Distributed Energy Generation

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    Facing the Challenges ofDistributed Energy Generation

    Courtesy NASA.

    Image fromWkmedia Commons,http://commons.wikimedia.org

    Please see any diagram of theelectric grid, such ashttp://commons.wikimedia.org/wiki/F ile:E lectricity_grid_schema-_lang-en.jpg

    Image fromWikimedia Commons,http://commons.wikimedia.org

    Courtesyflickr userChandra Marsono.

    What needs to be done to

    support the introduction of

    100% solar power

    (130 GW of distributed PV)

    in New England by the

    end of 2013?

    The QuestionThe Question

    Photo credit: ISO New England, 2007 State ofthe Market Report

    Courtesy Federal EnergyRegulatory Commission.

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    BackgroundGrid ConstraintsPotential Solutions ImplementationsConclusions

    AgendaAgenda

    Photo credit: Sun Farm Network via Evergreen Solar

    Image removed due to copyright restrictions.Pleasehttp://www.sunfarmnetwork.com/images/Home_2.jpg

    Generation Power plant generates

    electrons

    Transmission Voltage is stepped up and

    transmitted along high-voltage power lines

    Distribution

    Voltage is stepped down bytransformers and distributedto retail customers

    New England Power26 GW Peak Power39B kWh annually$0.1668 perkWh

    BackgroundBackground

    Photo credit: Energy InformationAgency, US Department of Energy

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    Problem Scale Severity Certainty % Adoption Overall

    No power source when PV is off 30

    Bi-directional current flow 35

    Utilities cant allocate capital correctly 60

    Cannot model insolation to predict PV energy production 50

    Time constantfor managing dispatchable resources is toocurrently too long 40

    Transmission and distribution coststructure (w/ high PVpenetration) is currently unmodeled 60

    PV produces DC power (not the commonly used AC) 1

    Limited transmission capacity of power lines in some areas 80

    Power quality 45

    No detailed sensing of the state of the grid latent

    Physical resets of fail safes (i.e. circuit breakers) latentUtilities cannot strategically and precisely direct power toindividual users latent

    ConstraintsConstraints

    System ArchitectureSystem Architecture

    Centralized Distributed

    Generation PointsConsumption Points

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    Priority Constraints Priority Constraints

    Constraint Scale Severity Probability % Adoption OverallImportance

    Non-Dispatchability:

    Need for storage, intermittent generation

    Grid Stabil i ty: Bi-d irectional current flow, communicat ions andcontrol

    Utility Transition: Unknown PV supply, T&D cost structure, powerquality

    Smart GridSensorsSoftware

    Storage:BatteriesPumped hydroelectric

    Bi-directional transformers

    Technological SolutionsTechnological Solutions

    Photo credit: Energy InformationAgency, US Department of Energy

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    Modeling AssumptionsModeling Assumptions

    6.5 million households and businesses

    ~39B kWh consumed annually in New England

    26 GWp average draw

    $280/kWh average cost of battery storage

    5 days of storage required to avoid problemsfrom intermittency

    Average system price of $5.38/Wp installed

    100%: Distributed power production and storage

    1%: Current state10%: Government forces utilities to cease capital expenditures and adopt

    new revenue streams (e.g. installation)30%: Power provided by solar during the day, traditional at night65%: Some substation networks move off grid

    Total predicted cost: $850 billion

    Architecture I: Cut the WiresArchitecture I: Cut the Wires

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    100% : Isolated Micro-Networks with communal storage

    15%: Smart Grid sensors are installed;T&D retain traditional business, with alternate price structure

    30%: Electrical hardware is updated at substation level50%: Micro-Networks established, still rely on centralized generation;

    Generation companies manage the remaining emergency powerplants, and look to new sources of revenue.

    Architecture II: MicroArchitecture II: Micro--NetworksNetworks

    Total predicted cost: $700 billion

    100% : General network with neighborhood and centralized storage

    15%: Smart Grid sensors are installed;T&D retain traditional business, with alternate price structure

    30%: Electrical hardware is updated at substation level50%: Micro-Networks established, still rely on centralized generation;

    Generation companies manage the remaining emergency power

    plants, and look to new sources of revenue.

    Architecture III: General NetworkArchitecture III: General Network

    Total predicted cost: $625 billion

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    Implementation ChallengesImplementation ChallengesProblem

    No power source when PV is off

    Scale Severity Certainty % Adoption

    30

    Overall

    Bi-directional current flow 35

    Negative networkeffects

    Utilities cant allocate capital correctly

    Cannot model insolation to predict PV energy production

    60

    50

    Warm beerTime constantfor managing dispatchable resources is toocurrently too long 40

    Regulatory approvalTransmission and distribution coststructure (w/ high PVpenetration) is currently unmodeled 60 Physical installationPV produces DC power (not the commonly used AC) 1

    Limited transmission capacity of power lines in some areas 80

    Power quality

    No detailed sensing of the state of the grid

    45

    latent

    Physical resets of fail safes (i.e. circuit breakers)Utilities cannot strategically and precisely direct power toindividual users

    latent

    latent

    Issues: non-dispatchability, grid stability,power quality

    Common technological solutions: storage,transformers, smart grids

    Network is preferred architecture Utilities will fundamentally change their

    business models

    Government can help: financial incentives

    RecommendationsRecommendations

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    Questions?Questions?

    2.626 Fundamentals of2.626 Fundamentals ofPhotPho ovoltaov icsict olta s

    Prof.Prof. TonioTonio BuonassisiBuonassisi, Fall 20, Fall 082008

    Special thanks to MikeSpecial thanks to Mike RogolRogol , Mark, Mark FarburgFarburg, and P, an hoth ono CoC nsultins ngn .d P ot n o ulti g.