POWER May 2016 - 41
DISTRIBUTED ENERGY RESOURCES
1. Backup for the backup. Two HH-1N " Huey " helicopters sit on the grounds outside
of the Search and Rescue (SAR) hangar aboard Marine Corps Air Station (MCAS) Yuma, Ariz.,
Feb. 12, 2016. The MCAS Yuma SAR team hosted a conference with regional emergency services
personnel to discuss tactics, techniques, and procedures. MCAS is leasing land to Arizona
Public Service to develop a microgrid that will supply backup power for the installation. Source:
Photo by Lance Cpl. Brendan King
2. Backing up solar photovoltaic
generation. Lithium-ion batteries are an
important component of San Diego Gas &
Electric's Borrego Springs microgrid. Courtesy:
SDG&E
he said.
Session moderator Steve Pullins, vice
president, microgrid solutions for Hitachi
Social Innovation Business-Americas, added
that his company is one of those service
providers, especially for campus customers.
Other vendor companies, especially control
system providers, also have played the role of
system integrator to one degree or another.
The service provider, Dr. Lahiri clarified,
trol systems providers. Getting companies
on board was challenging, because Duke's
plan was that everyone would " openly share
their knowledge, products and expertise, "
according to a Duke statement. Initially,
only six companies joined what Duke calls
the Coalition of the Willing: Echelon, S&C
Electric, Alstom Grid, Verizon, Ambient
Corp., and Accenture. Since then, a total
of 25 companies have joined the initiative,
including ABB, GE, Honeywell, Schneider
Electric, Schweitzer Engineering Laboratories,
and Siemens.
A related step for Duke has been moving
into " green microgrids " and selling microgrids
as a service to businesses as well
as state and municipal agencies. It has even
suggested that it might offer this service beyond
the U.S. through Duke Energy International.
Duke has developed a Mount Holly,
N.C., microgrid test center that has been focused
on interoperability issues and what it
calls a " field device interoperability solution
designed framework, " known as the trademarked
Open Field Message Bus (OpenFMB).
One
microgrid-as-a-service customer is
coalition partner Schneider Electric, which
announced earlier this year that it is developing
a microgrid that includes solar generation
and battery storage at its Andover, Mass.,
campus. At IHS CERAWeek in February,
Andy Bennett, senior vice president, infrastructure
and energy for the company's U.S.
operations, said in an interview with POWER
that, instead of paying National Grid about
$0.14/kWh, Schneider is " paying Duke to
May 2016 | POWER
pick up our energy bill . . . and now we're
going to pay $0.085/kWh. " Duke Energy is
also picking up the capital costs because " it's
a good investment for them, " he said.
Bennett anticipates that regulated utilities,
especially investor-owned ones, are going to
" look at taking market share out of some of
their potential competitors' territories " with
microgrid-as-a-service offerings. He said his
company expects to see " grid parity in a majority
of the states for PV plus battery storage
by 2020, " and at that point, microgrids will
become more compelling.
Microgrid Business Models
Utilities may not be the only front-runners
for developing, owning, and/or managing the
newer non-campus types of microgrids.
In a Microgrid Summit session on Connecticut's
microgrid grant and loan program,
Dr. Sudipta Lahiri, team lead-microgrids,
DER for DNV GL-Energy, commented that
" the time is ripe for a microgrid service
provider " -someone who brings the vendors,
engineer/procure/construct firm, finance, and
all the other pieces together and then sells the
service (rather than the physical microgrid
assets).
When POWER asked Dr. Lahiri what type
of entity that might be-utility or non-utility-he
responded, " It can be a startup. " He
suggested it was possible that someone less
entrenched than a utility, yet someone with
deep financing, would come in and get stakeholder
agreements, do performance validations,
and develop the project. The end user
shouldn't have to worry about any element,
www.powermag.com
could be independent from the technology
provider.
During one of the event breaks, an industry
participant suggested to POWER that
Lockheed Martin could potentially be positioned
as a one-stop shop to integrate and
develop entire projects, but " nobody has
all the pieces, " he said. One reason is that
microgrids might include any of the following
generation types-diesel, gas, fuel cell,
PV-all of which have different suppliers
and inverters.
Whether utilities, technology providers,
or independent third-party upstarts are best
suited to create a reliable recipe for microgrid
development remains an open question.
Lessons Learned to Date
Although new microgrid configurations,
technologies, and business models are still
evolving, some lessons have been learned in
the past few years.
Design Holistically. In contrast to pilot
projects or " science projects " to test the operation
of a particular component, microgrids
work best when all components, benefits, and
stakeholders are considered from the start.
Just wanting to add renewable generation to a
building project, for example, isn't sufficient
to ensure success.
Optimize Value. A related lesson is to
wring as much value from a project as possible
from the start-even though some future
benefits may accrue that cannot be anticipated
(see sidebar " Stacking Microgrid Benefits " ).
For example, use economies of scale
and diversity, as far as possible, to aggregate
41
http://www.powermag.com
POWER May 2016
Table of Contents for the Digital Edition of POWER May 2016
Contents
POWER May 2016 - Cover1
POWER May 2016 - Cover2
POWER May 2016 - Contents
POWER May 2016 - 2
POWER May 2016 - 3
POWER May 2016 - 4
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