Addressing Radial Feeder Challenges with Microgrids by Randall - - PowerPoint PPT Presentation
Addressing Radial Feeder Challenges with Microgrids by Randall September, ABB Agenda Challenges of the future power grid Overview of Radial Feeder Challenges How can Microgrid help What ABB has to offer Radial
by Randall September, ABB
October 25, 2018 Slide 2
October 25, 2018 Slide 3
Long-term drivers for energy storage
October 25, 2018 Slide 4
October 25, 2018 Slide 5
Challenges for distribution utilities Microgrid benefits
manage expected demand growth
capacity of network for additional renewable penetration
the demand growth.
metrics
Photovoltaic (PV) penetration
Target is distribution utilities that can own energy storage
* Islanded mode: ability to provide power independently from the main power grid October 25, 2018 Slide 6
Microgrid Definition
Distributed energy resources and loads that can be operated in a controlled, coordinated way either connected to the main power grid or in “islanded”* mode. Microgrids are low or medium voltage grids without power transmission capabilities and are typically not geographically spread out.
ABB has +331 MW global installed capacity of Microgrid and BESS
Solar PV power plant Wind power plant Remote asset management and data analytics Advanced power distribution and protection Conventional power Grid connection Modular scalable energy storage and grid stabilization Commercial loads Industrial loads Distributed control system Residential loads
ESS Integration of renewables 1-100 MW,1-10 h Peak shaving 0.5-10 MW, 1 h 220 kV 110 kV 20 kV ring 20 kV Conventional central generation Variable renewable generation 220 kV Load leveling for generation utilization 10-1000 MW, 1-8 h ESS 110 kV Industry/ Large commercial Load center 20 kV ESS Spinning reserve In case of line loss 10-500 MW, 0.25-1 h Load leveling
for postponement of grid upgrade 1-10 MW, 1-6 h
ESS ESS Frequency regulation 1-50 MW, 0.25-1 h 220 kV 110 kV ESS Solar PV time shift 1-100 kW, 2-6 h ESS 0.4 kV Residential/Small commercial ESS Microgrid Stabilization 0.1-5 MW, 5 min
October 25, 2018 Slide 7
October 25, 2018 Slide 9
Radial feeder Load forecast, substation capacity Distribution system cannot host the expected demand growth in future due to substation capacity
Distribution utility with radial feeders in need for capacity upgrade
Substation Circuit Breaker Voltage Regulator Voltage Regulator Solar PV
Aggregated Load
October 25, 2018 Slide 10
System Average Interruption Duration Index System Average Interruption Frequency Index System Average Interruption Frequency Index (SAIFI): The sum of the number of interrupted customers for each power outage greater than five minutes during a given period, divided by the total number
expressed in the average number of outages per year System Average Interruption Duration Index (SAIDI): The sum of the restoration time for each sustained interruption multiplied by the sum of the number of customers interrupted, divided by the total number
expressed in average minutes per year According to IEEE, North American utilities have the SAIFI median value of 1.10 interruptions per customer per year and the SAIDI median value of 90 minutes per customer per year System Average Interruption Duration Index (SAIDI), System Average Interruption Frequency Index (SAIFI)
October 25, 2018 ABB AbilityTM Velocity Suite, https://new.abb.com/enterprise-software/energy-portfolio-management/market-intelligence-services/velocity-suite Slide 11
US utility categories and reliability performances
October 25, 2018 “Decision Addressing The General Rate Cases of San Diego Gas & Electric Company and Southern California Gas Company and The Proposed Settlements”, June 2016 Finish Electricity Market Act, 2018, “Compensation for Power Cuts” Slide 12
Example from San Diego Gas & Electric
1. Penalty/ Reward Scheme 2. Non-Delivered Energy (Costumer compensation Finnish Electricity Market Act) Impacts SAIDI System Worst Circuit Target (minutes) 60 585 Dead Band +/- 2 +/- 35 Increment 1 10 Annual Improvement 1% Reward Increment 375 kUSD 125 kUSD Penalty Increment 375 kUSD 125 kUSD Maximum 3 MUSD 1 MUSD SAIFI System Worst Circuit Target (outages) 0.51 4.40 Dead Band +/- 0.02 +/- 0.35 Increment 0.01 0.10 Annual Improvement 1% Reward Increment 375 kUSD 125 kUSD Penalty Increment 375 kUSD 125 kUSD Maximum 3 MUSD 1 MUSD
ABB AbilityTM Velocity Suite, https://new.abb.com/enterprise-software/energy-portfolio-management/market-intelligence-services/velocity-suite
October 25, 2018 Slide 13
Does voltage regulation impact….
US Solar Global Horizontal Irradiance Map with Planned and Operating Solar Generating Units (By ABB AbilityTM Velocity Suite)
Over Voltage: The PV generation increases the line voltage at the feed-in point. Voltage Fluctuations: Clouds cause frequent voltage changes. Voltage regulators have ~30 second operational delay. In the existence of solar PV, VRs need to get replaced every year due to hundreds
thousands
(mechanical switching) per year.
Impact of PV on the radial feeder voltage regulation
ABB NAM Reference Case, https://new.abb.com/enterprise-software/energy-portfolio-management SANDIA Report, “Green Mountain Power (GMP): Significant Revenues from Energy Storage”, SAND2017-6164, May 2017. October 25, 2018 Slide 14
Transmission Charge Capacity Charge (ABB NAM Reference Case)
Distribution utilities pay charges related to the peak demand - Example New England Independent System Operator (ISO)
50 100 150 200 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Regional Network Services ($/kW- year) Year 50 100 150 200 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Capacity Market Price ($/kW-year) Year
October 25, 2018 Slide 16
Distribution Utility Challenges Power System Assumptions
Location: Long radial feeders with geographic restrictions
the penalty.
solar PV Load 8 MWp, 5.5 MW avg, 1% growth rate Substation Capacity 8.5 MW Solar PV 800 kWp Utility Rate 0.12 USD/kWh (50% grid fee), 2% inflation rate SAIDI 420 minutes per customer per year SAIFI 3 times per customer per year Reliability Impact 125 kUSD-Year as a Penalty/ Reward, 2% inflation rate Demand Charge 100 USD/kW-Year as transmission charge, 12 USD/kW-Month as a capacity charge, 2% growth rate System O&M Cost 425 kUSD, including extra maintenance for VRs.
October 25, 2018 Slide 17
Distribution Capacity Upgrade Scenario Microgrid Solutions Scenario
These scenarios manage the demand growth, but Microgrids have multiple revenue streams.
Substation Circuit Breaker Voltage Regulator Voltage Regulator Solar PV ABB Microgrid Plus Control System ABB Ability PowerStoreTM Aggregated Load Substation Circuit Breaker Voltage Regulator Voltage Regulator Solar PV Aggregated Load
October 25, 2018 Slide 18
Qualitative description
Peak Demand Voltage Regulation
2 4
Distribution Capacity Upgrade
Distribution utility pays the penalty for low reliability performance.
1
Reliability
3
The operation and maintenance cost is increased due to the voltage issues occurred by PV integration. Distribution utility pays the investment for capacity upgrades. This covers the load growth during the project duration considering the lead time. Distribution utility pays for the capacity charge and transmission charge related to the peak demand.
Microgrid Knowledge Report for Berkley, published on August 17, 2018. October 25, 2018 Slide 19
Benefits Costs
Upgrade Cost 1 MUSD per mile* Distance 5 miles Lead time 5 years
maintenance costs
Quantitative description
October 25, 2018 Slide 20
Qualitative description
Peak Demand Voltage Regulation
2 4
Microgrid
Distribution utility receives the reward for high reliability performance
1
Reliability
3
Voltage regulators need to switch less due to the battery voltage regulation Distribution utility invests in Microgrid solution with lower lead time to manage the expected demand growth Distribution utility pays less demand charge due to the Microgrid peak shaving capability
Microgrid improves resiliency and increase hosting capacity of distribution system for renewable integration
Lazard levelized cost of storage analysis, October 25, 2018 Slide 21
Benefits Costs
kUSD per year
25%.
Quantitative description of Microgrid (5.5 MW, 16.5 MWh)
Microgrid total cost 470 USD/ kWh** Battery replacement cost after 10 years 175 USD/ kWh Lead time 1 year Microgrid O&M Cost 0.2% Microgrid CAPEX
October 25, 2018 CIGRE Technical Brochure (TB635) and ISBN: 978-2-85873-33835 Slide 22
Reliability performance Indices
Assuming an availability of 98% for the energy storage (𝑄𝐹), a 100% probability of successfully transitioning to islanding mode (𝑄𝑁𝐻), and that 0 minutes are required for the Microgrid to transfer to islanding mode (𝑢𝑁𝐻) with an ABB Ability PowerStoreTM and Microgrid Plus control system.
= 0.06 𝑝𝑣𝑢𝑏𝑓𝑡 𝑞𝑓𝑠 𝑑𝑣𝑡𝑢𝑝𝑛𝑓𝑠 𝑞𝑓𝑠 𝑧𝑓𝑏𝑠
𝑁𝐻𝑄 𝐹𝑇𝑢𝑁𝐻 + 𝑇𝐵𝐽𝐸𝐽𝐶𝑏𝑡𝑓 𝑇𝐵𝐽𝐺𝐽𝐶𝑏𝑡𝑓 1 − 𝑄 𝐹𝑇
= 8 𝑛𝑗𝑜𝑣𝑢𝑓𝑡 𝑞𝑓𝑠 𝑑𝑣𝑡𝑢𝑝𝑛𝑓𝑠 𝑞𝑓𝑠 𝑧𝑓𝑏𝑠 Reliability performance has improved significantly with the islanding capability
Substation Circuit Breaker Voltage Regulator Voltage Regulator Solar PV ABB Microgrid Plus Control System ABB Ability PowerStoreTM Aggregated Load
October 25, 2018 Slide 23
20 years project life time with 9% discount rate
Microgrid is the economic solution for the Distribution utility with radial feeder in need for capacity upgrade
Scenario 1: Distribution System Upgrade Scenario 2: Microgrid CAPEX 5 MUSD 7.8 MUSD OPEX 27.3 MUSD 21.9 MUSD Revenue 32.7 MUSD 34 MUSD Net Present Value 0.4 MUSD 4.3 MUSD Internal Rate of Return 10% 15% Payback Period 10 years 6 years
October 25, 2018 Slide 25
Key Takeaways
System
PowerStore™ Battery
October 25, 2018 Slide 26
The project lifecycle
Concept Feasibility study Detailed engineering Supply Installation & commissioning Optimization Main business drivers Business case Analysis Data collection Social & Environmental Economic & Operational Technical Site conditions, solar, wind, generation and load Financial Subsidies, OpEx Costs, Fuel price Technical viability Financial analysis Different tools are required for each stage of the project lifecycle – HOMER Quickstart (http://quickstart.homerenergy.com/) – Financial model – HomerPro (Energy flow) – Power factory, PSSE, PSCAD (Loadflow, Stability, Protection) – MatLab (Tuning) Each tool has its own specific application Operations & Maintenance
Microgrid Project Lifecycle