POLB Microgrid Whitepaper Final August 2016 PDF

Microgrid Technology White Paper
Port of Long Beach

4801 Airport Plaza Drive, Long Beach, California USA
Contract HD-8381, Job Task 1501

August 2016
Prepared by:
Muni-Fed – Antea Group Energy Partners, LLC

192 Marina Drive, #192
Long Beach, California 90803
And
The Port of Long Beach

4801 Airport Plaza Drive
Long Beach, California 90815
Antea USA, Inc.

Microgrid Technology White Paper*
Table of Contents
EXECUTIVE SUMMARY ..................................................................................................................................................1
SECTION 1.0 INTRODUCTION ..................................................................................................................................3
SECTION 2.0 MICROGRID DEFINITION ....................................................................................................................6
SECTION 3.0 DETERMINATION OF ADVANTAGES OF MICROGRIDS VS. RELIANCE ON THE GRID .........................8
SECTION 4.0 MODES OF MICROGRID OPERATION AND CONTROL ......................................................................12
SECTION 5.0 MICROGRID CONCEPTUAL DESIGN ..................................................................................................18
SECTION 6.0 GENERATION AND ENERGY STORAGE FOR A MICROGRID .............................................................21
SECTION 7.0 MICROGRID COSTS AND OPERATING CONSIDERATIONS................................................................26
SECTION 8.0 POTENTIAL BENEFITS OF A MICROGRID ..........................................................................................29
SECTION 9.0 STAKEHOLDER ENGAGEMENT .........................................................................................................31
SECTION 10.0 REGULATORY CONSIDERATIONS OF A LARGE, CENTRALIZED MICROGRID ....................................32
SECTION 11.0 CONCLUSION AND RECOMMENDATIONS .......................................................................................36
Appendices
A Glossary
B Case Studies
Acknowledgements
Muni-Fed Antea Group Energy Partners, LLC wishes to note the significant research and contribution of our key
subcontractors Siemens Industry, Inc. and P2S Engineering, Inc., in development of this document.
i
EXECUTIVE SUMMARY
The development of microgrids is a growing global trend. Microgrids are increasingly viewed as a way to improve
electric service resiliency, reduce costs, increase environmental stewardship, upgrade service reliability for critical
uses and/or provide the owners with greater control over their energy supply. Microgrids can help communities of
utility users to achieve key policy goals; as an example, microgrids enhance the use of renewable energy. However,
decisions regarding whether microgrids are the right choice for a particular situation demand thorough analysis
and innovative thinking.
The objective of this white paper is to enhance the knowledge base of the Port of Long Beach (Port) team and its
stakeholders regarding microgrids. The objectives of the Energy Island Initiative include becoming the Green Port
of the Future, showcasing renewable energy, and securing a resilient energy source capable of supporting critical
Port assets in emergency situations. Development of a microgrid is consistent with these objectives, and may also
support the Port’s needs for energy reliability, high power quality, and economic stability.
The U.S. Department of Energy (DOE) defines a microgrid as:
“A group of interconnected loads and distributed energy resources with clearly defined electrical boundaries
that acts as a single controllable entity with respect to the grid [and]… can connect and disconnect from the
grid to enable it to operate in both grid-connected or island-mode.” 1
Microgrids are typically designed to operate in a two-way configuration; that is, they can deliver excess power into
the incumbent utility grid as well as take power from the utility grid. When necessary, microgrids can operate
completely separated (“islanded”) from the utility’s grid. A microgrid can be considered a small-scale version of the
traditional utility grid that is better able to optimize energy services through its intelligent controls, designed to fit
the specific needs of the energy users’ community being served. Unlike traditional utility services, the ability to
coordinate unique community energy needs with generation resources can make a microgrid a superior choice.
The diversity seen across a microgrid enables ‘intelligent sharing’ of energy loads and resources that improves
overall performance and cost in a variety of ways.
Microgrids can be used within a single facility or interconnected at multiple facilities. In addition, microgrids can be
aggregated and connected electrically through the local utility’s distribution network. An element of a microgrid is
localized generation.
1 Summary Report, 2012 DOE Microgrid Workshop; Office of Electricity Delivery and Energy Reliability
1
While a microgrid can rely strictly on power from the utility, full potential is achieved when also connected to an
independent source of electrical power within its grid design. Then the microgrid delivers increased resiliency,
improved efficiency, reduced emissions, and other benefits.
On a consumer level, microgrid customers can be aggregated to decrease the delivered cost of energy. Energy
inputs of local generation can be highly efficient and require a lower capital-to-capacity ratio compared to utilities’
distributed generation. The realized attributes of localized generation would allow a capable operator to return
savings to the consumer. Maximizing returns on investment can be included in the design criteria for a microgrid.
The Port’s assessment of microgrids will need to consider and prioritize specific options for microgrid projects and
quantify the potential benefits and costs of implementation, as well as operational structures and regulatory
requirements. However, the goal of this paper is to expand the Port’s understanding of the potential of microgrids.
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SECTION 1.0 INTRODUCTION
This paper provides the reader a basic technical understanding of microgrids, and how microgrids can be employed to
benefit both the Port and the surrounding community. This paper provides a high-level overview of how a microgrid
can improve management of energy usage and strengthen system resiliency and reliability for the Port. It also
provides information regarding the myriad of microgrid options and issues that should be considered as the Port
continues to make progress toward its vision as the Green Port of the Future. These considerations include design
and technology options, operating protocols, commercial structures, and regulatory requirements.
The paper was commissioned by the Port to educate stakeholders on microgrid technologies and their potential
applicability. Port staff provided additional information to align the content with the current and anticipated needs of
the Port’s energy program. This paper will aid the Port in deciding whether a further, more detailed analysis of
microgrid options, benefits, and costs is warranted. Any further analysis of a Port (or broader energy community)
microgrid (or microgrid system) will need to incorporate the results of a separate, and ongoing study that will develop
a comprehensive outline of the energy community’s operations, its specific energy uses, and the relationships and
criticality of the operations and energy needs.
The availability of a cost-effective and reliable energy supply is fundamental for Port operations. Stable energy
supplies are essential for transportation and cargo-handling networks, communications, lighting, security, and in the
case of catastrophic events, the deployment of humanitarian aid. If the energy supply fails, the economic and quality
of life impacts for business and communities can be severe.
The grid electricity system includes three primary activities: generation, transmission, and distribution. Electricity is
traditionally transmitted from power generation stations at high voltage to substations, where voltage is stepped
down and/or converted, for distribution to consumers. The high voltage is used to reduce electrical losses during the
distance between generation and transmission. Components of the energy supply system are subject to outages due
to equipment failures, severe weather, natural disasters, human threats, and other events.
The Southern California Edison grid is subject to these outages, both planned and unforeseen. The ability to
significantly enhance future reliability is burdened by the current centralized power supply infrastructure, based
principally on a hub-and-spoke system with the output of large generation plants (the hubs) being delivered to
customers via a combination of transmission and distribution lines (the spokes). The centralized energy system, which
has been controlled by large-scale fossil fuel and nuclear power plants that send power to passive consumers, is
shifting to a dynamic, bi-directional network increasingly dependent upon distributed resources that include
intermittent renewable energy. A progressing diversity of technology, fuels, and ownership plays a starring role in
microgrid advancement and adoption.
3
In his January 29, 2015 “State of the Port” address, Chief Executive Officer Jon Slangerup described his call for an
all-out push to achieve energy “resilience” for Port operations. In this presentation, Mr. Slangerup introduced the
Energy Island Initiative to serve the Port’s increasing need for (and dependence on) consistent electrical supply. The
following are the goals of the Port’s Energy Island Initiative:
• Greater use of green power

• Increased energy security, resiliency, and sustainability
• Improved energy-related operational efficiencies
• Stable energy costs
• Attraction of new jobs and revenue sources
As emphasized by Mr. Slangerup, the Port complex depends on the resilience of its energy supply. Resilience is
generally defined as the robustness and recovery characteristics of utility infrastructure and operations, which avoid
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or minimize interruptions of service during an extraordinary and hazardous event. However, in a broader sense,
resilience is the ability of an electrical system to survive and thrive in the face of a complex, uncertain, and ever-
changing future. It is a way of thinking about both short-term cycles and long-term trends: minimizing disruptions in
the face of shocks and stresses, recovering rapidly when they do occur, and adapting steadily to conditions as they
continue to change. A resilience-based approach offers a proactive and holistic response to risk management and a
way for the Port to maintain competitiveness in the global goods movement forum.
While some municipalities have historically included district heating or cooling systems and fossil-fuel-based
emergency back-up generation for individual critical facilities, rarely have they created their own electric grid to serve
multiple facilities. However, due to the advancements in technologies and a growing focus on energy costs and
resiliency, an increasing number of cities are now considering the implementation of microgrids which can meet
these needs. These small power networks can serve to enhance the resilience of energy services during extreme
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events and provide cities with greater control of their future energy supply. In a 2014 Utility Dive survey of
209 electric utility executives and 56 independent power producer (IPP) executives across the U.S., 60% of the
respondents indicated that non-utility entities in their service territories were already working on developing
microgrids or expect to be working on them within the next five years (see Figure 1 below). The results indicate that
the interest and growth in microgrid development is poised to have a profound impact on the utility grid and the way
large customers manage their electric energy needs.
2
Keogh, M., Cody, C., Resilience in Regulated Utilities, The National Association of Regulatory Utility
Commissioners, November 2013.
3
“The Utility View of Microgrids”, a survey by Utility Dive commissioned by Siemens Industry, Inc., 2014.
4
Figure 1. Percentage of Utility Executives Who Expect to Have Non-utility Entities

Working on Microgrids Within Their Service Territories
The recent acceleration in the development of microgrids is driven by market pressure and ongoing innovation in
distributed generation technology that have outpaced regulatory reform, capital availability, and public awareness.
Increasingly, governments and industrial customers are arriving at the conclusion that they can and should assume a
central role in assuring a more resilient energy supply for critical services and other needs.
Another key challenge facing the utility grid is the large-scale integration of renewable sources of electricity.
Specifically, the California grid has a requirement to accommodate 33% renewables by 2020 and 50% by 2030. The
renewables (mainly solar and wind) present for the first time a situation where a significant portion of the supply will
come from resources that are inherently intermittent, available only when the sun is shining or the wind is blowing.
This represents a new paradigm for the California grid and a challenge for grid operators to cost-effectively distribute
power when it is needed.
In addition to the changing nature of supply, the nature of demand is also changing. The California Public Utilities
Commission (CPUC) identified energy efficiency and demand response as the top resources to consider in meeting the
state’s energy needs in the next decades. The proliferation of electric vehicles and other energy intensive equipment
is changing the profile of daily demand to new and uncertain shapes. This is particularly true at modern marine
terminals where electrification of equipment, such as cranes, cargo-handling equipment, and shore power routed to
vessels aligns, with efforts to lower air pollution. The duty cycles of this equipment are particularly dynamic from day
to day.
Additionally, there is more pressure to provide electricity on the Southern California grid due to the loss of San Onofre
Nuclear Generating Station (SONGS) and the retirement of other generation assets. Tightened emission and
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environmental standards are in part responsible for the loss of some of these assets (for example, the Once-Through
Cooling regulations dramatically affecting existing coastal steam generating facilities). Investor-owned utilities are
re-examining their enterprise holdings, including divestment of large generating facilities, which impacts price and
availability.
SECTION 2.0 MICROGRID DEFINITION
The U.S. Department of Energy (DOE) defines a microgrid as:
“A group of interconnected loads and distributed energy resources with clearly defined electrical boundaries
that acts as a single controllable entity with respect to the grid [and can] connect and disconnect from the
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grid to enable it to operate in both grid connected or island mode.”
Although microgrids designs can include many configurations and serve many purposes, in general terms there are
two types of microgrids relevant to the Port:
1) A “behind the meter” microgrid in which a customer develops internal resources, controls, and systems to more
efficiently and/or reliably serve some or all of the local load. The incumbent utility serving that customer still sees a
single customer and (in most cases) a single meter. However, the electrical needs seen by the utility (and sometimes
the natural gas needs) of that customer have changed with respect to quantities and load shapes. This type of
microgrid installation may or may not have the ability to fully “island” itself (that is, operate disconnected from the
utility grid). In many cases, microgrid systems are designed to island key or critical loads that will be supported by
on-site sources. Installing enough self-generation to island all facility operations may not be cost-effective.
2) An “advanced” microgrid can serve multiple customers or meters with diverse loads and supply multiple
resources (possibly combining electric, heat, steam, natural gas, chilled air, etc.). Advanced microgrids are generally
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two-way; they can deliver power into the incumbent utility grid as well as take it from the grid . They are also able to
operate completely separate from the utility’s grid in an island-mode.
Advanced microgrids are a relatively new phenomenon on the energy scene. State and federal regulators are working
to determine the rules that should govern this new form of microgrid development and operation – both from a
technical standpoint and from a regulatory perspective. The interaction of the microgrid with the incumbent utilities’
systems has broad implications for the incumbent utilities’ cost recovery, for customers served by the microgrid, and
4 Summary Report, 2012 DOE Microgrid Workshop; Office of Electricity Delivery and Energy Reliability
5 Additional microgrid-to-utility products may also include voltage and frequency regulation, time-shifting via
available storage capacity, etc.
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for all other utility customers (outside of the microgrid area). These complex technical, legal, and regulatory questions
are a work-in-progress, and the ultimate answers are still uncertain.
Examples of Microgrids
A growing number of large utility customers, including municipalities, ports, military installations, industrial facilities,
logistics hubs, correctional facilities, hospital campuses, and universities are considering microgrids to better manage
energy usage and enhance power quality, system reliability, and resiliency. The following are a few examples of
microgrid systems, each of which have features that may be applicable to development of microgrids at the Port.
• University of California, Irvine (UCI), Irvine, CA:

o The UCI Microgrid serves a wide variety of building types (residential, office, research, and
classroom) each with unique demand requirements, as well as electric vehicle charging at
multiple parking locations.
o The campus is served by Southern California Edison (SCE), encompasses ten 12kV circuits,
includes more than 1 MW of solar power, and is served by a 19MW natural-gas-fired combined
cycle plant.
o The campus electric load averages 13.4 MW with a peak annual demand of 18.6 MW. The gas
turbine and steam turbine supply about 85% of the electrical needs on the campus with the
balance served by solar (1%) and utility import (14%).
o The system features an Enterprise Energy Management System capable of sub‐metering building
loads and interfacing with the UCI Microgrid to provide real-time data to the facilities
management team. This system also provides the information necessary to make decisions as
more intermittent renewables are installed and allows the UCI Microgrid to operate as a smart
power and demand response asset (i.e., providing power into the utility grid, as needed) for the
statewide California Independent System Operator (CAISO). This ability to provide services to
CAISO or the local utility can provide additional revenue sources to the microgrid owner.
• MGM City Center, Las Vegas, NV:

o Requires a very complex, automated power system to balance supply and demand and ensure
critical loads are served.
o Includes automatic islanding with backup generators that come on line within 7 seconds.
o System constantly monitors the presence and quality of normal utility source power to the
facility and directs switching operations for the system in the event of a loss of power or fault.
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o Switching includes reconfiguring the system using available utility sources and also starting
emergency diesel generators as needed, taking into account the power available at present and
the forecasted facility load.
• University of Genoa-Sanova, Italy:

o This microgrid integrated new cogeneration units, an existing small gas turbine, rooftop solar
photovoltaics, battery storage, electric vehicle charging stations, two boilers, and an absorption
chiller.
o Control system ensures energy flows can be reliably forecasted, and resources can be correctly
deployed and optimized in real time.
• Co-op City, New York, NY:

o Cooperatively-owned complex of 14,000 apartments in 35 high-rise buildings.
o Owners wanted to reduce their power costs and increase their control over their electrical
supply.
o Includes the installation of 40MW electric power generated by two combined cycle gas turbines
that generate both power and steam for the complex.
o Owners are able to sell to the grid up to 16MW of excess electricity. The microgrid was able to
maintain power for 60,000 residents during Hurricane Sandy.
SECTION 3.0 DETERMINATION OF ADVANTAGES OF MICROGRIDS VS. RELIANCE ON THE GRID
OVERVIEW OF POLB COMPLEX

As one of the world's busiest seaports, the Port is a leading gateway for trade between Asia and the United States.
It generates billions of dollars in economic activity each year including the support of over a million jobs nationally.
As shown in Figure 2, the Port’s facilities include:

• 10 Piers
• 80 Berths
• 66 post-Panamax gantry cranes (as largest intermittent loads)
• 22 Shipping terminals
• 3,000 acres of land
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Figure 2. Port Facilities Map
The continuous, reliable operation of the Port is critical to the region and the nation. In turn, a continuous reliable
electrical supply is essential for Port operations. The Port’s operations require large amounts of electrical energy,
comparable to the electrical loads of a small municipality. The tables below provide a summary of Port electrical
demand for 2014 to 2015.
Table 1. Number of Port Electric Meters

Meters
Port Service Account Meters 94
Tenant Service Account Meters 75
1
Unknown Service Account Meters 86
Total Meters 255
1
Unknown service account meters are meters that were physically located but could
not be matched to known service accounts, and may belong to private owners near
the Harbor District or may have been used temporarily and not removed.
9
Table 2. Port Power Demand for Electric Meters

Power
12
Maximum Peak Demand for Each Electric Meter Under 0.5kW - 6.6 MW
1
Maximum Coincident Demand (All Meters) 38.4 MW
123
Base Load for Each Electric Meter 10-14 MW
1
Based on 15-minute interval data.
2
Where interval data was not available, the monthly data was used as a substitute.
3
Baseload represents a continuous minimum load and not just a "minimum" value
reported for the meter.
Table 3. Port Electricity Use Per Acre

Electricity Use Per Acre
12
On-Yard, Non-Automated Terminals 26.3 kVA
23
Fully Electric Cargo-Handling Terminals 82.3 kVA
1
The power densities for the container terminals TTI, SSAT in Pier A, ITS, and PCT
were used to calculate an average power density for the non-automated terminal.
2
Based on 15-minute interval data and the acreage from the ArcGIS property lines.
3
At time of assessment, Pier E was only partially operational and therefore the
electricity use is estimated based on preliminary projected demand with a 50%
factor and 0.5 group load coincidence factor.
Source of Data in Table 1, Table 2, and Table 3: Power Demand Assessment and Survey conducted by P2S and
commissioned by Port of Long Beach
Current Energy Supply

The local utility, Southern California Edison (SCE) serves as the primary energy supplier to the Port. The utility
supplies the needed electrical service through multiple Port- dedicated substations and additional distribution
feeders from substations that are shared by other utility customers. From the substations, power is distributed
throughout the Port using distribution lines operating at different voltages.
While the majority of the Port electrical requirements are served by the utility, one Port customer, Harbor
Cogeneration Company, operates a large combustion turbine to supplement its power needs. In addition, a
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number of port occupants have installed smaller emergency generators for their facilities. However, none of these
generators are connected to the Port distribution grid.
Considerations for Relying on Grid Power Only

The CPUC oversees investor-owned utilities (such as SCE) to ensure that they have reasonable reliability, that they
plan for the future needs of their customers, and deliver electrical service at a cost deemed by the CPUC to be
reasonable. Some of the criteria to consider in evaluating the capabilities and limitations of the current utility
service are as follows:
• Satisfactory Energy Availability – The local utility may have a storm-hardened infrastructure that makes it
mostly immune to severe weather conditions in a coastal area.
• Satisfactory Power Quality – Newer infrastructure and redundancy in their energy delivery architecture
may already provide adequate power quality. Further, the local utility may have already deployed assets
to mitigate the effects of renewable generation intermittency. Electrical equipment with advanced local
controls includes voltage regulators, switched capacitors, pulse reclosers and similar devices.
• Satisfactory Generation Capacity to Meet Expected Port and Utility Growth – Planned load growth should
not strain the utility’s ability to deliver energy in the future.
• Satisfactory Energy Costs – The current and future cost of delivering electricity by the utility (SCE) is not
compromised by uncertainty in their sources of energy or other rate or bill drivers (such as changes in
rate design). The generation asset portfolio feeding the regional demand exhibits a stable outlook.
Considerations for Microgrid Implementation

In evaluating the need for a microgrid, key stakeholder business requirements should be analyzed around the
operational benefits that a microgrid could bring, including the potential for:
• Improved Energy Security – Ability to improve power supply to critical facilities. Through electrical feeder
automation, a microgrid controller can assure the routing of available energy to predetermined critical
facilities.
• Improved Energy Resiliency – Ability to provide power during utility grid outages and to recover more
quickly if outages occur. Generator portfolio dispatch is a basic microgrid controller function that assures
energy resiliency to loads within the microgrid. SCE has good “reliability”, i.e., few outages and when they
occur, they are generally of short duration. “Resiliency” is the ability to operate through utility
disturbances/disasters and or recover from them quickly.
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• Higher Power Quality – Ability to mitigate the impact of power quality fluctuations on the utility grid.
Intermittency from renewables is an issue that a microgrid platform mitigates through dispatching energy
storage and switchable loads.
• Reduced Load On the Utility – A carefully planned microgrid platform can have an important role in
reducing utility infrastructure needs and costs. For example, net-zero energy consumption could be
achieved at the primary metering point due to optimized local energy production and consumption.
• Increased Grid Functionality – Providing improved management and control of loads and energy
consumption. For example, the energy normally wasted during a large crane’s braking operation could be
captured through regenerative breaking. The microgrid’s control platform is capable of managing the
regenerative braking system’s set points for optimum operation.
• Potential Lower Electricity Costs – Enables best use of controllable loads and distributed generation
resources, including renewables, as part of an optimum generation asset portfolio.
SECTION 4.0 MODES OF MICROGRID OPERATION AND CONTROL
A microgrid can operate connected or disconnected from the utility grid. Both microgrid modes of operation have
unique characteristics and technical requirements which the Port needs to evaluate when reviewing its energy
infrastructure options.
Grid-Connected Operation
In the grid-connected mode of operation, a group of interconnected loads and distributed generation assets are
joined to the utility at a point of common coupling. The amount of energy produced at any given time by local
onsite generation or imported from the utility grid can vary. Microgrid controls can be configured using a variety of
criteria including: minimized costs, maximized renewable penetration, and participation in utility programs such as
demand response, etc.
The microgrid control software is responsible for the operational management of generation resources
(supply-side) and ensuring the system is balanced with the existing and forecasted load (demand-side). The
microgrid software functionally should include:
• Monitoring and enforcement of the microgrid frequency and voltage (simplified due to grid support)
• Day-ahead forecast of energy demands, renewable generation output, and utility prices
• Optimal resource scheduling (generation, storage, grid power import), based on minimizing:
o Total cost of energy to supply microgrid load
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o Total emissions required to supply microgrid load
• Intentional microgrid load reduction to accomplish:
o Decreased operational cost, energy efficiency
o Peak load reduction
o Reliability, in the case of a contingency (e.g. a generator trips offline, there is load greater than
generation output, load needs to be reduced)
• Microgrid islanding and grid resynchronization
• Black start restoration in the event of a microgrid black out
Islanded Operation (Off-Grid Operation)

In the off-grid or islanded mode of operation, the microgrid is disconnected from the utility grid and no longer
benefits from energy supply, i.e., the frequency and voltage stability provided by connection to the utility’s
network. Advanced energy management software functionality is required from a microgrid control system to
operate the islanded system in lieu of the local utility. These include:
• Dispatch generation and storage to meet instantaneous demand of loads within the microgrid.
• Advanced monitoring and enforcement of frequency and voltage within the microgrid, relative
to a defined value (e.g. 60hz, 13kV).
• Definition of one or multiple energy sources to act as “regulating” resources, and delegation of set points
for power output to the remainder of generating assets.
• Continual adjustment of the reactive power output of generation and storage to keep system voltage
close to the defined value.
• To ensure both the frequency and voltage control have the real and reactive power “bandwidth”, there
must be a reserve monitoring and enforcement function, i.e., the controller must have knowledge of the
available capacity of all generation to immediately raise or lower output (reserves). This asset is critical to
manage frequency and voltage within the microgrid.
Table 4 provides a summary of some of the key differences between operating a microgrid connected to the utility
grid versus operating a microgrid in island mode, disconnected from the utility grid. A microgrid at the Port would
most likely operate normally connected to the utility grid, and only be disconnected during utility outages or
system emergencies.
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Table 4. Key Differences between Connected and Disconnected Microgrid
Function Connected Disconnected

Frequency and Monitored, but mostly provided by the Provided by local microgrid generation under
voltage stability utility’s large, stable system direction of a microgrid controller
Objective is to maximize profit or minimize
costs by understanding the available
revenue (e.g., wholesale electricity) and Objective is to minimize the total cost of
Economic
the cost associated with supplying local supplying the load by scheduling the lowest
optimization
load and generating excess for sale (e.g., cost assets to provide power.
fuel costs, startup costs, operating costs,
etc.)
Renewable Provided by utility energy management Provided by a microgrid controller scheduling
generation systems controlling assets including: local generation and storage ahead of time,
intermittency spinning reserves, voltage regulators, and dynamically dispatching assets in
mitigation capacitor banks, etc. real time
Conducted by the utility at a system level Provided by microgrid controller if loads are
Day-ahead load
(i.e., not granular enough for individual integrated into overall control scheme
forecast
locations and microgrids) providing real-time data
Day-ahead
Provided by the utility at a system level
energy Provided by microgrid controller for proper
(i.e., not granular enough for individual
production energy resource scheduling
locations and microgrids)
forecast
Microgrid Control Overview

The control functions within a microgrid are performed at different conceptual and physical layers. One way to
define these control layers from bottom to top are: local control, secondary, and tertiary control (seen in Figure 3,
below). The complexity and scope of control increases from the local control upwards towards the tertiary control.
The following diagram shows this conceptual control system hierarchy.
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Tertiary Control
Load Power Quality
Energy Trading
Management Analyzer
Generation Generation
Load Forecast
Forecast Optimization
Secondary Control
Frequency Voltage
SCADA Archiving
Regulation Regulation
Automatic Emergency
Protocol
Islanding & Demand Power Quality
Conversion
Resynchronization Response
Local Control or Primary Control

Transformer Load
Switch Breakers Meters
Tap Changer Primary
Controller
Distributed Energy Resources
Electric Energy Building
Solar PV Diesel Fuel Cell
Vehicle Storage Management
Figure 3. Conceptual Control System Hierarchy
Local control, or primary control, is the lowest layer in this control hierarchy. The local control sits “locally” to the
control system it is monitoring and controlling. For example, a member of the local control layer could be a
generation controller or a protection relay. The function of the aforementioned control is to locally monitor and
control the operation of the physical energy asset. A protection relay monitors the electric parameters, such as
current, at the circuit breaker (physical asset) and controls the circuit breaker by sending an “open” or “close”
command. A generation controller sits locally on the generator (physical device) and monitors its operation, such
as power output and local frequency, and controls the real and reactive power output of the generator by
increasing fuel consumption of the engine or the electrical field of the generator. These controls use simple logic,
e.g. if the current is greater than 100 amps send signal “open” to the circuit breaker. Also due to the inherent
importance of these operations, the local control layer acts very quickly (under 1 second down to the millisecond
range) to maintain equipment safety and rapidly respond to events to prevent a microgrid blackout.
Secondary control is one layer above the local control, meaning it oversees multiple local controllers on multiple
physical assets. The main function of the secondary control layer is to monitor and control multiple physical assets
simultaneously in order to achieve a specific objective. In order to do this, there has to be a system to remotely
monitor and control the local controllers. This process is called SCADA (Supervisory Control and Data Acquisition).
SCADA is required in the secondary control layer to execute specific objectives that are dependent on the ability to
monitor and control multiple assets. One objective of a microgrid secondary control is grid resynchronization.
When a microgrid is islanded and disconnected from the utility grid, a specific process must be executed to
resynchronize, or match the microgrid frequency and phase of its AC power output to that of the utility grid.
The microgrid controller performs a resynchronization by simultaneously adjusting generation, shedding load,
measuring power flow values at the point of common coupling, and closing the interconnection switch to connect
the microgrid to the utility grid. The secondary control layer is slightly slower (typically under three seconds) than
the local control layer as the functions are not as critical to safety as the local control.
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Tertiary control is the highest layer in the microgrid control hierarchy. The function of the tertiary control layer is
to monitor all devices within the microgrid, use the data collected from those devices, and run different software
applications to increase the efficiency, reliability, and the external availability of the microgrid. Examples of tertiary
layer controls are the balancing between loads and the renewable generation forecast, system-level voltage and
frequency control, generation economic optimization, external interface with energy markets, etc. Due to the
optimization and efficiency nature of the tertiary control layer versus equipment protection and safety, it executes
less quickly than the local and secondary control layers (typically recommended at 15-minute intervals).
Centralized Controls
As illustrated in Figure 4, below, centralized control architecture implies that all tertiary control functions
(forecasting, economic optimization, etc.) are located on a computer server at one site, preferably within the
microgrid. However, remote monitoring and control from an off-site location can also be accommodated in this
control scheme. Depending on the speed of the communication network, some secondary control functions such
as SCADA may also be located at the same central location, on the same server. Due to an intrinsic requirement to
react within milliseconds, most control devices are located at or near the primary power equipment. For this
reason, the local control layer is always physically distributed within a microgrid, near the generation controllers,
smart inverters, protective relays, etc. Due to the distributed nature of the local controls, a centralized control
solution, with tertiary and secondary control applications, communicates via the communication infrastructure to
the local controllers. This architecture design would apply in any energy infrastructure situation regardless of the
size or location of generation. It is a highly scalable and flexible architecture methodology that allows for future
expansion of generation as well as functionality.
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Centralized Control
= Local Controller
Figure 4. Example Microgrid Centralized Control Diagram
Distributed Controls
As shown in Figure 5, below, a distributed control approach has no central controller. Instead, there are multiple
distributed controllers located within the microgrid. Each distributed controller manages the frequency and
voltage locally and communicates with one another through a peer-to-peer communication. Comprehensive
secondary and tertiary control functions such as balancing combined load vs. generation for the system or
forecasting of optimal generation mix is not generally possible with distributed control architecture, due to the
need for aggregate data and planning. Therefore, if system-wide optimization is a goal of the Port, a centralized
control system offers the preferred solution. However, distributed controls might be preferred by individual
tenants within the Port complex.
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Distributed Control
= Distributed Controller
Figure 5. Example Microgrid Distributed Control Diagram
SECTION 5.0 MICROGRID CONCEPTUAL DESIGN
The stated goals of the Port’s Energy Island Initiative: sustainability, resiliency, security, economics, and new
revenue sources—are achievable through existing microgrid technologies. Modern microgrids incorporate
advanced energy management systems to optimize the integration of power generation, intermittent renewable
energy generation, energy storage, and utility grid connection. Some of the typical reasons for creating microgrids
are to improve the security and resiliency of electric service by ensuring the ability to continue operations through
utility grid outages, and enable quick recovery after outages occur. Microgrid designs are based on the long-term
electrical requirements of facilities and are becoming a recognized method to improve the efficiency of electrical
usage, thereby reducing energy demand and providing greater cost stability.
As represented in Figure 6, below, a microgrid consists of two overlapping infrastructures:
• Energy Infrastructure – the physical assets that generate, deliver, transform, and disrupt power
e.g. power lines, circuit breakers, transformers, conventional and renewable generators and more.
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• Communication and Control—the means of communication and the controls among the physical assets
e.g. local ethernet network, cellular network, serial connection, microgrid controller, protective relay, etc.
Figure 6. Microgrid Conceptual Design
Energy Infrastructure
At a high level, the Port’s current electrical network consists of separate and independent infrastructure
components, such as substations, switchgear, distribution lines, and generators. Electric services in the Port are
operated as hundreds of independent electrical customers rather than a single interconnected and coordinated
facility. A high-level summary of the current Port electric service can be seen in in Figure 7, below.
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Figure 7. Port of Long Beach Electrical Network
Communication and Control Layer

The following communication and control layer diagram, Figure 8, provides an example of a system integrating:
• Load management
• Distributed generation (including renewables)
• Electric vehicle charging
• Energy storage
• Advanced metering infrastructure
• Power flow management
• Building energy management systems
• Supervisory Control and Data Acquisition (SCADA)
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Terminal
Figure 8. Example Microgrid Control Architecture Diagram
Future Infrastructure
The primary components of infrastructure the Port should include in their evaluation of a microgrid are:
• Advanced controls of both energy supply and energy demand.
• Communication infrastructure and the potential to improve cybersecurity.
• Local generation sources to improve resiliency and reliability, better manage energy usage and costs, and
employ greater renewable generation.
• Energy storage system in order to offer enhanced economic optimization and the potential ability for
time-of-use rate arbitrage.
• Redundancy in supply, distribution facilities, and controls to improve resiliency and reliability.
SECTION 6.0 GENERATION AND ENERGY STORAGE FOR A MICROGRID
While a microgrid can rely strictly on power from the utility, it should include an independent source of electrical
power within its grid design to deliver the full potential of a microgrid for increased resiliency, increased efficiency,
reduced emissions, and other benefits. However, the optimum technology, size, and capabilities of the electrical
power source(s) will vary significantly, depending on the characteristics of the loads connected to the microgrid
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and the ultimate purpose and goals of the microgrid. A partial list of some key criteria/questions that influence the
selection of the power supply for a microgrid includes:
• Does the microgrid power supply need to operate only for a limited time period or does it need to
operate continuously with no time limitations?
• Will the microgrid be connected to the utility grid for normal operations?
• Does the power supply need to provide the full normal load of the microgrid or just a portion of the load
for emergency, renewable, or high value power needs?
• What is the required power quality for the microgrid, e.g., should the power quality mirror or exceed
the utility supply, or can the microgrid accept a lesser power quality or reliability when grid power is
not available?
• What fuels and fuel delivery infrastructure are reasonably available to the microgrid location?
• What are the evaluation criteria that should be considered in the design? For example, should the owner
consider lowest cost, or does the owner desire to include renewable resources even if they are higher
cost alternatives? Is there a desire to showcase technologies that are still in the research and
development phase of their technological maturity?
• Are there thermal loads (steam, heat, cooling, etc.) that could be served synergistically with electrical
loads (i.e., cogeneration)?
• What are the electrical and thermal load profiles and how do these patterns correspond to availability and
pricing of supply resources? Can load profiles be adjusted (e.g., by operating rules, price signals, or energy
storage) to optimize microgrid resource utilization? Such opportunities exist locally. For example, Harbor
Co-Generating Facility, Southeast Resource Recovery Facility (SERRF), and NRG’s Long Beach Generating
Station are all located in the Long Beach Harbor District.
• Is there distributed generation outside of the microgrid that could contribute to the needs of the
microgrid?
Generation & Energy Storage Technologies

Power supplies for a microgrid may be as simple as a battery energy storage system (BESS) that provides power to
a microgrid for a limited period from a few minutes to a few hours. A power supply of this limited capability could
support critical loads at a computer data center or communication hub during a power emergency. A short
duration power output from a BESS could provide sufficient time to transfer data processing or communication
switching to a backup facility. A BESS could also allow a controlled system shutdown to prevent data loss or
equipment damage.
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However, a different mix of power supply resources is needed for a continuous power supply. A microgrid for a
military base or a large industrial campus may be designed to operate continuously as a standalone system,
independent of the utility grid. This type of microgrid will typically incorporate a portfolio of multiple generators
and may include multiple onsite generation technology types. The Port of Long Beach is considering multiple
power generation and energy storage options. More information about these can be found in the Port’s white
papers about Renewable Energy Technologies and Energy Storage Technologies (see www.polb.com/environment)
Generation Portfolio Design

In many ways, a microgrid is designed and operated like a small utility. While design parameters may be modified
for a microgrid, many of the goals of utility design are worthy of consideration. Size, building and operation costs,
fuel options, location, and resiliency are all important considerations in the selection of a portfolio of resources to
supply power to any system. The diversity inherent in the system’s generation sources provides a resilient power
supply portfolio. Some of the key components for incorporating diversity in design include:
● Multiple Generators – the larger the number of generators, the less impact any single generator outage
will have on the system.
● Multiple Fuels – using multiple fuels reduces the impact of interruption of fuel supplies and the
cost impacts of fuel price fluctuations.
● Multiple Generation Locations – distributing the generation to different physical locations around the
system reduces the impact of a catastrophic event at a single generation plant and the impact of a
transmission or distribution outage to a plant.
● Flexible Operational Capability – Incorporating power sources that are dispatchable to operate during
normal conditions and can respond rapidly to changes and emergencies. The portfolio must also reliably
and cost-effectively serve the base, intermediate, and peaking loads of the microgrid.
A microgrid does not require implementation as a single project. Rather, many microgrid plans involve a series of
phased projects tailored to specific business needs. For example, rather than initially sizing the system’s local
generating capacity to meet the entire Port’s energy needs, a microgrid deployment approach can include
installing a smaller power generation or storage to initially address specific loads within a marine terminal. Later
phases may include additional generating capacity to cover the entire marine terminal and/or adjacent terminals.
Another key consideration in selecting options for a generation portfolio is the role each technology will serve in
meeting system demand or load. The demand curve is typically described as having three parts: a base demand, an
intermediate demand, and a peak-demand. For the purposes of this paper, base demand can be defined as the
minimum demand expected on typical day. Peak demand refers to the highest peak in a given time period. The
demand curve can vary significantly but often takes a shape with distinct periods of growth and decline in demand
during a 24-hour day. The illustrative daily demand curve in Figure 9 shows two distinct peaks during the day.
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There is frequently an intermediate portion of the demand curve that exists through much but not all of the
24-hour period. A utility system or a microgrid, operating in islanded mode, must be able to balance generation
output with the instantaneous demand of the system. In essence, the generation must follow the demand curve.
The capital and operating characteristics of different generation and energy storage technologies make them
better suited for supplying different portions of the daily demand curve.
Figure 9. Illustrative Demand Curve
Traditionally, power plants can be categorized by their capacity factor. Capacity factor is a calculation of the
percent of energy actually produced versus the maximum that could be produced if the unit was producing its full
capability 24hrs/day, 7 days a week. A base-load power station is one that operates at a very high capacity factor
from 75% to 98% and typically has the lowest cost of producing electricity. Peak-load power stations are designed
to operate for short periods, varying from minutes to hours in a day, to supply the peaks in demand and to handle
unforeseen variations in demand. Peaking units are typically less fuel-efficient than base load units, but possess
the operation flexibility to rapidly start up and respond to changing demands. The capacity factor for peak-load
units can range from 0% to 15%. Finally, intermediate load power plants operate with a capacity factor that ranges
from 30% to 50%. These units typically include technologies that can change loads more easily than base load units
but offer higher fuel efficiency than peaking units
Firm Technologies vs. Variable Technologies

Each of these three generating plant categories, base, intermediate, and peak, is considered firm technology,
capable of varying production output up or down, based on operator command, serving the changing load
requirements of an electrical system. Generation technologies with continuously varying or intermittent output,
such as solar PV or wind generation, fall in a fourth category. By themselves, variable technologies cannot
reasonably be dispatched or controlled with high reliability to meet the changing nature of a system demand. The
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output of intermittent technologies must necessarily vary both in the time they generate electricity, and in the
amount of electricity produced, due to the inconsistent nature of their energy sources, i.e., wind, sun, waves, etc.
They can provide generation only when the sun is up, the wind is blowing or when waves roll in. In addition, these
technologies provide electricity only in amounts consistent with the intensity of their energy source—the solar
intensity, the speed of the wind, or the size of the waves, etc. Even with their intermittent output, the capacity
factors for wind and solar fall between the capacity factors seen for peaking and intermediate units:
• Wind – 20% to 50%

• Solar PV – 20% to 25%
• Tracking or concentrated solar PV – 25% to 40%
Tapping geothermal could offer the potential of firm dispatchable power. It is generally accepted that sufficient
geothermal energy exists near the Port to offer a technologically practical option. Other variable technology
options, such as marine tidal and wave generation technologies, have not reached technological maturity sufficient
to provide the certainty of power availability the Port requires in a microgrid.
Renewable Variable Technologies Combined with Storage

Energy storage technologies can be employed to capture the output of variable generation, or excess energy from
other generation sources, and dispatch it later, as needed. Storage of renewable power can enhance resiliency in
the event of a grid outage and also lower grid capacity charges by balancing daily demand curves.
Differences in Microgrid vs. Utility Grid Generation

A critical input to a microgrid design starts with the question, “will the microgrid need to operate continuously for
prolonged periods without a utility grid connection?” The answer to this question will narrow the number of
design considerations. Using a microgrid to operate disconnected from a utility grid for prolonged periods requires
the microgrid to incorporate many of the same system requirements as a small isolated utility.
Utilities design redundancies into their generation, transmission, and distribution system to operate even after
unplanned events and system failures. For example, a utility system designed to operate autonomously will
normally have sufficient excess generation and transmission capacity on their system to supply the expected
customer demand even when many of the generation units or transmission lines are out of service due to either
planned maintenance or an unplanned outage (this is called reserve capacity).
In addition, some of this reserve capacity must be on and operating at all times to instantaneously respond to
customer demand (this is called spinning reserve) in the event another generator suddenly shuts down. Even if a
microgrid generates sufficient energy for its needs from its own power supplies, a grid connection still provides
benefits.
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While connected to a utility, a microgrid can generally rely on the utility for providing many of the non-energy
redundancies and electrical characteristics needed for reliable operation (e.g. frequency support, system inertia,
spinning reserve, etc.). However, once disconnected from a utility grid, a microgrid must either supply these
redundancies and characteristics or accept an expectation of lower reliability.
Users of critical services such as the Port, or marine terminal operators within the Port complex, may conclude the
societal or economic costs of any electric service interruption are unacceptable and that the investments needed
for uninterrupted service are justified. When considering a microgrid design, the Port will need to carefully identify
and assess the cost versus benefits of maintaining or surpassing utility quality electrical service when operating as
an isolated microgrid.
SECTION 7.0 MICROGRID COSTS AND OPERATING CONSIDERATIONS
Initial Microgrid Cost

Microgrid costs are highly dependent on the design parameters of the microgrid. The higher the expected
resiliency and independence from the utility grid, the higher the expected costs. There also exist some tradeoffs
between paying a higher initial cost to obtain benefits in the operating costs or other benefits, such as
environmental considerations. For example:
• Gas-fired combined cycle combustion turbines (CCCTs) cost more per MW than simple cycle combustion
turbines (CTs) but also deliver a better fuel efficiency.
• Large-scale wind and solar photovoltaics cost more than either CCCTs or CTs, but have zero fuel cost and
no emissions of criteria pollutants or greenhouse gases for the life of the units.
• A state-of-the-art generation control system costs more than systems with less capability but also
provides an opportunity for lower staffing levels, improves reliability, and avoids costly repairs through
advanced monitoring and diagnostics capabilities.
Generally, generation options should be assessed based on their lifecycle costs of energy or the levelized cost of
energy production. This methodology addresses the needed interactions between the initial capital expenditures
and the ongoing operating and maintenance costs. Table 5, below, provides an indication of the order of
magnitude of investment that could be expected for an illustrative 50 megawatt (MW) microgrid. This would be a
single, centralized microgrid that would service the Port complex, rather than a smaller microgrid that would
service an individual Port tenant. The costs for smaller systems would vary widely and would likely be higher,
per MW, than a large, centralized system.
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Table 5. 50 MW Microgrid Order of Magnitude Cost Estimate

Total
Component
(million)
Generation and Energy Storage $200 to $500
Transmission and Distribution Upgrades $25 to $100
System Controls $5 to $50
Total $230 to $650
The generation cost will be highly dependent on the final selection of technology. The lower end of the cost range
assumes a power supply portfolio based on gas-fired CCCTs, the upper cost range assume the inclusion of CCCTs
and a large investment in wind, solar, and battery technology.
The lower end of the transmission & distribution (T & D) upgrade estimate assumes investments are required only
in substation switching and controls. This estimate assumes the Port distribution system belongs to the Port, is in
good repair, and meets current electrical codes. The upper end of the T & D estimate assumes substantial
substation investments, upgrades, and expansion of the distribution system within the Port. The upper end
estimate also assumes that the Port pays for the required distribution system modifications on the SCE-owned
distribution system within the Port. The estimate assumes that the design and operation of the microgrid does not
require the Port to purchase or replace the existing SCE-owned distribution system.
The lower end of the system controls estimate assumes a control system which operates only the generation and
automates only the substation interconnections with the utility. The higher end of the estimate assumes
substantial investment in controls within the Port to manage demand and energy consumption of customer and
end-use loads.
Microgrid Staffing
Any microgrid operator has a choice of hiring the staff required to operate and maintain the microgrid generation
and T & D system or contracting with a third party for those service. The staff requirements can be substantial if all
the various microgrid functions are included. In addition, the number of individuals required for many functions
increases with the need for operation 24 hours/day and 7 days/week. Table 6, below, presents an estimate of the
typical staff requirements that might be required. The primary staff functions required for day-to-day operation
and maintenance of a microgrid are presented in the following table. It was assumed other support functions, such
as procurement, legal, etc., could be supplied with contractors as needed or provided by the existing POLB
executive and administrative staff.
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Table 6. Estimate of Staff Requirements for a 50MW Microgrid

Staff
Function
Numbers
Generation Operators 5
Generation Maintenance Electricians 3
Generation Maintenance Mechanics 3
Fuel Planning and Procurement Specialist 1
Generation Planning and Dispatch Specialist 1
Controls Specialists 2
T&D Maintenance Linemen (requires minimum crew of two for much of their work) 6
Substation Maintenance Electricians 2
Supervisors 2
Total Staff 25
Microgrid Operating Costs

The Port’s goals and assessment metrics ultimately drive the expected costs of building and operating a microgrid.
A microgrid design can limit its focus to providing the maximum reduction to its current electric costs of service or
its design can ignore costs and focus on delivering world-class reliability with zero emissions and zero connections
to the utility grid. Between these two potential extremes, the microgrid design offers many options to include
aspects of each of these seemingly opposite objectives. Using a microgrid to lower the current cost of electricity is
a reasonable and likely achievable goal. However, the Port must seek to balance and prioritize the cost reduction
expectations with the simultaneous desires for increased resiliency and a lower carbon footprint. Cost estimates
should assume a 24 hour per day, 7 days a week operation.
Ownership and Operation Alternatives

The Port can choose between a number of basic structures for the ownership and operation of a microgrid. The
basic options include:
1. Port-owned, Port-operated
2. Port-owned, Port-operated using contracted staff
3. Port-owned, Contractor-operated using service and maintenance service contracts
4. Contractor-owned, Contractor-operated only for benefit of the Port and/or City of Long Beach
5. Contractor-owned, Contractor-operated for sales to the Port and any other party
Each of these ownership and operating structures have positive and negative attributes. Contract ownership may
provide cost reduction potential and will certainly provide an overall simplification of the Port’s day-to-day
requirements for the microgrid. Microgrid goals for improved resiliency, reduced carbon footprint and other
operating characteristics can be achieved through any ownership and operation model, combined with
well-crafted commercial agreements. Therefore, selecting the least costly option likely becomes the principal
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selection factor for choosing an ownership and operating structure. Commercial term and the cost of capital
significantly affect the difference in cost between Port ownership and operation versus that of a contractor.
However, the specific legal, control, and contracting requirements for the Port may dictate the selection factors
that rise above the least-cost criteria.
The impact on the tenants due to a Port microgrid should be minimal. The choices made for the design and
operation of the microgrid should reduce potential disruption to the tenants’ ongoing operations. Energy efficiency
or demand side measures that are incorporated in the microgrid implementation should be designed to enhance
the overall cost or functionality of the tenant operations. Depending on choices made during the planning and
design phases, construction of the microgrid generation and T & D assets may require temporary changes to port
traffic patterns and to individual tenants. However, these interruptions during construction should be short-lived
and may ultimately prove to have negligible impact to tenants.
SECTION 8.0 POTENTIAL BENEFITS OF A MICROGRID
Overview
Microgrids are designed for local energy delivery that meets the need of the constituents being served, whether
the constituent is a seaport, city, university, neighborhood, hospital, or business. Microgrids increase local
reliability through the integration of multiple distribution connections, smart switches, automation, power
generation, power storage, and other smart technologies. Localized power generation and storage within a
microgrid can allow portions of the grid and critical facilities to operate independent of the larger grid when
necessary and eliminate the economic and societal impacts of power interruptions. Microgrids also can
incorporate advanced sensors and smart switches that automatically fix, and even anticipate, power disturbances.
In the event of a major catastrophe impacting the utility system, microgrids can be designed to maintain electric
service to critical services, such as hospitals, police stations, and other emergency services. For extreme
emergencies, SCE could potentially add the ability to automatically or manually reconfigure their system, through
switching, to allow generation residing within the Port microgrid to serve critical loads outside the Port boundaries.
This scenario would in essence temporarily expand the Port microgrid to include external critical loads, while
disconnecting all non-critical loads between the Port and the new critical load needing service.
Can Help Port Stakeholders Save Money

The inclusion of local generation in the microgrid could help Port-complex electricity users avoid the high cost of
power consumed during peak periods and choose the optimum mix of power supply from the utility grid,
generation available within the microgrid, and demand reduction. Combining the option of choosing a supply from
local power generation or from the larger grid is typically more cost-effective and efficient. This ability for the Port
to use the SCE system to serve its base and intermediate demand requirements and use the generation resources
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in a Port microgrid strictly for peaking and emergency operation may provide the most cost-effective mode of
operation for a Port microgrid. In addition, the incorporation of generation available to serve the Port tenants
during utility outages would avoid the potential lost revenues and product spoilage that often result from
prolonged utility outages.
May Generate Revenue for the Microgrid Operator

Whether or not the Port elects to operate a large, centralized microgrid, there may be revenue incentives available
that will offset some of the capital and operating costs. Microgrid operators can choose to supply valuable services
to the utility grid in return for payments from the utility or independent system operator. These value-enhancing
services include demand response, real-time price response, day-ahead price response, voltage support, capacity
support, and spinning reserve. Traditional demand response programs can be disruptive to electric customers
when system or processes are shut down to fulfill a utility call for a demand reduction. The advanced controls and
energy sources available through a microgrid could allow alternative generation or storage options to produce the
energy needed and eliminate any disruption to the customer while still supplying the utility the requested demand
reduction. Microgrids can also set the stage for additional consumer revenues from distributed power generation,
plug-in vehicles and carbon credits.
Encourages Economic Growth

An increasing number of communities and nations are finding that microgrids can accelerate economic growth
through new job creation at the local level and new business opportunities for stakeholders. Spending on grid
improvements, distributed energy, energy efficiency and other smart technologies increases local investment. By
adopting the development of microgrids, the Port will establish a new electricity business model that is more
efficient, environmentally responsible, and compatible with future technologies and stimulates continuous
innovation.
Helps Makes the Grid “Future-Proof”

One of the greatest benefits of microgrids is its ability to evolve to accommodate changing requirements.
Microgrids allow local communities and commercial campuses to increase the overall electricity supply quickly and
efficiently through relatively small local generators, renewable energy, and incorporation of new technologies. In
addition, Microgrids can typically make these changes more quickly and with greater beneficial impact than the
same changes made to a power company’s system.
Helps Reduce Carbon Footprint

The most significant environmental benefit of a microgrid is often its ability to use local generation and the
resulting “waste” heat to displace other types of generation. Local power generation can be fueled by renewable
sources or natural gas. A microgrid can capture and convert the additional heat energy in the exhaust gases of local
generation for hot water, space cooling and refrigeration (through absorption chilling). Microgrids make it possible
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to maximize clean, renewable energy because they have the flexibility needed to use a wider range of energy
sources, including those that present a challenge for many current centralized systems. Microgrids enable
consumers to meet some or all of their electricity needs by generating their own power, whether it is through
renewable/low greenhouse gas sources like wind, solar, or geothermal; or through the use of waste-to-energy
technologies or micro turbines using natural gas. Ultimately, the degree to which the Port can lower greenhouse
gas emissions through adoption of microgrid technology is dependent on the renewable energy sources integrated
into its local power generation capabilities.
SECTION 9.0 STAKEHOLDER ENGAGEMENT
The most effective and successful microgrid plan must involve the key stakeholders of the Port and its energy
supply. Given the current electric service infrastructure and arrangement and the unique needs of the Port
tenants, a Port microgrid will necessarily include input from a diverse group. Defining the technical and commercial
requirements of a microgrid is a critical business process that provides the bridge between stakeholder
requirements definition and architecture design.
Internal stakeholders at the Port might include:
• Port divisions
• Tenants
• Other property owners in the Harbor District
• Other City of Long Beach departments
• Power-generating facilities within the Harbor District
• Energy managers
• Technology vendors
• Engineering procurement, design, and construction service providers
• Project financiers
External stakeholders may include:
• Electrical utility company (SCE)

• Natural gas or hydrogen suppliers
• California Public Utility Commissions
• Potential grant funding agencies, such as California Energy Commission, Department of
Homeland Security, or Department of Energy
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All of the stakeholders above will have a specific set of requirements that should be noted in an effective
requirements analysis. Depending upon the size and scope of the system (e.g., does its service more than one
metered account?), their voices can be catalogued into one of the following three subsets:
• Technical – Such as temporal performance requirements to benefit energy management operations

(e.g. switching, load dispatch, generation dispatch, etc.).
• Regulatory – Such as troubleshooting the microgrid energy distribution plan if it involves crossing a
public right-of-way.
• Financial – Such as when a predefined threshold for return on investment has to be met.
SECTION 10.0 REGULATORY CONSIDERATIONS OF A LARGE, CENTRALIZED MICROGRID
Review of Applicable Regulations, Tariffs, Rules, and Precedents
1. The Legal Definitions of a “Public Utility” and “Electrical Corporation” in California

A key question for any proposed microgrid deployment in California is whether or not the act of owning and
operating the microgrid will classify it as a public utility, and subject the owners/operators to regulation by the
California Public Utilities Commission.
California Public Utilities Code Sec. 216 states in pertinent part (emphasis added):
216. (a) "Public utility" includes every…electrical corporation…where the service is performed for, or the
commodity is delivered to, the public or any portion thereof.
(b) Whenever any electrical corporation performs a service for, or delivers a commodity to, the public
or any portion thereof for which any compensation or payment whatsoever is received, that…corporation, is
a public utility subject to the jurisdiction, control, and regulation of the commission and the provisions of
this part.
(d) Ownership or operation of a facility that employs cogeneration technology or produces power from
other than a conventional power source…does not make a corporation or person a public utility within the
meaning of this section solely because of the ownership or operation of that facility.
(e) Any corporation or person engaged directly or indirectly in developing, producing, transmitting,
distributing, delivering, or selling any form of heat derived from geothermal or solar resources or from
cogeneration technology to any privately owned or publicly owned public utility, or to the public or any portion
thereof, is not a public utility within the meaning of this section solely by reason of engaging in any of those
activities.
The definition of “electrical corporation” is then found in Sec. 218 of the Public Utilities Code:
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218. (a) "Electrical corporation" includes every corporation or person owning, controlling, operating, or
managing any electric plant for compensation within this state, except where electricity is generated on or
distributed by the producer through private property solely for its own use or the use of its tenants and not for
sale or transmission to others.
(b) "Electrical corporation" does not include a corporation or person employing cogeneration technology
or producing power from other than a conventional power source for the generation of electricity solely for any
one or more of the following purposes:
i. Its own use or the use of its tenants.

ii. The use of or sale to not more than two other corporations or persons solely for use on the real
property on which the electricity is generated or on real property immediately adjacent thereto,
unless there is an intervening public street constituting the boundary between the real property
on which the electricity is generated and the immediately adjacent property and one or more of
the following applies… .
Taken together, these restrictions are often referred to as California’s “over the fence rule”. The rule prevents a
private electricity producer from distributing its excess power to more than two nearby properties or to any
neighboring property that is not adjacent to—i.e., “over the fence”- from the property where the electricity is
produced. For purposes of the rule, a road is considered a property, so properties separated by a road are not
considered adjacent.
As illustrated by the foregoing, California’s current statutes make it unclear whether a microgrid will or will not be
deemed a public utility under the regulation of the CPUC. That determination can be influenced by the
configuration and technical design of the microgrid—meaning that it is important that a potential microgrid
owner/operator must be mindful of the subtleties; seek expert counsel; talk with regulators about interpretations
and possible special circumstances; and (in some cases) tailor system designs to fit various exemptions and
exclusions.
In the specific case of the Port, there are favorable arguments that could be made, depending upon the design of
the microgrid. For example, it might be asserted that such a system fits within the intent of the exemption
prescribed in Sec. 218(a)—that is, on private property and solely for the use of the owner and its tenants. While
the Port real property is not “private” in the traditional sense, the special autonomy and statutory authority
conveyed to the Port could arguably make that a distinction without a difference in the interpretation of the intent
of the Legislature. Analysis is required to determine the viability of this, and other arguments – and the regulatory
paths by which they could be pursued. It is worth noting that the ever-increasing interest in the deployment of
microgrids throughout the nation (for entirely meritorious reasons, such as resiliency) is creating mounting
pressure for a relaxation of regulations that are being characterized as “protecting the monopoly.” This pressure is
likely to lead to reduced restrictions in the foreseeable future.
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Finally, one consideration in analyzing the method and pace of microgrid deployment might be the prospect of
deploying in phases that do not, individually, implicate current regulatory restrictions. For example, individual
installations of PV, energy storage, etc., that serve a particular adjacent facility could be carried out without special
exemption or ruling. These carefully chosen component pieces could then be linked in a predetermined fashion by
network controls and devices as the regulatory path, pursued in parallel, is favorably resolved.
2. Connecting a Centralized Microgrid to the Incumbent Utility

The operator of a centralized microgrid will typically connect the microgrid to the incumbent (or “host”) utility’s
distribution system to allow it to receive service from the utility when needed and to potential deliver services to
the utility when the microgrid has excess supply and/or is economically advantaged by doing so. There are
essentially four ways (with myriad variations), this can be accomplished under current California regulation
through:
a. Net Energy Metering: Limited to 1MW of capacity, with a further utility total capacity cap, net
6
metering credits the exporting generator for power delivered to the utility grid at retail rates. (Please
th
note that 1 MW is about 1/6 of the power needed for a single crane at Pier E [Middle Harbor
Project]).
b. Wholesale Distribution Access Tariff (WDAT): Limited to 3-5 MW, depending upon technical factors.
The generator could sell available power at wholesale rates into the marketplace.
c. Feed-In Tariff (FIT) Program: The FIT is a wholesale renewable energy procurement program through
which small renewable generators execute a standard offer contract to export renewable energy to
one of California’s three large investor-owned utilities. FIT is limited to 3 MW capacity per project.
d. Contract: Non-utility generators have the right and ability to seek a number of different contractual
arrangements with California’s investor-owned utilities via competitive solicitations or bilateral
agreements, without restrictive capacity limits.
As a general proposition, the only option that allows for the full range of products that could flow between the
microgrid and the host utility system at the capacity scale contemplated for a Port microgrid is a negotiated
agreement between the microgrid owner/operator and the utility.
Assessment of the costs and schedule for microgrid deployment should assume that a complicated and fairly
protracted process will be required, using expert resources, to develop the operating and financial agreements
with the utility necessary for a successful initiative.
6 The Net Energy Metering rules are expected to change in 2017, pursuant to Assembly Bill 327, signed 10/7/2013.
34
Regulatory Costs and Barriers to Microgrid Deployment
Deployment of a large-scale microgrid in the current utility regulatory model has a number of challenges to be
overcome by the microgrid owner/operator. The most prominent challenges are:
1) Anti-Islanding Provisions and Related Technical Restrictions
2) Standby Charges
3) Departing Customer Load Charges
Anti-Islanding provisions are those technical rules designed to protect utility workers and equipment that require a
customer generating resource to cease operation if the utility distribution grid suffers an outage. That is, if the
utility’s power fails, the customer generation (in this case, the output of the microgrid’s diverse mix of internal
supply resources) must be automatically shut off by digital control devices. Obviously, such a control scheme is
counter to one of the cornerstone reasons for deploying a microgrid: increased reliability of service.
There are sophisticated digital control devices and software that can minimize or even eliminate the risks
associated with islanded generation; however, this should be part of the discussion with the incumbent utility and
a component in any cost estimate for a significant microgrid deployment.
Standby charges are the fees charged by the incumbent utility to stay connected to their system, even if no utility
power is used by the microgrid. These charges compensate the utility for having to maintain capacity to serve the
full needs of connected customers, since it is legally obligated to provide whatever power is demanded, even in
the event of a full failure of all microgrid supply resources. If the microgrid is, for example, willing to contractually
commit to the utility (with hardware to ensure compliance) that it will never ask for more than a specified level of
power required for certain limited uses, even in the full microgrid failure scenario, then the level of standby
charges could be reduced proportionately. This is another issue for discussion with the host utility.
Finally, departing load charges are “exit fees” designed to ensure that no utility customer can unfairly burden
other customers by departing without having paid its fair share of certain obligations that were undertaken on
their behalf by the utilities. There are limited exemptions from the exit fee provisions for “ultra-clean” customer
systems. A full discussion of the departing load charges sought by the utilities is required, along with an
assessment of whether these charges can be mitigated by a commitment to provide backup resources to the utility
from the microgrid (thereby reducing the utility’s need to construct capacity to serve other customers during
normal operating conditions).
Development of Potential Regulatory Structures: Action Items
Regulators, on both state and federal levels, are increasingly engaged with the challenges and opportunities that
are presented by microgrids. There is growing sentiment in these camps that microgrids offer the potential to
35
increase supply resiliency (against both natural disaster and malicious intervention), improve reliability, assist in
grid integration of greater amounts of renewable power, help grid stability, reduce emissions, and even control or
reduce customer costs. However, the notion of large-scale microgrids is often at odds with the regulatory design
that underpins the “regulated monopoly” of public utilities that have served the country for a century. The historic
regulatory compact was architected to induce very large investments in capital assets (for example, to electrify
rural America or build massive multi-state transmission projects) in exchange for a guaranteed market and stable,
fair, regulated returns on those investments over many years. Microgrids can be seen as removing a portion of
that “stable portfolio”, and reducing the customer base for which utilities can invest in earning assets. Combined
with regulatory mechanisms in California that decouple utility sales volume from utility revenues (mechanisms that
were promulgated largely to remove the powerful disincentives working against utility promotion of energy
conservation and efficiency), microgrids can be construed by detractors as “the few taking advantage of the
many.” In fact, legislative progress to enable quicker and more certain deployment of microgrids (including new
regulatory arrangements, technical and operational standards, etc.) are almost certainly inevitable. However, the
ultimate regulatory model and pace of implementation for any microgrid enabling changes remains uncertain.
In the interim, developing and deploying a large-scale microgrid in California will remain a complex regulatory task,
and will include:
1) Expert-level consultation with and between regulatory counsel, regulators and utilities.
2) In-depth analysis of how system design choices (for example, renewable resources vs. combined heat and
power systems, energy storage vs. grid purchases, designation of critical uses and loads, etc.) will impact
regulatory treatment and alternatives.
3) Analysis of possible buy/sell combinations with the incumbent utility and potential bilateral contract
strategies.
4) Development of strategies to gain utility support (or at least neutrality) with respect to loss of large
customer loads. Such strategies must focus on benefits to the utility – including dispatchable and/or
energy backup supply, provision of ancillary services, energy storage capacity, avoided transmission
investment, potential of utility participation and or investment in microgrids, etc.
5) Careful monitoring of unfolding regulatory and utility initiatives, rules and orders, and a “seat at the
table” in such discussions.
SECTION 11.0 CONCLUSION AND RECOMMENDATIONS
The availability of a cost-effective and reliable energy supply is fundamental for Port operations. Stable energy
supplies are essential for transportation and cargo-handling networks, communications, lighting, security, and in
36
the case of catastrophic events, the deployment of humanitarian aid. If the energy supply fails, the impacts for
business and communities can be severe.
The objective of this white paper is to enhance the knowledge base of the Port of Long Beach (Port) team and its
stakeholders regarding microgrids. In addition, the paper is intended to provide information that can help
decision-makers evaluate whether development of a microgrid supports the Port’s Energy Island Initiative. Energy
Island Initiative objectives include becoming the greenest port in the world, showcasing renewable energy, and
securing a resilient energy source capable of supporting critical community requirements in emergency situations.
Development of a microgrid is consistent with these objectives and may also support the Port’s needs for energy
reliability, high power quality, and economic stability.
Future steps in the Port’s assessment of microgrids will need to prioritize specific options for microgrid projects
and quantify the potential benefits and costs of implementation, as well as operational structures, and regulatory
requirements. However, this paper’s goal of expanding the understanding of the potential of microgrids for the
Port is an important first step in the development of a reasoned and compelling evaluation of energy options for
the Port of Long Beach community.
37
Appendix A, Glossary
Ancillary service – Ancillary services are the specialty services and functions provided by the electric grid
that facilitate and support the continuous flow of electricity so that supply will continually meet load.
The term ancillary services is used to refer to a variety of operations beyond generation and
transmission that are required to maintain grid stability and security. These services generally include
frequency control, spinning reserves, and operating reserves.
Base load – The minimum continuous level of demand experienced over a given time such as a day,
month, or year (see Demand).
Base-load power station – Power station that operates at a very high capacity factor from 75% to 98%
and typically has the lowest cost of producing electricity.
California Independent System Operator (ISO or CAISO) – The California ISO provides open and
non-discriminatory access to the bulk of the state’s wholesale transmission grid, supported by a
competitive energy market and comprehensive infrastructure planning efforts.
Capacity factor – A calculation of the percent of energy actually produced versus the maximum that
could be produced if the unit was producing its full capability 24hrs/day, 7 days a week.
Coincident peak demand – A customer's coincident peak demand is usually calculated from meter
readings taken at the time when the customer's demand is likely to be highest. Their non-coincident
peak demand would be calculated using several readings taken at different times to determine what
their actual peak demand periods may be. A more sophisticated type of meter is required to calculate
non-coincident demand, but it does not necessarily produce a better result for the utility or the
customer. An energy provider may care more about demand at a given time when total customer
demand is highest than they care about the peak demand of a given customer during other times.
Coincident demand – Coincident demand is the energy demand required by a given customer or class of
customers during a particular time period. Coincident peak demand is the energy demand by that group
during periods of peak system demand. Loosely speaking, it refers to demand among a group of
customers that coincides with total demand on the system at that time. Residential demand at a time of
38
peak industrial demand can be referred to as coincident peak demand, as can a particular plant's
demand at a time of peak demand across the whole system.
Critical load – The electric load service to a customer providing critical services. For the purposes of this
paper, the term is synonymous with “essential use customer” as defined by the CPUC.
Demand – The level at which electric energy is used at any instant. Demand is measured in watts. More
often in the utility field, due to the large level of demand, metrics such as kilowatts (1000 watts)
megawatts (1 million watts) and gigawatts (1 billion watts) are more common. Demand is equivalent
to Load.
Dispatchable generation – Energy source that can be controlled to supply more or less energy as
required.
Energy time-shift – Energy time shift involves storing energy during low price times and discharging
during high price times.
Essential use customer – The CPUC places a priority on continued service and rapid restoration of
service to certain customers who provide essential public health, safety, and security services including:
A. Government and other agencies providing essential fire, police, and prison services.
B. Government agencies essential to the national defense.
C. Hospitals and skilled nursing facilities.
D. Communication utilities, as they relate to public health, welfare, and security, including telephone
utilities.
E. Navigation, communication traffic control, and landing and departure facilities for commercial air and
sea operations.
F. Electric utility facilities and supporting fuel and fuel transportation services critical to continuity of
electric power system operation.
G. Radio and television broadcasting stations used for broadcasting emergency messages, instruction,
and other public information related to the electric curtailment emergency.
H. Water and sewage treatment utilities may request partial or complete [rotating outage] exemption
from electric utilities in times of emergency identified as requiring their service, such as firefighting.
l. Areas served by networks, at utilities' discretion.
J. Rail rapid transit systems as necessary to protect public safety, to the extent exempted by the CPUC.
39
K. Customers served at transmission voltages to the extent that: (a) they supply power to the grid in
excess of their load at the time of the rotating outage, or (b) their inclusion in rotating outages would
jeopardize system integrity.
L. Optional Binding Mandatory Curtailment Program customers.
M. Not Used.
N. Petroleum refineries, vital ancillary facilities, and other customers in the critical fuels chain of
production, to the extent exempted by the CPUC.
Feeders – An electrical cable or group of electrical conductors that runs power from a larger central
source to one or more secondary or branch-circuit distribution centers. In power distribution, a set of
electric conductors that originate at a primary distribution center and supply power to one or more
secondary distribution centers, branch-circuit distribution centers, or a combination of these.
Flexible operational capability – Incorporating power sources that are dispatchable and can respond
rapidly to changes and emergencies, to operate during normal conditions. The portfolio must also
reliably and cost-effectively serve the base, intermediate, and peaking loads of the microgrid.
Frequency regulation – Regulation is the use of on-line generation, storage, or load that is equipped
with automatic generation control (AGC) and that can change output quickly (MW/min) to track the
moment-to-moment fluctuations in customer loads and to correct for the unintended fluctuations in
generation. Regulation helps to maintain interconnection frequency, manage differences between
actual and scheduled power flows between control areas, and match generation to load within the
control area. Load following is the use of on-line generation, storage, or load equipment to track the
intra- and inter-hour changes in customer loads.
Generation controller – Monitors and controls the operation of the physical energy asset. A generation
controller sits locally on the generator (physical device) and monitors its operation, such as power
output or frequency, and controls the power output of the generator by increasing fuel consumption of
the engine or the electrical field of the generator.
Intermediate load power plants – power plants which operate with a capacity factor that ranges from
30% to 50%.
Load – See Demand.
40
Load shape – A description of the distribution of power requirements, including peak demand,
over time.
Load shedding – An intentionally engineered electrical power shutdown where electricity delivery is
stopped for non-overlapping periods of time over different parts of the distribution region.
Local control – the lowest layer in the control hierarchy of a microgrid. The local control sits “locally” to
the control system it is monitoring and controlling. The function of the local control is to locally monitor
and control the operation of the physical energy asset.
Microgrid – A group of interconnected loads and distributed energy resources with clearly defined
electrical boundaries that acts as a single controllable entity with respect to the grid [and can] connect
and disconnect from the grid to enable it to operate in both grid connected or island mode.
Microgrid controller – A device that enables the establishment of a microgrid by controlling distributed
energy resources and loads in a predetermined electrical system to maintain acceptable frequency and
voltage.
Net energy metering – A billing mechanism that credits generation owners for the electricity they add to
the grid.
Non-coincident variability – That type of expected or predictable variability in power generation

typically associated with renewable energy sources such as wind or solar generation.
Non-critical load – The load for all remaining customers, which are not deemed critical loads.
Peak load – The maximum level of demand experienced over a given time such as a day, month, or year
(see Load).
Peak-load power stations – Power station designed to operate for short periods, varying from minutes
to hours in a day, to supply the peaks in load and to handle unforeseen variations in load.
Peak load reduction – The load that can be reduced either by the direct control of the utility system
operator or by the consumer in response to a utility request to curtail load.
41
Peak-load shifting – The process of mitigating the effects of large energy load blocks during a period of
time by advancing or delaying their effects until the power supply system can readily accept additional
load. The traditional intent behind this process is to minimize generation capacity requirements by
regulating load flow. If the loads themselves cannot be regulated, this must be accomplished by
implementing energy storage systems (ESSs) to shift the load profile as seen by the generators.
Protection relay – Monitors electric parameters such as current, at the circuit breaker (physical asset)
and controls the circuit breaker by sending an “open” or “close” command. These controls generally
operated based on simple logic, e.g. if the current is greater than 100 amps send signal that will “open”
the circuit breaker.
Pulse recloser – A type of recloser that reduces stress on the circuit components during a fault event,
thereby reducing component damage and outage restoration times. It has a pulse-close/pulse-reclose
feature that pulses and tests the line one phase at a time so it does not hard-close directly into a
solid fault.
Recloser – In electric power distribution, a recloser (or autorecloser) is a circuit breaker equipped with a
mechanism that can automatically close the breaker after it has been opened due to a fault. Reclosers
are used on overhead distribution systems to detect and interrupt momentary faults.
Reliability – The North American Electric Reliability Council (NERC) definition consists of two
fundamental concepts, adequacy and operating reliability:
• Adequacy is the ability of the electric system to supply the aggregate electric power and energy
requirements of the electricity consumers at all times, taking into account scheduled and
reasonably expected unscheduled outages of system components.
• Operating reliability is the ability of the electric system to withstand sudden disturbances such
as electric short circuits or unanticipated loss of system components.
Reserve capacity – Reserve capacity has multiple connotations. As it relates to utility system planning,
reserve capacity is the quantity of generation which exceeds the peak load requirements. It is also one
of the ratings or specifications ascribed to a battery. Reserve capacity is defined as the number of
minutes a fully charged 12-volt battery at 80 degrees Fahrenheit can provide 25 amperes at 10.5 volts
until the voltage decreases.
42
Resilience – The robustness and recovery characteristics of utility infrastructure and operations, which
avoid or minimize interruptions of service during an extraordinary and hazardous event.
Resiliency – Possessing the properties of resilience.
SCADA – Supervisory control and data acquisition (SCADA) refers to ICS (industrial control systems) used
to control infrastructure processes (water treatment, wastewater treatment, gas pipelines, wind farms,
etc.), facility-based processes (ports, airports, space stations, ships, etc.) or industrial processes
(production, manufacturing, refining, power generation, etc.).
SCADA platform – SCADA (supervisory control and data acquisition) is a system for remote monitoring
and control that operates with coded signals over communication channels (using typically one
communication channel per remote station). The control system may be combined with a data
acquisition system by adding the use of coded signals over communication channels to acquire
information about the status of the remote equipment for display or for recording functions.
Infrastructure processes may be public or private, and include water treatment and distribution,
wastewater collection and treatment, oil and gas pipelines, electrical power transmission and
distribution, wind farms, and other energy formats.
Secondary control – One layer above the local control, meaning it oversees multiple local controllers on
multiple physical assets. The main function of the secondary control layer is to monitor and control
multiple physical assets simultaneously in order to achieve a specific objective.
Smart grid – A smart grid is an electrical grid that includes a variety of operational and energy measures
including smart meters, smart appliances, renewable energy resources, and energy efficiency resources.
Rollout of smart grid technology also implies a fundamental re-engineering of the electricity services
industry, although typical usage of the term is focused on the technical infrastructure.
Spinning reserve – Any back-up energy production capacity which can be made available to a
transmission system with ten minutes' notice and can operate continuously for at least two hours once
it is brought on-line.
Switched capacitor – An electronic circuit element used for discrete time signal processing. It works by
moving charges into and out of capacitors when switches are opened and closed. Usually, non-
overlapping signals are used to control the switches so that not all switches are closed simultaneously.
43
Switchgear – The combination of electrical disconnect switches, fuses, or circuit breakers used to
control, protect, and isolate electrical equipment. Switchgear is used both to de-energize equipment to
allow work to be done and to clear faults downstream. This type of equipment is directly linked to the
reliability of the electricity supply.
Substation – A substation is a part of an electrical generation, transmission, and distribution system.

Substations transform voltage from high to low, or the reverse, or perform any of several other
important functions. Between the generating station and consumer, electric power may flow through
several substations at different voltage levels.
Tertiary control – The highest layer in the microgrid control hierarchy. The function of the tertiary
control layer is to monitor all devices within the microgrid, use the data collected from those devices,
and run different software applications to increase the efficiency, reliability, and the external availability
of the microgrid.
Voltage regulation – The ability to maintain system voltage within an acceptable operating range.
44
Appendix B, Case Studies

These case studies are presented as representative of the range of microgrids in operation. However,
each microgrid, including any that are designed and implemented at the Port, possesses different
requirements that can significantly impact the design, operation, and costs.
MGM City Center, Las Vegas, Nevada
The MGM City Center is a 68-acre

complex on the Las Vegas strip,
which features six high-rise
buildings: a hotel and spa, resort
and casino, two condominium
buildings, a theater, convention
center, shopping, dining, and
others, including the first LEED
building on The Strip. This was the
largest privately financed
construction project in US history.
The MGM City Center required a
very complex, automated power
system to balance supply and
demand and ensure critical loads are served.
Power availability is critical for this facility and thus the system needs to be very reliable. The MGM City
Center includes a sophisticated microgrid design that is able to efficiently balance supply and demand
and ensure critical loads are served to the entire complex. The microgrid includes automatic islanding
with backup generators, which come on line within 7 seconds, and then automatically return to grid
connection within 5 minutes when primary grid supply is restored. The microgrid control system at the
MGM Grand Casino in Las Vegas integrates several hundred devices at different substations within the
facility. The system is constantly monitoring the presence and quality of the normal utility source
power to the facility and directing switching operations for the system in the event of a loss of power
or fault event. This switching includes reconfiguring the system using utility sources available and
starting emergency diesel generators as needed taking into account the power available at present and
the forecasted facility load. The microgrid enhances the resiliency of the electric supply through the
redundancy built into the systems.
45
University of Genoa-Sanova, Italy
The University Campus

of Savona consists of a
number of buildings
for teaching, research,
and residential use.
The only electrical
power generator was
from a cogeneration
gas turbine, and
heating was provided primarily by two natural gas-fired boilers that fed a district heating system. Their
management was manual, and so the campus grid provided inefficient energy; furthermore, it was
dependent on the main grid for its energy supply. The University wanted to efficiently and economically
manage its production plants, optimize contributions from renewable sources and high-performance
cogeneration processes, and minimize its electric and thermal consumption.
With the installation of Italy’s first advanced microgrid, the campus is now generating a cost-efficient
and sustainable energy supply to satisfy its needs. It can efficiently manage the energy produced by its
power plants by balancing energy generation and loads. The Savona microgrid is expected to cut
campus energy costs by an estimated €50,000 per year, reducing carbon dioxide emissions by about
120 tons annually; improve operational efficiency, and demonstrate effective control systems and
strategies. The heart of the microgrid is the control room that ensures intelligent energy management.
The microgrid control system ensures energy flows can be reliably forecasted, and resources can be
correctly deployed and optimized in real time.
The microgrid project integrates new cogeneration units, an existing small gas turbine, rooftop solar
photovoltaics, battery storage, electric vehicle charging stations, two boilers, and an absorption chiller.
All of this technology is orchestrated by a state-of-the-art microgrid management system. Currently the
Savona microgrid encompasses sufficient resources to supply about half of the campus' current energy
needs—and it was designed to accommodate additional resources to eventually power the campus
fully.
46
Co-op City, New York, New York
Co-Op City, in the Bronx in New York

City, is a cooperatively owned
complex of 14,000 apartments in
35 high-rise buildings. Both the
number of people and the electrical
requirements are representative of a
small city. The cooperative ownership
structure has similarities to the
condominiums found in many cities
but is closer to a corporation, in that
each resident is a shareholder in the
entire facility.
The cooperative owners wanted to reduce their power costs and increase their control over their
electrical supply. The cooperative decided to create a microgrid to serve the complex of residential
buildings. The microgrid includes the installation of 40MW electric power generated by two combined
cycle gas turbines that generate both power and steam for the complex. The steam generated by
exhaust heat from the gas turbines is used to provide heat in winter and to cool via absorption chillers
in summer. The owners are also able to sell to the grid up to 16MW of excess electricity. The microgrid
was able to maintain power for 60,000 residents during Hurricane Sandy.
47
University of California, Irvine (UCI), Irvine, California

The UCI Microgrid serves a community of more than 30,000 people and encompasses a wide array of
building types (residential, office, research, classroom), transportation options (automobiles, buses,
shared‐cars, bicycles), and a wide array of distributed energy resources. The campus is served by
Southern California Edison (SCE), encompasses ten 12kV circuits, includes more than 1 MW of solar
power, is served by a 19MW natural gas-fired combined cycle plant, and incorporates centralized
chilling. The campus electric load averages 13.4 MW with a peak annual demand of 18.6 MW (note: this
is the electric load separated from the electricity used to serve the campus cooling loads). The gas
turbine and steam turbine supply about 85% of the electrical needs on the campus, with the balance
being served by solar resources (1%) and utility import (14%).
The UCI microgrid supports a unique set of distributed energy resources including: (1) electric vehicle
charging at multiple parking locations, (2) integrated fuel cell absorption chilling, (3) hydrogen fueling
for fuel cell vehicles, (4) two‐axis tracking concentrated solar photovoltaic systems, (5) advanced
building energy efficiency measures, (6) advanced building monitoring and control, and (7) advanced
power, power quality, and thermal metering
UCI’s enterprise energy management system is capable of sub‐metering building loads and interfacing
with the UCI Microgrid model to provide real time data to the facilities management team. This includes
a network of 100 advanced meters capable of delivering high-resolution data, coupled with data from
legacy meters, is equipped with Demand Response capabilities including Auto‐Demand Response. This
system provides the information necessary to make decisions as more intermittent renewables are
installed on the UCI Microgrid, in addition to allowing the UCI Microgrid to operate as a smart power
48
University of California, Irvine (UCI), Irvine, California

and demand response asset for the California Independent System Operator.
49

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Microgrid Technology White Paper

Port of Long Beach

Contract HD-8381, Job Task 1501

Muni-Fed – Antea Group Energy Partners, LLC

The Port of Long Beach

Antea USA, Inc.

The U.S. Department of Energy (DOE) defines a microgrid as:

SECTION 1.0 INTRODUCTION

• Greater use of green power

Figure 1. Percentage of Utility Executives Who Expect to Have Non-utility Entities

SECTION 2.0 MICROGRID DEFINITION

The U.S. Department of Energy (DOE) defines a microgrid as:

• University of California, Irvine (UCI), Irvine, CA:

• MGM City Center, Las Vegas, NV:

• University of Genoa-Sanova, Italy:

• Co-op City, New York, NY:

SECTION 3.0 DETERMINATION OF ADVANTAGES OF MICROGRIDS VS. RELIANCE ON THE GRID

OVERVIEW OF POLB COMPLEX

As shown in Figure 2, the Port’s facilities include:

Figure 2. Port Facilities Map

Table 1. Number of Port Electric Meters

Table 2. Port Power Demand for Electric Meters

Table 3. Port Electricity Use Per Acre

Current Energy Supply

Considerations for Relying on Grid Power Only

Considerations for Microgrid Implementation

SECTION 4.0 MODES OF MICROGRID OPERATION AND CONTROL

o Total cost of energy to supply microgrid load

o Total emissions required to supply microgrid load

• Intentional microgrid load reduction to accomplish:

o Decreased operational cost, energy efficiency

o Peak load reduction

• Microgrid islanding and grid resynchronization

• Black start restoration in the event of a microgrid black out

Islanded Operation (Off-Grid Operation)

Table 4. Key Differences between Connected and Disconnected Microgrid

Function Connected Disconnected

Microgrid Control Overview

Local Control or Primary Control

Figure 3. Conceptual Control System Hierarchy

SECTION 5.0 MICROGRID CONCEPTUAL DESIGN

As represented in Figure 6, below, a microgrid consists of two overlapping infrastructures:

Figure 6. Microgrid Conceptual Design

Figure 7. Port of Long Beach Electrical Network

Communication and Control Layer

Figure 8. Example Microgrid Control Architecture Diagram

• Advanced controls of both energy supply and energy demand.

• Communication infrastructure and the potential to improve cybersecurity.

SECTION 6.0 GENERATION AND ENERGY STORAGE FOR A MICROGRID

Generation & Energy Storage Technologies

Generation Portfolio Design

Figure 9. Illustrative Demand Curve

Firm Technologies vs. Variable Technologies

• Wind – 20% to 50%

Renewable Variable Technologies Combined with Storage

Differences in Microgrid vs. Utility Grid Generation

SECTION 7.0 MICROGRID COSTS AND OPERATING CONSIDERATIONS

Initial Microgrid Cost

Table 5. 50 MW Microgrid Order of Magnitude Cost Estimate

Table 6. Estimate of Staff Requirements for a 50MW Microgrid

Microgrid Operating Costs

Ownership and Operation Alternatives

SECTION 8.0 POTENTIAL BENEFITS OF A MICROGRID