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
0

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
1

Source: U.S. EIA Annual Energy Outlook 2012

What is a Microgrid?
Legacy Bulk Electrical System Microgrids

That Was Then

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

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

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
5

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
6