Maryland Clean Energy Summit Panel
Wednesday, October 16, 2013

What is a Microgrid?
Real-Time Optimization of Energy Assets
The MicroGrid concept builds on technical & commercial concepts evolved from advances in automated Demand Response (DR) integrated with Distributed Generation (DG) and Electric
Storage (ES). The “MicroGrid” is an integrated energy system of distributed energy resources & multiple controllable electrical loads operating in a single, autonomous grid —allowing ‘islanding” from the utility power grid to provide the following key capabilities :-
Conceptual Image of a Microgrid
Improved energy security and higher reliability through direct “command & control” of owned distributed energy resources
Enable redundancy and backup scenarios that ensure operations and mission specific events are risk managed to avoid energy curtailments
Optimize energy assets to gain site efficiencies by managing the load profile and peak demand utilizing own “inside the fence” resources
Maximize the return on assets and income through energy arbitrage and interfacing with energy markets with demand response and ancillary services
Source: DNV KEMA
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Microgrids
Tools Needed to Finance Applications
 Today, there is a great deal of focus on understanding what a microgrid can do and how it can help
 The challenges come in trying to finance the projects when there is uncertainty on applications, technologies, payback, and performance
 Tools that can assist financing entities to assess the potential of the application and payback of the microgrid are essential to public – private partnerships
 Are tools available today?
DNV KEMA has developed a microgrid optimization tool designed to measure the cost effectiveness of the application
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DNV KEMA Microgrid Optimizer Overview
 The MGO model simulates a Microgrid Management System (MMS) by optimizing revenue or emission reductions.
 Includes physical models of generation, storage and load resources
 Embeds control algorithms of Building Management Systems and islanded operation
 Models net-metering as well as wholesale market participation in ancillaries and demand response.
 The model runs hourly simulations over 365 days and produces total lifecycle costs and benefits.
 Includes statistical methods for forward forecasts of customer loads and gas prices
 Analyses the ability to service loads under islanded operation
 Detailed characterization of building loads and energy efficiency measures
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MicroGrid Optimizer Tool
Based on Interactive Technical and Commercial models
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Tool Easily Enables Energy Assets – EE and DR Measures
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How it works!
Microgrid Optimization Model Details
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Summary
 The key to financing microgrids is having the tools to accurately and confidently predict the operation and benefits
 The DNV KEMA Tool is one means to provide clarity in how the microgrid will operate, the benefits it will produce, and the payback it will provide
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Jessica Harrison
Principal Consultant
DNV KEMA Energy & Sustainability
Jessica.Harrison@dnvkema.com www.dnv.com