John Kelly Green Business Certification Institute US Green Building Council USDN Microgrid Overview Microgrid architecture local representation Utility microgrids one city at a time Third party microgrids ID: 1019606
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1. USDN Microgrids OverviewJohn Kelly Green Business Certification InstituteUS Green Building Council
2. USDN Microgrid OverviewMicrogrid architecture – local representationUtility microgrids – one city at a timeThird party microgridsCASE 1: District Energy – Foundation for Sustainable EnergyEfficiencyEmissionsWaterResiliencyCASE 2 & 3: Islanding for Resiliency +Price responseDemand responseLoad conservationPower qualityGrid serviceNot who builds it but Why is it not being builtImagine $4 billion in investment in 2,000 MW of local load response capability for NY, MA, & DC area
3. Resilient FacilityLOCAL MICROGRIDUtility or Third PartyNATIONALFERC, ISOs, IPPs, UtilitiesSTATEPSCs, Utilities, LDCsUtility area substationsLocal substationsMicrogrid Architecture
4. Leveraging the Microgrid ApproachCapabilitiesIslandingProtected infrastructureRenewable generationDemand reductionDistrict energyLoad shiftingAuto-restorationGrid servicesPerformance Outcomes100% Outages50% Capital waste50% Energy waste25% Peak demand50% Emissions100% Resiliency
5. Microgrid OutcomesPrivate InvestmentInnovationEconomic developmentPrivate capitalProtect Critical FacilitiesResilient - Islanding, black start, uninterruptable fuelPower qualityMaster controller Consumer BenefitPrice responsive grid – lower costAncillary service profitsConservationInnovationUtility BenefitLower operating costReduce capital costNew servicesReal time load management
6. Utility Microgrid ComponentsMicrogrid mappingDistribution Reliability/ResiliencyCritical/Essential Facility ResiliencyPlanning with local authority (city)Leverage third party / customer grid servicesResilient buildingsThird party microgrids
7. Utility MicrogridsFor Each CityBedfordYorktownHeightsValhallaScarsdaleChappaquaMillwoodPleasantvilleTuckahoeRye BrookArmonkCrotonvilleCortlandtPurdysSouth SalemShenorockShrub OakHarrisonNew RochelleOutage MetricsPerformanceCityUtilityFrequency2.6 1.2Duration, min1,700 350
8. SUBBenchmarkingArea SubSources of Supply: 1
9. Utility MicrogridsLooping/Redundancy
10. Redundant Supply & Self HealingSmart SwitchesSmart SwitchesArea SubArea SubSources of Supply: 2
11. Critical and Essential Service Capability Critical and Essential ServiceCircuitsAddressResiliency CapabilityLocal HospitalW430Police Station/ComsD5143Jackson Storm StationW6610Y, W668XHarrison Storm StationW6610Y, W668XConvalescent CenterW3509Lexington Senior HomeW6612High School (Shelter)W349, W4564, D4912Jackson Storm StationW6610Y, W668X
12. Utility MicrogridsLeveraging Local GovernmentCity investment – Illinois Rider LGCCoordinated undergrounding with road and sewer workCoordinated tree planting, trimming, removalRight tree right place, invasive pest controlDeveloping greenways Coordinated communications and emergency responseCoordinated identification and action on critical and essential servicesLeveraging city resilient facilities for grid serviceCoordinated communications and educationCity tracking of interruption impacts and costsMonitoring, trending, and verification
13. Utility Microgrid ScorecardPerformance CriteriaPerformanceSAIDI/SAIFI60 min / 0.3Alternate Supply90%% Protected by Auto Restoration80%% Protected by Distribution Redundancy80%% Underground20%Islanding5%Critical/Essential Service Plan and Protection5%Transparency (e.g. MAIFI, PQ)YesRisk MitigationYes
14. Third Party MicrogridsThird Party Microgrid
15. Smart SwitchSmart LoopSmart MeterSolar, UPS, Engines4 MWSmart SwitchLoopsThird Party Microgrids8 MWGenerator
16. Multiuser Microgrid8.8 Million Square FeetSupply - $70 / MWhUser M sq.ftHotel 1.0Residential 3.0Office 3.4Retail 1.4Peak Demand: 58 MWAnnual: 250,000 MWhThermal: 320,000 MMBtu/yrCase Study – Boston, NYC, DC
17. Third Party MicrogridAssumptionsStart with district thermal/chilling to:Free up building space (increase rents) and noise pollutionEnable turbine as a boiler and cogenerationEnabling large storageInclude automation and load response for conservation and ancillary service payments (e.g. DR)Initially or over time add on-peak CHP, storage, solar, Eventually building island capability (natural gas) to:Protect critical and essential servicePrice response (hedge for entering the real-time price markets)Ancillary service payments (ISO and distribution operators)
18. Capacity (MW)Diesel life safety3,000 kWLoad Response10,000 kWHigh EfficiencyGas Engines12,000 kWSolar PV2,000 kWStorage6,000 kWCHP on-peak20,000 kWBaseload Tri-generation10,000 kW% UtilizationThird Party MicrogridsTypically AssetsInstalledOver aPhasedEvolution% Load4%
19. Third Party Microgrid Scenarios & Assumptions (2014 prices)DescriptionNYMADCAssumptionSupply Cost, $/MW$80$80$70AssumptionNatural Gas Cost, $/MMBtu$5.5$5.5$5Case 110 MW CHP Thermal OnlyCase 258 MW Islanding/RTPISO Capacity Charge AvoidedDistribution Charge AvoidedUtility MeteredAncillary Service/PQConservation Load ResponseCase 3Demand Charge AvoidedMax Thermal
20. Microgrid Operating StrategiesAnnual Load Duration CurveUtilization = 250,000 MWh / (58MW * 8760) = 50%
21. Case 1: Thermal Load Following10 MW Turbine as a Boiler (Cogeneration)Med Thermal CaseMW CHPUtilizationMMBtuEnergy Savings1090%300,000$1,500K$6 / MWh/ hr.Grid Supplied70%
22. Case 1: District Energy & Thermal Load FollowingEstablishes the Foundation for Sustainable EnergyDescriptionNYCBostonDCFlat Supply Rate 2014, $/MWh$80$80$70Savings ($000)Thermal Energy, $ 0001,5001,5001,500Supply with Gen O&M2,2002,2001,400Electric Distribution1,400Utility1,300Recovered Rental Space*4,2002,0003,200Chiller eff. Savings, kw/ton**1,0001,0001,500Carbon offsets***/REC’s(500)(500)(500)Savings, $ million9,8006,2008.400* Space recovered in building due to the use of a central heating and cooling plant** Improved cooling system efficiency from 1 to 0.75 kW/ton*** Assumed $10 / ton or $6/MWh per REC
23. Case 1: District Energy & Thermal Load FollowingEstablishes the Foundation for Sustainable EnergyDescriptionNYCBostonDCSavings, $ million9,8006,2008,400CHP (Turbine as a Boiler) Cost30,000*30,000*25,000Thermal Distribution5,0005,0005,000Total Cost35,00035,00030,000Simple Payback, wo / w Rental6.3 / 3.68.3 / 5.65.8 / 3.6* Includes interconnect, space, and tie-ins for future islanding and storage capabilityOther PerformanceNYCBostonMDState Average CO2e, lb./MWh6009801,300CHP CO2e, lb./MWh / offset/REC660 / 0660 / 0 660 / 0State Efficiency, MMBtu/MWh7810.5CHP/CCCT Efficiency, MMBtu/MWh6.4 / 56.4 / 56.4 / 5
24. Gen RT> $50Purchase at RT < $50Real time savings = NY: $9,900,000 or $40/MWhDC: $7,800,000 or $31/MWhMA: $9,700,000 or $39/MWhCase 2: RTP and Thermal Load FollowReal-Time Procurement 2013Grid Supplied70%
25. Case 2: RTP and Thermal Load FollowAnnual Thermal Load Duration Curve10 MW Turbine as a Boiler20 MW Engine CHPMed Thermal CaseMW CHP20Utilization35%MMBtu60,000Savings$300K$1 / MWh1080%300,000$1,700K$7 / MWh
26. Case 2: RTP and Thermal Load FollowThermal savings = Low: $1,200,000 or $5 / MWhMed: $2,000,000 or $8 / MWhMax: $3,400,000 or $14 / MWhMedRTP Impact Med ThermalNY: - $8 / MWhDC: - $11/ MWhMA: - $14 / MWh
27. Case 2: Third Party Microgrid Savings, $/MWhDescriptionNYMADCThermal Energy888Supply with O&M322520Demand - Standby000CapacityNANA13Distribution1209Ancillary Service/PQ446LR/Solar/Storage6105Carbon Offset or REC(2)(2)(2)Total, $/MWh775271% Reduction Cost46%36%63%403931 RTP Only
28. Before/After MicrogridINVESTMENTNYBostonDCUtility Revenue, $M22 / 1916 / 167.4 / 5.2SCADA + SoftwareOn-peak Demand Served, MW58 / 5358 / 4058 / 40CommunicationsDistribution4.4 / 1.45 / 54.2 /2.0Feeders / Smart SwitchesDemand Charges18 / 1811 / 113.2 / 3.2Operating CostsAdvanced MetersAncillary Service BenefitsSystem ExpansionDemand Reduction Potential58MW58MW58MWOtherAssumes demand charge is based on aggregate microgrid load, not building metersCase 2: Utility Impact534040
29. Case 2: Third Party Microgrid Investment($000)Investment ComponentsNYMADC*Generation (42 MW)80,00080,00069,000Storage6,0006,0005,000Solar8.0008.0007.000Thermal Distribution5,0005,0004,000Metering / SCADA5,0005,0004,000Controller/Automation/LR10,00010,0009,000Total $ (000,000)~$114,000~$114,000~$98,000*Construction costs in DC are about 14% lower, http://laborpress.org/sectors/building-trades/127-new-york-city-construction-costs-continue-to-rise
30. Case 2: Third Party Microgrid Savings & PaybackSavings ($000)NYMADCSupply with O&M8,0006,1005,000Capacity Charge3,200Distribution Charge3,000Utility Distribution2,200Thermal Storage / Solar450600450Thermal Recovery2,0002,0002,000Ancillary Services / PQ1,0001,0001,500Load Response Conservation1,0001,900800Added Rental Space4,2002,0003,200Carbon Offsets or REC’s(500)(500)(500)Total $ (000,000)~$19,150~$13,100~$17,850Simple Payback6.08.75.5
31. 15 MW Turbine as a Boiler15 MW Engine CHPHigh Thermal CaseCase 3: High Thermal CaseAnnual Thermal Load Duration CurveMW CHP15Utilization43%MMBtu80,000Thermal Savings$400K$1.4/MWhThermal Savings increases to $3.4 million or $13/MWhSimple Payback UnchangedIncreased thermal savings offset by reduced RTP savings1599%600,000$3,000K$12/MWh
32. Microgrid Operating StrategiesDemand Charge ReductionOff-peak Demand charge savings NY: ~$9,000,000 Payback 6.0 to 4.0MA: ~$6,00,000 Payback 8.7 to 6.0DC: ~$2, 00,000 Payback 5.5 to 4.9
33. USDN Microgrid ConclusionMicrogrid architecture – local representationUtility microgrids – one city at a timeThird party microgridsCASE 1: District Energy/CHP – Foundation for Sustainable EnergyEfficiencyEmissionsWaterResiliencyCASE 2 & 3: Islanding for Resiliency +Price responseDemand responseLoad conservationPower qualityGrid serviceImagine $4 billion in investment in 2,000 MW of local load response capability for NY, MA, & DC area
34. QUESTIONS!CERTIFICATIONSPONSORSHIPEDUCATIONpeer.usgbc.org
35. POWER SUPPLY PERFORMANCE INDEX71-10041-7021-40HIGH PERFORMANCELOW PERFORMANCEMassachusetts8% RENEWABLECO2e = 980 lb./MWhU.S. State Electricity Supply Performance (2012)Iowa26% RENEWABLE45 New York27% RENEWABLECO2e = 600 lb./MWh7766CO2e 1,770 lb./MWhSEI = 8.2 MMBtu/MWhSEI = 7.0 MMBtu/MWhSEI = 8 MMBtu/MWhStateSO2(lb./MWh)SO2(Tons)IA4.0110,000NY0.534,000CT0.59,000
36. 70%IdleIdleNuclearCoalRenewableSufficient idle gas and coal to supply twice the current usage100 GW300 GW240 GW150 GWSource: DOE EIA Annual Energy Outlook14%CustomersIdleHigh Eff.Gas200 GWSimpleGasYour Choice of Power MattersPower suppliers must have a contract to put power into the gridIndependent System Operator35%You can ask supplier to put a specific type of power into the grid to meet your contract