John Kelly - Microgrid Briefing on Capitol Hill - 5.20.2010

by Galvin Electricity Initiative on May 28, 2010

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Presentation by John Kelly, Deputy Director of the Galvin Electricity Initiative, given at the House Select Committee on Energy Independence and Global Warming briefing, "Microgrids: A Critical Compone...

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John Kelly - Microgrid Briefing on Capitol Hill - 5.20.2010 — Presentation Transcript

Microgrids: A Critical Component of U.S. Energy Policy May 20, 2010

Galvin Electricity Initiative Background

Started by former Motorola Chairman Robert Galvin in response to the 2003 Northeast Blackout

The initiative’s goal is to develop, demonstrate and open source an improved design for the delivery of electric power, a design that:

will not fail the consumer, or “Perfect Power”

is based on smart microgrid, or consumer focus

is a journey of continuous improvement

The Galvin Initiative is developing prototypes of smart microgrids

Consumers Have the Right to:

Reliable power

Choose electricity service and participate in markets

Access electricity pricing and usage data

Hold their supplier to performance standards

Investment Paid for by Eliminating Waste Waste Type Wasted $, Billions Wasted, $/MWh Fuel Cost ~ $140 ~ $40 Outages/Repair ~ $100 ~ $25 Wasted Capital ~ $40 ~ $10 Emissions Cost ~ $65 ~ $15 Water Cost ~ $5 ~ $1 Total Waste ~$350 ~ $90

Microgrid Transformation Area Substation Local Substation Central Power Transmission Area Substation Smart Switch Renewable, waste heat, no carbon Natural Gas Smart Switch Microgrid

Microgrids Concept Backup, CHP, Solar, UPS Rapid Prototyping IIT Smart Distribution Prototype Smart Switch Smart Loop Smart Meter 10 MW

Naperville Microgrid Outage Duration (minutes) per Customer, 1996 - Present

Innovative Policies and Programs

Community choice aggregation

Clean energy long-term property assessed financing (PACE)

Energy districts

Allow local government to build, own and operate new smart microgrids

Allow local governments to invest in and direct utilities to make smart grid improvements

If all else fails—municipalize

Investment and Impacts Estimates Metric Investment $ millions Source Energy, mmbtu Carbon, Tons , Delta Cost, ~$/MWh Grid Reliability Improvements 100 70% improvement 12 Community Aggregation -29% -38% Wind, 30MW 60 -13% -9% 2 CCCT, 20 MW 60 -6% -20% 8 Bio-energy, 5MW 30 -10% -9% 2 Lower cost and revenue -15 Clean Energy Financing, PACE -26% -31% Solar PV, 7.5 MW 60 -2% -2% 9 Efficiency/DR/Home Automation 50 -20% -16% -8 Cogeneration , 15MW 30 -4% -9% 0 Storage/DG, 10MW 20 0% -4% 0 Total 410 -55% -69% 10

Federal Policy Reform Ideas

Federal reliability and performance metric standards

Make the consumer principles in EISA 2007 mandatory

Federal matching of low interest loans for local governments to direct smart microgrids

Encourage FERC to expand consumer choice and ISO markets that value consumer participation

Ensure new legislation like cap and trade values consumer participation

John Kelly - Microgrid Briefing on Capitol Hill - 5.20.2010

by Galvin Electricity Initiative on May 28, 2010

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John Kelly - Microgrid Briefing on Capitol Hill - 5.20.2010 — Presentation Transcript