GRID MODERNIZATION INITIATIVEPEER REVIEW

E. IAN BARING-GOULD

4/5/17 1

April 18-20Sheraton Pentagon City – Arlington, VA

Design and Planning Tools

4/5/17Design and Planning Tools 2

ProjectDescriptionDevelopandimplementapathwayoftechnicalandeconomicassessmentleadingtoa50%importedenergydisplacementinremote,islandedAlaskancommunitymicrogrids.FirsttimeaconsortiaofDOELabsandAlaskaorganizationshaveundertakenthisinaholisticway.

ValuePropositionü Alaskanandislandedcommunities

havesomeofthemostcostlyandleastreliableenergyintheU.S.

ü Publicsectorfundsdecreasingbutlimitedprivateinvestmentmodels

ü Potentialhugeworldwidemarket&learningpotential

ProjectObjectivesü Developpathwaystoreducetotalimportedfuel

usageby50%whileloweringcostsandimprovingreliability

ü Usingtwopilotcommunitiesandexistinganalyticaltools,articulatetheuseofthispathwaytoactasmodels,hopefullyleadingtoactualprojects.

ü DevelopdatasourceandshareinformationonthepathwaythatcanbeusedbyotherstakeholdersacrossAlaskaandtheArctic.

Alaska Microgrid PartnershipHigh Level Summary

PhotoCredit:RileyAllen

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PROJECTFUNDING

Lab FY16$ FY17$ FY18$

NREL $352,255 $182,280 $0

LBNL $77,400 $129,040 $0

PNNL $70,900 $81,930 $0

SNL $69,275 $36,920 $0

Alaska-basedPartners:RenewableEnergyAlaskaProject: Alaskacoordination,communityreadiness,communityandcorporateengagement

AlaskaCenterforEnergy&Power: Dieselcontrolandoperationaltesting,designspecifications,andwebinterfacedevelopment

IntelligentEnergySystems: Designspecification,pilotcommunityengagement,andequipmenttesting.

InstituteofSocial&EconomicResearch:Datacollectionsupport;webinterfacedevelopment

ExternalTechnicalReviewCommittee

Alaska Microgrid PartnershipProject Team

DOENationalLabs:NREL: IanBaring-Gould(PI),ScottHaase,TonyJimenez.Task1,2,3leads.Projectcoordination,communityassessment,designspeck,andmodeling.

LBNL: PeterLarsen(+1).Task6lead.Communityassessmentandwebinterfacedevelopment.

PNNL: TrevorHardy.Task5lead.Economicanalysis.

SNL: DavidRosewater,JohnEddy.Task4lead.Projectmodeling,equipmenttestingoversightanddesignspecifications.

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MYPPVision:The future grid will … seamlessly integrating conventional and renewable sources, storage …. deliver .. Reliable ... sustainable, and affordable electricity to consumers.

Alaska Microgrid PartnershipRelationship to Grid Modernization MYPP

TopicalAreas:• 5.1.4: Identify and classify data sources, define templates, and develop databases for new grid

technologies • 5.1.5: Develop valuation methods and mathematical models for new energy technologies • 5.1.8: Develop methodologies and tools to produce simple-to-use desktop computer models 7.1.4: As

requested, DOE will provide technical support to analyze impacts of grid modernization on tribal entities • 7.3.1: Develop an analytical framework and tools for valuing potential benefits, costs, and impacts of

distributed energy resources • 7.3.2: Develop and implement informational activity targeted at regulators, policy makers, consumers and

utilities on valuation of DER technologies:

InstitutionalSupport

Activity1:ProvideTAtoStatesandTribes

Task7.1.4

Activity3:MethodsforAssessingGridModernization

Task7.3.1,7.3.2

DesignandPlanningTools

Activity1:ScalingToolsforComprehensiveEconomic

Assessment

Task5.1.4,5.1.5,5.1.8

Alaska Microgrid PartnershipApproach

KeyTasks:ü Projectmanagementandcoordination(Task1)ü Developandcollectcommunitycapacitymetrics

anddata(Task2)ü Conductandcompletecommunitysystem

analyses(Task3)ü Microgridhardwareassessment(Task4)ü Businessandfinancingcaseanalyses (Task5)ü Knowledge-sharingportaltoattractinterestfrom

public/privatesectordevelopers(Task6)KeyIssues:ü Highcostandlowintegrationofsustainable

energysolutionsforisolatedcommunitiesü Lackofastreamlined,holisticapproachto

conductingeconomicstudiesformicrogridprojects

ü Developmentofapathwayandsupportingdocumentationtoallowadditionalcommunitiesororganizationstoimplementsimilarprojects

ü Developcasestudies basedonactualpilotprojects

ü Makethewholeprocessavailableonawebplatform,socommunity-leveldatacanbeopenly-shared

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Assess• Determinecommunityreadiness(capacity)

Conduct• Conductneedsassessments(EE,RE,buildings,transportation)

Analyze• Analyzeopportunitiesusingexistinganalyticaltools

Consider• Determinewhatnewtechnologiesmaybeappropriateandwhichoptionsshouldbeconsidered

Design• Designprojectsandsystemstomeetprojectobjectives

Finance• Determinethemixofprivateandpublicfundsnecessarytoimplementdesign

Share• ShareinformationtoattractprojectdevelopersandFinancing(privateandpublic)

PathwayforHolisticCommunityMicrogridDevelopment

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Milestone (FY16-FY17) Status DueDate

Identify pilotcommunities COMPLETE(Chefornak&Shugnak) 8/1/2016

Earlyassessmentoftheidentifiedpilotcommunities

COMPLETE,analysiscompletewithreportdevelopmentunderway

10/1/2016

DesignFrameworkforStandardized Systems(DRAFT)

IN PROGRESS,Initialdraftunderreviewbytheprojectteam

1/1/2017

Technical paperdescribingresultsofdieseltesting(DRAFT)

INPROGRESS,testplanunder development,buildingoffofcurrenttestingonasimilarproject(10%complete)

4/1/2017

Technicalpaperwithassessmentofstorageoptions(DRAFT)

INPROGRESS,several storageoptionsinoperationandAlaskafocusedstorageassessmentcomplete(50%)

4/1/2017

Reviewdraftofgenericbusinesscaseanalysis

INPROGRESS,severalexistingpro-formastyleassessmentscollectedandbeinganalyzed(10%)

7/1/2017

Finaltechnical andbusinesscasestudiesfortwopilotcommunities

INPROGRESS,economicmodeldeveloped,technicalstudiesunderanalysis

10/1/2017

Design and Planning Tools

Alaska Microgrid PartnershipKey Project Milestones

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EarlyInsights:• Criticaltoengageacrosstheportfolioofenergy

consumption(electrical,thermal&transportation)

• Twopilotcommunitiesshowthata50%reductioninimportedfueluseispossibleifconsideringbothelectricityandheat

• Fuelreductionsfromtransportationsectorhavebeenhardertoteaseout

StakeholderEngagement:• FormulationoftheTechnicalReviewCommittee

andFinanciers’Roundtable• Projecthasbeendiscussedatseveraldomestic

andinternationalconferences• Projectpartner(ChrisRose)providedtestimony

toU.S.SenateE&NRCommitteeAMPproject

Alaska Microgrid PartnershipAccomplishments to Date

Analysismustaddresstotalcommunityloads,“Typical”remoteAlaskahomesprovideopportunityPhotocredit:PeterLarsen(LBNL)

Acommunityenergysystemusinghighamountsoflocalenergysourcesispossible.PhotoCredit:LBNL/RAP(2016)

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Near-termAccomplishments:• Communityreadinessindicatorsdeveloped

toassesshuman,financial,andtechnicalcapacitytoundertakeenergyinfrastructureprojects

• AppliedtoPowerAfricaBeyondtheGridandACEPteachingprograms

• Screeningoftechno-economicmodelingtools(DER-CAM,REopt,MicrogridDesignTool,HOMER,etc.)

• Designframeworkforsystemdesign

Alaska Microgrid PartnershipAccomplishments to Date

TwoofthreewindturbinesoverthebulkfueltanksoftheKasiglukPowerStation,avisionofwhatcouldbepossibleinthefuture.PhotobyIanBaring-Gould,NREL16097

Long-termAccomplishments(planned):• Developandimplementatechnicalandfinancialpathwayforremotecommunitiestodevelopreliable,inexpensive,andsustainableenergyinfrastructure

• UpgradetheAlaskaEnergyGatewaytocommunicatecommunity-levelfinancial,technical,andhumancapacitytoundertakeenergyinfrastructureprojects

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Alaska Microgrid PartnershipResponse to December 2016 Program Review

Recommendation ResponsefromAMPTeamEngagewithothermicrogridprojects–specifically NewOrleans,LAandKnoxville,KY.

Initialdiscussionshavetakenplaceand informationhasbeenexchanged.ThenatureoftheAlaskaMicrogridProject(isolatedsystemsandfocusedonthedevelopmentofanimplementationprocess)makedirectlinkagesdifficult.

Resultsofthedifferentprojectsarebeingshared.

RuralAlaska“PowerHouse”Photocredit:PeterLarsen(LBNL)

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ProjectCollaboration:• 1.3.04IndustrialMicrogridAnalysisandDesignfor

EnergySecurityandResiliency– microgridanalysis• 1.3.05DERSitingandOptimizationToolforCalifornia–

DerCamincludedinscreeningassessment,improvementswillsupportmoredetailedassessment

• 1.3.11GridAnalysisandDesignforEnergyandInfrastructureResiliencyforNewOrleans– microgridanalysis

Communications:OutputsfromtheAMPareinfluencingdiscussionsacrossAlaskaandbeyond…• RuralAlaskaEnergyConference• AlaskaPowerAssociation• UniversityofAlaskaFairbanksArcticRemoteEnergy

NetworksAcademyprogram• Internationaldevelopmentprograms:International

RenewableEnergyAgency,PowerAfrica

Alaska Microgrid PartnershipProject Integration and Collaboration

AlaskaMicrogridPartnership

1.3.05DERSitingandOptimization

Tool

1.3.11Energy

ResiliencyforNewOrleans

1.3.04IndustrialMicrogrid

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Alaska Microgrid PartnershipNext Steps and Future Plans

Near-TermPlans:• Completetechno-economicmodelingfortwopilotcommunities(April2017)• Conductbusinesscaseanalysisforthetwopilotcommunitiestoidentifyviablefinancingmodels(July2017)• Developtemplatetoallowapplicationofthemodelingandbusiness-caseapproachtoothercommunities

(September2017)• Identifyadditionalcommunitiesinterestedinimplementingthepathway(September2017)• EstablishtheAlaskaEnergyGateway2.0byexpandingtheexistingAlaskaEnergyDataGateway(September

2017)Follow-onWork(pendingadditionalsupport):• Supporttwopilotcommunitiesintheirpursuitofdevelopingrealenergyinfrastructureprojects• CollaboratewithHarvardUniversitystudentstointegratetransportationsectorassessmentsintotheanalysis

process• Implementthepathwayproducedfromthisprojectinadditionalcommunities• Incentivizecommunitiestouploadadditionalfinancial,human,andtechnicalcapacityinformationintothe

AlaskaEnergyGateway2.0Mid-termimpact:• Communitieshavebeenveryconservativeandpiecemeal,onlylowimportedenergysavingsystemshavebeen

appliedinruralAlaska• Approximately20(outof200)communitiescouldimplementthisprocessinthenear-term

4/5/17Insert Technical Team Area 12

Questions?

Ian Baring-Gould(303) 384-7021

Ian.baring-gould@nrel.gov

Alaska Microgrid Partnership

4/5/17Insert Technical Team Area 13

Backup Slides

Alaska Microgrid Partnership

Backup Slide #1: AMPTypical Rural Alaska Community

11/30/2016-12/1/2016 14

RileyAllen(RAP)

SignificantChallengesinRuralAlaska:• Approximately200remoteAlaskacommunitiesrelyonexpensive,

importedfuelforelectricity,heat,andtransportation.• Electricpowerinthesecommunitiesissomeofthemostexpensive(upto

10xthenationalaveragecost)andleastreliableintheUnitedStates.• Thereisgreatpotentialforrenewableenergy,energyefficiency,and

advancedtechnologysolutions.• Theexistingrenewableenergyretrofits(~40communities)aremostlylow-

andmedium-contributionsystems.Althoughdifficult,technicalchallengesrelatedtohigh-contributionrenewableenergysystemscanbesolved.

• Allprojectstodatehavereliedonfederalandstategrantfunding,whichisnotviablegoingforward.

• Afterexaminingexistingprojects,nosinglemodelpathwayhasemergedtohelpothercommunitiesaddressdependenceonimportedfuels.

• Thepotentialworldwidemarketandimpactarehuge:• 400dieselmicrogridsinCanada,70inGreenland,morethan1,000

inIndonesia• IEAestimatesthatmorethan700millionpeoplecurrentlywithout

electricityaccesscouldbemostcost-effectivelyservedbymini-gridsormicrogrids.

Alaska“PowerHouse”Photocredit:PeterLarsen(LBNL)

Backup Slide #2: AMPProject Partner - Details

11/30/2016-12/1/2016 15

ProjectParticipantsandRoles:NREL:Projectmanagement,conducttechno-economicmodelingforonecommunityLBNL:Communityreadinessassessment;DevelopAlaskaEnergyDataGateway2.0SNL:Conducttechno-economicmodelingforonecommunityPNNL:Developbusinesscaseanalysisforthefinancingoftheopportunitiesidentifiedinthetechno-economicmodelingREAP (RenewableEnergyAlaskaProject):CoordinateAlaska-basedpartners,representprojectatAlaska-basedforums,supportcollectionofcommunitydataACEP (AlaskaCenterforEnergy&Power):Conducthardware-in-the-looplaboratorytestingofdieselgeneratorsoperatingwithenergystorage;DevelopandhostAlaskaEnergyDataGateway2.0IES (IntelligentEnergySystems):ConductcostandperformanceassessmentofmicrogridstoragetechnologyoptionsISER (InstituteofSocial&EconomicResearch):Develop&hostAlaskaEnergyDataGateway2.0

RileyAllen(RAP)

TechnicalReviewPanelMembers:RobBensin BeringStraitsDevelopment

CorporationEricHansen AlaskaNativeTribalHealth

ConsortiumDaveMessier TananaChiefsConferenceSonnyAdams NANABrianHirsch DeerstoneConsultingBillStamm AlaskaVillageElectric

Cooperative(AVEC)TomWolfe DenaliCommissionGiveyKochanowski OfficeofIndianEnergy,DOEMichaelJohnson DepartmentofInteriorCadyLister AlaskaEnergyAuthorityJoshCraft AlaskaEnergyAuthorityRoderickPhilip ChanninikWindGroupConnieFredenberg ConsultantSteveColt AlaskaPacificUniversityBrentPetrie AVEC(retired)JohnLyons TDXPowerRobertSheldon VentureNorthGroup