Microgrid Analysis and Case Studies Report - energy.ca.gov

1 Energy Research and Development Division FINAL PROJECT Report California Energy Commission Edmund G. Brown Jr., Governor August 2018 | CEC-500-2018-022 Month Year | CEC-XXX-XXXX-XXX Microgrid Analysis and case Studies Report California, North America, and Global case Studies PREPARED BY: Primary Author(s): Peter Asmus Adam Forni Laura Vogel Navigant Consulting, Inc. 1 Market Street, Spear Tower Suite 1200 San Francisco, CA 94105 Phone: 415-356-7100 | Fax: 415-356-4005 Contract Number: NAV-15-001 Navigant Consulting, Inc. Master Agreement 300-15-009 PREPARED FOR: California Energy Commission Mike Gravely Project Manager Fernando Pina Office Manager ENERGY SYSTEMS RESEARCH OFFICE Laurie ten Hope Deputy Director ENERGY RESEARCH AND DEVELOPMENT DIVISION Drew Bohan Executive Director DISCLAIMER This Report was prepared as the result of work sponsored by the California Energy Commission.

2 It does not necessarily represent the views of the Energy Commission, its employees, or the State of California. The Energy Commission, the State of California, its employees, contractors, and subcontractors make no warranty, express or implied, and assume no legal liability for the information in this Report ; nor does any party represent that the uses of this information will not infringe upon privately owned rights. This Report has not been approved or disapproved by the California Energy Commission, nor has the California Energy Commission passed upon the accuracy or adequacy of the information in this Report . i PREFACE The California Energy Commission s Energy Research and Development Division supports energy research and development programs to spur innovation in energy efficiency, renewable energy and advanced clean generation, energy-related environmental protection, energy transmission and distribution and transportation.

3 In 2012, the Electric Program Investment Charge (EPIC) was established by the California Public Utilities Commission to fund public investments in research to create and advance new energy solution, foster regional innovation and bring ideas from the lab to the marketplace. The California Energy Commission and the state s three largest investor-owned utilities Pacific Gas and Electric Company, San Diego Gas & Electric Company and Southern California Edison Company were selected to administer the EPIC funds and advance novel technologies, tools, and strategies that provide benefits to their electric ratepayers. The Energy Commission is committed to ensuring public participation in its research and development programs that promote greater reliability, lower costs, and increase safety for the California electric ratepayer and include: Providing societal benefits.

4 Reducing greenhouse gas emission in the electricity sector at the lowest possible cost. Supporting California s loading order to meet energy needs first with energy efficiency and demand response, next with renewable energy (distributed generation and utility scale), and finally with clean, conventional electricity supply. Supporting low-emission vehicles and transportation. Providing economic development. Using ratepayer funds efficiently. Microgrid Analysis and case Studies Report is the final Report for the Microgrid Support project (Contract Number 300-15-009, Work Authorization Number NAV-15-001) conducted by Navigant Consulting Inc. The information from this project contributes to Energy Research and Development Division s EPIC Program. For more information about the Energy Research and Development Division, please visit the Energy Commission s website at or contact the Energy Commission at 916-327-1551.

5 Ii ABSTRACT The Energy Commission seeks to understand the technologies, business models, scale, and vendor landscape supporting microgrids that are commercially viable in the absence of government grants and funding. This Report features 26 Microgrid case Studies from California, North America, and other countries that make innovative business cases and rely on government support for less than 50 percent of project costs. The microgrids profiled range in size from 78 kW (a small demonstration in Michigan) to MW (Denmark), and serve commercial, military, municipal, education, agriculture, and utility clients. The majority of projects (93 percent) use solar photovoltaic and energy storage as part of the Microgrid generation mix. Diesel and biogas distributed generation technologies are also prevalent. Analysis of the case Studies shows that Microgrid business models are still diverse and offer numerous value propositions to hosts.

6 California projects Report value propositions of renewable energy integration, resiliency, bill and demand charge savings, and a reduction in carbon footprint. This aligns with California s state renewable energy and carbon reduction mandates, and is also a result of high electricity rates and demand charges. Global microgrids are also deployed to meet clean energy goals; they target renewable energy integration and a reduction in carbon footprint, followed by reliability and resiliency. Notably, North American projects focus more on resiliency and reliability, followed by renewable energy integration; this is likely due to the adverse effect of extreme weather events on the electric grid. Business models appear to be moving towards performance contracting (such as Energy Savings Performance Contract) and shared savings models between the host and project developer, in which bill savings and revenue streams from grid services (for example frequency regulation) are split according to investment and risk tolerance.

7 Keywords: Microgrid , business model, renewable energy, resiliency, grid services Please use the following citation for this Report : Asmus, Peter, Adam Forni, and Laura Vogel. Navigant Consulting, Inc. 2017. Microgrid Analysis and case Study Report . California Energy Commission. Publication Number: CEC-500-2018-022. iii TABLE OF CONTENTS PREFACE .. i ABSTRACT .. ii TABLE OF CONTENTS .. iii LIST OF FIGURES .. vii LIST OF TABLES .. viii EXECUTIVE SUMMARY .. 1 Introduction .. 1 Project Purpose .. 1 Project Process .. 1 Project Results .. 2 Benefits to California .. 9 CHAPTER 1: California case Studies .. 10 Inland Empire Utilities Agency .. 10 Project Background .. 10 Technical Characteristics .. 11 Costs .. 12 Business Model .. 12 Lessons Learned .. 14 Contacts & Sources .. 15 Mission Produce Facility .. 15 Project Background .. 15 Technical Characteristics.

8 16 Costs .. 16 Business Model .. 16 Costs .. 17 Business Model .. 17 Lessons Learned .. 19 Contacts & Sources .. 19 2500 R Midtown Development .. 19 Project Background .. 19 Technical Characteristics .. 20 Costs .. 20 Business Model .. 20 Lessons Learned .. 22 Contacts & Sources .. 23 San Diego Zoo Solar-to-EV Project .. 23 Project Background .. 23 Technical Characteristics .. 25 iv Costs .. 25 Business Model .. 25 Lessons Learned .. 25 Contacts & Sources .. 26 Alpha Omega Winery .. 27 Project Background .. 27 Source: Navigant Technical Characteristics .. 27 Costs .. 28 Business Model .. 28 Lessons Learned .. 29 Contacts & Sources .. 29 Stone Edge Farm .. 30 Project Background .. 30 Technical Characteristics .. 30 Costs .. 31 Business Model .. 31 Lessons Learned .. 33 Contacts & Sources .. 33 US Marine Corps Base Camp Pendleton .. 33 Project Background.

9 33 Technical Characteristics .. 34 Costs .. 34 Business Model .. 34 Lessons Learned .. 35 Contacts & Sources .. 36 Thousand Oaks Real Estate Portfolio .. 36 Project Background .. 36 Technical Characteristics .. 37 Costs .. 37 Business Model .. 37 Lessons Learned .. 38 Contacts & Sources .. 38 The Thacher School .. 39 Project Background .. 39 Technical Characteristics .. 40 Costs .. 40 Business Model .. 40 Lessons Learned .. 41 Contacts & Sources .. 41 CHAPTER 2: North America case Studies .. 42 Montgomery County Public Safety & Correctional Facility .. 42 Project Background .. 42 v Technical Characteristics .. 43 Costs .. 43 Business Model .. 43 Lessons Learned .. 45 Contacts & Sources .. 45 Kansas Survival Condo .. 45 Project Background .. 45 Technical Characteristics .. 47 Costs .. 47 Business Model .. 47 Lessons Learned .. 48 Contacts & Sources .. 48 US Marine Corps Logistics Base.

10 48 Project Background .. 48 Technical Characteristics .. 49 Costs .. 50 Business Model .. 50 Lessons Learned .. 51 Contacts & Sources .. 51 OATI Microgrid Technology Center .. 51 Project Background .. 51 Technical Characteristics .. 53 Costs .. 54 Business Model .. 55 Lessons Learned .. 56 Contacts & Sources .. 56 General Motors E-Motor Plant .. 56 Project Background .. 56 Technical Characteristics .. 57 Costs .. 58 Business Model .. 58 Lessons Learned .. 59 Contacts & Sources .. 60 Pe a Station NEXT .. 60 Project Background .. 60 Technical Characteristics .. 61 Costs .. 62 Business Model .. 62 Lessons Learned .. 64 Contacts & Sources .. 64 EaglePicher Power PyramidTM Demonstration .. 64 Project Background .. 64 Technical Characteristics .. 65 vi Costs .. 65 Business Model .. 65 Lessons Learned .. 66 Contacts & Sources .. 66 Marcus Garvey Apartments.