distributed resources at richard seguin - principal engineer distributed resources planning dte...
TRANSCRIPT
Distributed Resourcesat
Distributed Resourcesat
Richard Seguin - Principal Engineer Distributed Resources PlanningDTE Energy – Detroit Edison [email protected]
DTE EnergyDTE Energy
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Agenda
DTE Energy Background Integration into Planning & Operating Process
Discussion Break Detroit Edison DG Experience
– Distribution Solutions Siting Load Following
– Premium Power
Discussion Break Other fancy work
– DoE DER Aggregation, Communication, Control and Sale
Discussion Break
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DTE Energy Business Segments
Detroit Edison Power Generation
Energy Services
Coal Services
Biomass Energy
Trading & Co-Energy Portfolio
EnergyResources
Detroit EdisonPower Distribution
EnergyDistribution
MichConGas Distribution
Non RegEnergy Gas
EnergyGas
Energy TechInvestments
HoldingCompany
Corporate & Other
Regulated
Non Regulated
Michigan
Service Area: 7,600 Sq. Miles
Customers: 2.1 million
System Peak Load: 12,132 MWAnnual Sales: 56,000 GWH
37% Commercial29% Residential29% Industrial 5% Wholesale & Interconnection
Detroit Edison Service Area
Distribution Substations 662
Distribution Circuits 2,808
1,876 @ 4.8kV
932 @ 13.2kV
Distribution Circuit Miles 38,939
20,184 @ 4.8kV
18,755 @ 13.2kV
Subtransmission 2,664 @ 24 kV
797 @ 41.6kV
Distributed Generation: 1,427 MWor 12 % of Peak Load
(Does not include < 100kW units)750 MW interruptible
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DTE Energy’s DG Commitment
“ Several years ago, the leadership at DTE tried to envision what the electric utility business would look like in a decade. One of our conclusions was that this industry would go through the same transformation that the computer business has experienced. There, mainframe computers gave way to desktops which gave way to laptops.
In the electric industry, the day of large central station power plants has already given way to modular, combined cycle gas powered plants. We envisioned a day when the next step, distributed (or personal) generation would play a major role. In fact utilities may be among the first real-world, large scale users of distributed generation. Distributed generation will increasingly become a cost-effective alternative to the expansion and reinforcement of T&D infrastructure”
Anthony F. Earley, Jr. Chairman & CEO, DTE Energy
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Traditional Electric System+
Personalized Power through Distributed Generation (DG)
DTE’s Vision for Distributed Generation (DG)
Traditional Electric System
Just another tool
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DG Vision
Let’s imagine a semi-truck load of new DG technology starting up and heading toward the utility; there are 3 ways to deal with it:
Throw yourself in front of the truck and hope it stops
Grab on to the back bumper and drag your feet Jump into the cab of the truck and help to steer
it.
The latter is the way that DTE Energy chooses to deal with this new technology.
DG Technology
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Integration into the Planning & Operating
Process
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The Utility Today
Many utilities’ capital budgets are decreasing as their customer’s expectations are increasing
Utilities must balance the need for new distribution and caring for existing distribution
We can’t afford to solve every 1MVA problem with traditional T&D 30MVA solution
– Problems that may only exist for a few hours per year
– Capacity that may not be fully utilized for several years. DG is one way of delivering just-in-time and “right-sized”
capacity to resolve smaller short falls while minimizing the initial capital outlay
Freeing dollars for reliability and maintenance
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DG Integration – 2003 ReviewProject No vs Project Cost per kW
Avg Cost of
new distribution
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Distribution Capital BudgetItems Included in Cost per kW
All New Business Projects and their installed capacities All Overload Projects and their installed capacities All Increase Load Blanket cost @ NO capacity addition All System Improvement Blanket cost @ NO capacity addition All Blanket Land Purchases @ NO capacity addition All project cost (includes prior, current and future year
expenditures) plus land, transformers and all project specific overheads
Utilized Capacity (capacity available for use) only not total installed capacity
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Items NOT Included in Distribution Cost per kW
Street Lights Relocations (required removal
of facilities located in public R/W)
Transmission (Not our company not all cost is associated with increased distribution load)
Subtransmission (Not all cost is associated with increased distribution load) *impacts of including evaluated
Reliability Projects (Cost does not result in significant capacity increase) *impacts of including evaluated
Distribution Transformers Service Standards (Small
Reliability projects - MPSC required capital to resolve frequent outage pockets)
Tree Trim (Capital Tree Trim) Maintenance (Primarily Pole
Top Maintenance) DWRP(Downed Wire
Replacement Program) URD Replacement (end of life
replacement of failing URD cable)
NURC (Normal Unit Retirement Changeout)
EURC (Emergency Unit Retirement Changeout)
Secondary Improvement (Replacement & rebuilding of old secondary system)
CIAC (Contribution In Aid of Construction)
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Graph represents Overload and New Business Projects Not Reliability Projects. The cost per kW for Reliability projects is typically very high.
DG Integration – 2003 ReviewProject No vs Project Cost per kW
Avg Cost of
new distribution
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Project No 1 Cost/kW Capacity vs Cost/kW Short fall
0
$20/kW
Replace 2.5 MVA Transformer with existing 5 MVA
Install Portable Substation $ 5K
Remove existing 2.5 MVA Transformer $ 20K
Install stock 5 MVA Transformer $ 20K
Remove Portable Substation $ 5K
Total Project Cost $ 50K
Capacity added 2,500KW
Cost per Capacity Added $50,000 / 2500 kW = $ 20 per kW
Cost per Shortfall $50,000 / 500 kW = $100 per kW
@ 10% Growth this last 4-5 years
$100/kW
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Example of Cost per Shortfall
Traditional T&D Substation $6,000,000
Capacity Added 30,000kW
T&D Cost per kW added $ 200/kW
Traditional T&D Substation $6,000,000
Capacity needed (Short fall) 1,000kW
T&D Cost per kW Shortfall $ 6,000/kW
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Keys to DR integration
Real Management Support is a must Name a champion to shepherd the integration Change the measure - $/kW capacity shortfall not $/kW capacity added It’s just like a portable Consider utility, customer, or premium power shared DR Effective use of manpower & resources
– Standardize the design & operation– Construct with a generation knowledgeable contractor
Build community partnerships - a temporary solution with minimum usage
Communicate, Communicate, Communicate
DR is distribution capacity! not generation for generation sake
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Possible DG Solutions
For Maintenance
– Small substation
– Facilitating shutdowns In an Emergency
– Saving or minimizing emergency outage or equipment damage
– Relieving overload or low voltage condition Temporary use
– We can’t get a permanent fix done in time
– DG and Differ Permanent
– Redundant Service
– Long term solution Alternative to T&D Replacement of old generation with DG
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Potential DG Solutions
Utility Owned – Distribution solutions for load relief
Utility and Customer Joint ownership– Premium Power - utility owned DG leased by customer
Utility Benefit – Non Sellback NEGAWATTS or Load offset – Sellback MEGAWATTS or total available DG
Customer Benefit– Standby– Lower rate if interruptible
Customer owned DG – No formal customer relationship exist– Informal request for DG use and/or load reduction have been done
– Negotiated with Water Board and established formal DG lease as a temporary distribution solution
Customer Interruptible– Interruptible rate primarily for generation shortfalls, but….
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Premium Power
Ed Henderson Detroit Edison’s “Premium Power Presentation” Distributed Generation Conference May 6, 2004
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Premium Power Structure
Detroit Edison’s Premium Power Service offers onsite standby generators that can prevent costly disruptions to business and commercial operations
Equipment is installed, owned, operated, & maintained by Detroit Edison
Every project is uniquely tailored to meet customer’s needs
For a simple monthly fee, Premium Power provides the customer with an alternative to a second utility feed
Standard contract length is seven to ten years; contract continues year-to-year thereafter
Provides a dispatchable asset to address generation, transmission and/or distribution constraints
Available to bundled tariff customers only
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Premium Power & Interruptible Rates
Detroit Edison offers interruptible rates to all commercial and industrial customers
– Energy is discounted for ability to interrupt customers in times of system need
– Current electricity market supply exceeds demand, so interruptions have been minimal
– Potential transmission constraints and/or a hot summer could result in interruptions
Interruptible rate discounts on all kWh vary from approximately 10% to 25% depending on tariff
Net effect of Premium Power Service-breakeven to 10% premium
Service guarantee covers tariff performance penalties
Questions & Discussion
Distributed Generation atDTE Energy
Distributed Generation atDTE Energy
Substation ApplicationsTemporary & Maintenance
Circuit ApplicationsEmergency & Temporary
Premium PowerCustomer
Partnership Applications
Technology Testing
Union Lk ENR2000 2MW DieselAdair ENI1000 1MW NG
Emergency ENR2000 2MW Diesel Grosse Ile High School
ENI1000 1MW NG
Wayne State Univ ENI 75 Dialysis Center ENI 150 Service Center ENI 150 & 75
Assumption ChurchENI1000 1MW NG
Substation IslandingENR2000 2MW Diesel
Southfield Solar & Future H Power Park ZBB Flow Battery
Substation Battery Replacement Project
Distribution
Solutions
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Michigan
UnionLk3 2 yr diesel
Adair2 yr NG
RichvilleMaintenance
Grosse Ile5 yr NG
Shores3 yr NG
QuailMaintenance
WayneEmerg diesel
CollinsEmerg diesel
DTE Distribution Solutions
Milford3 yr NG
Water Bd2 yr diesel
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Internal to Distribution CircuitCollins – Previous Emergency Installation
An emergency installation of a 2MW DG ending daily circuit outages forced by overload to 3500 customers on a 13.2 kV multi grounded Y. The $500K spent on an emergency generator and circuit work were roughly equivalent to annual charges for a one year delay of the $6.4M Collins substation project. If planned the this emergency alternative including the DG installation would have been more economical.
Grosse Ile - Current Temporary InstallationA five year project, on high school property, deferring eventual T&D expansion on the island. A $3.8M Grosse Ile 4.8 kV substation expansion project is planned. The project involves bringing in another marine cable feed to the Island. The DG installation cost is $900K.
St. Clair Shores – Current Temporary InstallationA three year project, on church property, to manage loading on a land locked 4.8 kV delta circuit in need of relief before the new $4.0M Erin substation is built. No other cost effective solution existed.
Wayne Circuit – Temporary/Emergency Installation A 4 month installation to provide 13.2 kV circuit relief due to R/W delay in a new $5.2M Zebra Substation Project. No other cost effective
Solution (1 mile of new overhead – $180k) to prevent rotating blackouts to 2100 customers.
Milford – Temporary InstallationA three year project, on School property, to manage loading on a overloaded 13.2 kV Y circuit in need of relief before the new $3.8M Milford substation expansion is built. No other cost effective solution existed.
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Substation Applications
Adair – Previous Temporary Installation
A two year project, a traditional 4.8kV Delta substation expansion solution could not be completed in time to relieve the transformer emergency overload. Costs were approximately breakeven. The substation budget cost was $800k, and DG project was $870k. The DGs installation allowed for the deferral of the substation project an additional year.
Union Lake – Current Temporary Installation
A three year project, traditional Union Lake 4.8kV to 13.2kV conversion project to relieve a exit cable emergency overload could not be completed before summer overload. The equivalent annual cost of the Union Lake conversion project as proposed was $137k ($1.7M over 60 years @ 8%). The equivalent annual cost of the interim DG solution was $61k ($600K over 20 years @ 8%). The DG will allow further deferral of the T&D project.
Quail – Previous Emergency/Maintenance Installation
Islanded small substation Saved 800 customers served from this 4.8kV substation from having 2-10 hour outages and the importing of addition crews in order to repair a 40kV feed damaged by a tornado.
Richville – Maintenance, Islanded small substation
Same situation as Quail above
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Collins ENR 2000 – Emergency 2 MW DG
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Adair ENI 1000 - 1MW DG Installation
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Quail 1.5 MVA, 41.57/4.8 kV Substation2MW Diesel Islanded to perform emergency repairs & maintenance
17.5 miles of radial 41.57kV exposure feedsRichville and Quail Substations Quail Substation (rural substation in Michigan’s Thumb region)68.2 miles of 4.8kV deltaFeeds 571 customers A peak load of 1.4 MVA
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DG Connection Trailer – Dual Voltage, OH/UG Connection, Protection & Communication
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Grosse Ile DC 2842 - 1 MW Nat Gas
DR M0001 - LW E. River, 8PN GraysGrosse Ile Schools
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Shores DC 1770 - 1 MW Nat Gas
DR B0001, St Joan(ext), 5PE Marter Assumption Greek Orthodox Church
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Union Lake DC 1688 - 2 MW Diesel
DR H0004 Union Lake Substation
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Wayne - ENR 2000 Diesel Installation