combined Heat & Power (CHP) 3. Reduction of “Lighting Loads” Using Solar - PV Power 4. Reduction of “Peak Load” Loads Using Battery Storage

Strategies for Reducing Energy Use & Costs Typical Strategies for Reducing Energy Use & Costs From Loads in Lighting, HVAC, and Building Design Energy Efficient HVAC Microturbines / CHP Energy Efficient Lighting & Controls Solar Power Battery Storage

Qualitative & Quantitative Benefits of a Microgrid Qualitative Benefits • Reliability and security for end users and operators of the grid • A microgrid enhances resilience/recovery • Enhances the integration of distributed and renewable energy sources • � Microgrids strengthens the central grid • Minimizes carbon footprint and green house gas emissions by maximizing clean local energy generation

Qualitative & Quantitative Benefits of a Microgrid Quantitative Benefits • A microgrid can lower energy costs for consumers and businesses • Reduction of downtime & emergency failures • Higher business productivity – uninterruptable work environment • Ability to participate in Demand Response programs • DR Cash Flow predictability • � A microgrid strengthens cybersecurity

Qualitative & Quantitative Benefits of a Microgrid Other Benefits • Less “Vulnerability” with electrical infrastructure • In emerging economies the deployment of local grids and distributed resources is less costly reducing risk of constrained transmission • I� n rural areas, Microgrids can be a real boon for the local communities since access to reliable energy can boost communities’ socio-economic development • Backup for all system loads, not just the critical loads

Qualitative & Quantitative Benefits of a Microgrid Metrics For Assessing the Impacts of Microgrids • • • Safety and Protection Reliability Capital Costs Energy Efficiency Operating Costs • • Engineering Costs Environmental Costs Power Quality Resilience

Microgrids Who Uses Microgrids & Why? • Hospitals • Universities & research facilities • Smart cities and communities • Government buildings • Utility microgrids • Military facilities • Stores & gas stations

Microgrids Who Uses Microgrids & Why? Microgrids for Businesses Residential Microgrids

Microgrids The Future of Microgrids A Rapidly Expanding Marketplace “The Smart Energy market is the new frontier! By 2020, nearly $6 Trillion dollars will be spent on smart energy” – According to Solar Power International, the Solar Energy Industries Association (SEIA) and the Smart Electric Power Alliance (SEPA) Microgrids are helping to advance the U. S. energy system by being able to provide an array of grid enhancing services and behind-the-meter resiliency, flexibility and savings with clean, renewable energy.

Microgrids The Future of Microgrids Troy Miller, Director of Grid Solutions at S&C Electric: “We're very bullish on microgrids and we think they are going to be a big part of the utility of the future, combining alternate sources of generation, intelligent switching and protection, a microgrid controller and energy storage to form the backbone of an islanded microgrid. We believe utilities will see more and more of these being installed. ” Renewable power installed capacity top countries.

Microgrids Defining Future Business Models for Microgrids Reliability in the face of extreme weather events Increased autonomy, interoperability & optimization Environmental benefits of local renewable generation New local-cost management or revenue opportunities

Microgrids How Microgrids May Transform The Future Of Energy Utility Grid verses Microgrid A study completed for the Western Australia Grid showed that the current system could be replaced by 85 percent renewable energy at a cost $124 per MWh versus $127 per MWh for a replacement of its conventional system. The cheaper renewable system relies on roughly 5, 000 MW of wind power, 2, 000 MW of solar PV combined with battery storage and molten salt solar storage.

Microgrids Microgrid Resources – Information Industry Survey Results • Electric reliability to be the number one reason customers install microgrids • Saving money was second reason as a motivator for installing microgrids • Financing serves as the number one hindrance in microgrid installations • Utilities seen as the second biggest reason to microgrid development

Microgrids Industry Survey Results

Microgrids Microgrid Resources – Information Industry Groups & Microgrid Informational Resources • Department of Energy (DOE) https: //www. energy. gov/oe/activities/technology-development/gridmodernization-and-smart-grid/role-microgrids-helping • Microgrid Institute http: //www. microgridinstitute. org/ • Microgrid Knowledge https: //microgridknowledge. com/about/ • Microgrid survey White paper https: //microgridknowledge. com/whitepaper/microgrid-knowledge-survey-2016/