RMEL Generation Conferance. Case Studies: Emerging Technologies, Innovative Practices and Successful Implementations to Meet Energy Priorities

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RMEL Generation Conferance Case Studies: Emerging Technologies, Innovative Practices and Successful Implementations to Meet Energy Priorities David Morton SME Microgrids Arizona Public Service 1

Agenda Microgrid Program Microgrid Design & Maintenance Upcoming Events Questions

APS Microgrid Program Identify existing and potential new customers looking for resiliency Develop mutual value propositions APS owns, operates and maintains microgrid resource(s) Microgrid capital project costs are shared with siting Customer; Customer provides site and CIAC Microgrid resource(s) will prioritize and isolate customer in the event of emergency APS able to use microgrid resource for defined business purposes 3

Microgrid Program Guiding Principles Customer Value Customer must value resiliency Willing to share in the cost of microgrid APS handles all maintenance and fuels management Ratepayer Value Cost share must be value positive for customers Microgrid has significant community benefit Utility Value Program supports load growth Microgrid alleviates local system need Typical minimum requirements: Above 5 MW New equipment High efficiency design Sufficient permit hours and flexibility of use Each microgrid opportunity judged on its own merit with guiding principles as flexible 4

Value of Microgrids for APS Must add value to site customer, grid health and provide value to rate payers Diverse set of values created from the Operating Modes Microgrid integration and operation requires various operational organizations Value proposition differs for each Microgrid, as they are uniquely designed to meet Customer needs and those of the grid where interconnected T&D Deferral System Value Distribution Value 5

Microgrid Operating Modes Black Start Intentional Islanding Load Management Autonomous Frequency Response Testing Autonomous Reconfiguration 6

Microgrid Elements Prime Movers Engine generators that can be used in Island mode for back up power or when other DER are not producing power. Can also be used in Grid Connected mode for Peak Shaving and Frequency Response. Usually diesel or NG Battery Storage Bulk fast acting energy storage that has multiple uses. Can be used for ride thru power while Prime Movers start and synch to grid. Can store excess power produced by other DER. Can be used for Spinning Reserve and for Frequency Response Solar PV Panels that produce power from sun energy. Can only generate power during daylight hours. Excess power can be stored in battery and can be curtailed if needed Wind Turbines Similar to Solar PV, however powered by wind. Can generate power day or night if enough wind force is available. Very dependent on geography Interconnection Gear Switchgear, transformers, meters, disconnects, conductors and other items to tie microgrid to the customer and utility systems Microgrid Controller Key element in a microgrid as it integrates and controls all of the interconnected resources. It is the brain of the microgrid that manages and optimizes all of the elements to work seamlessly in Parallel (Grid Connected) and Island modes 7

Packaged Gensets vs. Traditional Thermal Generation Type of Unit 20 MW Generation Loss Simulation Coal (Spinning) Coal Ramp Rate = 4 MW/min (Still ramping at 130 sec) GE 7FA (Spinning) GE 7FA Ramp Rate = 15 MW/min 80 sec LMS100 (Spinning) 24 sec LMS100 Ramp Rate = 50 MW/min NG Gen Sets (Cold Start) 20 sec 120 sec NG Gen Sets Start at 0 sec Take on Load after 20 sec Fully load in 140 secs Diesel Gen Sets (Cold Start) 10 15 sec Key Finding: Diesel Gensets can start up and ramp to full load faster than Coal, CT or NG Gensets Time (s) 10 0 10 20 30 40 50 60 70 80 90 100 110 120 130 Diesel Gen Sets Start at 0 sec Take on Load after 8 sec Full load in 10 15 secs

NPV Analysis Assumptions: 30 year asset life Assumes 150 hours per year for APS use & 100 hours for Customer Heat rate 8317 Btu/kWh Fuels = ULSD: 35 gal/hr at full load & DEF: 5 gal/hr Per engine generator; 4 engines per PowerBlock Fixed Annual O&M = $5,000/Standby MW Includes PM, Monitoring and Fuels management Customer CIAC: Capital costs cost share No cost land lease 24/7 access 9

APS Microgrids MCAS Yuma 21.6MW prime generation (10 PowerBlocks) Tied in to MCAS/South O Neil substation No battery ride thru but provisions in place Air permit for 850 hours per year, with 100 hours reserved for MCASY s use MCASY provided no CIAC funding; provided In Kind Consideration Aligned Data Center 10.8MW prime generation (5 PowerBlocks) Tied in to Commerce substation Customer owned UPS battery ride thru Air permit for 345 hours per year, with 100 hours reserved for Aligned s use Aligned provided 50% CIAC Plans to expand to 56MW capacity or more at full build out 10

Microgrid Design Details

Designed In Resiliency Individual gens can be replaced quickly Failure of any individual gen or gen control system will not effect the rest of the Microgrid All critical systems are redundant. 11 different Microgrid controller DC voltage sources, so a grid outage will not effect the ability of MG to respond Loss of communication will not effect autonomous response modes of the Microgrid Switch gear has autonomous switching if a system failure occurs. Monitored 24/7 LDSS 12

Modular Design Note: This is an example of a 25MW Microgrid 13

MCAS Single line 14

MCAS Yuma Microgrid 15

Aligned Data Center Microgrid 16

Autonomous Frequency Response (AFR) Microgrid controller constantly monitoring grid frequency via SEL 700GT relays and sensors If frequency drops below 59.92Hz for more than 2 seconds, signal sent to start all PowerBlocks Microgrid controller monitors frequency and once it has recovered to 59.98Hz for 5 minutes, signals are sent to bring individual PowerBlocks (2.2MW each) off-line every 5 minutes until all engines are shut down and cooled off. This takes 10-15 minutes If another AFR event occurs during this process, the microgrid controller will trigger all PowerBlocks to restart/re-energize Process continues until frequency fully recovered to 59.98Hz for 5 minutes and all engines returned to standby condition 17

Value of Microgrid Example (cont.) JP9 Proprietary & Confidential 18 18

Slide 18 JP9 Slide is very busy and hard to read IMO John Pinho, 8/3/2017

AFR MCAS vs ADC 19

Microgrid Maintenance

Ongoing O&M Maintenance and Fuel management thru an 5 year operating agreement with outside vendor Operating Agreements cover the following items for MCAS (Yucca) and Aligned (West Phoenix) Monthly Functional Testing Annual Preventative Maintenance Service (Inspection, and Diagnostic check i.e. top off fuels, check components) Additional Annual and every 3 rd year maintenance on switchgears and transformers and generation sets Continuous monitoring; Predictive Maintenance Operation and Environmental reporting Outside vendor has a requirement to be on site after receiving an alarm 21

Questions??? 22