EXPO 2020: Macro Benefits of Microgrids

2020 RENEWABLE ENERGY & ENERGY EFFICIENCY EXPO Panel 1: Training a 21st Century Clean Energy Workforce Panel 2: Macro Benefits of Microgrids Panel 3: Advancing Climate Solutions Through Environmental Justice Panel 4: Efficient Buildings as Energy Grid Resources Panel 5: Sustainable Transportation Panel 6: New Frontiers in Clean Energy Research & Development

On July 30, 2020, the 23rd Annual Congressional Renewable Energy and Energy Efficiency EXPO and Policy Forum brought together 25 businesses, trade associations, and government agencies to showcase clean energy industries. The bipartisan House and Senate Renewable Energy and Energy Efficiency Caucuses served as the EXPO's honorary co-hosts, and the event was held online because of the COVID-19 pandemic.

The second panel of the day was about the “Macro Benefits of Microgrids.” Microgrids, robust electricity networks that can be operated in parallel with, or independently of, the utility grid, deliver considerable reliability and resilience benefits—not just for the off-takers of their energy output, but also for the rest of the grid. Resilience is a top priority for EESI—it has implications for everything from national security to recovery from severe weather events. Panelists discussed the value proposition of microgrids, which is more complicated than one might assume, as well as how new technologies are making microgrid applications better than ever.

U.S. Senator Susan Collins (R-Maine), who is the Deputy Co-Chair of the Senate Renewable Energy and Energy Efficiency Caucus, provided prerecorded introductory remarks.

View the full panel video above, or read the highlights below.

Group 2—Macro Benefits of Microgrids

American Public Power Association (APPA) National Association of Energy Service Companies (NAESCO) Electric Power Research Institute (EPRI) Center for Climate and Energy Solutions (C2ES)

Introductory Remarks [prerecorded]: U.S. Senator Susan Collins (Maine) Joy Ditto, President and CEO, American Public Power Association (APPA) Timothy D. Unruh, Executive Director, National Association of Energy Service Companies (NAESCO) Haresh Kamath, Senior Program Manager, Distributed Energy Resources, Electric Power Research Institute (EPRI) Doug Vine, Senior Energy Fellow, Climate and Energy Solutions (C2ES)

HIGHLIGHTS

 

Joy Ditto, President and CEO, American Public Power Association (APPA)

• The American Public Power Association (APPA) is a national organization that represents the interests of roughly 2,000 public power utilities in 49 states. The vast majority of members represent communities of 10,000 people or less. Our systems are considered the “original microgrids.”
• As defined by the Department of Energy, microgrids are “a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island mode.”
• As we increase the amount of intermittent energy sources such as power and wind in microgrids, systems will likely become more complex, and will require better and more reliable technologies, especially telecommunication technologies.
• We are seeing a need for resilience in our work with microgrids. We need to be able to send power to places and people when the grid is down. We have long worked with the military to microgrid their systems and make them more resilient.
• Much of the work we are doing now is in research and development. Many of our members are partnering with funding groups and research and development groups to deploy new technologies in a microgrid setting.

 

Timothy D. Unruh, Executive Director, National Association of Energy Service Companies (NAESCO)

• Microgrids need to be resilient (able to restore power following its loss) and efficient (able to use power more effectively).
• Small, independent grids have been around since the beginning of electrical power stations.
• Over the last few years, there has been an increase in the size and sophistication of microgrids, which has been accompanied by increased deployment of energy storage and renewables.
• One example of our work is the microgrid for the Marine Corps Recruit Depot on Parris Island, South Carolina. Here, the microgrid allows for high speed control of the grid so that we can optimize operations. It allows for high efficiency and resilience as well as low electricity and heat costs on the site.
• Microgrids can provide a coupling of efficiency and resilience in electricity distribution.
• We currently face a challenge of funding for resilience efforts.

 

Haresh Kamath, Senior Program Manager, Distributed Energy Resources, Electric Power Research Institute (EPRI)

• Microgrids are not new, but in the past most were based on natural gas, gasoline, and other liquid fuels. Now we are seeing the possibility of creating microgrids with cleaner sources of energy.
• We are currently seeing so much new deployment of distributed solar energy and storage because costs are lowering and because people and corporations are becoming more interested in controlling their own power and decreasing their carbon footprints.
• On-site storage can help maintain power during an outage and increase grid resilience.
• There are a number of tech challenges for adopting microgrids. Beyond storage, we also need proper control and management of the grids. Systems that properly control these microgrids can help us make better use of the energy that is being delivered.
• We have completed many feasibility studies and we have found that a lot of microgrids are not the best economic option today. However, costs are continuing to fall and there are many people who want to install microgrids despite the cost element.

 

Doug Vine, Senior Energy Fellow, Climate and Energy Solutions (C2ES)

• The Center for Climate and Energy Solutions is looking for solutions that can mitigate carbon emissions and strengthen resilience—microgrids can do both.
• Microgrids have been around for a long time, but they had their “aha” moment in October 2012, when Hurricane Sandy cut off power to much of the Northeast. A few areas with microgrids—or islanded power generation systems—kept their power. Natural disasters are the primary reason for growing interest in microgrids today.
• New microgrids are more climate-friendly and can reduce greenhouse gas emissions in two ways:
  • Incorporating green energy technologies into the grids themselves.
  • Making use of energy that would otherwise be lost.
• Microgrids also have grid resilience attributes. They can continue to provide electricity after extreme weather events and help the grid recover from system outages. One great example is the White Oak Microgrid at the Food and Drug Administration Federal Research Center in White Oak, Maryland. This microgrid has remained online through many disruptions.
• There are many challenges facing microgrids including financing, legal barriers, and policy barriers. States can play a key role in microgrid development.

 

Q&A Session:

 

Can you provide additional commentary on the value proposition for microgrids and where you see the co-benefits of microgrids making them worth the cost?

Ditto: We need to make an argument to communities that the cost is worth it if we are to invest in more expensive technology, so we do need to bring a value proposition forward. The clean energy component helps us present it as a worthwhile investment even though the technology is more expensive. In the city of Cleveland, one of our partners has been very focused on resilience and has issued a request for a proposal for a microgrid in downtown Cleveland. This requires infrastructure, and they are worried about both the affordability and about what the infrastructure will look like.

Unruh: It is hard to add resilience because we do not have a cost history from the past to justify the expense—resilience is a new expense that requires investment. It comes down to demand shifting and the integration of renewable assets.

 

Could the speakers discuss the integration and value of demand response in microgrids, particularly in light of Tim Unruh's comments on efficiency and resiliency?

Kamath: This is an important part of what we do. We start with critical loads, and we manage other loads as much as we can. As time goes on, we expect to be able to sustain all loads. Nevertheless, having a certain amount of load control gives you some reliability. Part of the reason the grid is so stable right now is because it is so large. Load control is an essential part of how we will integrate microgrids in the future.

Vine: Modeling tools can really help with demand response questions. The sophistication of microgrid managers is really important, and has been evolving over time to lower costs and minimize emissions. All microgrids have different generation sources and different markets to adapt to, so it is up to the owner to look for different value propositions. Scale is also important: larger microgrids make more sense economically. Each situation requires a lot of forethought.

 

Do you have thoughts on how microgrid deployments will be affected by the deployment of electric vehicles?

Ditto: The Washington Clean Energy Fund invested $3.5 million in the Snohomish County PUD Arlington Microgrid project in Washington state, which will have several vehicle charging stations. Integrating this into one campus is very exciting.

Kamath: Electric vehicles are huge opportunities for resilience as a component of microgrids. They carry a large load and are capable of putting power back into the grid. They are important for reducing total resources and providing resilience to customers.

 

Compiled by Maeve Arthur