Energy Association of Pennsylvania Meeting

PECO Energy Utility Integrated Concord Microgrid Project

March 21, 2017

Background 2

In October 2015 PECO introduced it’s intention to develop a microgrid as part of it’s System 2020 five year plan

PECO evaluated many potential projects with a focus on providing critical goods and services to customers during extended outage periods. Projects were evaluated with a selection criteria that focused on; customer mix, reliability need, capacity need, surrounding population density, and area accessibility

Conceptual designs of the four highest potential pilot opportunities were further developed and evaluated by performing formal feasibility and business case studies. The final four projects were re-ranked and the Concord Microgrid Project was selected

The Concord Microgrid is a clustered microgrid design supporting 30 customer connections with a peak load of 8.6 MW and estimated cost of $35M. PECO filed a petition for allowance with the Pennsylvania PUC to construct the Concord Microgrid Project in May of 2016

In October of 2016, PECO withdrew it’s microgrid filing with the PUC based on concerns around utility ownership of generation, business case challenges, project size and cost, and rate structure challenges

PECO will enter into collaborative discussions with key stakeholders in an effort to obtain better alignment and move this project forward

Feasibility / Business Case Analysis

Feasibility Study• Initial conceptual designs were optimized to provide maximum benefit and stakeholder appeal• Base case and advanced case designs with additional customer involvement and more

advanced technology were developed for each pilot• Pocket reliability studies and root cause analysis were performed• Post microgrid reliability improvements were estimated• Load profile and consumption studies were done to estimate and optimize the generation mix• Operational characteristics were identified

Business Model Framework, Approach and Analysis • Project challenges• Base and advanced case functionality and economic performance• Key financial and maintenance cost assumptions• Business model inputs; cost, revenue, tax credits, and public funding • Capital and O&M cost breakdowns• Revenue opportunities / market participation • Cash flow and NPV• Customer reliability savings – Interruption Cost Estimator – LBNL ICE Model

3

Types of Microgrids 4

Source: EPRI

Utility Integrated Microgrid Design & Challenges 5

Each utility has it’s own unique electrical distribution configuration

In the case of the Concord Microgrid, the targeted public purpose customers are connected to five different circuits operating at 34kV and 4kV

Each microgrid requires a common point of interconnection (POI) to enable islanding operation

Creation of POI will require moderate to extensive distribution system reconfiguraton – more costly than a campus style microgrid

Customer selection and mix is a key selection criteria that has a huge impact on the electrical reconfiguration cost. Some projects that had a very favorable customer mix were removed from consideration because of the high complexity and cost of the electrical reconfiguration. Who’s in and who’s out?

Aerial facilities within the microgrid footprint need to be hardened against storm damage

Project Approach / Phases 6

Establish firm goals and objectives prior to design Customer mix is a key selection criteria for a public purpose microgrid Systemic thinking achieves optimal operational & functional requirements

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Privileged & Confidential – Prepared at the Request of Counsel – Not For Distribution

Microgrid Site Geographic Overview

Complex

Green - Microgrid 1Yellow - Microgrid 2

Slide 8

Concord Microgrid Project

*Sited on Customer Property

Microgrid 1Microgrid 2

*Li-Ion BESS2x100 kW

*Roof-Top PV260 kW

*Carport PV74 kW

*Wind Turbine160 kW

*Rooftop PV930 kW

Municipal Building, and Fire Station

Level 2 EV Chargers

Level 3 EV Chargers

CC

C

Shopping Center

CHotel

Shopping Center Hotel

CCShopping Centers

NG Engine 1980 kW

NG Engine 1980 kW

NG Engine 1980 kW

NG Engine 1980 kW

NG Engine 1980 kW

Shopping Center

Multiple Building Locations

Retirement Home, Gas Station, Food, ATM,

Sewage Plant

Shopping Center

4.0 MW Peak

4.6 MW Peak

Ground Mount PV500 kW

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Customers include; medical and surgery centers, retirement community, township building, fire station, sewage plant, gas stations, supermarkets, convenience stores, restaurants, pharmacies, bank services, home improvement, hotels, shelter, and retail space

*EV Chargers

Li-Ion BESS200 kW

Slide 9

Microgrid #1 – Conceptual Single Line Diagram

HealthcareHealthcare

Wholesale Store

Hea

lthca

re

Hotel266.4 kW

Hotel

Office Supply

Restaurant

Grocery

Large Retailer

Shopping Center

Hotel129.6 kW

Shopping Center

9

Home Improvement

Store

SC Trans

Shelter

34kV Circuit X

Microgrid #2 – Conceptual Single Line Diagram

2*1.98MVAJ162 Gas Engine

N/O MG Tie Switch

Concord Sewage385kVA

34kV/4.6kV

to MG1

~4000'

RCLC

52

Wawa76.5kVA

Maris Grove3529.8kVA

91857

~700'

250kW

10kW

Main Grid

RCLC52

52

RCLCPOI

LEGENDRCLC: Remotely Controllable Load CenterPOI: Point of Interconnection to Main GridMG1: Cluster Microgrid 1

Border line of customer propertiesAerial cableUnderground cable

MG2 Generation Station

1NOTE

: Distributed Generation for Advanced Case

1

1

Gas, Food, ATM

Retirement Home

Sewage Plant

10

Microgrid 1

34kV Circuit Y

Operational & Design Overview 11

Peak generation capacity allows for full islanding without demand response Transition between all modes of operation Environmentally friendly renewable DER BESS to maintain high power quality - renewable smoothing, generator loading, loading shedding,

and demand transitions Uninterruptible power supply for fire house, township building, and shelter Remotely controlled load centers to coordinate load block management and fault isolation Coordination with existing utility distribution automation schemes Protection and control coordination with utility for island and parallel operation Economic dispatch of DER during parallel operation Remote DMS control and monitoring from PECO Operations Control Center

Utility Integration of the Microgrid 12

Source: EPRI Integrated Grid

EPRI Microgrid Optimization Study 13

The objective of this study is optimize the current conceptual design

One year of historical load profile is being used to optimize DER resource type and size to deliver optimal operational effectiveness and economic dispatch

Data integrity and organization has been a challenge

Load profile data is being organized in a nodal (load center) format to perform the analysis

DER-CAM - Distributed Energy Resources Customer Adoption Model is the primary tool that is being used to perform this analysis

• Allows users to perform scenario analysis of system to optimize design• Economic and environmental model of customer DER adoption• Determine the optimal Microgrid configurations as well as operating strategies• Developed at Lawrence Berkley National Lab in 2000• Aims to minimize the cost of operating on-site generation

Other tools are also being used to provide additional insights

EPRI Microgrid Optimization Study

Challenges• Extracting one year of Demand Data to develop an aggregate load profile for

customers served by the microgrid Interval Mix (15 & 30 min) Variety of meter types Data gaps due to customer relocations and meter upgrades occurring within

the sample data set

• Extracting existing infrastructure information need for power flow modeling. Conductor Type Impedance Lengths Nodes

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EPRI Microgrid Optimization Project 15

Current Project Status• Report is being finalized

EPRI Deliverable• DER-CAM scenario report for 4 seasons• Power Flow Model (multi-node analysis)• Cost/Benefit Analysis• Recommended location and sizing of DERs• Recommendation on load block size and sectionalizing options

Project Objectives • Further develop project and prepare for next phases; design, planning, and HIL• Support DER-CAM tool development and enhancement for utility use• Provide feedback on how to make tool more effective and user friendly• Support EPRI’s Integrated Grid Vision - process for taking a project from concept

to execution

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Design Framework• Selection of critical public purpose customers dispersed among disparate feeders and voltages• Creation of Point of Common Coupling (PCC) • Minimize foundational hardening and reconfiguration cost• Contingency Management

Demand Data Granularity• Traditional utility analysis philosophy may not be adequate• Readily available information lacks high resolution• Customer-level analysis requires AMI infrastructure with adequate sampling rate• Data repository access may be a challenge

Island Mode Operational Pillars• PA law mandated voltage band must be maintained

120V nominal (+/-5% for residential and +/-10% for commercial/industrial)• Generation capacity must support total load for utility application• Multi-customer coordination and integration of existing DERs must be considered

Safety, Standards, Operating Practices • Safe operation and new equipment will require testing, new construction standards, operating

practices, and training• Microgrid industry standards are under development

Utility Integrated Microgrid Challenges

Microgrid / Utility Grid Integration Benefits 17

Benefits for Both Grids…….

The Utility Grid Benefits the Microgrid• Enhances microgrid reliability by providing a reliable source of power • Provides a low cost alternative to microgrid generation - DERMS

platform enables economic dispatch and improves bottom line cost• Provides demand (market) for renewable generation / promotes

renewable penetration

The Microgrid Benefits the Utility Grid• Generation can be used to alleviate overloads on utility circuits –

dependent on electrical configuration and type of microgrid • Microgrid generation at point of interconnection can be incorporated

into existing utility grid distribution automation scheme (virtual tie circuit) to provide additional contingency and improved reliability

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Business cases for utility integrated microgrids focused on reliability and resiliency are challenging. Need to improve our ability to quantify savings associated with reliability, resiliency, public safety, and deferred investments.

Need to educate key stakeholders on the value of the resiliency – insurance policy analogy

Regulatory framework needs to change to enable microgrids and DER applications

Utility philosophies must adapt to properly conceive, implement, and successfully build & operate effective microgrids

Operational approach moves from a reactive mode to a proactive / optimization mode

Grid-connected and islanded modes of operation will result in different fault current levels – traditional relay protective schemes will not be adequate

Next steps for Concord are; preliminary design, planning, and hardware in the loop (HIL) simulation testing to evaluate dynamic system response and protection and control requirements

Closing Thoughts