1I N T R O D U C T I ON

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PEER

| http://www.perfectpowerinstitute.org/join-ppi

Grid Modernization

Leveraging a Microgrid ApproachPerformance Excellence in Electricity Renewal

Presented by John KellyExecutive Director, Perfect Power Institute

October 15, 2013Maryland Clean Energy Summit 2013

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Microgrid Approach to Smart GridBuildings Microgrids Utility ISO

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Microgrids Attract Private Investment in Security and Grid Services

• Police/Fire• Medical Center• Assisted Living• Schools• Communications• Shelters• Hotels• Fuel Stations• Water, Waste

Water, Flood Protection

• Residential Towers

Grid Services

• ISO ancillary Services

• Price response

• Utility grid support (voltage, VAR’s)

Customer Services

• Renewable generation

• Higher levels of power energy efficiency

• Providers of islanding capability if grid is lost

• Power Key Facilities and services when the grid is lost

• Provide services to protect the grid• Lower statewide peak demand & prices• Improve power efficiency and emissions

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4| PPI PROPRIETARY INFORMATION

Microgrids Focus Utility Investment on Local Distribution

SUBNeighborhood

Circuits

Substation

Circuit 1

Circuit 2

Feeder138 or 34.5 kV

XSmart Switch

Smart Switch

After-Self Healing

NeighborhoodWiring

Substation

Circuit 1

Circuit 2

Feeder138 or 34.5 kV

X

SUB

SUB

Before

One fault takes out

entire sub

Fault isolated no one notices

Fault isolated limited impact

4Open switches near fault and close loop switch

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5| PPI PROPRIETARY INFORMATION

Maryland Generation Mix

50%

8%

34%

8%

42,000,000 MWh

Scenario MW

CO2eLb./

MWh

SEI, MMBtu/

MWh

Base Case 1,400

10.0

Local Generation (15% of use)

+ CHP 500 -200 -0.6

+ DG 1,500

-100 -0.1

+ Solar 500 -60 -0.3

Procurement

+ CCCT 1,000

-300 -0.6

+ Wind 1,000

-150 -0.7

Improvement 600~60

%

7.7~25%

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6C R I T E R I A

CO2e SEI

Default Supply

1,260

10.2

Integrys

1,045 7.5

Chicago Virtual MicrogridELECTRICITY SUPPLY ENERGY EFFICIENCY CRITERIA

43%

35%

18%

2% 1% 1%

Default Electricity Mix

WIND

HYDROBIOMASS

COAL

SIMPLE CYCLE

NATURAL GAS

NUCLEAR

95%

5%

Integrys Electricity Mix

WIND

COMBINED CYCLE NATURAL GAS

Energy savings of new mix is equal to

Retiring a

160MW coal plant

or an

82% reduction in electricity use

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7| PPI PROPRIETARY INFORMATION

Leveraging Electricity ProcurementENERGY EFFICIENCY AND ENVIRONMENT METHODOLOGY

Contracts determine mix of sources

GRID

capacity80 GW

REN

EW

AB

LE

capacity100 GW

NU

CLEA

R

IDLE

capacity230 GW

13%SIM

PLE G

AS

87%

IDLE

capacity170 GW

35%

HIG

H E

FF.

GA

S

65%

CO

AL

IDLE

capacity300 GW

65%

35%

2012 usage

Leveraging renewables and idle high efficiency natural gas to

improve performance

100’s of GW of coal generation remain available but idle

94%

IDLE

32%

capacity240 GW

94%

IDLE

32%

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50% Outages50% Capital waste50% Energy waste25% peak demand50% Emissions

• Islanding• Renewable generation• Demand reduction • District energy• Load shifting• Auto-restoration

Performance Outcomes

Capabilities

Microgrids shift the focus to measurable improvements and capabilities.