Microgrid Value Stacking to Defer Distribution Capacity Upgrades of Radial Feeders

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Paper number

2326

Working Group Number

Conference name

CIRED 2019

Conference date

3-6 June 2019

Conference location

Madrid, Spain

Peer-reviewed

Yes

Short title

Convener

Authors

Bitaraf, Hamideh, ABB, USA
BUCHHOLZ, Britta, ABB, Germany
ASTORGA, Pablo, ABB, Spain
GLASSMIRE, John, ABB, USA

Abstract

Distribution utilities facing growing demand in feeders need to consider approaches for capacity upgrades. The conventional approach is to upgrade capacity with an extension of the substation and related assets. However, non-wire alternatives (NWA) like a microgrid are a viable solution. Radial feeders are often the most unreliable part of a distribution system, so in addition to deferring substation capacity investments, the microgrid adds islanding functionality that can decrease outages. Microgrid approaches also assists feeders with high renewable generation or fluctuating loads to actively manage voltage challenges. This business case compares the microgrid alternative with numerous stacked values against the conventional capacity upgrade scenario from the perspective of a distribution utility. The results of this business case are that the microgrid is more economic than the distribution capacity upgrade due to the multiple stacked operational cost savings the battery energy storage (BESS) provides. The distribution utility not only benefits from distribution capacity upgrade deferral, but also improves reliability performance, voltage regulation, and peak demand reduction. The payback period for the microgrid scenario is 4 to 6 years less than the conventional upgrade investment.

Table of content

Keywords

Publisher

AIM

Date

2019-06-03

Permanent link to this record

https://cired-repository.org/handle/20.500.12455/801
http://dx.doi.org/10.34890/1022

ISSN

2032-9644

ISBN

978-2-9602415-0-1