1. Smart and Microgrid R&D Military Smart Grids & Microgrids Symposium Steve Bossart, Senior Energy Analyst U.S. Department of Energy National Energy Technology Laboratory Arlington, VA May 1, 2013

2. 2 Topics Microgrid Concepts Challenges DOE Microgrid Program Selected DOE Microgrid Project Results

3. 3 Microgrid Concepts

4. 4 Includes DER & Load Defined electric boundaries Single controllable entity Connect and disconnect from grid Grid-connected or island-mode Microgrids & Smart Grids

5. 5 A Possible Future Distribution Architecture Municipal Microgrid Military Microgrid Campus Microgrid Commercial Park Microgrid Industrial Microgrid Utility Microgrid Distribution Control

6. 6 Why Microgrids? Support integration of smart grid & renewables Ease application of combined heat & power Local generation reduces electricity losses Disperses investments between central and local assets Assist in reducing peak load Serve critical loads Provide local power quality & reliability Promotes community involvement & energy independence Provide local power during outages Supports main grid –Provide ancillary services to main grid –Manage variability of loads and renewables locally

7. 7 Some Challenges and Risks

8. 8 Challenges to a Smart Grid 1.Businesses, state regulators, and consumer advocates are unconvinced of the value of smart grid technologies due to lack of performance data on costs and benefits 2.Insufficient or inadequate technologies, components, and systems to leverage IT potential of smart grid 3.No established standards for interoperability of systems and components 4.Insufficient cyber security for a smart grid architecture 5.Lack of a skilled workforce to build, install, operate, and maintain systems and equipment 6.Consumer understanding of the electrical infrastructure and opportunities enabled by smart grid technologies 7.Change management – vision, alignment, education, metrics 8.Future proofing – communications 9.Shift in regulatory paradigm – least cost, “used and useful”

9. 9 DOE OE Microgrid Demonstration Program

10. 10 Microgrid RD&D Projects

11. 11 DOE-OE Primary Microgrid Field Projects Renewable and Distributed Systems Integration Projects Mon Power - West Virginia Super Circuit Chevron Energy Solutions - CERTS Microgrid Demo City of Fort Collins - 3.5 MW Mixed Distributed Resources Illinois Institute of Technology - IIT Perfect Power Demo San Diego Gas & Electric - Borrego Springs Microgrid Smart Grid Demonstration Projects (ARRA) Battelle – Pacific Northwest Smart Grid Demonstration LA Dept. of Water & Power Smart Grid Regional Demo Southern California Edison Irvine Smart Grid Demo

12. 12 SDG&E Battelle SCE Ft Collins Chevron Mon Power IIT LADWP RDSI SGDP DOE OE Primary Microgrid Project Locations

13. 13

14. 14 Smart Grid Demonstration Program (SGDP)  Demonstrate emerging technologies (including energy storage) and alternative architectures  Validate business models  Address regulatory and scalability issues  Large projects: $20M- $89M Small projects: $720K-$20M (Federal share)  4-year projects (average) Selected Projects Total Funding$1,647,637,256 Total Federal Funding$620,027,274 Total Number of Projects32 Number of Projects Non-Profit, 9% SGDP Recipient Types

15. 15 Common Objectives Among DOE’s Microgrid Projects Reduce peak load Benefits of integrated DER (i.e., DG, DR, e-storage) Ability to integrate variable renewables Operate in “islanding” and “grid parallel” modes Import and export capabilities Two-way communications (frequency, verification, data latency) Data management Price-driven demand response Dynamic feeder reconfiguration Outage management (i.e., number, duration, and extent) Volt/VAR/frequency control Balance distributed and central control Cyber security Interconnection and interoperability Defer generation, transmission, and distribution investments

16. 16 Common Technologies Among DOE’s Microgrid Projects Generation and Energy Storage Renewable energy (PV, wind) Distributed generation (microturbines, fuel cells, diesel) Combined heat and power Energy storage (thermal storage, batteries) T&D Communications (wireless, PLC, internet) Advanced metering infrastructure & smart meters T&D equipment health monitors (transformers) Consumers Plug-in electric vehicles and charging stations (PHEV/PEV) Smart appliances & programmable thermostats Home Area Networks & In-Home Displays Energy management systems

17. 17 Selected DOE OE Microgrid Projects Fort Collins, CO Alameda County, CA – St. Rita Jail

18. 18 Fort Collins SGDP

19. 19 Fort Collins RDSI

20. 20 Fort Collins RDSI

21. 21 CERTS Microgrid Demonstration at St. Rita Jail

22. 22 CERTS Microgrid Demonstration at St. Rita Jail Results 14% peak reduction - Fuel cell (1 MW) - Photovoltaic (1.2 MW) - Battery (2MW; 12MWH)

23. 23 Cloudy Spring Day

24. 24 Contact Information Merrill Smith & Dan Ton Program Managers Microgrid R&D U.S. Department of Energy Office of Energy Delivery and Energy Reliability Merrill.smith@hq.doe.gov (202) 586-3646 Dan.ton@hq.doe.gov (202) 586-4618 Steve Bossart Senior Energy Analyst U.S. Department of Energy National Energy Technology Lab Steven.bossart@netl.doe.gov (304) 285-4643 Key Microgrid Resources: DOE OE www.oe.energy.govwww.oe.energy.gov Smart Grid www.smartgrid.govwww.smartgrid.gov