Presenter:JeffreyJ.CookPh.D.NationalRenewableEnergyLaboratory

ProjectTeam:JeffreyJ.Cook,ChristinaVolpi,andErinNoblerNationalRenewableEnergyLaboratory

ChecktheStack:AStatePolicyFrameworkforSupportingResilientMicrogrids

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Background

• ThisworkwasfundedbytheDepartmentofEnergySolarTechnologyOfficeandtheSolarTechnicalAssistanceTeam(STAT)Network

• STATprovidestechnicalassistancetostateandlocalpolicymakerstoanswerpolicyandtechnicalquestions

• Thisresearchisassociatedwithatechnicalassistancerequestfromasoutheasternstatethatisfocusedonresilienceplanningandprioritizationforcertaincriticalinfrastructureinthestate.

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UnderstandingtheNeedforResilience

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UnderstandingtheneedforResilience

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NaturalDisasters,ElectricityOutages,andCriticalInfrastructure

• HurricaneMarialeftall3.4millionresidentsofPuertoRicowithoutpower.– 35%oftheislandwaswithoutpowerafull90daysafterlandfall– Hospitalsstruggledtoprovideservices,evenwithbackupdiesel

generators• Theseandothernaturaldisastershaveexposedvulnerabilities

incriticalinfrastructureoperationamidstgridoutages• Criticalinfrastructurereferstofacilitiesandservicesif

incapacitatedwouldhaveadetrimentalimpactonsociety– Communication– Emergencyservices– Waterandwastewatertreatment

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MicrogridsasaResilienceSolution

• Microgridscanbeusedtoextendtheoperationofcriticalinfrastructureduringagridoutageincluding:– Level1,Level2,andLevel3configurations

• Microgridcapacityhasincreasedsince2008

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50

100

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2008 2009 2010 2011 2012 2013 2014 2015 2016

Annu

allyInstalledMicrogridCapacity

(MW)

Unknown

EnergyStorage

FuelCells

Hydropower

Wind

Solar

CHP

Diesel

NaturalGas

Annualcommissionedmicrogridcapacitybytechnologythrough2016(recreatedfromGTM,2016)

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RenewableEnergyandMicrogrids

• Benefitsofincorporatingrenewableenergy:– Prolongedoperationduringalong-termoutage,especiallywhenrenewablesarepairedwithbatterstorage

– Zeroemissionelectricitygenerationthatcanprovideenvironmentalandhealthbenefits

– Year-round,thoughintermittentelectricitygenerationthatcanprovideeconomicvaluetomicrogridowner

• Prolongingoperationduringanoutage,isespeciallyimportantforimprovingtheresilienceofcriticalinfrastructure

• Policymakersmaybeinterestedinunderstandinghowrenewable-basedmicrogridscanbeusedtosupportcriticalinfrastructure

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ResearchAgenda

• Explorethecriticalinfrastructuremarketandthepotentialimpactofoutagesatthesefacilities

• Surveythepolicylandscapeforresilientmicrogridsnationwide

• Generateapolicystacktoguidestatepolicymakersconsideringbuildingaresilientmicrogridmarket

• Providepathwaysforfutureworktobuildoutthispolicystack

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ExploringtheCriticalInfrastructureMarket

• Criticalinfrastructureis:“systemsandassets,whetherphysicalorvirtual,sovitaltotheUnitedStatesthattheincapacityordestructionofsuchsystemsandassetswouldhaveadebilitatingimpacton

security,nationaleconomicsecurity,nationalpublichealthorsafety,oranycombinationofthosematters.”

• TheU.S.DepartmentofHomelandSecuritydesignates16criticalinfrastructuresectors

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AssessingCertainCriticalFacilityLoad

• Thisanalysiscatalogued15millionfacilitiesacross7ofthe16criticalinfrastructuresectorsandestimatedelectricityload.

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Demand(TWh)

AverageAnnualElectricityLoadforCertainCriticalInfrastructureSubsectorsbySystemorFacility

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ExploringEconomicImpacts

• LawrenceBerkeleyInternationalLaboratoryhasdevelopedanInterruptionCostEstimatefor4and16houroutages.– Estimated4houroutagecost:$39billion– Estimated16houroutagecost:$178billion– Long-termoutagecost(exceedingfourdays):~$700billion

• Theseestimatesarehighlyspeculativeandconsideronlyvalueoflostload(basedoncommercialandindustrialfacilityassumptions)

• Outagesatcriticalfacilitieswouldlikelyhavehigherimpacts,thoughoutagesareunlikelyatallfacilitiesatonce

• Nevertheless,criticalinfrastructurerepresentsalargemarketforresilientmicrogrids

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SurveyingthePolicyLandscape

• Somepolicymakershaveidentifiedthisopportunityanddevelopedpolicytosupportresilientmicrogrids

• NRELconductedaliteraturereviewandreliedoninterviewswith22subjectmatterexpertsnationwidetoidentifypoliciesthatdirectlysupporttheresilientmicrogridmarket

• Thisanalysisidentified27policiesacross12states

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SurveyingthePolicyLandscape

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Microgrid-relatedPoliciesbyState

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Grants,Loans,andOtherFinancing

MicrogridRoadmapping EnergyMarketReform ResiliencyRetrofits UtilityRegulation

Num

bero

fProgram

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PolicyType

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BuildingaPolicyStackforMicrogrids

• Policysurveyillustratesfewstateshaveadoptedmicrogridpolicies.

• Policymakersmaybenefitfromunderstandinghowtosequencepolicytofosterabroadermarket,withprivatesectorinvestment

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ResilientMicrogridPolicyStack

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MarketPreparation

• Energy,resilience,andmicrogridplanning– Providespolicymakerswithinformationonhowresilientmicrogridsmayfitintobroaderpolicypriorities

• Quantifyingvaluestreams– Providespolicymakersanddeveloperswiththerelevantinformationtounderstandcostsandbenefits

• Regulatorytreatment– Providesregulatorycertaintyformicrogriddevelopers

• Interconnectionstandards– Clarifyhowmicrogridsmayconnectandinteractwiththegrid

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MarketCreation

• Policymakerscouldselectawidevarietyofmarketcreationpoliciesweconsiderthree:– Pilots– UtilityProcurement– Mandates

• Theseoptionstrackfromlowesttohighestimpactandpolicymakerswillneedtoconsiderwhichapproachisbesttoachievetheirpolicyobjectives

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MarketExpansion

• Policymakersalsohaveamultitudeofoptionsforexpandingmarkets,somehighlightedbytheintervieweesincluded:– Adoptinginnovativefinancingoptions

• Publicprivatepartnerships• ESPCs• Taxincentives

– Fosteringinnovationthroughsupportingresearchanddevelopmentintobusinessmodelsandnewtechnologies• Cleanenergytechnologyincubators

– Reformingenergymarkets• Somepolicymakersareconsideringnewregulatorymodelsthatleverageemergingtechnologieslikemicrogridsininnovativeways

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ConclusionsandNextSteps

• Policymakersareactivelyconsideringapproachestosupportresilientmicrogridmarketsintheirstates

• Thisresearchoffersaguidetohelppolicymakersunderstandhowtheymightsequencetheirpolicytogetthebestresults

• PathwaysforFutureWork:– Developprioritizationstrategiesforstatestoidentifyprime

criticalinfrastructureformicrogriddeployment– Assesstheimpactofeachpolicyinthestackonmicrogrid

deploymenttoclarifywhichpoliciesaremostcriticaltothemarket

– Buildonthepolicystackasmorestatesexperimentwithresilientmicrogridpolicyapproaches

NRELisanationallaboratoryoftheU.S.DepartmentofEnergy,OfficeofEnergyEfficiencyandRenewableEnergy,operatedbytheAllianceforSustainableEnergy,LLC.

www.nrel.gov

NRELisanationallaboratoryoftheU.S.DepartmentofEnergy,OfficeofEnergyEfficiencyandRenewableEnergy,operatedbytheAllianceforSustainableEnergy,LLC.

NRELisanationallaboratoryoftheU.S.DepartmentofEnergy,OfficeofEnergyEfficiencyandRenewableEnergy,operatedbytheAllianceforSustainableEnergy,LLC.

ThankYou!Forfurtherinformationrelatedtothecontentofthispresentationcontact:

JeffreyJ.CookRenewableEnergyPolicyandMarketAnalystNationalRenewableEnergyLaboratoryJeff.cook@nrel.gov