Search all of Building Science Corporations variety of Consulting and Architecture documents, including guides manuals, building science insights, and more. Emerging Microgrid Business Models. The idea of a microgridinterconnected loads and distributed energy resources that can be controlled as a single entityis appealing to increasing numbers of customers and communities, but figuring out how to design, develop, and finance nontraditionalnon campus microgrids in a manner that is replicable has proven challenging. That business model question was a major focus at the Infocast Microgrid Markets Summit East Microgrid Summit, held in Arlington, Va., March 1. The Role of Utilities in Microgrid Development. Given recent developments to promote microgrids in the U. S. Northeast and California, the Microgrid Summit included panels devoted to the progress in individual states as well as at Department of Defense sites. Although the military has some obviously different and special considerations for microgrids, it does face at least one question that other new microgrids must address Who develops, owns, and operates themThe utility in some cases may be the obvious answer, as utilities have expertise in managing loads and generation. That said, the Navy has been more successful in partnerships with some utilities than others, said Monica De. Angela, director, installation energy program integration, assistant secretary of the Navy Energy Installations and Environment. She specifically called out Groton Utilities as a good partner as well as Arizona Public Service APS, with which the Navy is working on its microgrid at Marine Corps Air Station MCAS Yuma. Two HH 1. N Huey helicopters sit on the grounds outside of the Search and Rescue hangar aboard Marine Corps Air Station MCAS Yuma, Ariz., Friday, Feb. The MCAS Yuma SAR team hosted a conference with regional emergency services personnel to discuss tactics, techniques and procedures. MCAS is leasing land to Arizona Public Service to develop a microgrid that will supply backup power for the installation. Photo by Lance Cpl. Brendan King. The Yuma project uses a lease model wherein the Navy leases land to APS for 3. MW diesel generating unit, which was selected because it provides the fastest reliable startup. In November last year, an APS press release noted that the microgrid, which is the first for the utility, will supply 1. MCAS Yuma should there be a grid disruption. The facility is expected to be online by the end of the second quarter of 2. De. Angela noted that the Navy is also looking at adding fuel cells and renewables to the project. How eager a utility is to develop microgrids or partner with third party developers depends on its specific circumstances. Most are in the very early stages of considering their role in microgrid development. The state of Illinois, for example, asked Com. Ed to build six microgrids to protect critical public infrastructure, and the utility has two grants to date from the U. S. Department of Energy to support the work. EnergySIMPrint-600x600.jpg' alt='Advanced Technologies And Installation Corporation For National And Community' title='Advanced Technologies And Installation Corporation For National And Community' />RTI specializes in remote control products for AV, lighting, security and more for your home or office. Learn about our custom automation systems today. In California, San Diego Gas Electric SDG E developed the Borrego Springs microgrid project see photo below on its own initiative, initially because it saw the project as a way to study the behavior of anticipated large amounts of distributed energy resources DER being added to its system, and it wanted to learn how to accommodate them. Lithium ion batteries are an important component of San Diego Gas Electrics Borrego Springs microgrid. Courtesy SDG ESDG E is, in fact, learning from this project. Disconnecting from the grid during a summer thunderstorm enabled the microgrid to remain online and power the community of Borrego Springs. But during a more recent disruption, the utility couldnt operate the microgrid because of a problem with the transmission grid, and the microgrid failed to island. That experience is a reminder that microgrid operation isnt easy. Tom Weaver, PE, manager, distribution system planning for American Electric Power AEP commented that although his company doesnt yet have a commercial microgrid, it has experience with all the parts and sees multiple benefits of microgrids, including the abilities to Provide distribution circuitlevel reliability. Power community critical loads. Power customer critical loads. Integrate renewables. However, AEP and other utilities need to figure out who owns what parts of a microgrid, because regulated utilities can only ratebase the portion that fits with their regulatory compact. Another potential role for utilities is microgrid as a service, something Duke Energy is developing. Beginning in 2. 01. Duke began pitching the idea of a consortium of companies involved with a variety of grid modernization pieces, from meter manufacturers to control systems providers. Getting companies onboard was challenging, because Dukes plan was that everyone would openly share their knowledge, products and expertise, according to a Duke statement. Initially, only six companies joined what Duke calls the Coalition of the Willing Echelon, S C Electric, Alstom Grid, Verizon, Ambient Corp., and Accenture. Crystal Report Server Xi Keygen Free. Since then, a total of 2. ABB, GE, Honeywell, Schneider Electric, Schweitzer Engineering Laboratories, and Siemens. A related step for Duke has been moving into green microgrids and selling microgrids as a service to businesses as well as state and municipal agencies. It has even suggested that it might offer this service beyond the U. S. through Duke Energy International. Duke has developed a Mount Holly, N. C., microgrid test center that has been focused on interoperability issues and what it calls a field device interoperability solution designed framework, known as the trademarked Open Field Message Bus Open. FMB. One microgrid as a service customer is coalition partner Schneider Electric, which announced early this year that it is developing a microgrid that includes solar generation and battery storage at its Andover, Mass., campus. At IHS CERAWeek in February, Andy Bennett, senior vice president, infrastructure and energy for the companys U. S. operations, said in an interview with POWER that, instead of paying National Grid about 0. Wh, Schneider is paying Duke to pick up our energy bill. Wh. Duke Energy is also picking up the capital costs because its a good investment for them, he said. Bennett anticipates that regulated utilities, especially investor owned ones, are going to look at taking market share out of some of their potential competitors territories with microgrid as a service offerings. He said his company expects to see grid parity in a majority of the states for PV plus battery storage by 2. Other Microgrid Business Models. Utilities may not be the only front runners for developing, owning, andor managing the newer non campus types of microgrids. In a Microgrid Summit session on Connecticuts microgrid grant and loan program, Dr. Sudipta Lahiri, team leadmicrogrids, DER for DNV GL Energy, commented that the time is ripe for a microgrid service providersomeone who brings the vendors, engineerprocureconstruct firm, finance, and all the other pieces together and then sells the service rather than the physical microgrid assets. When POWER asked Dr. Lahiri what type of entity that might beutility or non utilityhe responded, It can be a startup. He suggested it was possible that someone less entrenched than a utility, yet with deep financing, would come in and get stakeholder agreements, do performance validations, and develop the project. The end user shouldnt have to worry about any element, he said.