BROCHURE. End-to-end microgrid solutions From consulting and advisory services to design and implementation

BROCHURE End-to-end microgrid solutions From consulting and advisory services to design and implementation

2 B R O C H U R E E N D -TO - E N D M I C R O G R I D S O LU T I O N S Global trends in grid transformation are creating both challenges and opportunities. Renewables are changing the generation mix, resulting in a more volatile and less predictable system. Nevertheless, the growing penetration of distributed generation can enable utilities to defer upgrades in the transmission and distribution system. Microgrids are receiving increased attention around the world for their ability to provide access to electricity for remote locations, deliver fuel and cost savings, reduce carbon emission footprints, and improve reliability and power quality in the system.

BROCHURE END-TO-END MICROGRID SOLUTIONS 3 How is the energy landscape being transformed? Power systems are undergoing a major transformation of their energy sources, from centralised fossil-fuel-based power plants to distributed renewable energy resources. This transition is due to the declining cost of renewables and energy storage technologies, and the need to support global energy policies for mitigating carbon emissions. Integrating advanced sensing and control technologies with communication capabilities is transforming the traditional grid into the smart grid. The goal is to make the system more reliable, efficient and secure through environmental initiatives such as carbon emission reduction. The smart grid has two-way communication between the utilities and its customers, real-time monitoring and control, two-way power flow, and multi-stakeholder interactions.

4 BROCHURE END-TO-END MICROGRID SOLUTIONS A closer look at microgrids What is a microgrid? A microgrid is comprised of distributed energy resources and loads that can be operated in a controlled, coordinated way, either connected to the main power grid or in islanded mode. Microgrids are low- or medium-voltage grids without power transmission capabilities and are typically not geographically dispersed. Microgrids can be categorised based on their connection to the grid as off-grid, weak grid, and grid-connected. Microgrid market segments include island utilities, remote communities, industrial and commercial, urban communities, institutions and campuses, and defense. Figure 1 summarises how ABB power system functions, known as 8s, serve the operational goals driving technology choices for renewable power generation, microgrid control systems, energy storage and grid stabilisation equipment. Operational goals Access to electricity Maximise reliability Uninterrupted supply Reduce environmental impact Maximise renewable energy contribution Fuel & cost savings Fuel independence Provide grid services Renewable power Microgrid control system Energy storage and grid stabilisation ABB power system functions 8S 1. Stabilising 2. Spinning reserve 3. STATCOM (static synchronous compensator) 4. Seamless transition between islanded and grid-connected states 5. Standalone operation 6. Smoothing 7. Shaving 8. Shifting Figure 1 Microgrid operational goals and ABB s power system functions, nicknamed 8S

BROCHURE END-TO-END MICROGRID SOLUTIONS 5 What are the advantages of microgrids? Microgrids can improve power system reliability and reduce the duration of power outages in extreme weather conditions. A microgrid can manage the energy consumption of its own loads and, in some cases, sell back the excess electricity for ancillary services. A microgrid s islanding capability enhances system resiliency in severe weather situations by providing electricity to the critical load without any interconnection to the grid. In emerging markets, microgrids can replace backup generation and provide fuel cost savings. Is a microgrid the right solution for you? It is critical to understand the techno-economic benefits of microgrids in the islanded and grid-connected modes. Having access to electricity, fuel independence, and uninterrupted power supply are the main microgrid drivers for off-grid or remote locations. Utilities can benefit from the reduction in outages, deferral of upgrading ageing transmission and distribution infrastructures, resource adequacy and transmission congestion relief. Microgrid owners can reduce the demand charge, increase renewable penetration and manage time-of-use electricity bills. Another revenue stream comes from the market participation of the microgrid entity in providing independent system operator services, including energy arbitrage, frequency regulation, spin/nonspin reserves and voltage support. Implementing a microgrid solution offers many benefits, but evaluating and embarking on such a project can be daunting and resource-intensive. ABB can help. To achieve commercial deployment of microgrids, manufacturers must offer modular and scalable solutions, simplifying the microgrid installation process. One example of such modular and scalable solution is offered by ABB. The containerised solution can be transported, installed and commissioned in a safe and fast manner...the development of modular and scalable microgrids can increase the volume of deployments, allowing financial institutions to aggregate installations and perform risk analyses on the total portfolio. This can facilitate financing for smaller microgrid installations that might otherwise have been considered too risky by financial institutions. Global Smart Grid Foundation, Status and Insights on Microgrids: From Pilot to Commercial Deployment, August 2017. Retrieved from http://www.globalsmartgridfederation.org/wp-content/uploads/2017/08/microgrids.pdf.

6 BROCHURE END-TO-END MICROGRID SOLUTIONS Unmatched microgrid expertise ABB has developed a range of lifecycle management, consulting and integration services that enable our customers to achieve the maximum return on investment in their microgrid projects, from the initial design concept and throughout a long service life. ABB provides a complete solution for microgrid projects, from consulting services and analysing the business and technical case, to project execution by implementing products such as our Microgrid Plus control system and PowerStore energy storage system. Figure 2 illustrates ABB s microgrid and nanogrid portfolio. Figure 2 ABB s microgrid and nanogrid portfolio Village electrification / small commercial PowerStore Hybrid MGS100 Mining Marine port electrification Substations Distribution transformers Solar inverters Turnkey stations, central, string PV/diesel kit String inverter(s) plus PV diesel controller MV switchgear System engineering and advisory Power converters PCS REACT: PV inverter + battery storage Nanogrids Home / building automation Emax2 circuit breaker with microgrid capabilities Grid stabilisation and energy storage PowerStore Microgrid Plus Control System String inverters Microgrid portfolio Nanogrid portfolio

BROCHURE END-TO-END MICROGRID SOLUTIONS 7 ABB microgrid consulting and advisory ABB microgrid control systems ABB microgrid products Microgrid market analysis Review historical energy price, time of use rates, demand charge, and related tariffs and incentives Identify significant drivers for energy storage as peak shaving, self-consumption vs feed-in, and energy arbitrage Microgrid technical evaluation Study the impacts of microgrids on stability of the system. Analyse the benefit of energy storage on reducing the spinning reserve and load shedding Evaluate the improvement on power quality and reliability during faults and outages Investigate frequency and voltage ride through capabilities of energy storage Microgrid economic evaluation as a business case Feasibility study of microgrid investments Optimum size and operation of distributed energy resources Analyse the cost of energy, internal rate of return (IRR), return on investment (ROI), and payback for different scenarios Study the fuel independence, cost savings, and carbon footprints. Sensitivity analysis on main drivers of microgrids. Energy storage value stacking for multiple applications as ancillary services Evaluate different ownership models Figure 3 ABB s market analysis, technical and economic evaluation services for microgrids ABB Microgrid Consulting Services ABB offers advisory and consulting services throughout a microgrid project, with the goal of finding the optimal solution that maximises the value of the assets and financial investment. This is for entire development cycle of a project from early engagement to operation where advisory team can evaluate the system performance and suggest upgrades or changes. A list of these consulting services is shown in figure 3 above. Microgrid options and benefits are evaluated based on the cost-benefit analysis of integrating different renewable and energy storage options providing peak-shaving, load shifting, net metering, fuel reduction, power quality and reliability improvements, and ancillary services. Best candidates for microgrid solutions Companies within the commercial and industrial, utility distribution, community, remote, and military market segments are all perfect candidates to develop microgrids. ABB produces detailed business cases to assist in evaluating microgrid solutions for mining, commercial and industrial, port and harbor applications. Visit our blogsite, ABB Energy Market Intelligence, for our latest posts about microgrids.