GSGF White Paper: Status and Insights on Microgrids. From Pilot to Commercial Deployment
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1 GSGF White Paper: Status and Insights on Microgrids From Pilot to Commercial Deployment
2 About GSGF White Paper About Microgrids Working Group Background and Scope Functions of Microgrids Global Cases on Microgrids Barriers for Promotion Proposed Solutions for Promoting Microgrids 2
3 About GSGF White Paper About Microgrids Working Group Background and Scope Functions of Microgrids Global Cases on Microgrids Barriers for Promotion Proposed Solutions for Promoting Microgrids 3
4 About GSGF White Paper Outcome of the Working Group (WG) established within GSGF Past WG topics: Interoperability and standards, Interfaces of Grid Users, Grid Connectivity of Distributed Generation, Power Grid Electrical Energy Storage, Cyber Security, Flexibility, Microgrids Each WG collects, shares, and discusses the current status and the way forward on each WG topic; the result is developed into a white paper Members of WG are recruited from global member associations of GSGF 4
5 About GSGF White Paper About Microgrids Working Group Background and Scope Functions of Microgrids Global Cases on Microgrids Barriers for Promotion Proposed Solutions for Promoting Microgrids 5
6 About Microgrids Working Group Established in November 2016 WG chairs: Japan and Canada Members from: Belgium, France, India, Israel, Korea, Sweden, and United States Information collected and discussions held via questionnaires, teleconferences, and face-to-face meetings 2016/8-2016/ / /2 2017/3-2017/6 Member Recruitment Questionnaires Teleconferences & Presentations Face-to-Face discussions White Paper development 6
7 About GSGF White Paper About Microgrids Working Group Background and Scope Functions of Microgrids Global Cases on Microgrids Barriers for Promotion Proposed Solutions for Promoting Microgrids 7
8 Background and Scope Why Microgrids? The power grid is in transformation from a centralized to decentralized system using various DERs Resilient power supply is increasing in importance due to experiences of catastrophic natural disasters Scope of this white paper: Microgrids that are (1) connected to the grid AND (2) able to be islanded or be controlled in a manner that minimizes the effect of intermittent generations on the grid 8
9 About GSGF White Paper About Microgrids Working Group Background and Scope Functions of Microgrids Global Cases on Microgrids Barriers for Promotion Proposed Solutions for Promoting Microgrids 9
10 Functions of Microgrids Value for customers within the microgrid: renewables deployment, resiliency, uninterrupted power supply, bill reduction Value for TSO and DSO outside the microgrid: grid and system operation, investment deferral 10
11 Functions of Microgrids Grid Microgrid Consumer Grid and system operation: provide services such as demand response and ancillary services by aggregating resources (cf. VPP) T&D investment deferral: alternative means for distribution network investments such as substation renewal Renewables deployment and carbon footprint reduction: integrate larger amounts of intermittent renewables in to the system at the local level Resiliency and increased PV selfconsumption: be intentionally islanded to continue power supply during natural disasters Uninterrupted power supply: provide stable power supply even when connected to frequently disrupted centralized power grid Electricity bill reduction: reduce bills for customers in areas of high electricity cost (e.g. islands) and reduce volatility of fuel cost 11
12 About GSGF White Paper About Microgrids Working Group Background and Scope Functions of Microgrids Global Cases on Microgrids Barriers for Promotion Proposed Solutions for Promoting Microgrids 12
13 Global Cases on Microgrids (1) Power House By Alectra Utilities, Canada Project funded by IESO (Independent Electricity System Operator) Housings equipped with 5kW PV, 6.8kW/11.4kWh battery, and EMS Aggregation of distributed assets to create VPP Technical requirements can be met for various value streams (e.g. frequency regulation, DR, operating reserve, TOU arbitrage, net metering, investment deferral, outage support, etc.) Customer benefit: 39% savings in bill 13
14 Global Cases on Microgrids (2) Maale Gilboa kibbutz By MicroGrid Israel, Israel Project funded by the government Rural cooperative community microgrid with total of 475 kw PV, 15 kw wind, 2 diesel generators, and an annual load of 3,000,000 kwh. Critical consumers (manufacturing plant, computer rooms and cow milking facility) can be islanded Integration of renewables, increasing system efficiency, increasing resiliency Currently undertaking economic analysis of microgrids 14
15 Global Cases on Microgrids (3) Los Alamos Microgrid By Toshiba, Japan Project funded by NEDO (New Energy and Industrial Technology Development Organization) in Japan Achieved fluctuation reduction and power flow stabilization with high PV penetration and conducted Demand Response for Smart Houses 1MW PV, 1MW/6MWh NaS Battery, 0.8MW/2.3MWh lead acid battery, μems (controller) Achievement of load factor above 90% with μems (PV forecasting and battery control) 15
16 Global Cases on Microgrids (4) NICE Grid By Enedis, France Project funded by European Commission and ADEME (French environmental agency) (total of 30 million euros budget) Optimize PV integration in the distribution grid, test islanding on low voltage district, reduce peak demand in winter and give customer a new role within the grid as prosumer 1.3 MW grid storage, 2.5 MW PV (*Islanding area consists of 8 clients, 3 PV plants total of 430kW, and 250kW/600kWh battery) Achievement of islanding for 5 hours, ensuring the quality of the distributed energy according to the EN
17 About GSGF White Paper About Microgrids Working Group Background and Scope Functions of Microgrids Global Cases on Microgrids Barriers for Promotion Proposed Solutions for Promoting Microgrids 17
18 Barriers for Promotion Most of the microgrid cases were granted financial support (e.g. subsidies by municipalities or the federal government) For commercial deployment of microgrids, their economics must be improved: Reduce cost of microgrid technologies Increase revenue of microgrid businesses Reducing Cost Cost of renewable energy and storage technologies rapidly declining Further actions for reducing cost of communication and control technologies Increasing Revenue Revenue sources of microgrids and business models (including stakeholders) are not clear under current regulatory framework 18
19 About GSGF White Paper About Microgrids Working Group Background and Scope Functions of Microgrids Global Cases on Microgrids Barriers for Promotion Proposed Solutions for Promoting Microgrids 19
20 Proposed Solutions: Reducing Cost The white paper proposes the following solutions for reducing cost of microgrid technologies and provides examples of ongoing work: Solution Explanation Ongoing Activities Modular and scalable solutions Standardized microgrid control and communication technologies Peer to Peer energy trading simplifying installation process and minimizing design and engineering costs establishing interoperability between components and allowing multi-vendor system with cost competitiveness may eliminate the need for central control or intermediary and reduce installation & operation cost of microgrids Modular products sold by vendors IEC and IEEE Blockchain applications for P2P trading 20
21 Proposed Solutions: Increasing Revenue Microgrid business models to be developed in tandem with regulatory and market structure reforms; the white paper suggests that regulations and markets address the following: Topic to be addressed: Explanation Ongoing Activities How to evaluate & remunerate the services of microgrids Ownership model of microgrids Procedures for interconnection What services can microgrids provide? How should the value of such services be evaluated? How should the cost of such services be remunerated (e.g. through the market, as part of electricity tariff, etc.)? Who can own microgrids? Who can operate microgrids? What procedures are necessary for interconnection? Regulatory and market structure reforms in each region REV in New York Harmonizing DSO grid codes 21
22 Proposed Solutions: Conclusion Functions of microgrids increasing in importance; their economics are the key to commercialization Reducing cost: microgrid components (e.g. renewables & storage) and integrated system (e.g. standardization and reducing operational cost) Increasing revenue: reforming regulatory framework to enable microgrid business models Microgrids will shift from pilot to commercialization with improvement in their economics 22
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