Speaker: Terry MohnCompany: General MicroGrids

General MicroGrids General MicroGrids, Inc (GMI) is an end-to-end solution provider for renewable energy

technologies and transformational microgrid construction. GMI’s Balance Energy intelligent energy software platform “iESP”, manages microgrid

control, dispatchable renewable generation and resource control systems for campuses, industrial complexes, electric cooperatives, small communities and distribution utilities.

Safe, controllable and reliable MicroGrids integrating renewable generation are complimentary infrastructure with customer assets that increase grid reliability, stabilize long-term energy costs, and mitigate negative environmental impact.

GridWise Alliance The GridWise Alliance, founded in 2003, has developed into an organization that

represents a broad range of the energy supply chain from utilities to large tech companies to academia to venture capitalists to emerging tech companies.

This variety of stakeholders gives the Alliance a unique diversity of perspectives which enables interactive dialogue between members.

Being a consensus based organization; the assortment of opinions produces deliberate and highly reflected upon resolutions to key issues

Capacity◦ Climate legislation is uncertain◦ Demand is increasing in spite of recession◦ Economic environment

Technology◦ Data privacy, security◦ Communication infrastructure◦ Smart grid is new with many benefits

Consumer◦ Going green◦ PV, EV, Power Meter◦ Sustainability

Climate legislation is uncertain

Demand is increasing in spite of recession

Economic environment

The U.S. Energy Information Agency (EIA) estimates that renewable energy totaled 10.51% of all U.S. energy production at the end of 2009. The Administration states that it has created or saved 640,000 jobs since January 2009. This number includes roughly 51,700 new and 11,000 saved “green” jobs since January 2009.

The American Recovery and Reinvestment Act of 2009 (ARRA) created and expanded government financing opportunities, and to date marks the Administration’s single largest effort to promote renewable energy.

The Obama Administration’s stated mandate is to increase the renewable energy percentage of the U.S.’s total energy portfolio from 7.5% to 15%, and to create 5 million new renewable energy jobs, within 3 years of taking office (or by January of 2012).

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Obama has commented that some sort of “price on pollution” – specifically on this “really bad thing for the environment” (GHGs) – would speed the development of U.S. jobs and deployment of cleaner energy resources.

Obama is leaving himself plenty of room to endorse any agreement which may arise from cap-and-dividend, net-zero carbon tax or other discussions, if they come together.

The FY11 White House budget proposal retained a place holder – but no details – for a regulatory structure for GHG emissions.

The American Clean Energy and Security Act of 2009, “Waxman‐Markey Bill” and the Clean Energy Jobs and American Power Act, “Boxer‐Kerry Bill”

Climate legislation looks increasingly unlikely to pass. It may be too politically controversial in an election year, and the mid-term elections are expected to complicate the legislative agenda. As such, more states may pass their own cap-and-trade legislation to supplement the 29 states already having such programs.

Congress may take up a new comprehensive energy package that would exclude climate provisions, but include tax titles, the creation of a Clean Energy Development Agency (CEDA, the so-called “Green Bank”), extensions of various ARRA programs, and some tax and non-tax incentives to promote energy efficiency and conservation.

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PV SolarBioPower

NREL 2009 Report Since 2000, renewable electricity

installations in the United States (excluding hydropower) have nearly tripled, and in 2008 represent 42 GW of installed capacity.

Wind and solar PV are the fastest growing renewable energy sectors. In 2008, wind capacity installations increased by 51% and solar PV grew 44% from the previous year.

While the Legislature made several proposals to increase non‐wind generation, none of the proposals passed.

PURA 39.904(a) sets a target of having at least 500 MW of renewable generation other than wind.

Commission Staff issued a strawman rule proposal in Project No. 35792 on January 11, 2010.

Levelized Cost of Energy US$/ kWh – California and Arizona

Supply / demand imbalance, tech innovation, margincompression

Source: EIA, team analysis

Cell efficiency increase/ scale

Grid parity

Apr 4, 2010 - Chicago Tribune The key challenge facing developers is that existing transmission

lines, substations and transformers are inadequate to handle the amount of energy expected to come from wind farms

"It's easy to be green and say let's build wind but we have to think about - how are we going to deliver that?" said Thomas O'Neill, chief operating officer at Chicago-based Exelon Transmission Co., a unit of Exelon Corp.

The estimated cost to move that wind power east could range from $64 billion to $93 billion in 2009 dollars and would require 17,000 to 22,000 miles of transmission lines to be built in the eastern half of the country alone, according to National Renewable Energy Laboratory.

It isn't feasible for businesses to pay costs associated with the transmission upgrades. Many withdraw their requests to hook in once they realize the significant upgrades that would be needed, according to Midwest ISO.

Smart grid is new with many benefits

Communication infrastructure

Data privacy, security

Increased penetration of renewable energy into the generation mix

Technology upgrades within the utility New systemic impact occurring behind the

meter Distributed energy resources will likely

become the normal state; therefore, how do we integrate:◦ analog-centric power system ◦ digital-centric information infrastructure

Responding to these issues requires a new approach

“We’ll fund a better, smarter electricity grid and train workers to build it…” President Barack Obama

“To meet the energy challenge and create a 21st century energy economy, we need a 21st century electric grid…” Secretary of Energy Steven Chu

“A smart electricity grid will revolutionize the way we use energy, but we need standards …” Secretary of Commerce Gary Locke

“It is the policy of the United States to support the modernization of the Nation's electricity [system]… to achieve…a Smart Grid.” Congress, EISA 2007

San FranciscoIn-home/in-premise displays, control of individual appliances, Energy management systems/controllers

Plug-In Electric Vehicle (PEV) Integration, Renewable Resource Integration

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Large Scale Energy Storage, PhasorMeasurement Units, Self Healing Grid, Network Communications

Environment – Incorporate and enable all generation and storage options to support customer choice, improve grid stability, improve power supply options, reduce GHG

Customer – Enable energy markets and motivate customer’s participation in energy management through smart energy devices, new products and services, increased Energy Efficiency (EE)/Demand Response (DR), adoption of PEVs and renewable resources

Grid – Enhance the grid to reduce customer disruptions, resist attack, improve workforce and asset optimization, and improve efficiency

• High use of renewables – 20% – 35% by 2020• Distributed generation and microgrids• “Net” metering – selling local power into the grid• Distributed storage• Smart meters that provide near-real time usage data• Time of use and dynamic pricing• Ubiquitous smart appliances communicating with the

grid• Energy management systems in homes as well as

commercial and industrial facilities linked to the grid• Growing use of plug-in electric vehicles• Networked sensors and automated controls

throughout the grid

Grid-wide integrated communications◦ Internet for the power grid

Sensing, metering, measurement◦ Digital two-way communication devices◦ Enable generation connect and disconnect◦ Enhance operator information

Advanced control capabilities◦ Computer based grid monitoring ◦ Enables dispatch of distributed resource

Advance grid components◦ Energy storage◦ Distributed generation

Decision Support◦ Analytics to guide grid operators◦ Semi-autonomous agent software

Network / Telecommunications Infrastructure OverviewD

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Backhaulhigh capacity data link

WANw ide areanetw ork

LANlocal area netw ork

HANhome area netw ork

Microwave

Fiber Optics

WiMAX

Landline

BPL -- Medium Voltage

PLC -- Medium Voltage

Unlicensed Band

Licensed Band Bluetooth

Unlicensed Bands

PLC

BPL

WiMAX

PLC -- Low Voltage

BPL -- Low Voltage

LandlineLandline Landline

WiFi

Cellular

GatewayBPL Node

Poletop DeviceCollector

Electric MeterCable ModemDSL ModemBPL Modem

Gas MeterWater Meter

Smart ThermostatLoad ControllerHome Display

PCAppliances

PhoneTV

Satellite

ZigBee

CAT5 Cable

Wired:

Wireless:

Wired:Wired:

Wireless:

Wired:

Wireless

Medium Haulmedium capacity data link

Proprietary

CATV CATVCATV

Fiber Optics

Pager

WiFi

Commercial CarrierPrivate Tower

Network ManagementBack OfficeISP InterfaceApplication

# of Points IncreasingBandwidth Increasing

ZigBeeUnlicensed Bands

Cellular

Licensed Bands

Satellite

WiFi

Wireless:

Proprietary

Pager

WiMax

Fiber Optics Fiber Optics

Going greenPV, EV, Power MeterSustainability

Use of EV/PHEVs can help lower emission of pollutants, utilize less fossil fuels as the amount of wind generation in Texas grows, and help address energy security issues by reducing the amount of imported oil.

Powering a car on electricity would result in 93 percent less smog‐forming volatile organic compounds and 31 percent less nitrogen oxide emissions than powering a car on gasoline.

Operating costs of plug‐in cars are likely to be significantly lower than those of gasoline‐powered cars.

Electricity costs three to five cents per mile with average electric rates, or the equivalent of $0.75 to $1.25 per gallon of gasoline.

Consumer engagement with resources to solve power issues locally

Two-way power flow in distribution As prices increase, local renewables will

increase in residential, commercial, and industrial

Imperative to transform from passive to active control in distribution

New ways for distribution to become a transmission resource

Improved grid reliability “Green” alignment Improved energy use

and fuel costs Improved operating

efficiency Market participation New revenue sources

Benefits Risks Slow adoption Lack of control

systems No history of

aggregation success Lack of incentives Few investors Regulatory hurdles Lack of education

Distributed resources treated as an integrated and autonomous system

Localized to a customer, community or region Smart grid applied towards balancing loads

with renewable’s variable generation Must complete energy efficiency measures Integrate storage, load shifting, base plus

variable generation with smarter grid Participate in power, frequency and demand

markets

Ideal for…◦ University Campus◦ Business Park◦ Indian Tribal Land◦ Municipality◦ Utility Distribution◦ Military Base

Owned by…◦ Customer◦ Developer◦ Utility◦ Investment trusts

Multiple microgrids will emerge locally

Participate in grid and market support

They will be aggregated They will be networked Transactive markets will

emerge Individually, each may

offer unique capabilities Central management will

emerge

Aggregate markets◦ New business

operators◦ Utilities are

enablers Geographicall

y strategic storage

Centralized Control Goal(System Automation) Constraints

Demand ResponseDynamically orchestrate the shedding and adding of load and generation.Dynamically orchestrate the connection of power generation and storage devices.

Distributed Generation Control and optimize the generation of power based on cost of energy, reliability and environmental constraints.

Energy Storage Control and optimize the storage of energy based on cost of energy, reliability and environmental constraints.

Energy Metering Measure, aggregate, analyze and publish energy usage.

Energy ForecastingAnalyze and predict consumption, price, generation and failure risk.Generate system and power profile optimization programs.

Energy Market Trading Perform price monitoring, negotiation and settlement.

System MonitoringAnalyze cyber security, information flow, information quality, business processes and topology.Generate reports and programs to optimize system performance and provide control center visualization.

Neighborhood storage Within municipality districts Now in states where there are no franchises As critical mass is reached on franchised utilities Will need some changes to regulatory policy

Distributed Control

CollaboratingMG Cells

ISO System

MicroGridNetwork

Data Center

ESB

EMS/BMS

MGASControlNode DRSS

Campus MicroGridESB

EMS/BMS

MGASControlNode DRSS

Industrial Park MicroGrid

Utility MicroGrid

ESB

EMS/BMS

MGASControlNode DRSS

OpenADR

Wholesale Energy Market

Networked MicroGrids

ParticipatingLoads

BE ESS

BE ESS

BE ESS

ESB

EMS/BMS

MGASControlNode DRSS

BE ESS

Worldwide Capacity Market Sector Breakdown

Economic, sociologic and environmental pressures require us to examine a new energy management model

Distributed resources meet individual requirements and offer larger grid support

MicroGrids allow generation, storage, and loads to operate autonomously, balancing out voltage and frequency issues

MicroGrid cells are scalable and can be clustered locally as well as market opportunities

MicroGrids are a new commercial growth area Competition will drive need for conforming

architecture and standards

General MicroGrids

Balancing Energy for a smarter, renewable-driven grid