Transcript Sheehan Microgrid Multi-User Straw Proposal

USDN Microgrids and District Energy Workshop
Description of Straw Proposal
Travis Sheehan
Fellow in Energy Planning
Boston Redevelopment Authority
June 29, 2015
Why create a Straw Proposal?
• To develop a straw proposal business
model which enables multiple owners of
commercial real estate and/or institutional
buildings to achieve greater resiliency,
reduce GHG emissions, and lower total
cost of energy through energy services
from a “microgrid”‐ defined here as a local
energy system producing and distributing
electric and thermal energy.
Increased
Resiliency
Lower
Total Cost
of Energy
Lower
GHG
Emissions
Community Scale
Energy Investments
USDN Microgrids and District Energy Workshops
Hynes Convention Center, Boston | June 29, 2015 | Presentation by Travis Sheehan
A key component of technology transfer
• In general, the straw proposal outlines
the technology transfer of microgrid
solutions from campus energy services
into districts with mixed types of end
users—including commercial real estate
and institutional buildings—referred to
here as a “multi‐user microgrid”.
USDN Microgrids and District Energy Workshops
Hynes Convention Center, Boston | June 29, 2015 | Presentation by Travis Sheehan
Multi-User Microgrid
(MUM)
Smart Grid:
DG (CHP)
DG (Renewable)
Storage
Islanding
District Heating
and Cooling
History of the Straw Proposal
• The series of Boston Microgrids Workshops, held between March and
July of 2014, explored these opportunities and challenges of a
multi‐user microgrid through a multi‐stakeholder process. This straw
proposal is a product of those workshops, and will be further refined
based on the input from this USDN multi‐city multi‐stakeholder
6/29/15 workshop.
USDN Microgrids and District Energy Workshops
Hynes Convention Center, Boston | June 29, 2015 | Presentation by Travis Sheehan
The proposal is intended to enable a technology
package which achieves three objectives:
1. Enhanced resiliency
2. Reduced GHG emissions
3. Lower total cost of energy for end
users
Benefits to Customers from Multi User Microgrids
DG/Storage
Central CHP
Lower Energy
Cost
Increased
Resiliency
Environmental
Benefit
o
o
o
o
Thermal Distribution
• That technology package includes:
• Distribution assets, generation
assets, and communications assets
USDN Microgrids and District Energy Workshops
Hynes Convention Center, Boston | June 29, 2015 | Presentation by Travis Sheehan
Smart Grid
o
o
o
o
o
Islanding
Real Time Pricing
o
o
o
How the Workshop team arrived at the
contractual scenarios
Business Case A
Design and Value
Proposition of Microgrids
Basic
transactional
principles
Jurisdictional
Legal
Issues
Business Case B
Business Case C
Business Case D
Straw Proposal
USDN Microgrids and District Energy Workshops
Hynes Convention Center, Boston | June 29, 2015 | Presentation by Travis Sheehan
Group Exercise
Deal
Makers
and Deal
Breakers
Business
Case
revisions
for use in
pilot
projects
Contract Paths: Scenario 2 –
Distribution Company is Microgrid Operator
3
Competitive
Supplier
Microgrid
Customers
Local Gas Supplier
1
Billing
Services
Thermal
Dist. Owner
Electricity
Distribution
Company
4
2
Generation Owner
MG
Controls
Multi-User Microgrid with Distribution Company-Owned Wires
USDN Microgrids and District Energy Workshops
Hynes Convention Center, Boston | June 29, 2015 | Presentation by Travis Sheehan
Contract Paths: Scenario 2 –
Distribution Company is Microgrid Operator
1
Microgrid
Customers
• DISCO owned wires used in delivery of electric power and DISCO charges customers
pursuant to conventional tariffs and ‘Microgrid as a Service’ Fee
• DC enters into thermal energy PPA agreement with MG Customers
• DISCO bills customers for delivery of electric and thermal energy, some transmission
& distribution charges may not apply to power generated within the MG
Distribution
Company
Generation
Owner
• Generation Owner provides some T&D-related services to DC (e.g., voltage &
frequency control, distribution capacity deferral).
• A special contract is used to (a) define innovative services and charges (b) formalize
communication & control protocols, including for islanding (c) power export to the
macrogrid for electricity and thermal energy
Competitive
Supplier
Microgrid
Customers
• Competitive Suppler can provide electric energy supply for MG Customers through
competitive supply contract
Local Gas Supplier
Generation
Owner
• Local Gas Supplier and Generation Owner enter into “firm gas supply” contract
Distribution
Company
2
3
4
Contract Paths: Scenario 1 3rd Party is Microgrid Operator
Competitive
Supplier
4
Microgrid
Customers
2
3
Generation
Owner
Thermal
Dist. Owner
Billing
Services
MG
Controls
Microgrid Operator
Electricity
Distribution
Company
1
5
Local Gas Supplier
Multi-User Microgrid with Distribution Company-Owned Wires
USDN Microgrids and District Energy Workshops
Hynes Convention Center, Boston | June 29, 2015 | Presentation by Travis Sheehan
Contract Paths: Scenario 1 3rd Party is Microgrid Operator
1
Distribution
Company
Microgrid
Customers
Distribution
Company
Microgrid
Operator
2
• DISCO owned wires used in delivery of electric power and DISCO
charges customers pursuant to conventional tariffs and ‘Microgrid as a
Service’ Fee
• Some transmission & distribution charges may not apply to power
generated within the MG
• MG Operator provides some T&D-related services to DC (e.g., voltage
& frequency control, distribution capacity deferral)
• A special contract is used to (a) define innovative services and charges
(b) formalize communication & control protocols, including for
islanding © (c) power export to the macrogrid
Microgrid
Operator
Microgrid
Customers
• MG Operator enters into thermal PPA agreement with MG Customers
• MG Operator sells thermal energy to MG Customers
• Includes protocols to optimize the market value of generation, storage
& load management resources dispatched by MG Operator
Competitive
Supplier
Microgrid
Customers
• Competitive Suppler can provide electric energy supply for MG
Customers through competitive supply contract
Local Gas
Supplier
Microgrid
Operator
• Local Gas Supplier and Microgrid Operator enter into firm gas supply
contract
3
4
5
Group Exercise Part 1—Deal Makers/Deal Breakers
1
Distribution
Company
Microgrid
Customers
Distribution
Company
Microgrid
Operator
2
3
• DISCO owned wires used in delivery of electric power and DISCO
charges customers pursuant to conventional tariffs and ‘Microgrid as a
Service’ Fee
• Some transmission & distribution charges may not apply to power
generated within the MG
• MG Operator provides some T&D-related services to DC (e.g., voltage
& frequency control, distribution capacity deferral)
• A special contract is used to (a) define innovative services and charges
(b) formalize communication & control protocols, including for
islanding (c) power export to the macrogrid
Microgrid
Operator
Microgrid
Customers
• MG Operator enters into thermal PPA agreement with MG Customers
• MG Operator sells thermal energy to MG Customers
• Includes protocols to optimize the market value of generation, storage
& load management resources dispatched by MG Operator
Competitive
Supplier
Microgrid
Customers
• Competitive Suppler can provide electric energy supply for MG
Customers through competitive supply contract
Local Gas
Supplier
Microgrid
Operator
• Local Gas Supplier and Microgrid Operator enter into firm gas supply
contract
4
5
Deal
Makers
Deal
Breakers
Group Exercise Part 2: Multi-User Microgrid
Straw Proposal
• Is the multi-user microgrid straw proposal workable
(in your state/city), and how can it be improved?
• Please propose at least 2 refinements to improve the
microgrid straw proposal (to be workable in your
state/city).
USDN Microgrids and District Energy Workshops
Hynes Convention Center, Boston | June 29, 2015 | Presentation by Travis Sheehan