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Adrian Constable – Asia Pacific Microgrid Manager

Integrating Renewable Energy


in
Distributed Power Networks

Adrian Constable
Asia Pacific Microgrid Manager
Caterpillar Inc
Agenda
1. Caterpillar in the Power Generation Industry

2. Critical Success Factors for Successful Projects

3. Integrating intermittent Renewable Energy in


distributed power networks
Caterpillar Electric Power Division
an introduction
Caterpillar Electric Power Division
an introduction
Cat® D13000 | 60 kW Generator Set
 In 1939 Caterpillar introduced
the first engine manufacturer
complete generator set
solution
 75+ years experience in
Electric Power
 World’s largest manufacturer
of generator sets
 135,000 MW Electric Power
generation installed
worldwide
Caterpillar: World Leader in Power Generation
Caterpillar Electric Power Division
Manufacturing and Distribution of Reciprocating Engine
Generators, Gas Turbines, and Power Systems

Distributed Generation from 6.8 kW to 22 MW Diesel, Natural Gas, & Bio-Gas


Cat Hybrid Microgrid Power Solutions
Powering Sustainable Progress
What is Hybrid Power? [Utility Grid or Microgrid]
Hybrid Power is any combination of multiple power sources.

Utility Power Generator Sets Solar Wind Energy Storage

Base Load Power Intermittent (i) UPS


Renewable Power (ii) Stability
(iii) Time Shift
Typically ‘Hybrid Power’ refers a combination of Base Load Power and Renewable Power.
First Generation Cat Hybrid Power Projects
Cat Hybrid Power solutions since 2008
2008 Mobile Military Hybrid 2011 Jordan 2012 Military SAGE project
Variable Speed Power Conversion First Commercial Installation The hybrid microgrid power solution with energy
Variable Speed Generator Set and Renewable PV Integration storage ‘was assembled by Caterpillar... successfully
Cat Power Electronics • 99% Reduction in Fuel Consumption
Customer • 2 - 4 Year Payback Period demonstrated in the SAGE demonstration, meeting the
Loads • 4 Day Autonomy Battery System SAGE requirements. Write the specification revisions or
• Generator Operation: new sections to focus on the non proprietary
20 - 80 Hz 50 or 60 Hz requirements and then include the statement “Provide a
Variable Constant
reduced from 8,760 to just 24 hrs/yr
• Hybrid system has increased redundancy Caterpillar BDP-250 electrical inverter controller or
Frequency Frequency
equal” as the key and relatively unique component.’
Solar US Department of Energy Report, January 2014.
Energy Storage
Photovoltaic Battery or
Array Ultra-capacitor https://www.youtube.com/watch?v=1HKuDPHQebE
Problem: Solar Power is Intermittent
Problem: Wind Power is Intermittent
Maintaining Reliable Base Load Power
Existing Generator set efficiencies 2 times the energy for the
same quantity of Fuel

Fuel Consumption
Normalised
 Peak efficiency at 70-90% of maximum rating Rated Power

 Low loading can cause carbon build-up from poor combustion.


 Poor combustion also causes the injectors to become clogged with soot, causing
further deterioration in combustion and efficiency and increased pollution.
 Generators are required to provide spinning reserve wasting fuel.
 Effective hybrid solutions allow the generator to run at peak efficiency or switch off
completely and provide ‘virtual spinning reserve’ – thereby reducing and potentially
eliminate fuel consumption.
Integrating Renewable Power
Microgrid Solution
Generator Sets Cat
Photovoltaics Cat Remote
Monitoring
Incorporate and Stabilise Renewable Power
A complete integrated Hybrid Power microgrid solution is required for
successful renewable power integration.

Features
 Displace Diesel Fuel with Gas or BioGas using existing generator sets
 Displace Base Load fuel consumption
Customer
Prime  Grid Stability - Stabilise Voltage & Frequency
Power  Provide system with Virtual Spinning Reserve (VSR)
Loads
Cat  Utilise Energy Storage to ‘Time Shift’ Renewable Energy
Microgrid Master  Enables High-Penetration of Renewable Power
Controller (MMC)  System optimisation to achieve lowest Levelised Cost of Energy (LCOE)
w/Demand Mgmt

Benefits
 Retain full capability of the reliable base load
 Substitute Gas/Diesel fuel with “free” Solar and/or Wind Energy
Wind  Optimise System Sizing to meet objectives
Turbines
 Reduces emissions
Cat Energy
Storage
Agenda
1. Caterpillar in the Power Generation Industry

2. Critical Success Factors for Successful Projects

3. Integrating intermittent Renewable Energy in


distributed power networks
Successful Renewable Integration Projects
Three Critical Success Factors

1. Essential Pre-Work

2. Optimal System Design & Project Execution

3. Long-Term Field Support


Successful Renewable Integration Projects
Three Critical Success Factors
$$
$ $$$
% Measure
1. Essential Pre-Work

kW
Establish Improve Load
Goals Audit Efficiency Profile
Energy AM PM

$ Finance € Procure,
Evaluate
2. Optimal
Local
Resource
IdentifySystem Design & Project Execution
Optimal
Create
Design
Detailed
& Permit
CFP Project £
Construct &
Commission
Design
System

$$
$ $$$
Maintain Repair $ Warrant € ~ Guarantee ~
Operate
System
3. Long-Term
System
Field
System
Support CFP
System
Repairs £
System
Performance
1. Essential Pre-Work
$$
$ $$$
% Measure

kW
Establish Improve Load
Goals Audit Efficiency Profile
Energy AM PM
1. Essential Pre-Work
$$
$ $$$
% Measure

kW
Establish Improve Load
Goals Audit Efficiency Profile
Energy AM PM

Key Tasks Lessons Learned

• What are you really trying to accomplish? • Customers on a steep learning curve

• What problems can be solved simultaneously • High-penetration renewables is politically


with integration of renewables? desirable, but economic optimum uses mix of
traditional generation, renewables, and storage
• Establish financial criteria for project success
• Customers who shift from payback period to
• Establish a high-level timeline and budget levelized cost of electricity see true value

• Access to capital is absolutely essential….


Shift from OpEx–intensive to CapEx-intensive
Objectives – Economic Justification
The Iceberg Syndrome
Drivers:
• Increasing Energy & Operating Costs - fuel &
maintenance costs (low CAPEX but high OPEX)
• Reduced renewable energy hardware pricing
(higher CAPEX but much lower OPEX)

Move from a low CAPEX model to a


low Total Cost of Ownership (TCO) model
• Focus on lowering OPEX: up to 99% reduction in
fuel consumption and corresponding on-time of
generator sets by harvesting the renewable energy
(wind and/or solar) available on-site

CAT can design and deliver a complete hybrid


power microgrid solution
1. Essential Pre-Work
$$
$ $$$
% Measure

kW
Establish Improve Load
Goals Audit Efficiency Profile
Energy AM PM

Key Tasks Lessons Learned

• Measure energy usage patterns • Energy availability is taken for granted

• Measure generation patterns • Many users are unaware of waste

• Document equipment efficiency • Smaller generation systems operate frequently


at low load factors giving low fuel efficiency
• Document waste
1. Essential Pre-Work
$$
$ $$$
% Measure

kW
Establish Improve Load
Goals Audit Efficiency Profile
Energy AM PM

Key Tasks Lessons Learned

• Reduce wasted energy usage (unnecessary • Improving usage efficiency is often a cost-
loads, leaks, redundancy) effective dollar spent (6 mo to 5 yr payback)

• Install equipment with higher usage efficiency • High efficiency HVAC, lighting, telecom
transmission equipment, and insulation are
• Install generators with higher fuel efficiency typically the most cost-effective usage
improvements

• Replacing large generator sets with several


smaller generator sets can allow higher load
factors higher generation efficiencies

• Smaller generator sets operating at low-load


factors can benefit from variable speed operation
Optimising and Maintaining Reliable Baseload
Diesel generator efficiencies
Power 2 times the energy for the same
quantity of Fuel

Fuel Consumption
Normalised
 Peak efficiency at 70-90% of maximum rating
Rated Power
 Low loading can cause carbon build-up from poor combustion.
 Large Generators typically more efficient than smaller generators

 Applications with Single Generator Set


 Variable Speed Generators
 Cycle-Charging Generator/Battery Systems (Charge-Discharge)

 Applications with Multiple Generator Sets


 Break load into smaller segments, run generator sets at higher load factor
 Good candidates for Energy Storage as “virtual spinning reserve”
1. Essential Pre-Work
$$
$ $$$
% Measure

kW
Establish Improve Load
Goals Audit Efficiency Profile
Energy AM PM

Key Tasks Lessons Learned

• Measure actual load profiles (hourly, minute) • Accurate load profile data is critical for optimal
sizing of renewable systems
• Identify load surges (motor starts, current
inrush) • Many commercial / industrial users are far less
aware of load profile than utilities
• Forecast loads from new equipment
• Look for opportunities to match loads to times of
• Characterize loads by time of day, week, year low-cost generation or renewable availability

• Account for efficiency improvements • Identify soft-start or walk-in strategies to reduce


load surges and enable less spinning reserve
2. Optimal System Design & Project Execution

$ Finance € Procure,
Evaluate
Create & Permit Construct &
Local Identify
Resource Optimal Design
Detailed
CFP Project £ Commission
Design
System
2. Optimal System Design & Project Execution

$ Finance € Procure,
Evaluate
Create & Permit Construct &
Local Identify
Resource Optimal Design
Detailed
CFP Project £ Commission
Design
System

Key Tasks
Global Sunlight Map
• Obtain site-specific solar radiation from
global databases

• Obtain wind speed from global databases or


local weather stations

• Obtain fuel cost including delivery to site and


government fuel subsidies
Global Wind Map
• Evaluate site transportation logistics

• Perform geotechnical survey for construction


conditions
2. Optimal System Design & Project Execution

$ Finance € Procure,
Evaluate
Create & Permit Construct &
Local Identify
Resource Optimal Design
Detailed
CFP Project £ Commission
Design
System

Key Tasks Lessons Learned

• Obtain site-specific solar radiation from • Solar is a widely distributed resource


global databases
• Wind is a highly site-specific resource, typically
• Obtain wind speed from global databases or best on coastlines and mountains
local weather stations
• Large items are difficult to transport to very
• Obtain fuel cost including delivery to site and remote sites
government fuel subsidies

• Evaluate site transportation & construction


logistics

• Evaluate site conditions (cursory)


2. Optimal System Design & Project Execution

$ Finance € Procure,
Evaluate
Create & Permit Construct &
Local Identify
Resource Optimal Design
Detailed
CFP Project £ Commission
Design
System

Key Tasks Lessons Learned

• Make site-specific cost estimates for PV, wind • Renewable penetration level drives need for
energy storage in various amounts
• Model site-specific and load-specific
performance using computer simulation • Low-penetration systems have fastest payback,
but lowest fuel savings and can lead to genset
• Evaluate all combinations of PV / wind / light-load issues
storage / gensets
• Medium-penetration systems are attractive at
• Evaluate sensitivity to fuel price, installed current energy storage prices. Enable engine
cost, renewable resource availability shut-down

• Select 2-3 solutions that offer optimal • High-penetration systems more attractive at high
customer value proposition fuel prices or lower energy storage cost points
2. Optimal System Design & Project Execution

$ Finance € Procure,
Evaluate
Create & Permit Construct &
Local Identify
Resource Optimal Design
Detailed
CFP Project £ Commission
Design
System

Key Tasks Lessons Learned

• Model transient behavior for power quality • Renewable transient behavior and customer
power quality requirement may modify needs for
• Model distribution network behavior energy storage

• Perform geotechnical survey for construction • Connection of renewables to distribution


conditions – site prep, foundations, cable network may cause voltage problems
runs
• Energy storage system and PV / wind inverters
• Create detailed construction drawings can be used to correct poor power factors and
improve system efficiency
• Refine project costs
• Fault performance, low voltage ride through, and
protection schemes must be adjusted to ensure
proper system behavior under all contingencies
2. Optimal System Design & Project Execution

$ Finance € Procure,
Evaluate
Create & Permit Construct &
Local Identify
Resource Optimal Design
Detailed
CFP Project £ Commission
Design
System

Key Tasks Lessons Learned

• Identify potential sources of grants, loans, • Access to capital is greatest challenge for
leases, or power purchase agreements renewable energy adoption

• Create financing structure most appropriate • Availability of sites can be second greatest
for the project challenge

• Secure access to site, obtain appropriate • Governments and local tribes / indigenous
permits peoples often control site availability

• Wind turbines can be more difficult to permit


than PV
2. Optimal System Design & Project Execution

$ Finance € Procure,
Evaluate
Create & Permit Construct &
Local Identify
Resource Optimal Design
Detailed
CFP Project £ Commission
Design
System

Key Tasks Lessons Learned

• Coordinate supply and shipment of all • Factory integration and test of components
components to site
• Complexity of construction jobs varies widely
• Coordinate site build
• Low availability of tools and supplies in remote
• Startup individual systems, overall controls, areas can be time-consuming and costly
and demonstrate performance meeting specs

• Train local operators


3. Long-Term Field Support
$$
$ $$$
Maintain Repair $ Warrant € ~ Guarantee ~
Operate System System System
System System CFP Repairs £ Performance

Key Tasks Lessons Learned

• Perform all tasks to enable system to operate • Many early remote hybrid systems failed due to
as intended for project life lack of proper operation and maintenance

• Operating condition may change over system life

• Few parties are adequately staffed to service


hybrid systems in remote areas

• Many EPC companies do not offer post-


commissioning support

• System owners can be left to fend for themselves


Our Success Depends Heavily upon Field Support
Up to 2 Years

C 10-40 Years in Field Operation

Caterpillar Non-Confidential
Single source your Microgrid power solution
One way to reduce risk and ensure integrating of renewable energy is a success

Including lifetime support from the same company


Recap: Critical Success Factors
1. Essential Pre-Work
$$
$ $$$
% Measure

kW
Establish Improve Load
Goals Audit Efficiency Profile
Energy AM PM

2. Optimal System Design & Project Execution


$ Finance € Procure,
Evaluate
Create & Permit Construct &
Local Identify
Resource Optimal Design
Detailed
CFP Project £ Commission
Design
System

3. Long-Term Field Support


$$
$ $$$
Maintain Repair $ Warrant € ~ Guarantee ~
Operate System System System
System System CFP Repairs £ Performance

Caterpillar Non-Confidential
Agenda
1. Caterpillar in the Power Generation Industry

2. Critical Success Factors for Successful Projects

3. Integrating intermittent Renewable Energy in


distributed power networks
Typical Renewable Penetration Levels
Solar PV Wind System Configurations

Fuel
Savings (MMC) (ESS)
Objective
Renewable Power Size as % Load Integration components required
1. Microgrid Master Controller
Above 40% > 100% 2. Energy Storage for Stability & Energy Time-Shifting

Up to 40% 100% 1. Microgrid Master Controller


2. Energy Storage System (ESS) for stability

1. Microgrid Master Controller (MMC)


Up to 20% Up to 60% (to control PV and Wind power output for stability)

Up to 10% 15-20% 1. Specific Integration components may not be necessary

Up to 5+% 0% 1. Virtual Spinning Reserve

Base Load
Power
Integrating Renewable Power
Hybrid Power Integration Module
Key Features:
Power Problems
• Plug and play solutions
• Solar PV and Wind output control
• Paralleling with other power sources Smooth Power
• Smallest available footprint
• High Renewable Penetration possible
• High system efficiency
• Harmonic cancellation
• Transient protection
• High-speed voltage regulation
• Power factor correction
• Low maintenance
• Quiet operation
• Manufactured and tested prior to leaving the factory (simple and fast installation)
Cat Hybrid Power Analysis and System Optimisation
Caterpillar analyses, via computer modelling, all the site inputs and outputs to determine the most effective
Hybrid Power solution for each site.
Example Time Series Power Flow Chart (5 days) [System with small ‘cloud event’ battery]
This system’s battery is sized to support all cloud cover events allowing for smooth transition to generators if the cloud cover lasts longer than a few
minutes. Hence generator will shut off if there is enough renewable energy to cover the load.

Load Requirement

Solar PV Power

Generator Power

Battery Charge

Battery Discharge

Diesel Diesel
Generator Generator
Operational Shutoff
Cat Hybrid Power Analysis and System Optimisation
Caterpillar analyses, via computer modelling, all the site inputs and outputs to determine the most effective
Hybrid Power solution for each site.
Example Time Series Power Flow Chart (5 days) [System with larger ‘time shift’ battery]
This system’s battery is now sized to store excessive renewable energy production and support increased generator off time. Size of battery is not
limited. Generator shut off may last for hours up to days depending on battery and renewable sizing.

Load Requirement

Solar PV Power

Generator Power

Battery Charge

Battery Discharge

Diesel
Generator
Operational Diesel
Generator
Shutoff
Cat Energy Storage System Stabilizes Voltage & Frequency

Without ESS WithWith ESSStorage System


Energy
BaseGenset
Load
Load PowerPower
Request
Power

SystemVoltage
Geset Voltage

Geset
SystemFrequency
Frequency
Maintaining Reliable Baseload Power
Diesel generator efficiencies
Microgrid Design
Energy Storage Selection
depends upon Duration of Discharge

Customer Load Short-Duration


Residential & UPS Discharge
Commercial Very High-Quality Filtering &
Brief Ride-through Infrequent Brief
Sites Power
Power Outages
Power Quality Filter days
seconds seconds

Brief Voltage
Spikes & Sags

Battery Flywheel Utra


(Lithium Ion) Capacitor milliseconds

15 sec - 15 minute ride-through

Energy Storage Cloud Events

Photovoltaics
Wind Speed
Fluctuations

Wind seconds
Turbines
Microgrid Design
Energy Storage Selection
depends upon Duration of Discharge

Customer Load Long-Duration


Residential &
Commercial
Discharge
Sites Frequent Long
Energy Storage System Power Outages
Extended Ride-through
hours

Energy Time-Shifting

hours
Photovoltaics

Power Fluctuations
Battery
(Metal Air or Lithium-Ion) Wind seconds
15 minute -24 hour ride-through Turbines
Energy Storage
Cat Hybrid Power Integration Module (HPM) Cat Bi-Directional Inverter
Fully Transportable Cat Mirogrid Master
Controller
Integrating Renewable Power
Microgrid Solution
Generator Sets Cat
Photovoltaics Cat Remote
Monitoring

Customer
Prime
Power
Loads
Cat
Microgrid Master
Controller (MMC)
w/Demand Mgmt

Wind
Turbines

Cat Energy
Storage
Caterpillar Non Confidential
The Hybrid Microgrid solution
Example: Smart and Green Energy projects (SAGE)
Cat Hybrid Microgrid solution with Cat Hybrid Power Integration Module & solar PV

The hybrid microgrid power solution with energy storage ‘was assembled by Caterpillar... successfully demonstrated in
the SAGE demonstration, meeting the SAGE requirements. Write the specification revisions or new sections to focus on
the non proprietary requirements and then include the statement “Provide a Caterpillar BDI-250 electrical inverter
controller or equal” as the key and relatively unique component.’
US Department of Energy Report, January 2014.

https://www.youtube.com/watch?v=1HKuDPHQebE

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