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WG-2: Platform Technology Subcommittee on Microgrids and Community Grids

New York State Department of Public Service. WG-2: Platform Technology Subcommittee on Microgrids and Community Grids. July 10, 2014. Agenda. Overview Background Issues Next Steps. Overview – Microgrid Committee Objective.

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WG-2: Platform Technology Subcommittee on Microgrids and Community Grids

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  1. New York State Department of Public Service WG-2: Platform TechnologySubcommittee on Microgridsand Community Grids July 10, 2014

  2. Agenda • Overview • Background • Issues • Next Steps

  3. Overview – Microgrid Committee Objective • Identify the technical and regulatory issues and barriers that need to be addressed to better enable the development of single- and multi-customer microgrids (including community microgrids) in New York State. • Address questions raised in April 25 REV DPS Staff Report and Proposal • Identify issues not already specified in the REV Report

  4. Overview – Subgroups • Subgroups were formed to investigate the following subject areas as they pertain to microgrids: • Regulatory • Economic and Financial • Interconnections • DSPP Planning • Ownership and Control • Intrinsic and Extrinsic Values and Worth • Social, Environmental, and Community Implications

  5. Background – Definitions US Department of Energy definition: A microgrid is a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island mode.

  6. Background – Examples • Single-customer Microgrid • e.g. NYU • Multi-customer Microgrid • e.g. Burrstone Energy Center • Community Microgrid • a type of multi-customer microgrid where the community is actively engaged in its design and implementation • Stand Alone, Dynamic, and Regional “Microgrids”

  7. Background – Benefits from a holistic approach • Within the microgrid, enhanced: • Efficiency • Reliability and resiliency • Affordability • Environmental sustainability • Grid support • Elastic demand, capacity, ancillary services • Community Implications • Reduce impact when the grid is interrupted • Local enablement • Unique investment opportunities • Ratepayer support for resiliency of critical infrastructure • Private investment driving innovation without risk to ratepayers

  8. Findings • Economics - financial feasibility • Regulatory • Interconnection • Community

  9. Findings Economics - financial feasibility • Value of microgrids not recognized • Lack of opportunity for market participation (wholesale and retail) • Standby rates, demand charges, net metering • Presently, microgrid assets are perceived as high risk financing.

  10. Findings Regulatory • There is a complex interrelationship of NY State law, rules for market participation (including ISO rules), and utility policy and practice that lead to uncertainty, higher risk, and delayed development of multi-user and community microgrids. • The existing regulatory paradigm needs to be modified to further accommodate microgrids and foster mutually beneficial utility interaction.

  11. Findings Interconnections • Approval procedures not standardized statewide • Evolving solutions and standards • Standards (NYS SIR and industry standards) • Control, communications, and bi-directional flow of power • Microgrid controllers

  12. Findings Community Education and Expectation • Leaders and members of communities must be engaged in design and implementation of community microgrids • Education on the process and resulting expectations of microgrid performance

  13. Next Steps Staff should, with members of the working group as necessary, address the specific issue regarding a microgrid developer’s need to seek exemption from Public Service Law to develop a multi-customer microgrid.

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