Dr. Brian Hirsch
Senior Project Leader – Alaska
National Renewable Energy Laboratory
USAEE Conference - Anchorage, AK
July 29, 2013
NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

• Energy is EXPENSIVE: up to $10/gallon & $1/kWh; highly variable throughout state
• Very limited economies of scale within communities, BUT ~200 communities + remote industrial operations
• Remote, challenging logistics – limited transportation, communication, infrastructure, human and physical capital, etc.
• Heat is not optional, and consumes more primary energy than electricity
• Some relative success stories in terms of high penetration wind-diesel hybrids, e.g., Kokhanok, Kongiganak, Kwigillingok, Kodiak
Icing in Nome
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Village of Ugashik
Hybrid Performance Monitoring Project
• Working with ACEP at UAF, AEA
• Monitoring performance of wind-diesel-battery hybrid system to determine relative contribution of various RE inputs and diesel savings for system optimization
• Results replicable for other projects in region and beyond
• Very windy site (class 5), but PV performed as well as wind on kWh/kW installed basis, and better on a $/kW installed basis with current pricing
14%
51%
34%

Ugashik Hybrid Power: Wind, Solar, Diesel, Battery
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• What is a microgrid?
o o
“group of interconnected loads and distributed energy resources that acts as a single controllable entity with respect to the grid. It can operate in both grid-connected and
island-mode”
[Office of Electricity, DOE Microgrid
Workshop Report, 2011 San Diego, CA]
“Best hope for developing world”, according to
UN
• What is energy security? US Navy: o o
Source: IEEE 1547.4
“having assured access to reliable and sustainable supplies of energy and the ability to protect and deliver sufficient energy to meet operational needs”
2008 Defense Science Board Task Force on DoD Energy Strategy described vulnerability of the nation’s electric power grid o The number of large blackouts at a national level is growing in number and severity
• Miramar had an eight hour outage in September 2011 o o o o
Training missions were canceled and planes grounded
Most personnel (both military and civilian) were sent home
Marines needed to man electric gates, traffic lights and other facilities
Food spoilage in mess halls and commercial outlets
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MCAS Miramar
• Outside San Diego, CA
• Primarily flight training and operations
• Peak loads are summer afternoons o 14 MW peak, 7 MW avg, 5 MW min
• Track record of successful EE and RE projects
• Critical loads are Flight-Line and supporting facilities o 6 MW max, 3.5 MW avg, 2.5 MW min
• Electrical configuration allows for centralized control point
Microgrid Design Criteria
• Operate for at least two weeks
• Power critical loads upon loss of utility grid
• Incorporate as much renewable energy as feasible
• Phased approach to include entire base in the microgrid
• Redundant fuel sources important to enhance reliability
• Demonstration project for the Marine Corps and DoD
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• NREL completed NZEI assessment in 12/2010
• MCAS Miramar energy projects to date: o o o o o
Numerous energy efficiency projects
1 MW of solar PV plus solar parking lot and street lights
Solar thermal pool heating
3 MW landfill gas PPA
ESTCP energy storage project o Currently approximately 50% renewably powered
• Miramar received funding to perform microgrid assessment in 03/2011 o o
NREL worked with Miramar to complete a conceptual design plan report completed on
09/2012
Awaiting ECIP funding request for microgrid implementation
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• Continuously Optimized Reliable Energy (CORE)
Microgrids
• Differentiating Characteristics:
– Integrates into 24/7 operations
– Can optimize on economics or surety
– Focuses on fuel diversity
– Expands/contracts to provide energy for all load coverage spheres
– Phased approach can allow for gradual addition of components over time
 Load prioritization and migration with added generation
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Step 1:Evaluation of
Existing Reports
NZEI Assessment
Existing
Generation
Existing Energy
Management System
Energy Surety Plan
Step 2:
Data Gathering
Grid Infrastructure
Generator
Specifications
Load Profiles
Grid
Operations/Valuing
Energy Security
Step 3:
Design Analysis
Detailed Electrical
Model
Modeling &Studies:
•
Power Flow
• Dynamic Stability
• Short-Circuit
Controls
Communication/
Cyber security
Financial Analysis
• CORE Microgrid Design Process is replicable o o
Currently being applied at the USAFA
Identifies potential solutions for acceptable levels of risk and economic value streams
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Step 4:Installation and Monitoring
Inform
RFP/Cost
Estimating
Selection of
Integrator
Construction
Independent
Verification
& Validation

• Modeling is needed because Microgrids present unique design challenges o Self regulation for voltage and frequency o Advanced controls and protection schemes o Fossil fuel and alternative energy generation resources o Need to analyze start up sequence
• What do you Model: o Electrical distribution system, generation equipment, loads, and control system response
• Use the model to simulate operating scenarios and predict performance o Microgrid start up, feeder loss, faults, different generation options
• Modeling conclusions can be used to inform o Generation type/sizes, supervisory controls, operating procedures
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• A minimum of 4 MW of diesel is recommended o This is needed for adequate load pick-up
• As expected, an all-diesel solution would work
• The 4 MW diesel, combined with 2 MW gas may work o Transient voltage/frequency excursions would be larger, and would likely require subdivision of feeders and/or auxiliary assets for transient support
• It is unlikely that an all-gas solution could work without energy storage and/or load control due to large load steps
• The best solution for cost and performance may be a hybrid system, with PV, diesel, LFG, storage, and natural gas o Optimization needs to be done as part of formal design
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• Capital costs were estimated for a variety of scenarios o Selected design ~$25 M o Excludes costs associated with cyber security certification
• Revenue streams from peak shaving, demand response, and offsetting grid purchases o Offsetting grid has most value but has operations and air permitting challenges o SDG&E demand response program is established revenue stream and increasing need for the utility
• Operation and maintenance costs still need to be estimated o Will vary substantially based on selected O&M scenario
• Most scenarios don’t have a positive NPV o Still a better value than a system that can only be used for backup power (diesel) o Energy security value
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• CORE microgrid design process identified a workable solution to inform an RFP with performance specifications and verification and validation options o An acceptable level of risk is needed to determine the appropriate costs for a given level of increased reliability o Continuous operation decisions related to revenue streams impact the design
– Single fuel generators are cheaper and more functional option than dual fuel options
• Microgrid operations decisions are critical and heavily influence design o Operating and maintenance responsibility decisions are complex and may need to be determined as the project evolves
• Cyber security certification will be a challenge
• Demonstration microgrid projects are needed at DoD sites: o o
Further develop the technology, identify applications, and determine total costs
Commercially available technologies are out there
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Microgrid Capacity by Region, World Markets: 2Q 2013
Rest of World,
393.68
Asia Pacific, 390.24
Europe, 508.13
North America,
2,473.54
(Source: Navigant Research)
(MW)
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Microgrid Capacity by Segment, World Markets: 2Q 2013
Commercial/
Industrial, 439.29
Remote Systems,
754.52
Community/ Utility,
928.80
Military, 614.27
Institutional/
Campus, 1,028.71
(MW)
Source: Navigant Research
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Microgrid Capacity by Forecast Scenario, World Markets: 2013-2020
14,000
12,000
Base Scenario
Average Scenario
Aggressive Scenario
10,000
8,000
6,000
4,000
2,000
-
2013 2014 2015 2016 2017 2018 2019 2020
Source: Navigant Research
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• Microgrid Capacity, Average Scenario, World Markets: 2013-2020
10,000
9,000
8,000
7,000
North America
Europe
Asia Pacific
Rest of World
6,000
5,000
4,000
3,000
2,000
1,000
-
2013 2014 2015 2016 2017 2018 2019 2020
Source: Navigant Research
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• Microgrid Revenue by Forecast Scenario, World Markets: 2013-2020
$70,000
$60,000
Base Scenario
Average Scenario
Aggressive Scenario
$50,000
$40,000
$30,000
$20,000
$10,000
$-
2013 2014 2015 2016 2017 2018 2019 2020
Source: Navigant Research
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• Policies: No integrated approach, in part because of diversity of applications, resources, settings – No
“one size fits all”
• Costs: wholesale power is still cheap; energy storage and niche/small generation is still expensive
• Technology: Advanced controls, smart grid, system integration still evolving
• Value Propositions: All energy is not created equal
(surety, reliability, power quality), but is often priced the same
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Brian.hirsch@nrel.gov or 907-299-0268
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