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Financing Microgrids in the Federal Sector

Recent high-impact events such as hurricanes and wildfires highlight the need for energy system resilience. One potential impact of these events is the loss of utility grid power to federal sites, negatively affecting the ability to carry out their missions. Depending on the need to sustain critical functions, it may be important to continue operations during an outage of the electric grid, or at least have power restored quickly after the event. One approach to addressing this need is through a microgrid. Microgrids can provide a more reliable solution than the traditional approach of using a backup generator at individual buildings. A microgrid can enhance a site’s electrical power system during normal operations, as well as provide reliable backup power to critical loads when electric utility power is interrupted. Many times, certain components of a microgrid (and potentially the entire system) can be justified economically and paid for out of energy savings or avoided costs. In cases where savings can cover the project costs, one of several privately financed procurement mechanisms may be used to implement the project. However, it can be difficult to achieve enough savings and avoided costs to cover the entire microgrid system, so leveraging these avoided costs in combination with appropriated funds may be necessary to implement the full project. This paper explores procurement options and agreements that may be useful to federal agencies interested in implementing microgrids at their sites. Microgrid complexities, implementation considerations, and suggestions to get started are also discussed. This information will be most useful to agencies when they are exploring electric energy system resilience options and/or considering different procurement options to meet their needs.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Financing Federal Microgrids [Slides]

A microgrid can enhance a site’s electrical power system during normal operations, as well as provide reliable backup power to critical loads when electric utility power is interrupted. When components of a microgrid (and potentially the entire system) can be justified economically and paid for out of energy savings or avoided costs, implementation by one of several privately financed federal procurement mechanisms is possible. However, it is typically difficult to achieve enough savings and avoided costs to cover the design, equipment, and installation of certain microgrid components that are required to integrate the system. This presentation explores procurement options and agreements that may be useful to federal agencies interested in implementing microgrids at their sites. This information will be most useful to agencies when they are exploring electric energy system resilience options and/or considering different procurement options to meet their needs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Financing Microgrids in the Federal Sector

Recent high-impact events such as hurricanes and wildfires highlight the need for energy system resilience. One potential impact of these events is the loss of utility grid power to federal sites, negatively affecting the ability to carry out their missions. Depending on the need to sustain critical functions, it may be important to continue operations during an outage of the electric grid, or at least have power restored quickly after the event. One approach to addressing this need is through a microgrid. Microgrids can provide a more reliable solution than the traditional approach of using a backup generator at individual buildings. A microgrid can enhance a site’s electrical power system during normal operations, as well as provide reliable backup power to critical loads when electric utility power is interrupted. Many times, certain components of a microgrid (and potentially the entire system) can be justified economically and paid for out of energy savings or avoided costs. In cases where savings can cover the project costs, one of several privately financed procurement mechanisms may be used to implement the project. Procurement options available to all federal agencies include utility energy services contracts (UESC), energy savings performance contracts (ESPC), and utility services contracts (USC); other mechanisms such as a power purchase agreement (PPA), enhanced use lease (EUL), and utility privatization (UP) may also be useful to agencies that have the authority to use them. Implementing a microgrid in a comprehensive effort that also includes energy efficiency can provide an important savings component, while reducing power requirements for critical loads, thus reducing the cost of the microgrid and associated distributed energy resources (DER). However, it can be difficult to achieve enough savings and avoided costs to cover the entire microgrid system, so leveraging these avoided costs in combination with appropriated funds may be necessary to implement the full project. When a site is deciding if a microgrid is the best solution, activities early in the process include identifying critical loads and existing DERs, conversations with the local electric utility, and implementation options that work best for the agency and site. This paper explores procurement options and agreements that may be useful to federal agencies interested in implementing microgrids at their sites. Microgrid complexities, implementation considerations, and suggestions to get started are also discussed. This information will be most useful to agencies when they are exploring electric energy system resilience options and/or considering different procurement options to meet their needs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Resilient Control of Networked Microgrids Using Vertical Federated Reinforcement Learning: Designs and Real-Time Test-Bed Validations

Improving system-level resiliency of networked microgrids against adversarial cyber-attacks is an important aspect in the current regime of increased inverter-based resources (IBRs). To achieve that, this paper contributes in designing a hierarchical control layer, in conjunction with the existing control layers, resilient to adversarial attack signals. Considering model complexities, unknown dynamical behaviors of IBRs, and privacy issues regarding data sharing in multi-party-owned microgrids, designing such a control layer is non-trivial. Here, to tackle these issues, a novel federated reinforcement learning (Fed-RL) method is proposed. To grasp the interconnected dynamics of networked microgrids, the paper develops Federated Soft Actor-Critic (FedSAC) algorithm following the vertical structure of implementing Fed-RL. Next, utilizing the OpenAI Gym interface, we built a custom set-up in GridLAB-D/HELICS co-simulation platform, named Resilient RL Co-simulation (ResRLCoSIM), to train the RL agents with IEEE 123-bus benchmark comprising 3 interconnected microgrids. Finally, the learned policies in the simulation are transferred to the real-time hardware-in-the-loop (HIL) test-bed developed using the high-fidelity Hypersim platform. Finally, experiments show that the simulator-trained RL controllers achieve desirable performance with the test-bed platform, validating the minimization of the sim-to-real gap.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Rural Hybrid Generation & Microgrids: National Labs are Here to Help

Hear about the tools and technical assistance National Labs can offer to co-ops and other rural utilities seeking to build or enhance hybrid generation projects combining multiple technologies including wind, solar, battery storage, and others resources. These hybrids can deliver additional value by combining complimentary resources and by increasing reliability and resilience, including as part of a microgrid to serve a local load or community. Experienced cooperative and lab experts will share their perspectives on the opportunities there are to make use of their advanced modeling capabilities and expertise to scope, design, and implement these emerging hybrid solutions. Key takeaways for participants will include better understanding of the resilience benefits distributed hybrid systems provide, awareness of National Laboratory assistance programs and resources, tips for successful federal funding applications for these types of projects, and peer-to-peer learning through shared experiences and discussion.

14 SOLAR ENERGY↗

Day-Ahead Forecasting with Federated LSTM to Plan Energy Sharing in a Community Microgrid

Energy balancing in microgrids is a key enabler of resilience. Community microgrids located close to each other have the added benefit of networking and sharing surplus energy, if available. Such complex decision-making runs on optimization that requires reliable short-term (up to very-short-term) forecasts of energy generation and consumption for scheduling or trading. Each microgrid may also opt to not expose their sensitive data such as consumption patterns of individual businesses or residences. This paper investigates a federated approach to dayahead forecasting that trains naive long short-term memory (LSTM) at each business in a microgrid and aggregates weights at the microgrid controller using proximal regularization. This approach ensures that the controller has access only to energy surplus/deficit and not the actual generation or consumption values, avoiding unwanted exposure of sensitive data. A community microgrid in Adjuntas, Puerto Rico with 3 businesses is selected as a case study with a laboratory-scale computing setup. A central LSTM forecaster, where sensitive data from businesses are aggregated at the controller, is implemented as a baseline for qualifying the results. This work serves as a proof-of-concept for scaling the approach to networked and nested microgrids with more complex control options.

Sundararajan, Aditya [ORNL] (ORCID:000000033577854↗

Best Practices for Resilience in Smart Grid-Interactive Efficient Buildings

The Federal Energy Management Program (FEMP) supports federal agencies' energy decisions with information and guidance on design, funding, and operations to ensure federal buildings are efficient and resilient. The modernization of building infrastructure and the evolution of buildings to support decarbonization involves complex implementation of multiple components across several systems. This includes energy-efficient equipment, on-site energy generation and storage systems, and control systems. These systems have operational modes that can operate more efficiently if they are able to behave responsively to the conditions of the electrical grid. These grid-interactive efficient buildings (GEB) allow facilities to manage power demand according to operational constraints and market signals issued by grid operators. With proper design and planning, these same capabilities have the potential to enable building and facility resilience - coordinating with microgrids, maintaining power on critical circuits to sustain essential operations, and monitoring building health and safety status during an outage. By managing the load of buildings, GEBs can also reduce the cost of backup generation and make better use of renewable power sources on site. This document outlines some of the processes and considerations to guide the design and operation of GEBs in ways that promote facility resilience.

building decarbonization↗

Congestion Management Solutions for Enhanced Distribution System Operations with Aggregated Distribution Grid Resources Providing Grid Services and Market Participation

Microgrids and other aggregations of distribution grid resources (DGRs) are poised to actively participate in electricity markets and provide essential grid services in the coming years. In fact, DGRs already play such a role through behind-the-meter (BTM) demand response programs and small-scale BTM dispatchable generation initiatives. At the same time, the rapid growth of artificial intelligence (AI) and cryptocurrency datacenters imposes significant, often unpredictable, demands on the power distribution system. Aggregated DGRs can serve as flexible resources that help mitigate these pressures by using available transmission and distribution capacity more efficiently, supporting resource adequacy and other reliability services, and providing bridge strategies while long-term transmission infrastructure is being developed. The impacts this activity will have on distribution networks are not fully understood and could present significant challenges for distribution utilities due to capacity constraints and the need for congestion management. Technical issues include reverse power flow, variability and possible degradation of equipment integrity, voltage violations, and customer power quality concerns. These issues will likely intensify as electricity market operators across the United States implement Federal Energy Regulatory Commission Order 2222 over the next few years.

24 POWER TRANSMISSION AND DISTRIBUTION↗

SuperLab 2.0 Showcase: Connecting Five Labs to Tackle Grid Complexity and Unlock Unique Grid Asset Potential

SuperLab 2.0 (5-Lab Demo) is a collaborative, national-scale experiment showcasing the coordination of geographically distributed energy assets in real time. The demonstration integrates 25 physical and digital assets, spanning wind, PV, batteries, electrolyzers, DC fast chargers, microgrid controllers, building automation systems, small modular reactor (SMR), control centers, and gas turbines, across five DOE national laboratories-NLR, INL, NETL, LBNL, and SNL. These assets are unified using Energy Sciences Network (ESnet), a low-latency, high-performance U.S. Department of Energy's (DOE) network, and controlled via a centralized energy controller hosted at NLR's ARIES facility. The demonstration validates the ability to stress-test hybrid energy systems under dynamic scenarios to de-risk advanced control strategies for greater resilience and flexibility. SuperLab 2.0 (5-Lab Demo) showcased a major advancement in federated national laboratory collaboration, enabling real-time, cross-laboratory experimentation to coordinate geographically dispersed distributed energy resources (DERs) using various communication protocols and networks. SuperLab 2.0 (5-Lab Demo) built on previous demonstrations conducted between NLR-PNNL and NLR-INL connecting diverse assets including distant protection devices, a SMR simulator, and a high temperature electrolyzer (HTE). Previous demos were based on a single connection between two labs with minimal coordination challenges. The 5-Lab demo with a centralized controller, distributed testbeds across different geographical locations, and use of protocols-based communication represents a scenario closer to real-world grid operations that coordinate resources across a region to meet system needs. This experiment studied how local DER controllers interact with a centralized energy controller during normal and abnormal events to maintain reliability. The SuperLab team across the five labs implemented a notional power system model equivalent of transmission and distribution lines, represented by the data networks interconnecting the labs. Each lab continuously exchanged local parameters (such as P and Q) from its Hardware-In-Loop (CHIL) and Power Hardware-In-Loop (PHIL) assets through centralized energy controller at NLR, enabling real-time interaction and coordination across sites. By leveraging ESnet as the communication backbone, the team successfully operated the distributed assets as a unified power system, with each bus represented by a different laboratory. This setup mirrors how assets interact in real-world power systems across dispersed locations with various protocols and latencies. At each lab site, assets were operated using their own local controllers which were coordinated through an overarching operation and control layer of centralized energy controller, equivalent to how an energy management system (EMS) orchestrates assets across a regional or national grid. SuperLab's federated connectivity utilized a Digital Real-Time Simulators (DRTS)-type gateway to connect Controller Hardware-In-Loop (CHIL) and PHIL assets between labs. To enable this federated connection through ESnet, a deterministic network was established where latency variations were consistent. This consistency allowed the development of digital filters for the power system assets across CHIL and PHIL interfaces to avoid unstable and unreliable grid conditions. This report provides an overview of the cross-laboratory configuration and offers insights into interconnecting geographically distributed research assets to test them as if they were co-located. This experiment represents a step toward linking nine DOE national laboratories, enabling nation-wide simulations that can address utility-driven challenges with grid resilience, flexibility, and modernization.

24 POWER TRANSMISSION AND DISTRIBUTION↗

A Real-Time Implementation and Validation of Federated Learning for Grid Services

Grid-edge devices are becoming increasingly important in the energy transition. Preserving privacy was not previously considered an important aspect for power grid operations, but with the increased proliferation of customer-owned assets, it is now an essential consideration. Several mechanisms have been proposed to provide privacy for non-utility owned assets in the power grid. Federated learning (FL) is one method gaining prominence in this area. Although FL has been used for other applications, such as auto-complete in phones, there has not been much investigation into whether these approaches are feasible for grid applications. In this work, we use a research platform with real-time simulators and hardware-in-the-loop capabilities to investigate how FL can be applied to grid-edge devices, and we present the potential grid services that can be derived for these devices. We discuss the computational challenges with deploying complex FL approaches, and we explore several grid services, including participation in retail electricity markets, voltage control, and resilience-driven reconfiguration.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Western Combined Heat and Power Technical Assistance Partnership (Final Technical Report)

Since 2018, the Western Combined Heat and Power Technical Assistance Partnership (CHP TAP) has been dedicated to advancing the adoption and implementation of Combined Heat and Power. The CHP TAP has diligently worked towards its mission of fostering end-user engagement, promoting technical solutions, and enhancing energy security within the region. As we reflect on our journey, we are proud to announce the completion of the required metrics set forth at the beginning of our endeavor. From the outset, our aim has been clear: to leverage CHP technology as a catalyst for bolstering American competitiveness, utilizing local fuels, and fortifying energy resilience. Through collaborative efforts with a diverse array of stakeholders, including manufacturing, commercial, institutional, and federal facilities, and campuses, we have strived to realize this vision. In this report, we outline the achievements, activities, and impact of the Western CHP TAP, highlighting the transformative journey undertaken since 2018. From providing technical assistance and guidance to conducting educational workshops and advocating for supportive policies, our initiatives have been guided by a commitment to excellence and innovation. As we celebrate the completion of our required metrics, we reaffirm our dedication to continuing our mission, building upon our accomplishments, and shaping a sustainable energy future for the Western region. Through ongoing collaboration and engagement, we are confident that the Western CHP TAP will continue to serve as a beacon of progress and a catalyst for positive change in the years to come.

03 NATURAL GAS↗