Interactive Distributed Generation for Demand Response Wayne Hartmann; VP, Marketing [email protected] 919-556-3056 Town Meeting:

Interactive Distributed Generation

for Demand ResponseWayne Hartmann; VP, [email protected]

www.powersecure.com919-556-3056

Town Meeting: July 13-14, 2009 Washington DC

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Discussion Topics

• What is “Interactive Distributed Generation?”

• How can IDG be used as a DR Tool?

• Why Employ IDG in the DR Tool Set?

• Making IDG Happen

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What is IDG?• Use of a Customer’s on-site

distributed generation (DG) for DR purposesDG size typically 250-5,000kWEmploy Reciprocating Engine Technology

• Single or multiple engine generators

Connected to the distribution system

• Interactive (the “I” in IDG)DG is under Utility control for a DR callDG is monitored for reliability

IDG in DR RoleWithout IDG

With IDG

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5

IDG: Typical Installation

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Dispatching & Monitoring

Broadband typically used as communication mediumNo SCADA Additions/Modifications Needed !!!

IDG Turnkey Application

LOAD

UTILITY

Existing Facility Facility with Generator and Switchgear/Controls Added

LOAD

UTILITY

G

G

M

8

IDG Retrofit Applications

LOAD

UTILITY

Existing Facility Facility Retrofit with Switchgear/Controls for Parallel Generator Operation

G

EMERGENCY LOAD

LOAD

UTILITY

E

G

G

EMERGENCY LOAD

M

LOAD

UTILITY

G

LOAD

UTILITY

G

G

M

Existing Facility Facility Retrofit with Switchgear/Controls for Parallel Generator Operation

Aka: “Harvesting”

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IDG: How Used for DR

• Relieves Customer load by:Load management (peak shaving)Complete load curtailment

• IDG provides seamless operation IDG is paralleled with UtilitySoft Customer & Utility

unloading/reloadingDoes not disturb Customer’s process or

business IDG also provides Standby Power

Load Management

LOAD

UTILITY

G

G

M

WL

WU

WG P

ower

Facility Demand

Generator OutputUtility Import

Time

Load Management Period

Utility Import

Generator Starts, Synchronizes and

Picks Up Load Generator Breaker Opens, Generator Shuts

Down

Generator Unloads

CompleteLoad Curtailment

LOAD

UTILITY

G

G

M

WL

WU

WG P

ower

Facility Demand

Generator OutputUtility Import

Time

Complete Load Curtailment Period

Main Breaker to Utility Opens

Main Breaker to Utility Closes,

Generator Unloads

Generator Starts, Synchronizes and Picks Up Load

Generator Breaker Opens, Generator Shuts Down

Why Employ IDG for DR?• Peak Load

Management• Defer T&D Build Out

– Address Distribution “Hot Spots”

– Address Transmission Constraints

• Utility Does Not Own the Asset– Customer Owns the

Asset– No Cap & Trade Issues

• Dispatchable by the Utility

• “Harvesting” Lowest $/kW for Firm Capacity

• Future:– Address Distribution

Constraints– Intelligent

Grid/MicroGrid Capability

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Sustainability & Losses: Conventional Power Delivery

TransmissionLosses

SubtransmissionLosses

DistributionLosses

Bulk Generation Asset

Load

525 kVA

500 kVA

•Losses typically 3-7%•5% used in this example

Sustainability & Losses: IDG for DR

TransmissionLosses

SubtransmissionLosses

DistributionLosses

Bulk Generation Asset

LoadIDG

500 kVA 500 kVA

•Heat rates (efficiency) of modern engine/gensets applied in IDG systems are as good if not better than combustion turbines (CTs) [1,2].

• IDG capacity has a heat rate of 9,800 btu/kWh saving approximately 2,200 btu/kWh of fuel input compared to the overall peak power generation portfolio published by eGrid [3].

[1] California Energy Commission; http://www.energy.ca.gov/distgen/equipment/reciprocating_engines/reciprocating_engines.html

[2] California Energy Commission; http://www.energy.ca.gov/distgen/equipment/combustion_turbines/combustion_turbines.html

[3] http://www.epa.gov/cleanenergy/energy-resources/egrid/index.html

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Sustainability• The amount of demand reduction can be precisely matched with the proper amount of dispatched IDG

Maximum efficiency of each IDG is maintained

• IDG can be started and fully loaded within 30 seconds

Only small amounts of fuel are consumed without realizing power output and demand/load reduction.

• IDG are considered spinning reserve while stopped!

Tremendous Green House Gas Savings and Carbon Footprint Reduction

Avoids 15% Reserve Capacity Over-Build Requirement

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Sustainability

• IDGs can operate as bi-fuelUse mixtures of diesel and clean-burn natural gas to

reduce emissions

• IDGs can utilize waste methane and biodiesel

• IDGs can be fitted with selective catalytic reduction (SCR) to further limit emissions in regions where emissions are restricted

This is true for new installations and retrofitting of existing engine/gensets

• IDG can be applied to firm Renewables

Availability, Firmness, Reliability• Many IDGs have greater reliability than a small

group of CTs A failure of one or even a few IDGs only impacts the

demand reduction capability associated with those failed systems…...the others relieve load.

• IDG systems have an availability of over 96.5% [1]• CTs have typically an availability rate of 90-95% [2]

• Monitoring keeps availability high

• IDGs can pick up load in 30 seconds

• IDGs use control implementations that will pick up as much of a Customers’ load as the generation will allow Dynamic setpoint for non-export

[1] PowerSecure operating experience from >850MW of aggregated IDG[2] European Commission Research; ftp://ftp.cordis.europa.eu/pub/eesd/docs/ev260901_poster_came-gt.pdf

Prebound-Rebound Effect:Signaled Passive DR

No Prebound-Rebound Effects:Signaled IDG-based DR

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Making IDG for DR Happen• Be open to it; employ a holistic view

• Have rate structures and programs that support it Shared Savings, Lease, other Premium Power, Emergency Power, other Programs

• Train CI&I Account Managers to suggest IDG as a rate reduction tool to Customers

• Approach 24/7/365 power users for Greenfield or Harvesting applications Data centers, hospitals, waste water, institutional,

mission critical manufacturing, municipal services, hotels, food stores, refrigerated warehouses

• Have DG interconnection processes in place

Interactive Distributed Generation for Demand Response

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Thank You

Questions?Questions?

Town Meeting: July 13-14, Washington DC

Interactive Distributed Generation for Demand Response