Microgrid Technology: Enabling Energy Reliability and Security Opportunities in Campus, Commercial & Industrial Communities

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1 Microgrid Technology: Enabling Energy Reliability and Security Opportunities in Campus, Commercial & Industrial Communities Ivette Sanchez, LEED AP MAYA Smart Energy Consulting Promoting Sustainability with Ingenuity

2 Agenda What is a microgrid? Why microgrids? Value proposition Applications Major components Energy security considerations Current cases Summary

3 What is a Microgrid? An integrated energy system intelligently managing interconnected loads and distributed energy resources and capable of operating in parallel with, or independently, from the existing utility s grid. Source: Horizon Energy Group

4 Why Microgrids? T&D over capacity and expensive to fix or extend US businesses lose $80B to $150B per year in revenues due to power outages Electric and gas prices fluctuations Power quality, efficiency & reliability Cyber and physical security Technology innovation Distributed generation Renewable resources Demand Response Grid stability control $

5 Microgrid Value Proposition Efficiency Reduce fuel consumption Supply close to demand minimize distribution losses Combined electricity and heat generation Reliability Optimally manage on-site energy resources 24/7 Power quality and reliability at the local level Energy Security Ensure energy supply for critical loads utilizing on-site generation Grid independence capability Economic Savings Peak Shaving/Load shifting and supply management with demand response Enables hedging against energy cost fluctuation Reduction of cost of electricity with on-site generation and effective energy management Sustainability Reduction of carbon footprint by integrating cleaner fuel resources

6 Microgrid Applications Microgrid candidates Institutional/Campus sites Hospitals, Universities Commercial/Industrial facilities Remote off grid communities Military Bases Data Centers Municipalities Microgrids can vary in size (MW) Generation resources types Storage Advanced controls The investment can be significant and ROI take years

7 Microgrid Major Components Microgrid Master Controller Match load with generation in both island mode or grid-connected Optimize integration, dispatching and control of DER and loads Ensure combination of DER improves economics Maintain reliability and manage frequency and voltage Real-time response and fault protection Connect and disconnect from the grid Predictive and forecasting analysis Source: Lockheed Martin 2011

8 Microgrid Major Components Fast and secure communication to monitor real-time network status Optimize operations and control of DERs & loads Connect to buildings via EMS/BAS Continuous monitor and trend microgrid components health Smart metering to obtain load and DERs profile Electricity pricing and demand response capabilities Continuous communication to utilities and energy markets Source: ABB 2011

9 Microgrid Major Costs Components Source: DOE Microgrid Workshop 2011

10 Critical Situation Electric grid security impacts national security Critical national security and homeland defense missions are at unacceptably high risk of extended outage from failure of the electric grid The ability of today s warfighter to command, control, deploy, and sustain forces is adversely impacted by a fragile, aging, and fossil fuel dependent electricity grid posing a significant threat to national security Source: Defense Science Board and DOD Energy Security

11 SPIDERS: Smart Power Infrastructure Demonstration for Energy, Reliability & Security SPIDERS Joint Capability Technology Demonstration (JCTD) Main sponsors/funding: DoD, DOE & DHS To reduce the unacceptably high risk of extended electric grid outages by developing the capability to island installations while maintaining operational surety and security Source: DoD

12 SPIDERS JCTD Technologies Source: DOD

13 SPIDERS Partners Source: DoD

14 UC San Diego Campus Operates a 42 MW microgrid in parallel with the SDG&E grid 11 million ft 2 of buildings Energy density (kwh/ft 2 /yr) is 2X of typical commercial Self generate approximately 90% of annual demand 30MW natural gas CHP plant 2.8 MW of fuel cell, 1.2 MW Solar PV Source: UCSD, Viridity, Power Analytics & OSIsoft

15 UC San Diego Microgrid Renewable Energy Secure Communities (RESCO) $2M program with CA Energy Commission Develop tariffs and incentives to balance cost/benefits to advance PV generation Advanced SmartGrid Power Management Systems for microgrids Optimizer re-scheduler platform for dynamic market signals allow optimization of storage and supply Microgrid controller Typical real-time monitoring and control of resources functionalities Making load elastic/controllable/price-responsive Improve load participation in DR programs and energy markets New technologies Solar forecasting and storage control optimization Data interoperability and power flow status Source: UCSD, Viridity, Power Analytics & OSIsoft

16 UC San Diego Microgrid Controller Source: UCSD, Viridity, Power Analytics & OSIsoft

17 Mesa del Sol Microgrid Partners: Mesa del Sol, Nine Japanese companies, utility PNM, SNL, Accenture and the University of New Mexico 78, 000 ft 2 Aperture Center with 400 kw peak power requirement Generation Sources 80 kw fuel cells 50 kw PV system 240 kw gas-engine generator 90 kw battery system (160 kwh storage) Building Management System (BMS) Building can run on its power indefinitely in island mode Perform demand & supply adjustments within the building based on power demand estimates Operates the power generation systems according to energy & heat demand within the building itself Compensate for power output fluctuations in the PV system of the utility Source: UCSD, Viridity, Power Analytics & OSIsoft

18 Microgrid Summary Microgrid technology to solve energy security issues To maintain continuous mission critical operations Technology will migrate to the civilian/commercial applications Microgrid controller emerging design elements State Estimation Economic, reliability, environment (ERE) dispatch tools Energy arbitrage algorithms Challenges to overcome Continuous monitoring of power flow taking into account demand, thermal production and renewable production Integration and interoperability of systems

19 Thank You! Ivette Sanchez Energy Solutions Director