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1.2. BGE's Public Purpose Microgrid Pilot Proposal_Murach_EPRI/SNL Microgrid

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Presentation from the EPRI-Sandia Symposium on Secure and Resilient Microgrids: BGE's Public Purpose Microgrid Pilot Proposal, presented by John Murach, Baltimore Gas and Electric, Baltimore, MD, August 29-31, 2016.

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1.2. BGE's Public Purpose Microgrid Pilot Proposal_Murach_EPRI/SNL Microgrid

  1. 1. BGE’s Public Purpose Microgrid Pilot Proposal EPRI/ Sandia Microgrids Symposium August 29, 2016
  2. 2.  What are the primary power delivery challenges you are facing?  How do microgrids address those challenges?  What do you see as major technological gaps to microgrid adoption? 2 Perspectives
  3. 3.  MD PSC interest in microgrid applications  Case No. 9298, Order No. 85385: Suggestion that utilities consider microgrids with generation technology as part of plan to improve restoration/resiliency.  PHI microgrid commitment as part of approved Exelon/PHI merger  Microgrids for Resiliency Task Force June 2014 final report contained multiple recommendations, including utility involvement in microgrids for overcoming initial barriers. o On a short term basis, move forward with deployed pilot projects to serve as a model for future deployment. o Utility-owned microgrids are likely path forward for near term. o Utilities should approach PSC and seek approval for public purpose microgrids. 3 Background Information
  4. 4.  Microgrids designed to provide power to commercial/government entities during widespread and extended grid outages in order to enable provision of key goods/services to surrounding communities and those able to access the microgrid locations.  Site selection process accounts for mix of services, population, technical feasibility, system reliability, system resiliency, access to major transportations routes and/or transit, and more.  Each microgrid will incorporate switching and controls needed to island the site from larger utility grid during outage events. The proposed microgrids are not intended to operate as a generation resource to the site during normal grid operation.  Natural gas generation with air emissions control technology, with capability to add energy storage resources as necessary and incorporate existing or added renewables (e.g., estimated 40-50kW of existing rooftop solar on a structure within the Howard County site).  Surrounding communities and the broader population are the primary beneficiaries. Microgrid acts as a form of insurance against impacts associated with widespread/extended outages.  Typical size of 2-5MW/microgrid depending on load served. And average cost of $3.5 million/MW. 4 BGE’s Proposed Public Purpose Microgrids
  5. 5. • 676,000 residents within 5 miles of site • Grocery, pharmacy, gas station, medical offices, and other key services located within site • Significant community and meeting spaces including Edmondson-Westside High and Enoch Pratt Free Library • Nearby area had history of longer duration outages during significant weather events • Convenient to access via public and personal transportation • Mix of established and newer communities Microgrid Site #1 – Edmondson Village (Baltimore City)
  6. 6. Microgrid Site #2 – King’s Contrivance Village Center (Howard County) • 217,000 residents within 5 miles of site • Grocery, pharmacies, bank, gas station, and other key services located within site • Significant community and meeting spaces including the Community Center, high school and two churches • Convenient to major thoroughfares (I-95, routes 295, 32, 29, 100) • Mix of established and newer communities • Site history of longer duration outages during significant weather events
  7. 7. Utility ownership (Allowed pursuant to PUA § 7-510(c)(6)): “In order to meet long-term, anticipated demand in the State for standard offer service and other electricity supply, the Commission may require or allow an investor-owned electric company to construct, acquire, or lease, and operate, its own generating facilities, and transmission facilities necessary to interconnect the generating facilities with the electric grid, subject to appropriate cost recovery.”  Avoids issues related to franchise/crossing boundaries to serve multiple customers.  Avoids third-parties having to become regulated “electric companies” under PUA. No Negative Impact on Competitive Opportunities  Did not displace base energy supply or supplier relationship with customer  Market has capacity for both utility and non-utility participation in microgrids.  BGE would conduct competitive procurement for microgrid assets and construction Microgrid Issues/Questions 7
  8. 8. Why a Pilot Proposal?  Favorable way to test and review multiple variables, including better understanding: o Whether design, equipment selection and installation deliver desired results o Better understanding of financial and physical requirements o Better understanding of land requirements and acquisition process o Verify successful renewable energy capabilities, energy market contributions. o Gauge community response; identify necessary changes for future microgrid applications. Economic Development Potential  Businesses in microgrid footprints remain open during electric grid outages.  Construction/maintenance of microgrids leads to direct and indirect job creation.  Business continuity aspects and potential to acquire critical goods/services during grid outages can act as incentive for people and businesses to relocate to Maryland Microgrid Issues/Questions (Continued) 8
  9. 9. PSC denied BGE’s request without prejudice  Impact on rates, concerns with strategy to charge all customers rather than particular businesses or communities  Site selection – more collaborative process among utility, local government, state agencies and communities  Use of natural gas generation, lack of renewable and storage  Lack of requirement for significant energy efficiency and demand response implementation among designated customers to minimize generation requirements  Use of third party “options” as alternate to utility owned systems  Question need in light of other reliability /resiliency investments  Consideration of future proceeding(s) on Microgrid deployment and “Grid of Future” for Maryland 9 PSC Decision

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