Microgrid Value Stacking to Defer Distribution Capacity Upgrades of Radial Feeders

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CIRED 2019 - 2326.pdf (326.38 KB)
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.
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Publisher
AIM
Date
2019-06-03
Published in
CIRED 2019 Conference
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