C A L I F O R N I A E N E R G Y C O M M I S S I O N

RD&D Investments and Moving Toward MicrogridCommercialization in the State of California

UCLA’s Smart Grid Research and Demonstration Thought

Leadership Forum

Chair Robert B. WeisenmillerCalifornia Energy Commission

April 28, 2015

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What is a Microgrid?

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• Small‐scale power grid• Grouping of 

interconnected loads and distributed energy 

resources• Can operate in island mode or grid‐connected if 

desired• Can connect and disconnect from the grid 

if desired• Acts as a single controllable entity to the 

grid

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Moving Toward Commercialization of Microgrids

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To push the technology forward, we need to explore a few questions:

– What lessons did we learn from early stage demonstrations? – What are we doing in the next phase of demonstrations?– What are we learning from other assessments?– What are the next steps to move toward commercialization?– What are we going to do in the 2nd EPIC Investment Plan?

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• California is an early adopter of investigating advanced microgrids.

• Early demonstrations focused on “proof-of-concept” by engineering the controller and designing systems.

• The concept was proven, though we did learn it is complex, diverse, and costly.

• We recognize that microgrids are a component of our overall Smart Grid strategy and goals to integrate renewable resources.

Early Stage Demonstrations

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SMUD Microgrid

CEC $1,586,290 Project Total $2,929,536

Location: Corporate headquarters of the Sacramento Municipal Utility District (SMUD)

Load: Varied Based on Equipment Tested

Resources Managed• 310 kW of the facility’s electrical load is offset by DG:

o Three Tecogen generation capacity of 300 kW. o 10 kW PV and battery system also augment the generation.

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Santa Rita Jail- Reliability & Cost

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• Capable of meeting stringent reliability needs with a portfolio of clean generation and energy efficiency technologies.

• Ability to “island” and ride through utility grid anomalies.

• 15% peak load reduction on PG&E’s circuit.

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Borrego Springs 1.0- Largest Utility Operated Microgrid

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• Existing circuit that serves 615 customers with a 4.6 MW peak load.

• Incorporates reliability and economic optimization into a real operating environment.

• Microgrid restored power to Borrego Springs when transmission line tripped off.

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SDG&E Borrego Springs 2.0

• Demonstrating the viability of a utility owned community-scale microgrid to manage up to 100% of renewable energy to meet the community load while avoiding adverse grid impacts, through the use of a microgrid controller management system.

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UC San Diego- Campus Research Microgrid

• 42 MW system that serves 92% of annual on-site demand.

• Master controller enabled UCSD to reduce direct access imports by 13.6% and save $850K/month.

• Largest DR participant in SDG&E: 24.9 MWh over 3 days and earned $42,469.

• Controlled load and exported electricity to help prevent SDG&E grid failure during Southern California wildfires.

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Camp Pendleton- Military Base “fractal grids”

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• Consist of four microgrids nested within one microgrid.

• Demonstrates hybrid microgridtopology with smart nodes and servers.

• Generators, load, and storage have an associated controller for AC and DC networks.

• The grids are self healing and cyber secure.

• Demonstrates a flexible, efficient, and reliable flywheel energy storage system.

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What do we plan to learn form these demonstrations?• Barriers and solutions: financing, permitting, and regulatory.• Benefits of the system and value to the microgrid owner.• Design and specifications in 2015, build in 2016, and operate in 2017.• Use case(s) for facility types Lessons Learned and best practices-

design configuration that maximizes value to owner, ratepayers, and utilities.

• For critical facility microgrids, ability to provide grid resiliency and climate adaptation for critical facilities.

• Interoperability of renewable resources, DR, and energy storage.• 12 months of data- installation issues, operational constraints, system

performance, and responses to the electric grid.

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What are we learning from other assessments? Stakeholder Survey

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Top 10 Barriers Average score

Lack of policies or regulations that enable microgrids 4.1

Interconnection rules impose limitations on microgrids 4.0

Utility franchise rights inhibit microgrid deployment 4.0

Existing retail tariffs do not allow all microgrid benefits to be monetized

3.9

High cost of meeting interconnection requirements 3.8

Lack of direct access to wholesale markets do not allow all microgrid benefits to be monetized

3.7

Lack of utility understanding of the impacts of end user microgrids to the utility

3.6

Adequacy of IEEE technical standards to address integration and operation of microgrids

3.5

Lack of clearly defined roles and responsibilities between utility and microgrids

3.5

Lack of standardized method to establish cost and value of microgrids to various stakeholders

3.5

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What are we learning from other assessments? Public Workshop

• All-day staff workshop on 3/6/2015 with a focus on identifying R&D strategies to improve the proposition for microgrids.

• Key Lesson Learned: Lack of interoperability between technologies and legacy assets create high costs.

• Key Successes from R&D Deployment:– Provide integration capabilities for distributed renewable resources.– Resiliency under grid outages and able to reduce peak loads on feeders.– Stakeholders developed solutions with planning, construction, and operations.

• Key Barriers to Commercialization:– Lack of microgrid standards for control and operation.– Unclear requirements for interconnection, permitting, and islanding.– Reliability, resiliency, and efficiency benefits are difficult to monetize.– The “over-the-fence” rule and utility franchise agreements.

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What are the next steps to move toward commercialization?

• First round of IOU Distribution Resource Plans due to CPUC July 1st: – Each will include an integrated capacity and locational value analysis for DER.– Each will include a micorgrid project that will demonstrate a microgrid specification for a

utility operated microgrid that is dispatched to meet reliability requirements.

• Energy Commission microgrid workshop Fall 2015:– Focus on developing a foundation for an interagency commercialization roadmap.– Include overview of microgrid projects from first EPIC investment plan.

• Case studies will be published for each EPIC microgrid project will help describe successes and disseminate results.

• Key questions that California should focus on:– What role should microgrids play in supporting grid operations?– How should we develop the business models for adoption of microgrids by utilities and

communities?– What economic/financial models will stimulate more adoption and development?

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