Transcript Why Microgrids?

Perspectives on Grid-Integrated Microgrids
Maryland Clean Energy Summit
John B. Wharton, PE
Technical Executive
Baltimore, Maryland
October 16, 2013
Microgrids in the News
© 2013 Electric Power Research Institute, Inc. All rights reserved.
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Microgrids
Bulk supply
connection
What is a microgrid?
Single Customer
Microgrid
Distribution
Substation
• Interconnected loads
and distributed
energy resources
DER
DER
Other
Feeders
DER
• Acts as a single
controllable entity
• Connects and
disconnects from
the grid
Feeder
DER
Full Substation Microgrid
Full Feeder Microgrid
Partial Feeder Microgrid
© 2013 Electric Power Research Institute, Inc. All rights reserved.
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Why Microgrids?
LCOE for DG in Commercial
Applications
$0.25
LCOE
$0.20
50 kW Microturbine
1 MW Industrial Turbine
400 kW PureCell
200 kW SOFC
$0.15
$0.10
Remote Power Systems
$0.05
$$- $2 $4 $6 $8 $10 $12 $14 $16
Price of Natural Gas ($/MMBTU)
Impact of Natural Gas
Resiliency
© 2013 Electric Power Research Institute, Inc. All rights reserved.
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Other Drivers for Increased Interest
• Improved Technology
• Opportunities for Combined Heat and Power
• Energy Security
• Public Policy
© 2013 Electric Power Research Institute, Inc. All rights reserved.
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What is happening in Japan?
• $32M Subsidy for application of Building
Energy Management Systems (BEMS)
and Home Energy Management
Systems (HEMS)
• Feed in Tariff for PV Applications
(approx 40 cents/kwh)
• Residential and commercial storage
applications also subsidized (Orix
storage leasing program $50/month)
• Electric vehicle charging with two way
capability
© 2013 Electric Power Research Institute, Inc. All rights reserved.
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Utility Challenge – Integration
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Summary – Where do microgrids fit?
1. The Economics of Local Generation
• Optimize energy source based on market
• Ability to participate in ancillary services and demand response
• Combined heat and power opportunities
2. Additional Benefits of a Microgrid
• Continuity of Service – Resiliency
3. Additional Costs and Challenges of a Microgrid
• Additional costs and complexity for interconnection and protection
• Requirements for safety
• Requirements for control and capacity during island operation, and
maintaining power quality
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© 2013 Electric Power Research Institute, Inc. All rights reserved.
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EPRI Related Research
• Draft Primer on Microgrid Technology
and Applications
• Investigation of the Technical and
Economic Feasibility of Micro-GridBased Power Systems 1003973.
• Distributed Renewable Energy
Generation Impacts on Microgrid
Operation and Reliability, 1004045
• Program on Integrating Distributed
Generation into the grid
• Program on Energy Storage Systems
and Distributed Generation
Technologies
• Distribution and Transmission Grid
Resiliency
© 2013 Electric Power Research Institute, Inc. All rights reserved.
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Together…Shaping the Future of Electricity
© 2013 Electric Power Research Institute, Inc. All rights reserved.
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