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Overview
•
The Problem
– Centralized generation is often dirty, costs are increasing and
T&D is vulnerable to natural and man-made interruption
– Distributed renewables are expensive and CHP is rarely
optimized for grid support robust market participation
•
Microgrids that integrate renewables and CHP are the answer:
– The blended kWh rate of CHP and renewables delivers costeffective energy
– Balancing the technologies improves energy reliability
– Can improve grid efficiency and reliability via ancillary
services
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Trends & Outlook
• The U.S. Energy Information Administration
predicts that 50GWs of coal-fired power
plants will be retired by 2020* due the cost of
maintaining aging infrastructure and the
vulnerability of the current “hub and spoke”
transmission/distribution model
• According to Pike Research**, these
retirements “will require a range of
technological options to provide electricity in a
distributed fashion for local use or for grid
support…
 CHP installed capacity is projected to
double by 2022 to 80 GW
 Microgrid deployments will reach $17B
by 2017
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Source: U.S. EIA Annual Energy Outlook 2012
What is a Microgrid?
Legacy Bulk Electrical System
That Was Then…
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Microgrids
…This is Now
Anatomy of a Microgrid
• Generation
 Reliable and cost effective
renewables
 CCHP & Fuels cells with waste
heat recovery and optimization
• Bi-directional inverters
• Software
 Sophisticated local management
and integration with building
automation
 Grid aggregation and dispatch
• Energy Storage
• Fleet Electrification &
Vehicle-to-Grid (V2G)
• Project finance and execution
• Operation and maintenance
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Pike Research – Hot Of The Press
• From the outside, looks like a single power production facility…
• From the inside:
– Independent, distributed energy resources are aggregated via a
secure web-connected system
– Optimization of generation, demand-side or storage resources
maximizes profits for asset owners
– At the same time, the system delivers extraordinary value and
services to transmission and distribution (T&D) grid
infrastructure for the proper balance of the electricity grid
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Value Proposition of Microgrids
• Building Own/Operator
– Improved energy reliability during natural or man-made grid interruptions
– Cleaner electricity and reduced emissions
– Reduction of demand and time-of-use charges
• Grid Operators
– Renewables peak shifting
– Renewables firming
– Ancillary services
• Frequency regulation
• Demand response
• Spinning Reserve
• Distribution Utility
When these benefits are fully
monetized, the economic
performance of
Microgrids can increase
by 10%+
– Reduced congestion on transmission and distribution infrastructure
– Power factor correction
– Voltage support
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Case Study – Fleet Electrification General Motors
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Case Study – Electrical Training Institute (ETI) LA
• Combines Energy
Storage, Solar Generation,
Electrical Vehicle
Charging and building
load management
• Can be operated both
grid-connected and
island-mode with full
bumpless transfer
• Functionality includes
renewable smoothing,
peak shaving, VAR
control and EV charge
leveling
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