Interconnection Business

Distributed Generation &On-Site Power Conference

New OrleansMarch 21-22, 2001

Presented by N. Richard Friedman

DG Interconnection & the Business Deal

Resource Dynamics Corporation 8605 Westwood Center Drive

Vienna, Virginia 22182703/356-1300, Ext 203 | [email protected]©Copyright 2001 Resource Dynamics Corporation

Distributed Generation & On-Site Power:Impact of DG Interconnection

Requirements on the Business Deal2

The Return of Distributed Generation

• “Reappearing” After a Long Absence• The Concept of Distributed Power is Not

New– “Total Energy” experiment in the 1960s– Packaged cogeneration of the 1980s



What’s the DG Buzz About?• Restructuring Presents DG Opportunities

– Price rises & supply availability cause concern– Numerous applications are cited, including grid

support• Many DG Technologies in Marketplace

– New technologies being commercialized– Ambitious improvements slated for old standbys

• Environmental Restrictions Add Complexity– High price regions overlap with non-attainment areas– NOx control cost burdens smaller units



What’s the DG Buzz About? (cont.)• Availability and Price of Natural Gas• Increasing Sensitivity of Electrical Equipment

and Concern for Power Quality• Heightened Reliability Awareness• New Business Opportunities for Energy

Companies• Interconnection A Potential Barrier - “But Help

is On the Way”



Electric Power Systems Not Designedfor Distributed Power Resources

• Utility Circuits Typically Radial, Designedfor “1-Way” Operation

• Selling Power into the Grid Was Not anIssue Until PURPA

The Electric Power System



A Number of Service Layers



Transmission and DistributionSystem Voltage -

DG Interconnection Where?



Interconnection is Not a New Issue• Customer Generation Has Been Around for Over 50

Years (Frequently CHP)• Interconnection of Larger Generator (> 25MW)

Accomplished at Customer-Owned Substation• Smaller Projects Used All Power On Site,

Paralleling Grid for Backup/Supplementary Power• Power Sometimes Provided to Grid in Emergency

and Special Situations



When Did InterconnectionBecome a Concern?

• Smaller, Most Gas-Fired Reciprocating Engine• Manufacturers and Gas Companies Frustrated by

Inability to Sell Their Technology to Customersin Late 60s -- Zeroed in On Gas Cogeneration

• Market Problems They Identified:– Not Economic to Install Full Capacity Backup– Utility Refusal to Interconnect for Backup



When Did InterconnectionBecome a Concern (cont.)?

• Impact of Arab Oil Embargo Dramatic– New Energy Conservation Initiatives– Lines for Gasoline– Image of President Carter in Sweater in 650 Office– Pushed 1978 National Energy Act

• National Drive to Achieve Energy Independence



Interconnection Then GetsSome Attention

• PURPA and NGPA Highlighted Renewables andCogeneration (Lobbyists Active)

• Focus Was on Availability of Backup Power andSale of NUG Power at Utility “Avoided Cost”,Not On Details or Costs of InterconnectionArrangement

• Result: Utilities Left Alone to SpecifyRequirements



Utility Motivations in Past• Maintain Grid Stability and Reliability• Minimize Problems from Uncontrolled Customer

Generation• Obtain Protective Relaying to Protect the Grid• Discourage Customer Generation

– Discount Retail Rates– Discredit Customer Cogen Proposals– Take a Position in Development of Project



Interconnection is Not a Simple IssueUtility Concerns

• Electric Power Distribution Systems Designedfor One-Way Operation

• Personnel Safety and Grid Stability AreDominant Concerns

• Utilities Reluctant to Rely on Unfamiliar,Customer-Supplied Protective RelayingSchemes

• Integrated Interconnection “Packages” NotGenerally Accepted and Known



Interconnection is Not a Simple IssueCustomer Concerns

• Utility Interconnection Costs Can Be a “DealBreaker” for Smaller-Sized Projects

• Some Requirements Not Understood byCustomer, and May Appear Unreasonable

• Manufacturer, Customer and Utility DGActivities are Frequently Not Coordinated

• Interconnection Requirements Are Far FromStandard



Interconnection Getting MoreAttention Today

• New Vendor Packages Available, Often IntegratedWith the Inverter

• Under the EEI Umbrella, Utilities Identifying Issues ofConcern

• Interconnection Being Addressed at State Level• Interconnection “Flagged” in Senate Proposed

Legislation• IEEE Standards Coordinating Committee Developing

Interconnection Standard



IEEE Interconnection Standard• Being Developed by IEEE SCC21-P1547• Responsible for Standards Development in

Areas of– Fuel Cells– Photovoltaics– Dispersed Generation– Energy Storage

• Reports to IEEE Standards Board



IEEE Interconnection Standard• Title: Standard for Interconnecting Distributed

Resources With Electric Power Systems• Purpose: Provide a Uniform Standard for

Interconnection of Distributed Resources WithElectric Power Systems, and RequirementsRelevant to the Performance, Operation, Testing,Safety Considerations, and Maintenance of theInterconnection



IEEE Standards Committee Plans

• Spring 2001 Balloting Completion Date• Working Group of Over 300• Meetings Every 2 Months• Richard DeBlasio, NREL is Chair



Examples of Some States NotWaiting for IEEE

• New York• California• Vermont• Texas• Delaware



Interconnection ConcernsCovered in Standard

• Safety• System and Equipment Protection• Power Quality and Reliability



Technical Requirements Fall IntoSeveral Categories

• General• Response to Abnormal Conditions• Power Quality• Islanding



Defining Area and Local EPS

Local EPS 1

Area EPS

LoadDR unit

Local EPS 3

Load

PCC

Point of DRConnection

PCC

DR unit

Local EPS 2

Point of DRConnection

PCC

Note: Dashed lines are EPS boundaries. There can be any number of Local EPSs.



DG Interconnection Process

DRAreaEPS

Interconnection



General Requirements• Voltage Regulation & Reactive Power

Support• Integration with EPS Grounding• Synchronization• DR on Distribution Spot Networks• Inadvertent Energizing of Area EPS• Monitoring



Response to Abnormal Conditions

• Voltage Disturbances• Frequency Disturbances• Disconnection for Faults• Loss of Synchronism• Feeder Reclosing Coordination



Power Quality• Limitation of DC Injection• Limitation of Voltage Flicker Induced by the

Distributed Generator• Harmonics• Immunity Protection• Surge Withstand Capability



Islanding

• Prevention of Islanding at Point of CommonCoupling

• Intentional Islanding



Future IEEE SCC21-P1547 Activities

• Draft 7 Out for Ballot Now• Next Meeting - April 18-20, New Orleans• Several New 1547 Projects Initiated

– Applications Guide– Communications– DG Textbook– Networks

2/2001-3/2001WG Ballot

Liaison FinalReview

4/2001Ballot ResolutionP1547 Meeting

4/2001(6/2001)Working Groupapproves draft toREVCOM and

IEEE-SAStandards Board

6/2001IEEE

StandardsBoard approval

1st try

12/2001Publish as

IEEEStandardsFINISH

Working GroupGoal

Editing andPrinting

9/2001IEEE

StandardsBoard approval

2nd try

4/2001Require

Working GroupRe-ballot

Proposed Timeline for IEEE SCC21 Standards Development ProjectP1547-Standard for Distributed Resources Interconnected with Electric Power Systems



Source: EPRI Report TR111489

Typical Engine Generator DR



Interconnection & the Business Deal• Power Quality and Reliability

– Interconnection Hardware May Reduce Costs– DG Can be a Negative Impact

• Dispatchability– Interconnection Hardware May Reduce Costs– Communications the Open Issue

• Serving the Internet Economy– Interconnection “Black Box “ Developments– Complex Interconnection Arrangements



Power Quality & Reliability

• DC Injection• Light Flicker• Harmonics



Dispatchability

• Genset Control Module• Human-Machine Interface (HMI)• Communications Interface/Hardware &

Software• Power Management Software• Monitoring & Metering Module



Genset Control• Supplied by

– engine manufacturer– software vendor (retrofit & OEM market)

• Must communicate with powermanagement module

• Integrated control software offeringincreased flexibility



HMI at the Genset• Membrane keypad typical• Status monitor for operator

HMI at the Control Room• Data & event logging• Data trending• Alarm display and annunciation



Communications Interface & ControllerHardware/Software Platforms

• Widely accepted protocols preferable– e.g., Modbus, Echelon LonWorks– PC technology/Windows operating

environment– Relational databases (e.g., SQL, OLE)

• Proprietary microprocessors an alternative(e.g., Onan)



Power Management SoftwareCharacteristics

• Interface with digital electronic governor• Synchronize frequency• Share real & reactive power loads• Manage power factor and VAR• Protect genset and personnel• Ramp genset loading• Offer data processing options

Goal - complete array of functions



Monitoring & Metering Module• Monitor major parameters for genset

operation• Key functions

– utility grade metering– data trending for display

• Option to regulate and operate with grid• Addition of remote communications for

dispatch



Applications of the Internet Economy

• Web-Hosting Companies• Internet Service Providers• Call Centers• Credit Card Processing Centers• Telecom Service Centers• Other



Data Centers Typically Have:• Robust physical security• Raised floors• Fire suppression equipment• Strict climate control, including large

HVAC systems• UPS systems• Backup power• Redundant connections to the Internet

backbone and grid

Complexinterconnectionarrangements



What is the Issue?• Availability of electricity to serve Internet-

related applications• 10-40 MW per location/50-130 w/ft2

• 12-18 month lead times• 10-25 percent of new load• 60 million ft2 of new facilities by 2001• Some 6,000-8,000 MW of new load

The Ultimate Need ------------> Information Quality Power



Examine CustomerBusiness Perspective

• Energy cost reduction– part of general business goal to lower/control costs– reflected in minor budget savings– frequently obtain new equipment with no upfront capital

outlay

• Outage cost reduction– gets to the core customer business– requires customer sophistication to value outage cost– much higher value savings



Assured Power Services Attraction

• High 6 - 9s reliability for mission criticaloperations (e.g., internet, telcom, other)

• Outage cost reduction perspective highvalue to customer

• Need to understand what this really meansto customer



The Reality of the 9sReliability (%)

1 - 9 90 876 Hours2 - 9s 99 88 Hours3 - 9s 99.9 9 Hours4 - 9s 99.99 53 Minutes5 - 9s 99.999 5 Minutes6 - 9s 99.9999 32 Seconds7 - 9s 99.99999 3 Seconds8 - 9s 99.999999 19 Cycles9 - 9s 99.9999999 2 Cycles

Total Outage Time/Year



How Much Reliability Do You Get?

• Utility power: 2 or 3 - 9s, maybe• Grid plus UPS: 4 - 9s• Grid, UPS, DG: 5 - 9s• Grid, UPS, DG, nearly full battery backup: 6 - 9s

Interconnection & Transfer Switch Arrangements Can Help!

ASD Input Voltage

0 10 20 30 40 50 60

Cycle

ASD DC Bus Voltage

0 10 20 30 40 50 60

Cycle

Motor Current

0 10 20 30 40 50 60

Cycle

Motor Speed

0 10 20 30 40 50 60

Cycle

ASD Motor

Consequences of a 2-Cycle Interruption



What Might the Future Hold?• DG as an integral and growing component of data center

design• Near-term delays in service to data centers• Increasing peak power demands of internet applications• Inability of many distribution systems to serve the data

centers• Emergence of premium power parks solely for data center

location• Major new business for DG



What to Expect Next?• Continued Attention to Easy, Low Cost and

“Standardized” Interconnection - Will Not Workat All Points on Utility System

• Utilities Still Nervous and Uncertain of Impact onTheir T&D Operations

• Standardized Interconnection May Not ApplyUniversally

• Improved Manufacturer InterconnectionPackages - Lower Cost, Improved Performance



What to Expect Next (cont.)?• Accelerated Activity at State Level Regarding

Interconnection, But Deferral to IEEE Standard• Standard Completed by Fall 2001 - Functional

Rather Than Prescriptive Approach• Utility Specification of “Preferred Points of

Interconnection” Likely



What could the power system of the future look like?

Distributed Generation &On-Site Power Conference

New OrleansMarch 21-22, 2001

Presented by N. Richard Friedman

DG Interconnection & the Business Deal

Resource Dynamics Corporation 8605 Westwood Center Drive

Vienna, Virginia 22182703/356-1300, Ext 203 | [email protected]©Copyright 2001 Resource Dynamics Corporation

Interconnection Business

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