GSGF White Paper: Status and Insights on Microgrids · Maale Gilboa kibbutz By MicroGrid Israel, Israel Project funded by the government Rural cooperative community microgrid with

GSGF White Paper: Status and Insights on Microgrids

From Pilot to Commercial Deployment

• About GSGF White Paper• About Microgrids Working Group

• Background and Scope• Functions of Microgrids• Global Cases on Microgrids• Barriers for Promotion• Proposed Solutions for Promoting Microgrids

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About GSGF White Paper

• Outcome of the Working Group (WG) established within GSGF– Past WG topics: Interoperability and standards, Interfaces

of Grid Users, Grid Connectivity of Distributed Generation, Power Grid Electrical Energy Storage, Cyber Security, Flexibility, Microgrids

• Each WG collects, shares, and discusses the current status and the way forward on each WG topic; the result is developed into a white paper

• Members of WG are recruited from global member associations of GSGF

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About Microgrids Working Group

• Established in November 2016• WG chairs: Japan and Canada

– Members from: Belgium, France, India, Israel, Korea, Sweden, and United States

• Information collected and discussions held via questionnaires, teleconferences, and face-to-face meetings

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• Member Recruitment

• Questionnaires• Teleconferences &

Presentations

• Face-to-Face discussions

• White Paper development

2016/8-2016/10 2016/11-2017/2 2017/3-2017/6



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Background and Scope

• Why Microgrids?– The power grid is in transformation from a centralized to

decentralized system using various DERs– Resilient power supply is increasing in importance due to

experiences of catastrophic natural disasters• Scope of this white paper: Microgrids that are (1) connected

to the grid AND (2) able to be islanded or be controlled in a manner that minimizes the effect of intermittent generations on the grid

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Functions of Microgrids

• Value for customers within the microgrid: renewables deployment, resiliency, uninterrupted power supply, bill reduction

• Value for TSO and DSO outside the microgrid: grid and system operation, investment deferral

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Functions of Microgrids

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Grid Consumer

Renewables deployment and carbon footprint reduction: integrate larger amounts of intermittent renewables in to the system at the local levelResiliency and increased PV self-consumption: be intentionally islanded to continue power supply during natural disastersUninterrupted power supply: provide stable power supply even when connected to frequently disrupted centralized power gridElectricity bill reduction: reduce bills for customers in areas of high electricity cost (e.g. islands) and reduce volatility of fuel cost

Grid and system operation: provide services such as demand response and ancillary services by aggregating resources (cf. VPP)T&D investment deferral: alternative means for distribution network investments such as substation renewal

Microgrid



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Global Cases on Microgrids (1)

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Power HouseBy Alectra Utilities, Canada

Project funded by IESO (Independent Electricity System Operator)Housings equipped with 5kW PV, 6.8kW/11.4kWh battery, and EMSAggregation of distributed assets to create VPP Technical requirements can be met for various value streams (e.g. frequency regulation, DR, operating reserve, TOU arbitrage, net metering, investment deferral, outage support, etc.)Customer benefit: 39% savings in bill


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Maale Gilboa kibbutzBy MicroGrid Israel, Israel

Project funded by the governmentRural cooperative community microgrid with total of 475 kW PV, 15 kW wind, 2 diesel generators, and an annual load of 3,000,000 kWh.Critical consumers (manufacturing plant, computer rooms and cow milking facility) can be islandedIntegration of renewables, increasing system efficiency, increasing resiliencyCurrently undertaking economic analysis of microgrids


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Los Alamos MicrogridBy Toshiba, Japan

Project funded by NEDO (New Energy and Industrial Technology Development Organization) in JapanAchieved fluctuation reduction and power flow stabilization with high PV penetration and conducted Demand Response for Smart Houses1MW PV, 1MW/6MWh NaS Battery, 0.8MW/2.3MWh lead acid battery, μEMS (controller)Achievement of load factor above 90% with μEMS (PV forecasting and battery control)


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NICE GridBy Enedis, France

Project funded by European Commission and ADEME (French environmental agency) (total of 30 million euros budget)Optimize PV integration in the distribution grid, test islanding on low voltage district, reduce peak demand in winter and give customer a new role within the grid as prosumer1.3 MW grid storage, 2.5 MW PV (*Islanding area consists of 8 clients, 3 PV plants total of 430kW, and 250kW/600kWh battery)Achievement of islanding for 5 hours, ensuring the quality of the distributed energy according to the EN 50160



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Barriers for Promotion

• Most of the microgrid cases were granted financial support (e.g. subsidies by municipalities or the federal government)

• For commercial deployment of microgrids, their economics must be improved:– Reduce cost of microgrid technologies– Increase revenue of microgrid businesses

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Reducing Cost• Cost of renewable energy

and storage technologies rapidly declining

• Further actions for reducing cost of communication and control technologies

Increasing Revenue• Revenue sources of

microgrids and business models (including stakeholders) are not clear under current regulatory framework



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Proposed Solutions: Reducing Cost• The white paper proposes the following solutions for reducing

cost of microgrid technologies and provides examples of ongoing work:

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Solution Explanation Ongoing Activities

Modular and scalable solutions

• simplifying installation process and minimizing design and engineering costs

Modular products sold by vendors

Standardized microgrid control and

communication technologies

• establishing interoperability between components and allowing multi-vendor system with cost competitiveness

IEC and IEEE

Peer to Peer energy trading

• may eliminate the need for central control or intermediary and reduce installation & operation cost of microgrids

Blockchain applications for P2P trading

Proposed Solutions: Increasing Revenue• Microgrid business models to be developed in tandem with

regulatory and market structure reforms; the white paper suggests that regulations and markets address the following:

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Topic to be addressed: Explanation Ongoing Activities

How to evaluate & remunerate the

services of microgrids

• What services can microgrids provide?• How should the value of such services be

evaluated?• How should the cost of such services be

remunerated (e.g. through the market, as part of electricity tariff, etc.)?

• Regulatory and market structure reforms in each region

• REV in New YorkOwnership model of

microgrids• Who can own microgrids?• Who can operate microgrids?

Procedures for interconnection

• What procedures are necessary for interconnection?

• Harmonizing DSO grid codes

Proposed Solutions: Conclusion

• Functions of microgrids increasing in importance; their economics are the key to commercialization– Reducing cost: microgrid components (e.g.

renewables & storage) and integrated system (e.g. standardization and reducing operational cost)

– Increasing revenue: reforming regulatory framework to enable microgrid business models

• Microgrids will shift from pilot to commercialization with improvement in their economics

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Documents

GSGF White Paper: Status and Insights on Microgrids · Maale Gilboa kibbutz By MicroGrid Israel, Israel Project funded by the government Rural cooperative community microgrid with