panel session: virtual power plants and microgridspsc.rtpis.org/documents/panelii_ppt.pdf · 2019....

POWER SYSTEMSCONFERENCEPOWER SYSTEMSCONFERENCE

Panel Session:Virtual Power Plants and MicroGrids

Moderator:

Johan Enslin, PhD, PrEngExecutive Director, Energy Systems Program

Duke Energy Endowed Chair in SmartGrid TechnologyClemson University in Charleston SC


Panelists:

• Tom Fenimore, Duke Energy“Challenges in getting to Utility Scale VPP’s @ Duke Energy”

• Scott Sternfeld, eCubed US LLC“VPP/microgrid towards disaster resilience”

• Chris Davidson, Siemens “Energy storage and Combined Cycle Plants”

• Eliot Assimakopoulos, General Electric Energy“Developing Economically Viable & Resilient Microgrid”

POWER SYSTEMSCONFERENCE

The Vision: An Integrated Grid

Power System that is Highly Flexible, Resilient and Connected and Optimizes Energy Resources

Image Source: EPRI


The Vision: Virtual Power PlantsPower System that is Highly Flexible, Resilient and

Connected and Optimizes Energy Resources

• Virtual Power Plants (VPP) are the building blocks of the Grid of the Future

• DERs located throughout a region work together to provide same functionality as a large central power station

• Achieved through centralized and distributed controls, monitoring, diagnostics, prediction and forecasting

• Perform control at local-level, minimize communication infrastructure


• MicroGrids are typically confined to smaller geographical area; VPPs may not be –components may be far away from each other and may consist of several microgrids

• MicroGrids have a local controller for close control of the energy balance and voltage profile;VPPs have centralized dispatch control (ISO based) for dispatch, ancillary services, spin,demand response, frequency and voltage regulation.

MicroGrids and Virtual Power Plants (VPP)

Source: DOE

• VPPs emulate a large power generating plant by responding to market demand, pricing, ADR/ancillary service pricing, load and resource forecasting

• VPPs may operate asynchronous with the larger interconnected system.


VPP and MicroGrid Controllers

Source: Microgrid dynamics and control / by Hassan Bevrani, Bruno Francois, Toshifumi Ise.


VPP Forecasting and Analytics


Panel Presentations:

• Tom Fenimore, Duke Energy“Challenges in getting to Utility Scale VPP’s @ Duke Energy”

• Scott Sternfeld, eCubed US LLC“VPP/microgrid towards disaster resilience”

• Chris Davidson, Siemens “Energy storage and Combined Cycle Plants”

• Eliot Assimakopoulos, General Electric Energy“Developing Economically Viable & Resilient Microgrid”


Johan [email protected]

Discussions and Questions


Challenges of VPP’s @ Duke Energy

Tom Fenimore, PEDistributed Energy Technologies

Duke Energy

Panel: Virtual Power Plants and MicroGrids


Outline

• Currently Energy Storage and Microgrid Outlook• Example Projects• Identified Gaps in the Process• Conclusion and Future Work


Duke Energy Indiana: • 10 MW approved as “Clean Energy

Projects” ; Flexibility and Reliability / Resiliency

Duke Energy Ohio: • 10 MW pilot filed in Electric Security Plan

(Reliability, Resiliency)

Duke Energy Kentucky:• 2 MW year over year to 2018 Integrated

Resource Plan

Duke Energy Florida • 50 MW pilot approved by FPUC in 2017

Duke Energy Carolinas/Duke Energy Progress: • 75 MW in the Carolinas Integrated

Resource Plan (including Western Modernization projects)

Announced to Date: • 95 kWh Mt. Sterling

Microgrid (commissioned in 2017)

Western Modernization Plan • 4 MW Hot Springs• 9 MW AVL Rock Hill• Flexibility, Capacity and Reliability / Resiliency

3

Current Energy Storage/Microgrid Projects Planned


Western North Carolina Modernization : DEP will deploy battery projects throughout the region, with construction beginning in 2018.

Hot Springs (2 MW Solar + 4.4 MW Battery):1. Serves multiple functions, such as solar integration and back‐up

power for local customers in Hot Springs community.2. Aggregated storage deployment supports the deferral of the

Future Asheville CT unit by freeing up existing generation capacity to then serve the winter peak.

Project Example #1: Integration of Renewables


Nabb Battery Project: Nabb substation serving a remote community in southern Indiana can defer the immediate need of a redundant 34.5 kV feeder and enhance reliability. This model could be replicated to improve reliability of radially fed areas in Duke Energy’s service territory.

Project goals:1. Enhanced customer reliability 2. Participate in MISO frequency regulation

market, providing broader system benefits

Project Example #2: Improving System Reliability


Project Example #3: National Accounts Pursuing Resiliency and Sustainability

• Program for critical customers to have solar + storage onsite that provide grid benefits during normal operations and back up power during an outage

• Customer Segments: Cities (emergency services), Military, Universities, Hospitals, C&I (i.e. Amazon)

Camp Atterbury Microgrid – Duke Energy Indiana Partnership with the Indiana Army National Guard

Project goals:• Provide system benefits for all Indiana customers• Provide solar generation for Indiana customers • Operate a safe and resilient Microgrid for critical customer

loads

Technology footprint:• 3 MWdc Solar PV Facility• 5 MW Lithium Battery• System protection and Micro‐grid controls


• Interconnect process does not address Islanded Systems (Microgrids)

• Lack of experience with Inverter Based PCS• Vendors use proprietary control systems• Effects of Codes and Standards on costs• Cost effectiveness must be proven

Gaps (Challenges) in the Process


Traditional planning model Integrated Planning (future state)

IRP

T&D planning

P&S

Today

• Targeted/custom planning activities

• Multiple tools, manual handoffs, specialized studies

• Integrated, automated process & tools for planning

• Storage becomes main‐streamed tool routinely applied to address system needs

Integrated planning model

Gen.

Grid (T&D)

Cust.

Integrated Planning to Realize Stacked Values


Tom Fenimore, PEtom.fenimore@duke‐energy.com

Questions ?

Developing Economically Viable and Resilient Microgrids

GE Distributed Grid Solutions

Eliot AssimakopoulosMicrogrid Sales Leader

What’s a Microgrid?

It has to

island! It should have

renewables

It needs to interact with the market

Gotta include

batteries

Net-zero energy!

What about Grid Resilience?

re·sil·ienceriˈzilyəns/noun

1. the ability of a substance or object to spring back into shape; elasticity.

2. the capacity to recover quickly from difficulties; toughness.

Grid Resilience…

The degree to which an electrical grid is reliable, recoverable, & efficient

Two ways of looking at resilience…

Tenacity Wisdom

By wisely planning your energy system you can avoid

being forced to rely on your capacity to react

Key Challenges in Developing MicrogridsComplexity

• Integration of DERs

• Multiple stakeholders

Economics

• Cost

• Business model

• Financing…particularly with multi-user microgrids

Utility / Market Interaction

• Potentially competes with utilities

• Utility business models

Technical

• Voltage & Frequency Control…managing stability

• Islanding & grid integration

• Protection & Control

Regulatory

• Nascent regulatory environment

• Fragmented regulations

6 /

© 2012 General Electric Company. All Rights Reserved

Utility Needs

An holistic approach is essential in developing economically viable microgrids

Reliability and Stability ImprovementReduce System Losses Situational Awareness

Innovative business models at each level will drive market transformation

Optimal balance (supply and demand) of distributed resources to enable reliable and economic operation

Microgrids need to:

Span of Control

Microgrid

Operational Platform (DMS/EMS)

Virtual Power Plant

Local Substation Market

Operator

Load resources

Integrated resources

Re

sou

rce

Consumer Energy

Manager

DER Manager

Demand Response

Provide solutions and services to plan, forecast, schedule, and dispatch

What

• Load resources– dispatchable consumption

• Distributed generation - Renewable or non renewable generation

• Integrated resources – load and generation systems

Where

• Local – residential, commercial, and industrial

• Substation /Feeder – distribution system

• Market Operator – electricity and balancing market

Monetized interaction are necessary in order to pay for resiliency premium & attract private investment

7

Energy Surety Sustainability Economic Value

Market segments and drivers will drive the value proposition

MILITARYBases w/ Critical

Infrastructure

INDUSTRIALMining/Refineries

Ports

ISLANDSRemote GridCommunities

Institutional / DistrictUniversity/labs

HospitalsUtility Microgrids

Convergence of environment, energy cost/efficiency, security, and system reliability prove to be the key drivers for Microgrids . . .

RENEWABLES INTEGRATION

BASE ISLANDING

COE REDUCTION

ENERGY SECURITY

CRITICAL INFRASTRUCTURE

ENERGY EFFICIENCY

COE REDUCTION

ENERGY SECURITY

ENERGY RELIABILITY



ENERGY EFFICIENCY

Industrial Efficiency

COE REDUCTION

ENERGY SECURITY

ENERGY RELIABILITY

FOSSIL FUEL DEPENDENCE



COE REDUCTION

ENERGY SECURITY

ENERGY RELIABILITY

Microgrid R&D

RENEWABLES INTEGRATIOND

R

I

V

E

R

SPrimary DriversSecondary Drivers

8 /


End-user & Utility Challenges

Increased energy independence … leads to energy

efficiency improvement projects

Multiple recent regulations instituted … forces planning

for current/future regs

Growing water scarcity … drive water consumption

reduction projects

Strong operational performance focus … need to

optimize full life-cycle costs

Multiple other additional pressures …

• Installation-wide energy & H2O security• End-user operations resilience, assured

fuel, reduced logistics tail, etc.• Cyber security

• Compliance now & future planning• Federal/state mandates & regulations,

NetZero initiatives, carbon legislation

• Reduce cost through efficiency & intelligent system design

• Optimize energy-to-investment ratio• Utility cost/benefit

End-user Drivers

Security

Regulatory

Financial

Correctly Design your Energy System Aligning drivers, challenges, and resources to get to the correct type of system

End-user & utility energy objectives will drive whether you will have a:• Natural gas based microgrid• Renewables based microgrid

9

Leveraging microgrids as a foundation for economic development

Examples

10 /


Pearl Street Microgrid (1882)

• Primary driver was selling lightbulbs

• Ten 27 ton 100Kw steam generators

• DC Power Microgrid

• Served 59 Customers

• Islanded operation

• HMI enabled

• Eastern Japan 2013, 25000 Sq. Ft.

• 18 racks each 15 levels, 17000 LED fixtures

• 10000 heads of Lettuce per day (100 fold density increase from outside)

• Grows 2.5X faster than outside

• Waste from 50% to 10% compared to outside

• 1% of water usage compared to outside

• LED 40% less power than florescent light

Modern day exampleUrban vertical farming

12 /


Key elements needed to successfully achieve economically viable microgrids

Energy Surety & Renewable Energy Objectives Require Differing Approaches• Energy Surety Goal: Most cost effective method will lean towards natural gas generation microgrids

• MG functionality: Islanding, fast load-shed, net metering, ancillary services• Renewable Energy Goal: Most cost effective method will learn towards wind / biogas biomass/

landfill gas generation Microgrids• MG functionality: Optimal dispatch, firming, DSM, ancillary services

Utility Collaboration• Microgrids need to interact and provide value to host utility

• As well as supporting communities e.g. first responders, continuity of government, …• Provide ancillary benefits (Supply/demand management, frequency regulation, …)• Enable facility energy operator to contract with utility these services

Privatized & Monetized Structures• ESCOs, IPPs, Utilities need to be able monetize the smart-grid features of the microgrid in order to

offset cost of energy surety & attract investment• Capitalization of existing assets can create opportunities for financial support

Unified Standards & Certification• DOE needs to drive Microgrid/Smart Grid standards, interoperability, utility integration• Cybersecurity & IT infrastructure standards• Certification of technology, architecture, & functionality

Develop a long-term energy roadmap with off-ramps for incremental development

• Establish long-term vision with short-term requirements

13 /


Adoption, Policy, and Innovation Begins at the Local Level (You!)


Energy storage and Combined Cycle Plants

Chris Davidson, Siemens



Outline

• Flexible Generation• Can Combined Cycle Power Plants Be Flexible?• Next Steps…..Modeling• Case Study• Future Outlook


Flexible Generation

Utility Integrated Resource Planning (IRP) is more complex today with high penetration of renewable generation on the grid. The challenge is to balance renewable portfolio standards while also producing low price generation and grid reliability. This balance will require a mix of base-load generation, distributed generation (small power), and flexible conventional generation. Further studies are needed to determine how this mix of generation combining synchronous inertia (SIR) and synthetic inertia (FFR) will change frequency operating standards.

Flexibility is the number one priority!


Can Combined Cycle Power Plants Be Flexible?

DER (Distributed Energy Resources), or small power, is projected to increase from 50GW to 104GW by 2023. Combined cycle plants by design are not best suited to dispatch or cycle for short durations of peak demand and frequency response, even if already operating. Can Combined Cycle Power Plants (CCPP) be flexible by integrating Battery Energy Storage systems (BESS)? Are there potential revenue streams? The answer is, maybe. Many factors must be considered to make the final decision, but there are viable options if certain conditions are met.

Target CCPP + BESS applications to analyze are:• Startup/ramping• Part load• Peak load

• Black start• Firm frequency regulation• Enhanced frequency regulation


Next Step…..Modeling

Deciding to use Energy Storage on a Combined Cycle Power Plant requires modeling tools that will determine the system size, new operation profile, and costs. Once these high-level questions are answered, a detailed study is performed to build the financial model for identifying system revenue streams and calculating investment payback.

Value Proposition

ReliabilitySustainability

Energy efficiency


Modeling Input


Modeling Output


Model Financial Results

Without Battery Energy Storage

WithBattery Energy Storage


Case Study FlexPlant CCPP+BESS

Applications with BESS+CCPP:

1. Startup/ramping2. Part load3. Peak load4. Enhanced or firm frequency regulation5. Black start


Case Study FlexPlant CCPP+BESS

1. Startup/ramping –• BESS capacity is always committed for spinning reserves and availability• Operate during purge for “instant on” profile• Added capacity to normal startup curve to improve total ramp time

2. Part load –• Minimizes ramping during LLTD – fuel savings, better management of

water chemistry• Reduces cycling of CT and ST up and down and targets operation at

LLTD optimization point3. Peak load –

• Operate BESS reserves in lieu of duct firing for fuel savings• Improved emissions while operating BESS • Lower GT and ST maintenance

Benefits of target market applications for case study:


Case Study FlexPlant CCPP+BESSProfile Analysis 1+1 Startup Profile

20 minutes

21 minutes

Note: 1 hour and 15 minutes to achieve ~160MW


Case Study FlexPlant CCPP+BESSProfile Analysis 1+1 Run Profile

Startup Low Load Turndown Duct FiringLoad Following


Case Study FlexPlant CCPP+BESSProfile Analysis 1+1 Run Profile with BESS

Startup Low Load Turndown Duct FiringLoad Following


Case Study FlexPlant CCPP+BESSProfile Analysis Results

Conclusion:Based on the “one day” operation profile, generation enhancement is possible with a 20MW BESS solution.

Further analysis regarding typical operation profile and a detailed review of fuel savings and operations costs is required to finalize BESS size and duration for maximized revenue and operation optimization

Option 1: 20MW / 20MWh a) Instant ON, with 20MW on gridb) FAST Start (+20 MW)

Option 2: 20MW / 40MWh a) Instant ON, with 20MW on gridb) FAST Start (+20 MW)c) Continuous +20MW power on grid until ST starts

Option 3: 20MW / 60MWh a) Instant ON, with 20MW on gridb) FAST Start +20 MW)c) Continuous +20MW power on grid until ST startsd) CT Optimization (fuel savings, lesser stress, fixed speed instead of load following)

Option 4: 20MW / 80MWh a) Instant ON, with 20MW on gridb) FAST Start +20 MW)c) Continuous +20MW power on grid until ST startsd) CT Optimization (fuel savings, lesser stress, fixed speed instead of load following)e) BESS power instead of duct firing (lower emissions, fuel savings)


Future Outlook

Modeling is an important first step in determining if an idea such as adding Battery Energy Storage to a Combined Cycle Power Plant will bring benefits that solve a problem and create revenue. Real plant operation data will play a major role in modeling accuracy and will accelerate implementation of the “Future Grid”.

IoT (Internet of Things), A.I. (Artificial Intelligence), machine learning, MindSphere, and other Cloud based applications will be the catalyst that transforms how conventional power plants can be modeled to become more flexible and operate with an internet-based grid.


Leveraging VPPs and MicroGrids for Increased Community Resilience

Scott D. Sternfeld, P.E. ecubed us LLC



Outline

• Background• Problem Statement• Methodology• Results and Discussions• Conclusion and Future Work


Microgrid + Resilience =Faster Restoration / Recovery

Goal: Allow population to• Safely ‘shelter in place’ / reduce need to leave

homes• Allow for faster recovery of community

resources (grocery, gas, hospitals)

Leads to faster community resilience


Where?

Microgrid: Capability to ‘Island’• Island communities!

• Longer restoration periods

• Restoration requires specialized equipment –may need to be brought in


Microgrid capabilities

Microgrid: Capability to ‘Island’• Island communities!

• Longer restoration periods

• Restoration requires specialized equipment –may need to be brought in


Need to consider ‘System of Systems’

Response that requires broader coordination• Ex: Level 1 hospital = top priority (critical

customer)

• Earthquake disrupts power, water, gas.• Water & gas restoration > 72 hours.• Electric priority = ?


Building in resilience

Studying vulnerabilities

Preparation – installing additional substations or line sectioning• Beware that the location is not vulnerable to

other impacts!

• Could create a false sense of safety / security!


Responsibility: Private vs. Public sector?Microgrids:

• Gas Generators• Solar / Wind• Other?

Private sector:• Grocery stores• Gas Stations• Hotels• Nursing homes / Hospitals


Microgrid + Resilience =Faster Restoration / Recovery

Goal: Allow population to• Safely ‘shelter in place’ / reduce need to leave

homes• Allow for faster recovery of community

resources (grocery, gas, hospitals)

Leads to faster community resilience


Resilience – Restoration/Recovery

• Background – Power restoration and Microgrids• Problem Statement

System of Systems• Methodology

What exists today? What do we need?

• Results and Discussions• Conclusion and Future Work

panel session: virtual power plants and microgridspsc.rtpis.org/documents/panelii_ppt.pdf · 2019....

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