Micro Energy Grid (MEG):
Implementation of Smart Distributed Energy and Low
Carbon Cities in Asia
POWER-GEN Asia 2015
September 3rd 2015
Mark Cameron – Senior Consultant – Arup HK Building Sustainability
Mark.Cameron@arup.com
Background and Drivers - Macro
 Global action to limit GHG emissions to avoid catastrophic climate change
 Electricity generation responsible for 42% of global CO2 emissions
Source: IEA, IPCC
Global Response
 GHG limiting targets adopted internationally – China to limit to CO2 intensity by 40% by 2020
 Supply and Demand side measures required
 Regulatory focus promoting Distributed Generation – United States, China, Korea, Japan
 100+ designated Smart Cities to be developed in China
What is a Micro (Energy) Grid?
What are the Benefits?
How to Implement?
“Microgrids are electricity distribution systems containing
loads and distributed energy resources, (such as
distributed generators, storage devices, or controllable
loads) that can be operated in a controlled, coordinated
way either while connected to the main power network
or while islanded”
(CIGRÉ C6.22 Working Group).
“A Microgrid is a group of interconnected loads and
distributed energy resources within clearly defined
electrical boundaries that acts as a single controllable
entity with respect to the grid. A Microgrid can connect
and disconnect from the grid to enable it to operate in
both grid-connected or island-mode”
(U.S. DOE Microgrids Exchange Group, 2010).
What is a Micro Energy Grid?
Traditional System Topology
MEG System Topology
1. Improved Efficiencies

Typical thermal power station is only ~40% efficient –
large portion of energy lost as heat

Local Distributed Generation over >80% efficiency

‘Waste heat’ can be harnessed

Reduced transmission losses
2. Reduce Installed Capacity
Summer peak day loading
Winter peak day loading
Combined load
3. Embrace the Smart City

Distributed energy forms part of the Smart Grid – small districts of localized energy
interacting with the grid – feeding and drawing from the Utility
Data Analysis
+
Optimisation
4. Shifting Peak Demand – Demand Response
Peak
Peak
Off-Peak
Valley Price
4. Shifting Peak Demand – Demand Response



Real time feedback to users / benchmarking
Real time Incentives / pricing
Internet of things
Peak
Peak
Off-Peak
Valley Price
Hansung City, Qingdao, PRC
Implementation Case Study
Hansung City: K-MEG : Korea Micro Energy Grid
Qingdao
青島
Hansung City,
Huangdao
釜山市
Project Statistics
Location –
Hansung City, Qingdao, PRC
Site size –
376 Ha (3.76 km2)
GFA –
3.2M m2
Population - 100,000
Site use –
Mixed use, Healthcare,
Residential
Objectives
 Create an integrated approach to energy masterplanning
 Reduce carbon emissions, peak demand & pollution
 Focus on Savings Through ‘Supply Side’ Measures & Energy
efficiency
 Create a viable Business Model
City Masterplan : City Composition
Qingdao Climate
Load Calculation : Daily Load Profiles
Electrical load
Heating load
Cooling load
Developing the MEG : Technology Selection
Technology
Technical and Environmental Performance
Commercial
Viability
Occupant
Satisfaction
Noise Pollution, Air
Pollution, Water
Pollution, etc.
Air and noise
pollution (2)
Proven
Technologies
Space Take
Energy
generation
potential
Greenhouse gas
production
Energy cascade
potential
Payback period
Trigeneration
High (3)
Medium (2)
Waste Heat to be
reused (3)
Medium (2)
Photovoltaics
Medium (2)
Zero (3)
Stand alone (1)
Long (1)
Zero Emission (3)
Solar Hot
Water System
Medium (2)
Zero (3)
Waste Heat to be
reused (3)
Short (3)
Zero Emission (3)
Wind
Turbines
Medium (2)
Zero (3)
Stand alone system
(1)
Long (1)
Possible noise &
visual impact (2)
Widely used and
matured (3)
Concentrated
Solar
Medium (2)
Zero (3)
Medium (2)
Long (1)
Zero Emission (3)
Reliable (3)
Large Area (1)
Biofuels
Low (1)
Medium (2)
Yes (3)
Medium (2)
Air pollution (1)
Widely used and
matured (3)
Fuel Cells
High (3)
Zero (3)
Medium (2)
Long (1)
Zero Emission (3)
Early adoption.
TBC (2)
Waste to
energy
High (3)
High (1)
Yes (3)
Medium (2)
Air pollution (1)
Widely used and
matured (3)
Storage space
required (2)
Sizeable
additional space
required (2)
Sizeable
additional space
required (2)
Algae Biofuel
Low (1)
Medium (2)
Yes (3)
Long (1)
Possible air pollution
(2)
Relatively new (2)
Building
integrated (2)
Medium (2)
Zero (3)
Stand alone (1)
Long (1)
Zero Emission (3)
Widely used and
matured (3)
Large area under
ground (1)
N/A
Limited (3)
N/A
Medium (2)
Indirect influence (2)
Widely used and
matured (3)
Minimal Space
Required (3)
N/A
Limited (3)
N/A
Medium (2)
Indirect influence (2)
Relatively new (2)
N/A
Indirectly reduced
(2)
N/A
Short (3)
Zero Emission (3)
Widely used and
matured (3)
Geoexchange
System
Electric
Vehicles to
grid (V2G)
Vehicles
Wireless
Charging
Energy
Storage
Technology selection matrix
Reliability
Relatively new (2)
Large Plant (1)
Widely used and
matured (3)
Widely used and
matured (3)
Building
integrated (2)
Minimal Space
Required (3)
Large turbine for
reasonable
energy
generation (1)
Space required
along the vehicle
routes (3)
Sizeable
additional space
required (2)
Score
Replicability
Commercial and
business viability
Operational
complexity
Geography
dependencies
Weighted
Average Score
Easily replicable (3)
Medium (2)
Widely applicable (3)
23
Easily replicable (3)
Easy (3)
Depends on solar
intensity (2)
23
Easily replicable (3)
Easy (3)
Widely applicable (3)
29
Large capital
investment (2)
Easy (3)
Depends on wind power
density of the region (2)
20
Medium (2)
Depends on solar
intensity (2)
20
Medium (2)
Dependent on Biofuel
supply (1)
19
Payback to be
explored. (2)
Hard (1)
Widely applicable (3)
22
Easily replicable (3)
Hard (1)
Widely applicable (3)
22
Large capital
investment. Not
easily replicable (1)
Less commercially
viable (2)
Large capital
investment. Not
easily replicable (1)
Large capital
investment (2)
Large capital
investment. Easily
replicable (2)
Hard (1)
Depends on solar
intensity (2)
17
Medium (2)
Region Specific (2)
20
Hard (1)
Widely applicable (3)
19*
Required large
capital (1)
Easy (3)
Widely applicable (3)
19*
Large capital
investment. Easily
replicable (2)
Easy (3)
Widely applicable (3)
21
MEG Infrastructure : Integrated Energy Masterplan
Tri-Generation – 36 MW
Energy Storage – 20 MW
Absorption Chiller – 30 MW
PV – 5 MW
Solar Hot Water – 5 MW
Shandong
Electric Carbon
Intensity :
0.81 kg.CO2 /
kWh
Hansung City
MEG Carbon
Intensity :
0.64 kg.CO2 /
kWh
137,334
Equivalent
Trees of Carbon Saved
Operation : Model Output : Flow of Energy
Solar Hot Water
Producing Heat
Make up from
top up boilers
Base load by
Tri-Generation
Battery
discharge at
peak demand
Battery
recharge when
demand drops
overnight
Grid purchased power
provides peak load
Peak load by water
cooled chillers
Minimal
cooling load
over winter
Base load by
absorption chillers
CO2 Reduction & Energy Reduction : Results
Cashflow Analysis
Breakeven Point
Initial Capital Expenditure
(Phase 1)
Initial Capital Expenditure
(Phase 2)
Operation Expenditure
Positive (income) : Revenue from sales, government subsidy
Negative (outgoing) : Purchased power, maintenance, staff, equipment
replacement (end of life)
Lifecycle Cash Flow Analysis
IRR
10%
Payback Period
25 yrs
Hansung City KMEG : Summary
 Reduces Carbon Emissions, Peak Power demand
 Provides clean, resilient, cost effective energy to the city
 Integrates with city management – support Smart city concept
 Promotes truly sustainable development – Technology and Behaviour change
 Improves maintenance – preventative maintenance, fault finding, optimisation
The Future : Conclusion
 Micro Energy Grid – Cleaner, Smarter energy towards global goals
 Distributed Generation will form a key part of the future energy market
 South East Asia - great opportunity to take the lead in developing
Distributed Generation for sustainable cities
 Open discussion needed on the role of DG & Traditional Utilities
 Technological breakthroughs will speed up adoption – particularly
electricity storage & renewables for off-grid operation
Thank You
POWER-GEN Asia 2015
September 3rd 2015
Mark Cameron – Senior Consultant – Arup HK Building Sustainability
Mark.Cameron@arup.com
Access to Electricity in SE Asia (as % of population)
Myanmar – 52%
Vietnam – 99%
Philippines – 87%
Laos – 70%
Thailand – 100%
Cambodia – 31%
Malaysia – 100%
Singapore – 100%
Source: Worldbank
Indonesia – 96%
Brunei – 76%
Tariff Pricing Structure
3. Embrace the Smart City

How does MEG fit into Smart Grid?

Distributed energy forms part of the Smart Grid – small districts of localized energy
interacting with the grid – feeding and drawing from the Utility
Ensuring the Business Case : Financial Analysis
Discount Rate
(%)
Scenario 1.1
Scenario 2.1
Scenario 3.1
Scenario 4.1
Scenario 5.1
Scenario 6.1
3%
5%
7%
10%
12%
15%
Government
Subsidy
(RMB/kWh)
0.00
0.00
0.00
0.00
0.00
0.00
Scenario 1.2
Scenario 2.2
Scenario 3.2
Scenario 4.2
Scenario 5.2
Scenario 6.2
3%
5%
7%
10%
12%
15%
0.25
0.25
0.25
0.25
0.25
0.25
12.6%
12.6%
12.6%
12.6%
12.6%
12.6%
14.00
15.00
18.00
22.00
>50.00
>50.00
Scenario 1.3
Scenario 2.3
Scenario 3.3
Scenario 4.3
Scenario 5.3
Scenario 6.3
3%
5%
7%
10%
12%
15%
0.35
0.35
0.35
0.35
0.35
0.35
13.8%
13.8%
13.8%
13.8%
13.8%
13.8%
11.00
13.00
16.00
20.00
>50.00
>50.00
IRR
10%
10.1%
10.1%
10.1%
10.1%
10.1%
10.1%
Discounted
payback
(yrs)
17.00
21.00
25.00
35.00
>60.00
>60.00
IRR
Payback Period
25 yrs
Operation : Power Quality Modeling
Voltage: 220V (LV supply)
Deviation: +7%, -10%
Frequency: 50Hz
Deviation: +/-0.5Hz
Power Factor:
>0.9
The user provides following devices for connection to Grid:
Reactive power compensation device
Harmonic suppression devices
Automatic voltage control device
Automatic low-voltage low-frequency load shedding devices,
Load control device
Power Quality Parameters for Hansung City MEG
Benefits of Micro Energy Grid Approach

Demand response reduces peak demand on local utilities & carbon emissions

Utilise energy cascade to increase efficiency & reduce carbon emissions

Centralised real-time monitoring & response

Greater user understanding of consumption – reduced consumption through behavior
change

Resilience / reliability of supply to ensure no downtime

Reduced utility infrastructure – Offset installed capacity for utility networks

Export clean energy to city electricity grid

Operation under Islanded mode
Embracing New Technology
Vehicle 2 Grid (v2g)
Waste to Energy
Wireless Charging
The Role of Microgrid in a Regulated Power Market Structure
Gen Co.
Gen Co.
Gen Co.
Gen Co.
Gen Co.
Wholesale Market & Trading
Transmission
Retailer
Consumer /
Customer
Consumer /
Customer
Consumer /
Customer
Consumer /
Customer
Consumer /
Customer
Deregulated Power Market Structure
Gen Co.
Gen Co.
Gen Co.
Gen Co.
Gen Co.
Wholesale Market & Trading
Transmission
Retailer /
Microgrid
Retailer /
Microgrid
Retailer /
Microgrid
Retailer /
Microgrid
Retailer /
Microgrid
Consumer /
Customer
Consumer /
Customer
Consumer /
Customer
Consumer /
Customer
Consumer /
Customer
Towards Successful Implementation
成功执行的基础
 Utilities and state grid 公营事业和国家电网




Government 政府



Discussions and buy-in from government bodies needed
Negotiation on contract Terms and Conditions
Contractual 合约相关内容






Buy-in from Utility
Negotiation of tariff for purchasing power
Negotiation on maintenance cost of utility network (renting of transmission)
Many forms of contract can be adopted - DBOT is most common
Negotiate Terms and Conditions with government
Setting of energy tariffs – responding to increased fuel costs
Negotiate Government Subsidies (GS) and incentives
Create contract for end users
MEG Construction and operational risk MEG建设及运营风险



Increase in fuel costs
Development Phasing
Quality / ability of maintenance staff