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Enabling Regulatory and Business Models for Broad Microgrid Deployment (White Paper)

This white paper is one of seven being prepared for the Department of Energy (DOE) Microgrid Research & Development (R&D) program as part of a strategy development effort for the next 10 years. The seven white papers focus on the following areas: 1. Program vision, objectives, and R&D targets in 5 and 10 years, 2. T&D co-simulation of microgrid impacts and benefits, 3. Building blocks for microgrids, 4. Microgrids as a building block for the future grid, 5. Advanced microgrid control and protection, 6. Integrated models and tools for microgrid planning, designs, and operations, 7. Enabling regulatory and business models for broad microgrid deployment. This white paper is focused on Topic 7, as a sustainable regulatory and business environment for microgrid development is a foundational element for securing DOE's vision for the future role of microgrids in the U.S. electric sector. The objective of this white paper is to systematically characterize regulatory issues involved in microgrid deployment and microgrid business models, and from this evidence identify a robust and well-justified set of research recommendations for the Department of Energy Office of Electricity, informing programmatic vision, objectives and activities for the DOE Microgrid R&D Program.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Cyber-Resilient Design Methodology for Microgrids

Recent advancement in tools has helped with microgrid design, development, planning and operation. Microgrids offer a unique application based on users with different requirements for tools. The process of designing, constructing, commissioning, and assessing a microgrid is not always straightforward due to these distinct requirements. Additionally, metrics are needed for performance evaluation. This panel will offer an overview and description of tools that helps with microgrid design, construction, planning, operation, cyber security, and metrics-driven performance assessment driven by multiple diverse applications and use cases.

CCE↗

Assessment Framework of Marine Hydrokinetic Technologies for Microgrid Applications

Communities in Alaska that are not connected to a regional grid (referred to hereafter as grid-islanded Alaskan communities) rely heavily on stand-alone generators with imported diesel fuel as the primary source of energy. Several of these grid-islanded Alaskan communities have the potential to harness significant wave, tidal, and hydrokinetic power; many also have hydropower or wind potential that could complement these resources. The implementation of marine and hydrokinetic energy focused microgrids in these communities would diversify their energy profiles, with the potential in many communities to keep costs flat while reducing dependance on diesel. This would enhance resilience and reduce environmental impacts. This seedling proposal will systematically identify grid-islanded coastal communities in Alaska with wave, tidal, and hydrokinetic energy potential to add fuel diversity to generation, applying microgrid integration methods and strategies that will meet the community’s needs. This proposal is in partnership with the Alaska Center for Energy and Power (ACEP) and XENDEE Corporation who bring extensive expertise in Alaskan communities and microgrid technoeconomic assessment, respectively. This project will deliver: (1) a database of grid-islanded communities that are candidates for MHK based microgrids, (2) an assessment of possible microgrid integration methods and strategies related to tidal, wave, and hydrokinetic technologies, and (3) a MHK development plan for the XENDEE Microgrid design platform and planning tool that can serve these grid-islanded communities and project developers. In the final stage, the planning tool will allow for the comprehensive comparison between diesel based and MHK based renewable generation.

16 TIDAL AND WAVE POWER↗

Optimal Electrification Using Renewable Energies: Microgrid Installation Model with Combined Mixture k-Means Clustering Algorithm, Mixed Integer Linear Programming, and Onsset Method

Optimal planning and design of microgrids are priorities in the electrification of off-grid areas. Indeed, in one of the Sustainable Development Goals (SDG 7), the UN recommends universal access to electricity for all at the lowest cost. Several optimization methods with different strategies have been proposed in the literature as ways to achieve this goal. This paper proposes a microgrid installation and planning model based on a combination of several techniques. The programming language Python 3.10 was used in conjunction with machine learning techniques such as unsupervised learning based on K-means clustering and deterministic optimization methods based on mixed linear programming. These methods were complemented by the open-source spatial method for optimal electrification planning: onsset. Four levels of study were carried out. The first level consisted of simulating the model obtained with a cluster, which is considered based on the elbow and k-means clustering method as a case study. The second level involved sizing the microgrid with a capacity of 40 kW and optimizing all the resources available on site. The example of the different resources in the Togo case was considered. At the third level, the work consisted of proposing an optimal connection model for the microgrid based on voltage stability constraints and considering, above all, the capacity limit of the source substation. Finally, the fourth level involved a planning study of electrification strategies based mainly on microgrids according to the study scenario. The results of the first level of study enabled us to obtain an optimal location for the centroid of the cluster under consideration, according to the different load positions of this cluster. Then, the results of the second level of study were used to highlight the optimal resources obtained and proposed by the optimization model formulated based on the various technology costs, such as investment, maintenance, and operating costs, which were based on the technical limits of the various technologies. In these results, solar systems account for 80% of the maximum load considered, compared to 7.5% for wind systems and 12.5% for battery systems. Next, an optimal microgrid connection model was proposed based on the constraints of a voltage stability limit estimated to be 10% of the maximum voltage drop. The results obtained for the third level of study enabled us to present selective results for load nodes in relation to the source station node. Finally, the last results made it possible to plan electrification using different network technologies and systems in the short and long term. The case study of Togo was taken into account. The various results obtained from the different techniques provide the necessary leads for a feasibility study for optimal electrification of off-grid areas using microgrid systems.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Hierarchical Resilience Planning for Networked Microgrids: A Case Study of Puerto Rico

Microgrids can be designed to enhance the energy resilience of communities and critical infrastructures, such as hospitals, data centers, and communication networks, which are vulnerable to frequent weather-related disruption. Coordinating multiple microgrids in a network can leverage the geographical diversity of load and generation resources while enabling resilient and cost-effective planning of the distribution system. Designing a networked microgrid is complex, involving intricate technical assessment, cost-benefit analysis, site-specific requirements, and the evaluation of existing resources. Therefore, this paper proposes a hierarchical resilience planning framework and performs an extensive techno-economic analysis for the design of a networked microgrid. Hierarchical resilience planning involves technology sizing at an individual community level to meet the critical load and satisfy resilience criteria, and resource optimization at networked microgrid level to provide a higher level of resilience and energy adequacy. A real-world case of Puerto Rico's cooperative microgrid “Microrred de la Montaña” is investigated considering localized electricity tariffs, site-specific demand profiles, solar generation, and existing hydro resources. Multiple optimization scenarios are developed based on the resiliency requirement to estimate the capacity of solar photovoltaic and battery energy storage (BES) to be installed at each substation. The results provide the optimal sizing for individual community and networked microgrid to withstand 1day and 3-day outages along with the criteria for critical load.

13 - HYDRO ENERGY↗

Performance Evaluation of District Energy Microgrids Planning Tool for Non-Technical Users

Community Microgrids are increasingly gaining popularity worldwide for their efficiency, cost-effectiveness, and local resilience improvement. Microgrid planning tools play a crucial role in their deployment. In the process, tentative designs of the microgrid are simulated, analyzed, and optimized. Due to the complexity of the problem, planning tools must carefully balance computational efficiency while seeking the most optimal solutions. This paper investigates the impact of algorithm selection on CPU and memory utilization of a Community Microgrid planning tool that is specifically designed for non-technical users. We compare two version of the code with two alternatives for Community Microgrid planning tools: a Greedy Algorithm, and a Linear Programming Approach. This comparison examines scenarios spanning from 2 to 50 buildings. Our findings revealed a significant difference in performance between the two algorithms, underscoring the critical role of algorithm selection in optimizing the efficiency of Community Microgrid Planning Tools.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Microgrid Handbook for Army Resilience: A Technical Review

The Army recognizes the need for its installations to operate as independently and efficiently as possible with secure energy and water resource that cannot be limited or shut off by external forces or events, whether natural or man-made . In an effort to make this possible, the Army has identified microgrids as an effective way to achieve the goal of secure power for operations, both for domestic and international installations. This document is designed to educate Army Installation leaders about what microgrids are, options for their components, financing, and operations, as well as other regulatory and technological considerations.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Lessons Learned from the Clean Energy to Communities (C2C) Peer-Learning Cohort Enhancing Resilience at Critical Facilities through Solar, Storage, and Microgrids

The National Renewable Energy Laboratory (NREL), with support from World Resources Institute (WRI), designed and led a six-month peer-learning cohort from January through July 2024 on "Enhancing Resilience at Critical Facilities through Solar, Storage, and Microgrids" as part of the U.S Department of Energy's Clean Energy to Communities (nrel.gov/c2c) (C2C) program. Representatives from 15 municipalities, municipal utilities, colleges, and Tribes from across the United States participated in monthly workshops covering best practices for planning and deploying local resilience projects. This document shares key takeaways, lessons learned, and resources from the cohort including considerations for planning, proposing, designing, procuring, and funding microgrid projects for resilience.

C2C↗

FY 2021 Isolated Grids and Grid-Connected Turbine Reference Systems; Microgrids, Infrastructure Resilience, and Advanced Controls Launchpad (MIRACL)

For individuals, businesses, and communities focused on building resilient electrical grid infrastructure, wind energy can provide an affordable, accessible, and compatible distributed energy resource option that also enhances the capabilities of local grid operations. The Microgrids, Infrastructure Resilience, and Advanced Controls Launchpad (MIRACL) project is a multi-year distributed wind research effort, driven through a partnership between four Department of Energy National Laboratories and industry to develop and improve the planning, design, and operation of wind-centered microgrids to complement solar, energy storage, and other distributed energy resources for grid-tied and isolated operation (U.S. Department of Energy, 2021). This report documents the application of methods developed through the initial three years of the MIRACL project to two real-world distributed wind reference systems. Specifically, the methods demonstrated in this report include 1) a market valuation framework to comprehensively value the services distributed wind can provide and 2) a resilience framework that enables stakeholders to characterize distribution system resilience and compare grid investment decisions from a resilience perspective. Additional methods mentioned in this report include distributed hybrid system design methods for grid resilience, advanced control co-simulation platforms, and power hardware-in-the-loop (PHIL) models. Preliminary results from these additional methods are presented in this report and will be demonstrated and/or applied to the reference systems in the coming year. The purpose of applying these methods to reference systems is to drive technology transfer of the theories, methodologies, and technologies developed under the MIRACL project and increase the number of referenceable case studies available to stakeholders interested in additional value-added capabilities of wind systems beyond bulk energy supply (i.e. kilowatt-hours).

17 WIND ENERGY↗

Microgrid Tiered Circuits Effects for a Planned Housing Community in Puerto Rico

Puerto Rico faced a double strike from hurricanes Irma and Maria in 2017. The resulting damage required a comprehensive rebuild of electric infrastructure. There are plans and pilot projects to rebuild with microgrids to increase resilience. This paper provides a techno-economic analysis technique and case study of a potential future community in Puerto Rico that combines probabilistic microgrid design analysis with tiered circuits in building energy modeling. Tiered circuits in buildings allow electric load reduction via remote disconnection of non-critical circuits during an emergency. When coupled to a microgrid, tiered circuitry can reduce the chances of a microgrid's storage and generation resources being depleted. The analysis technique is applied to show 1) Approximate cost savings due to a tiered circuit structure and 2) Approximate cost savings gained by simultaneously considering resilience and sustainability constraints in the microgrid optimization. The analysis technique uses a resistive capacitive thermal model with load profiles for four tiers (tier 1-3 and non-critical loads). Three analyses were conducted using: 1) open-source software called Tiered Energy in Buildings and 2) the Microgrid Design Toolkit. For a fossil fuel based microgrid 30% of the total microgrid costs of 1.18 million USD were calculated where the non-tiered case keeps all loads 99.9% available and the tiered case keeps tier 1 at 99.9%, tier 2 at 95%, tier 3 at 80% availability, with no requirement on non-critical loads. The same comparison for a sustainable microgrid showed 8% cost savings on a 5.10 million USD microgrid due to tiered circuits. The results also showed 6-7% cost savings when our analysis technique optimizes sustainability and resilience simultaneously in comparison to doing microgrid resilience analysis and renewables net present value analysis independently. Though highly specific to our case study, similar assessments using our analysis technique can elucidate value of tiered circuits and simultaneous consideration of sustainability and resilience in other locations.

building energy modeling↗

Industry Assessment and Initial Adaptive Protection System Design

This report presents the success merits, logic design details, and test plans for adaptive protection schemes for microgrids, secondary distribution networks, and radial distribution feeders. Success merits are presented in terms of challenges and issues which should be mitigated. The challenges and issues were identified during site-specific simulations and analysis presented in a prior report. The adaptive protection logic designs are presented in a vendor-neutral manner to make them readily adaptable to site--specific protection relays and controllers which support custom logic design. Vendor-specific implementations of the logic for the adaptive protection laboratory tests are also presented. The final section of the report presents details of the testing methodology, plans, and documentation for each of the three adaptive protection schemes.

14 SOLAR ENERGY↗

Microgrid Assisted Design for Remote Areas

In this work, we present a three-stage multiobjective mixed-integer linear programming (MILP) for the optimal expansion planning and operation of isolated multienergy microgrids in remote areas. By selecting the optimal distributed generators (DGs) and energy storage systems (ESSs) mix selection, siting, sizing, and scheduling in the remote microgrid, the proposed model is targeted to minimize the annualized total cost of microgrids while enhancing the performance of the system, i.e., minimizing the voltage deviations and line power loss. To represent the electricity and heat flow between generation resources and various electrical, heating, and cooling loads in the isolated microgrid, linearized power flow, and heat flow constraints are employed in the proposed optimization model. The available capacity of DGs and ESSs are modeled as discrete constants instead of continuous variables for practical purpose. Numerical simulation results on a remote microgrid consisting of DGs, ESSs, and various loads validate the proposed method.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Net-Zero Carbon Microgrids

The microgrid concept has been effective in creating aggregations of distributed energy resources—generation, storage and loads—for resiliency, in the form of energy security. The success of microgrids in bringing energy security to a wide range of customers—from individual residences to commercial and industrial installations to military bases—has been exemplified during power disruptions and extended outages due to extreme weather events, cybersecurity attacks, and equipment failures. Now microgrids have an opportunity to meet the challenges of climate change and contribute to a carbon-free power delivery system. The transition to net-zero starts within microgrids themselves. In fact, today’s microgrids are largely dominated by generators using fossil fuels, natural gas and diesel, with high greenhouse gas emissions. In short, the transition to net-zero means replacing fossil fueled generators with renewable generation in microgrids. This transition is extended by including new dispatchable generation technologies that are 100% carbon-free and that offer additional advantage of a more-dependable and sustainable source of energy and power. Basically, the decarbonization of microgrids requires three elements: 1) maximizing generation from renewable energy resources, 2) management of storage and flexible loads to balance the variability and intermittency of renewable energy resources, and 3) introducing new clean power sources, including hydrogen-based generation and small modular reactors. This report affirms a need for specific focus by governmental agencies at national, regional, and local levels to establish technology, policy, and investment in this area. The intention of the Net-Zero Microgrid (NZM) Program is to inform these constituencies with cross-cutting research and tools for the reduction of GHG in microgrids – to net-zero in the near term eventually to zero in the longer term. The NZM Program is committed to achieving decarbonization for resiliency and for providing clean energy at the local or distribution level, from remote communities to underserved communities, and large industrial and military facilities. The NZM Planning and Design Platform is a core tool to be developed as an early deliverable of the NZM Program because only a fully integrated microgrid-design approach will ensure maximum carbon reduction in energy production.

13 HYDRO ENERGY↗

SEIN: Breaking Barriers Resilient Energy System Analysis [Slides]

The Solar Energy Innovation Network (SEIN) is a collaborative research program that supports multi-stakeholder teams in researching and sharing solutions to real-world challenges associated with solar energy adoption. The Breaking Barriers project was selected to participate in the Solar Energy Innovation Network, Round 2, and was led by Groundswell, a D.C.-based clean energy project developer. The Breaking Barriers team included Partnership for Southern Equity, Atlanta University Center campus facility managers and professors, the City of Atlanta's Neighborhood Planning Unit T, and Georgia Power Company. The project aimed to design and construct innovative urban energy resiliency hubs integrating microgrid technology, solar generation, and energy storage in Atlanta colleges and communities. The hubs will help these historically Black colleges and universities (HBCUs) and the energy-burdened broader community in West Atlanta be more resilient, in addition to informing new course curricula at Atlanta University Center campuses. With many possible options for the system's battery size, the Breaking Barriers team needed insight into the relationships between BESS size, economic performance, and resilience at Spelman College's Manley Center. These insights are crucial for entering procurement negotiations with project developers, establishing resilience capabilities that the HBCU campuses can plan around, and guiding the team's fundraising targets. This analysis includes estimates of PV and battery performance, costs, savings, and resilience for multiple battery sizes. In order to provide power during a grid outage, the resilient energy system also needs to be connected to the Manley Center in a safe and island-able manner (electrically isolated from the grid). Analysis of potential electrical configurations and estimated setup costs is key to successfully entering a required interconnection agreement with Georgia Power, as well as informing requests for engineering firms to construct the system. This analysis includes conceptual options and rough order of magnitude cost estimates for electrically interconnecting the resilient energy system to the Manley Center and the grid. The Breaking Barriers team used this analysis to select preferred system characteristics and design for the resilient energy system.

14 SOLAR ENERGY↗

Adaptive Protection and Validated Models to Enable Deployment of High Penetrations of Solar PV (PV-MOD)

The availability and validation of various PV models in commercial tools differ, with some models not yet thoroughly validated for advanced inverter functionalities and reliable performance under weak system conditions. Many existing models do not fully incorporate new inverter control functions, which can affect system stability. The increasing deployment of solar PV and other inverter-based resources (IBRs), including distributed energy resources (DERs), is influencing the reliable operation of protection schemes in distribution systems and microgrids. Emerging adaptive protection schemes (APS) offer new opportunities for protecting these systems during varying configurations and DER operating conditions, though their demonstration and validation remain limited. Adaptive protection schemes face similar challenges, as they are typically designed for specific configurations. There is a growing need for tools and methodologies to streamline the deployment of adaptive protection for safe and reliable DER integration. The project main objective was to develop and validate high-fidelity generic models of solar PV facilities for stability, protection, EMT, and QSTS analyses. This objective was achieved, and these models can now be integrated into commercial software tools, enabling utilities, vendors, and developers to study high-penetration PV systems more confidently. The project also demonstrated advanced applications of these models, including the design and deployment of adaptive protection schemes in high-penetration field applications and microgrids, supporting grid safety and reliability. Several milestones were reached by the end of the project. A sophisticated inverter test plan was developed, and inverters representative of the North American marketplace were selected. EPRI and NREL tested various inverters, conforming to IEEE standards. Improvements were made to existing generic models of IBR units, IBR plants, and aggregated feeders for various analyses. The first generic electromagnetic transient (EMT) model for a solar PV plant was developed, conforming to IEEE Std 2800™-2022 and validated against laboratory measurements of a 2.2 MVA large-scale battery energy storage system (BESS) inverter. That model was then used to produce reference responses illustrating examples of validated and verified IBR plant models that pass or fail tests for technical minimum capability and performance as specified in the IEEE standard. The developed, tested, and validated generic models can be used for transmission planning, stability assessments, expansion planning, and evaluating potential future IBR interconnection requirements. They can also support interconnection screens and conformity assessments of IBR plants, including solar PV. The project significantly contributed to the ongoing standardization and model-based representation and verification of IBR responses. The project further addressed challenges of common distribution protection schemes with increasing deployment of DER by developing, validating, and demonstrating adaptive protection schemes (APS) that can improve the reliable and safe integration of DER into distribution systems. New APS were designed using improved DER models for three common distribution systems: a radial feeder, a meshed network, and a microgrid. Modeling and hardware-in-the-loop (HIL) testing of the APS were conducted, successfully showing their effectiveness and selectivity. Proof-of-concept field demonstration was achieved for two APS, i.e., one on a radial feeder and another one in a microgrid. Field demonstration could not be achieved for the APS on a meshed network, primarily due apprehension of one utility partner and also due to limited access to the protective algorithms in the network protectors. Guidelines developed from the lessons learned in the project lay out the general process followed in the design, installation, and commissioning of APS for various distribution systems. Distribution utility partners’ apprehension about field demonstration of the new APS were addressed—with varying success—by taking a stepped risk-management approach of modeling of a wide range of sensitivities first, performing in-depth proof-of-concept testing in the laboratory including HIL next, and finally deliberately implementing and commissioning the actual protection equipment and algorithms into parts of—or in parallel operation to—the three real distribution systems. Future work should include pilot projects that further show the acceptable performance of the developed APS before these schemes be rolled out more widely. Inclusion of both utility and original equipment manufacturers (OEMs) in future projects could increase chances of successful field demonstration. Despite challenges in achieving the field demonstration goal of the project for all three APS, the research significantly contributed to the innovation of adaptive protection solutions for scalable and reliable DER integration into distribution systems. This project significantly enhances the understanding of the impact of using appropriate inverter models on distribution and transmission (T&D) systems. By addressing the limitations of existing generic models, the project introduces high-fidelity models for stability, protection, electromagnetic transient (EMT), and quasi-static time series (QSTS) analyses. These models, integrated into commercial software tools, enable utilities, vendors, and developers to confidently study high-penetration PV systems. The project also demonstrates advanced applications, including adaptive protection schemes (APS) for distribution systems and microgrids, ensuring grid safety and reliability. The technical effectiveness and economic feasibility of the methods are evident through the development and validation of sophisticated inverter test plans and the selection of representative inverters. Testing by EPRI and NREL on retail, commercial, and utility-scale inverters, conforming to IEEE standards, underscores the robustness of the models. Improvements to existing generic models for various analyses further enhance their validity and applicability. The project also identifies gaps in common distribution protection schemes and designed new APS using improved DER models, demonstrating their effectiveness through modeling and hardware-in-the-loop (HIL) testing. The project’s benefits to the public are manifold. By advancing the standardization and model-based representation of IBR response, it supports transmission planning, stability assessments, and future IBR interconnection requirements. The generic models can facilitate better communication between transmission planners and developers, supporting expected IBR plant capability and performance. Additionally, the development of APS for radial feeders, meshed networks, and microgrids supports the integration of distributed energy resources (DERs) into distribution systems, enhancing grid reliability and safety. The project’s emphasis on thorough testing and simplicity in design ensures practical and scalable solutions for DER integration.

14 SOLAR ENERGY↗

Merefa Community Microgrid: Conceptual Design and Sequence of Operations [Slides]

A conceptual design is described for a community microgrid in Ukraine. Microgrid resources include solar photovoltaics, battery energy storage, and conventional natural gas fueled reciprocating engine generators. The conceptual architecture was informed by the microgrid developer, NREL subject matter experts, and the application of REopt, an NREL-developed software tool created for identification of least-cost combination of resources for achieving cost savings, resilience, and renewable energy goals. The report includes conceptual architecture, estimates of key summary financial metrics, and sequence of operations.

14 SOLAR ENERGY↗

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↗