Mighty Microgrids: How Small Grids Could Become a Big Deal

M I G H T Y M I C R O G R I D S
H O W S M A L L G R I D S C O U L D B E C O M E A B I G D E A L
John Farrell
Biocycle REFOR16 – October 18, 2016

A Q U E S T I O N
How much do Americans spend on
electricity each year?
1. $3 billion
2. $30 billion
3. $300 billion
4. $3 trillion

A Q U E S T I O N
How much do Americans spend on
electricity each year?
$364 billion
2% of GDP

A ( N ) ( I N E F F I C I E N T )
M A R V E L

P O R T I O N O F E L E C T R I C
G E N E R AT I O N L O S T A S
H E AT
67%

Monthly electric outage rate
2005 2015Photo: SULA-CH via Flickr

U N P R E C E D E N T E D
O P T I O N S

1 I N S TA L L E V E RY
6 0 S E C O N D S

P E R S O N A L I Z E D
C O N T R O L
Software allows
many iterations

A S M A L L S TA R T
0.1%
Microgrid % of
total U.S. electricity generation

U P A G A I N S T A
M O N O P O LY
P R O B L E M

D I S T R I B U T I O N G R I D I N V E S T M E N T
L A G G I N G
American Society of Civil Engineers
“America will see an investment gap in distribution
infrastructure of $57 billion by 2020”

“ M I G H T Y ” M I C R O G R I D S

M I C R O G R I D
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 and that connects and disconnects from
such grid to enable it to operate in both grid-
connected or island mode.

M I C R O G R I D
• Likes to act alone
• Capable of making its own
decisions
• May benefit from
remaining grid connected
• Lots of possibility
Photo: tifotter via Flickr

A Q U E S T I O N
Where is one of the first microgrids larger than 1
megawatt and 100% renewable?

A Q U E S T I O N
Vermont!
Where is one of the first microgrids larger than 1
megawatt and 100% renewable?

S TA F F O R D H I L L
Photo: Green Mountain Power

A U S T I N
Photo: clickykbd via Flickr

L O N G I S L A N D
Photo: Clean Coalition

S T O N E E D G E FA R M
Stone Edge Farm
(California)
• 75-kilowatt microgrid
• Solar PV
• Solar thermal
• CHP
• Batteries
• Hydrogen
Photo: Ryan Stoltenberg

G R E S H A M WA S T E WAT E R
T R E AT M E N T
Gresham WWTF
(Oregon)
• Not a microgrid
• Net zero energy
• Two 400-kW CHP fed
with biogas -
wastewater plus fats,
oils, and greases
• 420 kilowatts of solar
Photos: Sara Hottman/The Oregonian

H I L L C A N Y O N WA S T E WAT E R
T R E AT M E N T
Hill Canyon WWTF
(California)
• Not a microgrid
• Net zero energy
• 900 kilowatt biogas
CHP
• 500 kilowatts solar

3 megawatts of solar
University of California
San Diego
2.8-megawatt fuel cell
• 42-megawatt microgrid
• CHP
• Solar
• Fuel cell
• Batteries
• Almost 100% of energy
• 92% of electricity
• 95% of heating/cooling
load
• Directed biogas to
“world’s largest fuel
cell,” 2.8-megawatt
U C S A N D I E G O

S M A L L R U L E S F O R B I G
R E S U LT S

S TAT E F U N D I N G ?
Credit: Microgrid Resources Coalition
New York
Minnesota
NY Prize provides
funding for municipal
feasibility studies
No microgrid financing

E X E M P T F R O M R E G U L AT I O N ?
New York
Minnesota
Exempt if:
1. solely on private
property OR
2. uses cogeneration,
small hydro, or
alternative energy
Exempt if:
1. muni or co-op OR
2. only serves tenants of
single building OR
3. serves < 25 persons

A R E M I C R O G R I D S P U B L I C U T I L I T I E S ?
New York
Minnesota
New York does not
designate monopoly
service territories
Only if they serve fewer
than 25 persons

E A S Y I N T E R C O N N E C T I O N ?
New York
Minnesota
B C

R E TA I L O R W H O L E S A L E M A R K E T
C O M P E N S AT I O N ?
New York
Minnesota
Wholesale, yes. Retail
may be coming with
Reforming the Energy
Vision process.
Wholesale, no. Retail
limited to net metering
for 1 MW or smaller.

O T H E R B A R R I E R S
New York
Minnesota
Distribution utilities
may be limited in
ownership of
microgrids.
Vertically integrated
utilities will likely fight
any laws enabling
microgrids.

BIOGAS GENERATOR MICROGRID
FA R M “ C A M P U S ”
M I N I M A L O V E R L A P ?

ON-FARM
MICROGRID
FA R M
T H R E E O P T I O N S F O R B I O G A S
M I C R O G R I D S

MICROGRID
“ C A M P U S ”
M I C R O G R I D S

MICROGRID
“ C A M P U S ”
M I C R O G R I D S
C R E D I T S

R O O F T O P S O L A R A N D B AT T E RY S T O R A G E
P R I C E S K E E P FA L L I N G
Battery:costperkilowatt-hour
$0
$450
$900
$1,350
$1,800
Solar:CostperinstalledWatt
$0
$3
$6
$9
$12
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Median solar installed cost
Lithium ion battery cost

M I C R O G R I D G R O W T H
Greentech Media, 2016

U . S . D I G E S T E R S
(AgStar, May 2016)http://bit.ly/digester-map

U . S . D I G E S T E R P O T E N T I A L
EPA AgStar, 2011

B I O G A S , F U E L C E L L S , A N D D ATA
C E N T E R S
Charlotte
Maiden
10 MW
Landfill biogas

C E N T E R S
Cheyenne
250 kW
Wastewater biogas

C E N T E R S
Salt Lake City
South Jordan
~6 MW
Pipeline gas
(interest in biogas)

0
17.5
35
52.5
70
April June Untitled 1 Untitled 3 Untitled 5 Untitled 7
Solar
Wind
Biogas is ﬁrm (and ﬂexible) power

T H E O N E B I G T H I N G ?
Credit: Ken Bosma via Flickr
=
Credit: Nicole Resseguie-Snyder via Flickr
Make incentives fuel neutral

www.ilsr.org
D O W N L O A D
O U R F U L L
R E P O R T
R E A D M O R E
@johnffarrell
Mighty'Microgrids''
Communi'es*all*over*the*country*are*ﬁnding*ways*to*break*the*macro*barriers*to*
microgrids.*As*we*ﬂip*from*a*top>down*to*bo?om>up*grid*management*structure,*
major*policy*barriers*must*be*liBed*in*order*to*expand*energy*democracy*to*
customers*and*producers.*
!
Ma$!Grimley!and!John!Farrell!
March!2016!

Mighty Microgrids: How Small Grids Could Become a Big Deal

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Mighty Microgrids: How Small Grids Could Become a Big Deal