Theme 2 Geza Joos – Business Case and Policy Challenges

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Theme 2

Planning, optimization and regulatory issues

Geza Joos, McGill University www.smart-microgrid.ca

Definition/features – microgrid

• Geographically delimited

• Connected to the main grid at one point

– fed from one substation

• May operate islanded

• Includes distributed generation (DG)

– renewables (inverter interfaced): wind, solar

– fossil fuel based (synchronous generators): CHP

• Includes an energy management system

– controlling power exchanges, generation and load

– with storage and demand response

Distributed generation – renewables

• Generation close to the load – siting

• Advantages/benefits

– Green energy – reduced environmental impact

– Enhanced reliability and flexibility

– Energy cost – competiveness (generated/delivered)

• New issues/differences

– Output variability – energy and power (ramp rates)

– Not schedulable/controllable – must run at MPPT

– Impacts – power quality (voltage variations, ramp rates)

– Grid integration and operational impact (loading, faults)

– Responsibility – maintenance, faulted operation

Microgrid implementation issues

• Business proposition for the microgrid owner

– Economic justification – kW cost, reliability, resiliency

– Participation in market/energy supply

• Ownership

– Private/IPP

– Utility

• Role and benefit for utilities

– Grid support – impact on the transmission system

– Role in power system restoration

• Operational/regulatory issues

– Responsibilities and jurisdiction – right to disconnect

Expected developments – smart grids

• Smarter distributed energy resources (DER)

• More communications between DER

• New grid topologies

– from point to point (generation to load) to distribution supply points,

– from radial to looped

• Active DER – voltage/Var regulation

– Note: not all of the smart distribution grid technologies are necessary/applicable to smart microgrids

Issues addressed in Theme 2

• Business case

– Justifying the setting up of a new microgrid, optimizing operation, configuring existing distribution systems into microgrids, regulatory issues

• Energy supply security

• Load management and demand response

– Making better use of the energy resources

• Case studies – benchmarks, typical systems and use cases

Application examples/justification

• Isolated/offline microgrids

– Remote communities – reducing the cost of electric energy, reliability, environment impact – Canada north

– Remote and movable military bases – supply security

• Industrial, community and commercial microgrids

– Large campuses – GHG reduction (green energy), energy independence – grid support and energy exchanges – BCIT

– Military bases – alternative energy supply, benefits of storage (EVs)

Projects and personnel in Theme 2

• Cost-benefits framework – secondary benefits and ancillary services

– Lead: G Joos, McGill University

– HQPs: 2 MEng and 1 PhD (equivalent full time); total trained: 3 MEng, 2 PhD

• Energy and supply security considerations

– Lead: R Iravani, University of Toronto

– HQPs: 2 MEng and 1 PhD (equivalent full time); total trained: 2 MEng, 4 PhD

Theme 2 projects and personnel

• Demand response technologies and strategies – energy management and metering

– Lead: K Bhattacharya, University of Waterloo

– HQPs: 2 MEng and 1 PhD (equivalent full time); total trained: 5 MEng, 3 PhD

• Integration design guidelines and performance metrics

– Organization to be determined

Solutions and deliverables

• Methodology for cost-benefit analysis of microgrids (P2.1)

– Application to remote communities

• Microgrids energy management (P2.2)

– Quantification of impacts and benefits of the microgrid and electrically-close multiple microgrids

• Demand response (P2.3)

– Load models, taking into account temporal and locational electricity prices, for demand management

Linkages – Industrial network partners

• NRCan

– P2.1 – remote communities, business cases (on going)

– P2.3 – demand response (on going)

• Hydro-Quebec/IREQ

– P2.1 – remote communities (on going)

• BC Hydro

– P2.1 – business cases (discussions)

• Hydro One

– P2.3 – demand response management (on going)

• Schneider Electric

– P2.3 – demand response controller (potential)

Linkages – Industrial network partners

• CYME

– P2.2 – network simulation

– P2.4 – benchmarks and use cases (potential)

• Manitoba HVDC

– P2.2 – network simulation, BCIT microgrid (on going)

– P2.4 – benchmarks and use cases (potential)

Linkages – other themes/researchers

• Theme 1

– P2.1 with P1.4 – remote communities (on going)

– P2.1 with P1.1 – control of DER (on going)

• Theme 3

– P2.1 with P3.4 – operation of the grid (discussions)

– P2.2 with P3.2 – operation of microgrid (potential)

– P2.1 with P3.2 – energy management (potential)

• Within Theme 2

– P2.1 with P2.3 – demand response (potential)

– P2.2, P2.2 with P2.4 – models, benchmarks (potential)

Relevance to Canadian industry/utility

• Deliverables include

– Methodologies for evaluating business cases

– Control approaches for the operation microgrids – DER control and energy management

– Configuration of microgrids and interaction between microgrids – evaluation towards an intelligent distribution grid

• Differences with other jurisdictions

– Distribution system configuration (single phase feeders)

– Urban, rural and remote microgrids have differing requirements

– European microgrid solutions do not generally apply

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