John B. Wharton, PE

Technical Executive

Baltimore, Maryland

October 16, 2013

Perspectives on Grid-Integrated Microgrids

Maryland Clean Energy Summit

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Microgrids in the News

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MicrogridsWhat is a microgrid?

DER

DER

Feeder

Other Feeders

DER

DER

• Interconnected loads and distributed energy resources

• Acts as a single controllable entity

• Connects and disconnects from the grid

Bulk supply connection

Single Customer Microgrid

Distribution Substation

Full Substation Microgrid

Full Feeder Microgrid

Partial Feeder Microgrid

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Why Microgrids?

$-

$0.05

$0.10

$0.15

$0.20

$0.25

$- $2 $4 $6 $8 $10 $12 $14 $16

LCO

E

Price of Natural Gas ($/MMBTU)

LCOE for DG in Commercial Applications

50 kW Microturbine1 MW Industrial Turbine400 kW PureCell200 kW SOFC

Impact of Natural Gas

Resiliency

Remote Power Systems

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Other Drivers for Increased Interest

• Improved Technology

• Opportunities for Combined Heat and Power

• Energy Security

• Public Policy

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What is happening in Japan?

• $32M Subsidy for application of Building Energy Management Systems (BEMS) and Home Energy Management Systems (HEMS)

• Feed in Tariff for PV Applications (approx 40 cents/kwh)

• Residential and commercial storage applications also subsidized (Orix storage leasing program $50/month)

• Electric vehicle charging with two way capability

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Utility Challenge – Integration

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Summary – Where do microgrids fit?

1. The Economics of Local Generation• Optimize energy source based on market • Ability to participate in ancillary services and demand response• Combined heat and power opportunities

2. Additional Benefits of a Microgrid• Continuity of Service – Resiliency

3. Additional Costs and Challenges of a Microgrid• Additional costs and complexity for interconnection and protection• Requirements for safety• Requirements for control and capacity during island operation, and

maintaining power quality8

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EPRI Related Research

• Draft Primer on Microgrid Technology and Applications

• Investigation of the Technical and Economic Feasibility of Micro-Grid-Based Power Systems 1003973.

• Distributed Renewable Energy Generation Impacts on Microgrid Operation and Reliability, 1004045

• Program on Integrating Distributed Generation into the grid

• Program on Energy Storage Systems and Distributed Generation Technologies

• Distribution and Transmission Grid Resiliency

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