1. John B. Wharton, PE Technical Executive Baltimore, Maryland October 16, 2013 Perspectives on Grid-Integrated Microgrids Maryland Clean Energy Summit

2. 2 © 2013 Electric Power Research Institute, Inc. All rights reserved. Microgrids in the News

3. 3 © 2013 Electric Power Research Institute, Inc. All rights reserved. Microgrids What is a microgrid? DER Feeder Other Feeders DER Interconnected loads and distributed energy resources Acts as a single controllable entity Connects and disconnects from the grid Bulk supply connection Single Customer Microgrid Distribution Substation Full Substation Microgrid Full Feeder Microgrid Partial Feeder Microgrid

4. 4 © 2013 Electric Power Research Institute, Inc. All rights reserved. Why Microgrids? Impact of Natural Gas Resiliency Remote Power Systems

5. 5 © 2013 Electric Power Research Institute, Inc. All rights reserved. Other Drivers for Increased Interest Improved Technology Opportunities for Combined Heat and Power Energy Security Public Policy

6. 6 © 2013 Electric Power Research Institute, Inc. All rights reserved. What is happening in Japan? $32M Subsidy for application of Building Energy Management Systems (BEMS) and Home Energy Management Systems (HEMS) Feed in Tariff for PV Applications (approx 40 cents/kwh) Residential and commercial storage applications also subsidized (Orix storage leasing program $50/month) Electric vehicle charging with two way capability

7. 7 © 2013 Electric Power Research Institute, Inc. All rights reserved. Utility Challenge – Integration

8. 8 © 2013 Electric Power Research Institute, Inc. All rights reserved. Summary – Where do microgrids fit? 1. The Economics of Local Generation Optimize energy source based on market Ability to participate in ancillary services and demand response Combined heat and power opportunities 2. Additional Benefits of a Microgrid Continuity of Service – Resiliency 3. Additional Costs and Challenges of a Microgrid Additional costs and complexity for interconnection and protection Requirements for safety Requirements for control and capacity during island operation, and maintaining power quality 8

9. 9 © 2013 Electric Power Research Institute, Inc. All rights reserved. EPRI Related Research Draft Primer on Microgrid Technology and Applications Investigation of the Technical and Economic Feasibility of Micro-Grid- Based Power Systems 1003973. Distributed Renewable Energy Generation Impacts on Microgrid Operation and Reliability, 1004045 Program on Integrating Distributed Generation into the grid Program on Energy Storage Systems and Distributed Generation Technologies Distribution and Transmission Grid Resiliency

10. 10 © 2013 Electric Power Research Institute, Inc. All rights reserved. Together…Shaping the Future of Electricity