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CEMIE-Redes

Table 7

Microgrids Discussion topics, background and questions

Cuernavaca, Morelos, México

September 2018

Contents

1. Introduction ................................................................................................................. 1

1.1. Background……………………………………………………………………………..2

1.1.1. Microgrids………………………………………………………………………….4

1.1.2. Architecture Conceptual Model…………………………………………….……5

1.1.3. Cybersecurity and communications………………………………….……........6

1.1.4. Technology Mega-Trends……………………………………………………......7

2. Workgroup´s description ......................................................................................... 8

3. Guide questions for the panelists ........................................................................... 9

4. Schedule .................................................................................................................. 10

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1. Introduction

The energy sector in Mexico is going through major transformations, the main one involving the

change of an energy system based on primary energy resources and technologies that

generate a large amount of greenhouse gases (GHG), to a low emission energy system of

these gases. To face this new challenge, the government of Mexico issued the Law of Energy

Transition (LTE, for its acronym in Spanish) which aims to regulate the sustainable use of

energy as well as the obligations in terms of clean energy and reduction of pollutants from the

electricity industry, maintaining the competitiveness of the productive sectors. To meet the

goals of generating clean energy, 25% by 2018 and 35% for 2024, is required to integrate to

the power grid, renewable, wind, solar and hydro generation and distributed energy resources

such as energy storage, charge and discharge of electric vehicles and applications of Demand

Response Programs.

On the other hand, the Mexican Smart Grid Program is aimed to support the modernization of

the transmission power grid and the power distribution networks to achieve a reliable and

secure infrastructure to meet demand for electricity on an economic, sustainable and efficient

way, incorporating new technologies to promote reduction of costs in the electricity sector,

allowing greater interaction between end-users and the power grid.

In this context, a concept that contributes to the reliable operation of the distribution network is

the Microgrid. General distribution networks and Micro Grids are designed to improve the

reliability and to incorporate non-traditional power generation resources.

The Smart Grids Innovation Challenge – Mission Innovation, establish actions for the

implementation of Smart Grids, starting with technology innovation and high penetration of

Renewable Energy Resources, but this can cause reliability and interoperability problems when

DER´s are connected to the distribution networks. Being necessary to conduct research and

development in the area of Micro Grids, Smart Grids and Storage, to develop technology

solutions and models. Also to ensure the design, integration, management and optimization of

the electrical networks to allow the operation of the power grid. Integrating the use of the

renewable energy in the general distribution networks, as well as the development of

technologies should be for consumers (industrial, commercial and residential) to carry out the

Demand Side Management to help balance supply and peak demand.

In 2017, the México´s Ministry of Energy (SENER) issued a new version of their Smart Grid

program, to complete information of the issued in 2016. The Mexican National Center of Energy

Management (CENACE, for its acronym in Spanish), Transmission Operators and Distribution

Operators should develop this new version of document point out projects in the short, mid and

large term. With this new version is expected that new criteria for planning and incorporation of

technologies to the Smart Grid should contribute to:

• Improve the operation of the national electricity system, increasing their efficiency, quality,

reliability, continuity, security and sustainability,

• Promote the generation of electricity from clean energy sources, at large scale;

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• Allow the dynamic optimization of the operation of the National Electrical System;

• Support in the management of the electricity market;

• Incorporate the distributed generation, including renewable energy sources;

• The interaction with customers,

• Improve the quality of the service provided to the end user;

• Facilitate the provision of additional services and the integration of electric vehicles and

storage supplies.

Mexico´s Law for the Electric Industry (LIE, for its acronym in Spanish) arises as a fundamental

premise that the deployment of the Smart Grid must contribute to improving the efficiency,

reliability, quality and security of Mexico´s electricity system. Incorporating advanced

technologies of measuring, monitoring, communication and operation, among others, that

facilitates open access and not unduly discriminatory to the national transmission grid and

general distribution networks, allowing the integration of sources clean and renewable energy.

With the inclusion of competition and opening of the Wholesale Electric Market (MEM as stands

for its name in Spanish), the Mexican National Center of Energy Management (CENACE) acts

as the central element of the electricity market. CENACE act as mediator of the offer and

demand, in order to reduce the costs of operation of the power grid and offering to Mexico

electricity with quality, availability and reliability. In addition, the opening of the MEM also implies

end users will have the option to participate in the market with its own demand. This means

that users can offer instant demand wishing to reduce (through its same suppliers who shall

carry out the role of adding loads of clients, or their own loads) getting economic benefit for it,

as occur in international markets. This concept is called controllable demand (Demand

Response Program), which will enter into operation with MEM in the near future. For this

reason, microgrids must consider this element within its integration to be able to cope with

national electricity rates schemes in case of interconnection with the national grid.

1.1. Background

A Microgrid is essentially a segment of a power distribution system connected to the electrical

system of the power supplier company, having the ability to generate its own energy and

operate in isolation when it is necessary to increase the reliability of supply to their local loads.

To do this, the microgrid must have from the side of the offer, with DER´s (mostly renewables),

and usually with energy storage systems (ESS), to meet the local demand for a certain time or

permanently. All of these distributed resources are known as distributed energy resources

(DER´s) and are required to consider a segment of the electrical distribution network as a

microgrid.

Currently, new elements are incorporated to the General distribution networks (GDN), such as

electric vehicles, which may be an additional load or a DER. These elements add an additional

complexity to the operation of a microgrid. Since all these resources must operate in a

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controlled and coordinated way, either with the microgrid connected to the GDN or the microgrid

operating in an isolated manner1.. To do this, the development of methodologies, software,

technologies, and standards integrated in the energy management are indispensable in a

microgrid, giving the appropriate energy dispatch to the DER´s, and the reliability and efficiency

in the operation of the microgrid.

In addition to the Energy Management System, the demand side methodologies, software,

technologies, and standards for market operation should be developed to have models of

control and demand management, allowing the user to participate in the local or national

electricity market.

This definition of microgrid covers the remote systems permanently disconnected from the GDN

and segments of the electrical networks that operate with or without connection to the GDN as

appropriate. For this reason, some consider that a Smartgrid is a mesh of interconnected

microgrids that become building blocks integral or subsets of larger grids, which should have

all the elements of control for their interconnection to the powergrid.

From the operational point of view, microgrids DER´s should have instruments and processes

both of market rules and equipment and interconnection control to provide the required flexibility

of interconnection and energy management. The DER´s must guarantee operation of the

microgrid as a single system aggregated to the GDN. The microgrid must maintain the quality

of energy and include the technical aspects for end use equipment under controllable demand

schemes, energy management and production of energy, either connected to the GDN or

operating in isolation mode. This flexibility of management and control should allow the

microgrid be handled as a single unit within the GDN, satisfying at the same time the local

energy needs and fulfilling criteria of reliability and safety.

Satisfying energy´s demand is where the connection between the microgrid and energy

efficiency lies. Technological advances in DER´s and control systems and energy efficiency

strategies have the potential to shift the generation plant’s balance of energy towards the

microgrids. This shift in the power supply may contribute to the reduction of losses in

transmission, resulting in a more efficient system, in addition, some microgrids are designed to

operate with direct current (CD), which increases the efficiency, avoiding transmission and

distribution losses. One of the main contributions of microgrids to energy efficiency involves

managing multiple loads and their balance with the DER´s operation, makes attractive the

investment to manage energy, mainly in the distribution process. An additional aspect of energy

efficiency is the implementation of microgrids in buildings. Where the challenge is to achieve

interaction and operation between loads and DER´s, without making major changes to

infrastructure and the main distribution system, by which the great potential has focused on

achieving efficiency through the operation of end uses and the sensitivity of the control

strategies for precise modeling of controllable demand.

There are technical and economic aspects, which require attention to the incorporation of

icrogrids in Mexico. Some of these aspects are regulatory barriers, local electricity market

1 Microgrid evolution roadmap: engineering, economics and experience. 2015 International Symposium on Smart Electric Distribution

Systems and Technologies. September. 2015

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mechanisms and the optimization of distributed generation, the active and reactive power

support to maximize efficiency, as well as flexibility in the interoperability of the GDN. As part

of the rational use of energy resources, energy efficiency, demand control and energy

management, and market mechanisms such as controllable demand are key for the

development of microgrids, since they can provide load balancing, demand forecasting, voltage

and frequency control, and network reliability.

This document describes issues that will address working group No. 7 - "Microgrids", as well

as background and technological trends identified internationally for microgrids that can take

place on Mexico´s electrical system, from Mexico´s perspective and considering the recent

opening of Mexican Electrical Market. Some questions are proposed, expecting to receive

answers or comments from workshop panelists. At the end of this workshop, Mexico´s priorities

on microgrids should be identified.

1.1.1. Microgrids

• Commercial/industrial Microgrids: Developed with the aim of reducing demand and

costs during the normal operation, although the operation of critical functions during

interruptions of supply is also important, especially for data centers.

• Communities/Companies Microgrids: Designed to improve reliability and to promote the

participation of the community.

• Campus/Institutions Microgrids: Most of the campuses already have resources of

DER´s. They are usually large and could sell energy in excess to the powergrid.

• Military Microgrids: Focused on physical security and cyber security, both for fixed bases

and for advanced operations bases.

• Remote Microgrids: Permanently disconnected from other grids, continuously operating

in island mode. Many use diesel generators.

The following business cases are proposed for the microgrid:

• Methodological procedure for the integration of DERs to microgrids

• Development of power electronic converters for microgrids to decrease reliance on foreign

manufacturers.

• Development of guidelines for the interconnection of micro networks to power systems

• Development of a system to control of DER´s considering costs, forecast, rates and

operating conditions of a Micro Grid.

• Resilience of electricity and backup power in the event of a supply interruption of the

distribution company,

• Charging of electric vehicles from the backup energy storage system (BESS) during

blackouts;

• Commercialization of microgrids DER power, via records of energy measurement with

block chain technology;

• The provision of a revenue model to help promote the massive deployment of microgrids.

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• Methodology and technology for dispersed controllable demand aggregation and its

participation in Micro Grids.

• Development of an advanced measuring system for energy balance in the microgrid

(energy received, generated and consumed).

1.1.2. Architecture Conceptual Model

A micro-grid is electrical system consisting of a group of interconnected loads and distributed

energy resources (DER) integrated to a control system, acting as a single entity with respect to

the main electrical network. A microgrid can connect and disconnect from the powergrid being

able to operate in island mode and/or interconnected depending on generation capacity and/or

demand or by faults occurring in the main electrical network.

To support in the design, construction and operation of microgrids, several countries have

implemented testbeds, these testbeds have allowed to analyze operational performance of

small DER´ sources, also have been useful to modify the microgrids distribution systems for

the "plug and play" integration of different generation technologies.

Globally. in the past 19 years efforts have been made for the construction of microgrids based

on the energy resources of the site, criteria have been established to define the characteristics

of the sources of generation and the features of the storage systems. This process also

considers the types of loads connected to the distribution system. In the definition of renewable

generation sources has also been necessary to consider the support of small fossil fuels

generation sources. In some cases to support the generation capacity. In other cases for the

black start of the microgrid. In other cases to counteract adverse weather conditions of the site,

and finally a safe backup to face the mains power supply.

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An important element in the microgrids are the energy storage systems, these systems in

combination with DER´s (mainly renewable) have an important function, this system is more

important when failures occur and/or disturbances in the mains power supply. The system can

help in imbalances that could arise in the main network, can smooth the demand curve, and

mitigate the characteristics of the Intermittency of renewable generation.

Another important element in the microgrid is the distribution system. This system must allow

operation in parallel or in island mode with the main distribution network. The system should be

designed in a modular way to allow the integration of various sources of generation regardless

of technology or capacity. The various types of energy storage (chemical or mechanical), and

to extend the diversity of loads. The protection, control and measurement systems of of the

distribution system should be consistent with the microgrid operation philosophy.

1.1.3. Cybersecurity and communications

Implementation of the control system network reference architecture.

For the purposes of this reference architecture, the microgrids control system networks consist

of the following 4 high level functions:

➢ Automated Grid Management and Control (AGMC): interactions between Energy

Management System (EMS), aggregators, inverters, relays, and almost every energy actor in

the microgrid (e.g. RTUs and IEDs).

➢ AGMC Maintenance: interactions between engineering consoles and all energy actors

in the microgrid control system.

➢ Cybersecurity Situational Awareness of (CSSA): interactions between the correlation

engine, AGMC actors, and nearly every Cyber-actor in the microgrid control system (“firewalls”,

routers, “switches”, etc).

➢ Cybersecurity Configuration Management (CSCM): interactions between management

systems (e.g. intruder detection system or authentication server) and the Cyber-actors in the

network of the microgrid control system.

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Microgrid operational interfaces:

[NIST, https://www.nist.gov/sites/default/files/documents/smartgrid/CARIMET-NIST-wollman-smart-grid-

April2015-final.pdf]

Microgrid standards:

IEC 62898-1 - Microgrids - Guidelines for planning and design

IEC 62898-2 - Microgrids - Guidelines for operation and control

IEC 62898-3-1 - Microgrids - Technical Requirements - Protection requirements in microgrids

1.1.4. Technology Mega-Trends

In a broader context that influences technological development applicable to microgrids, the following mega trends have been identified:

• Cyber security, data protection and privacy.

• Energy Management.

• Active participation of the consumer (Prosumer).

• Management of energy (residential, commercial and industrial).

• Integration of renewable energy.

• Energy storage.

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2. Workgroup´s description

This workgroup is aimed to identify the main challenges and priorities related to the

incorporation of new technologies applicable to microgrids. Considering the following topics:

1. Advanced Technologies for the development and incorporation of microgrids.

o Distributed generation (DG) and advanced technologies of energy storage to

increase the security and reliability of a distribution system.

o Micro Grid development to support voltage and frequency regulation for power grid.

o Reactive power and its impact on the operation of the Micro Grid.

o Modeling and simulation of Micro Grids.

o Support of the Micro Grids to power quality in distribution networks.

o Supervisory control of the electricity grid, considering the existence of interconnected

Micro Grids.

o Appliances and intelligent devices of users for its integration into the Micro Grids and

to the Smartgrid.

o Demand Response Programs to assist the operation of the Micro Grid.

o Development of distribution energy management system (DEMS)

o Development of technology for Demand Side Management instruments.

o Development and application of models of Controllable Demand to end-users within

the Micro Grid.

o Electricity rates for the interconnected and island mode operation for Micro Grids.

o Internet of things applied to optimize the operation of the Micro Grids.

o Artificial intelligence applied to the planning and operation of the Micro Grids.

2. New technologies for interconnection of distributed generation.

o Development of power converters for interconnection of DERs to Micro Grids.

o Advanced tools and models for real-time dynamic evaluations of Micro Grids.

o Guidelines for connection and disconnection based on demand forecast.

o Coordinated control of multiple converters.

o Development of technologies for the control of DERs in Micro Grid and Smart Grid

Smart devices for protection in Micro Grids.

o Power quality optimization in Micro Grids.

o Micro Grids as power supply of Electric vehicles.

o Micro Grid to supply power for remote communities.

o DC Micro Grids.

3. Common issues.

o Communication networks for equipment and field devices.

o Cyber Security in the information technology (TIC´s) and technologies of the

operation (TO).

o Training on microgrids.

o Standards: applicable, existing and required.

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3. Guide questions for the panelists

1. Could you please describe an example of the incorporation of microgrids in Smartgrid?

2. In your opinion, how can we establish borders between networks and microgrids? If

possible, give examples of use cases.

3. What are the key problems and prospects of development of technologies applicable to

microgrids at present and in the medium term in your country and in the world?

4. What codes, standards or regulations does exist in your country and what international

regulations apply for the incorporation or adoption of microgrids?

5. What, from your point of view, is the main criteria and mechanism that should be

considered and applied to assess the cost-benefit and return on investment of projects

related to microgrids development?

6. What are the advantages and disadvantages of the use of microgrids in terms of

resiliency and integration of DER´s?

7. What is the degree of evolution of microgrids either as a company and as business

model?

8. How is it possible to develop low-cost end of electrification projects in areas isolated

and disconnected from the utility´s power grid?

9. What is the current status in your country and your region of microgrids referred to

installed units, potential regions, units under construction?

10. What are the main motivators in your country or region for the development of

microgrids?

11. Could you please describe the types of microgrids existing in your country or region?

12. What are the current activities of research and development on microgrids in your

country or in your region?

13. What model of monitoring and dispatch of loads will be the most suitable to implement

for controllable demand?

14. ¿Since what level of charge the application of controllable demand market instrument

will be cost effective?

15. What is the real cost of implementation of a of controllable demand scheme for an

aggregator?

16. In general, what are the technical features which define the technical feasibility to

construct a microgrid?

17. What are your most important experiences in the operation of microgrids?

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Mesa 7. Micro-redes

4. Schedule

September 19th, 2018. Workgroup 7 “Microgrids”

PANEL 1: Mexico´s Priorities Identification

TIME ACTIVITIES ISSUES GUIDE QUESTIONS FOR THE PANELISTS

09:00 a.m. Leader speech and panelists introduction

• Analysis and evaluation of energy resources

• Applicable architectures in Mexico

• Cost benefit analysis

• Regulations and policy

• Electricity Rates

• Successful use cases

• Security

• CA - CD

• Communications, protection and control

• EMS (DERMS)

• Controlable demand

• Demand and Energy Managment

• Could you please describe an example of the incorporation of microgrids in

Smartgrid?

• In your opinion, how can we establish borders between networks and

microgrids? If possible, give examples of use cases.

• What are the key problems and prospects of development of technologies

applicable to microgrids at present and in the medium term in your country

and in the world?

• What codes, standards or regulations does exist in your country and what

international regulations apply for the incorporation or adoption of

microgrids?

• What, from your point of view, is the main criteria and mechanism that should

be considered and applied to assess the cost-benefit and return on

investment of projects related to microgrids development?

• What are the advantages and disadvantages of the use of microgrids in terms

of resiliency and integration of DER´s?

• What is the degree of evolution of microgrids either as a company and as

business model?

• How is it possible to develop low-cost end of electrification projects in areas

isolated and disconnected from the utility´s powergrid?

• What is the current status in your country and your region of microgrids

referred to installed units, potential regions, units under construction?

• What are the main motivators in your country or region for the development

of microgrids?

• Could you please describe the types of microgrids existing in your country or

region?

• What are the current activities of research and development on microgrids in

your country or in your region?

• What model of monitoring and dispatch of loads will be the most suitable to

implement for controllable demand?

09:30 a.m. Robert Cuzner

10:00 a.m. Josep Guerrero

10:30 a.m. Therese Peffer

11:00 a.m. Questions and Session conclusions

11:30 a.m. COFEE BREAK

11:50 a.m. Petr Musilek

12:20 Pramod Khargonekar

12:50 Hebert Godínez

13:30 Questions and Session conclusions

02:00 p.m. LUNCH

03:30 p.m. Mexico´s Priorities Identification Session

04:45 p.m. COFEE BERAK

05:00 p.m. Conclusions

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Mesa 7. Micro-redes

September 19th, 2018. Workgroup 7 “Microgrids”

PANEL 1: Mexico´s Priorities Identification

TIME ACTIVITIES ISSUES GUIDE QUESTIONS FOR THE PANELISTS

• ¿Since what level of charge the application of controllable demand market

instrument will be cost effective?

• What is the real cost of implementation of a of controllable demand scheme

for an aggregator?

• In general, what are the technical features which define the technical

feasibility to construct a microgrid?

• What are your most important experiences in the operation of the microgrids?

06:00 p.m. Day end

September 20th, 2018. Workgroup 7 “Microgrids”

PANEL 2: Mexico´s Priorities Allocation

TIME ACTIVITIES ISSUES GUIDE QUESTIONS FOR THE PANELISTS

09:00 a.m. Leader spech • Identification of priority issues for the Electricity Sector in Mexico in Smart grids.

• Identification of strategic projects initiatives for the CEMIE-REDES

• Identification of participating institutions by initiative.

• Identification of the responsible leader of integrating every strategic project proposal.

• Agreements and commitments to integrate every strategic project proposal.

• What priority topics of Smart grids in Mexico are identified as part of the needs expressed by the panelists?

• Which technologies, strategies, methodologies, standards or international practices are displayed as feasible to be applied in Mexico to meet identified priority issues?

• What time horizon is considered adequate for the development/implementation of each pilot project in Mexico?

• What is the estimated cost of each identified solution?

• Which institutions should / can participate or contribute to the development of each identified solution?

09:20 a.m. Session to identify national priorities and strategic projects

11:30 a.m. COFEE BERAK

11:50 a.m. Writing initiatives of strategic projects

02:00 p.m. LUNCH

03:30 p.m. Presentation of strategic projects proposal (plenary session)

05:00 p.m. COFEE BERAK

05:15 p.m. Workshop closing

05:30 p.m. Workshop end