An Evaluation of the Economic and Resilience Benefits of a Microgrid in Northampton, Massachusetts

Abstract

Recent developments and advances in distributed energy resource (DER) technologies make them valuable assets in microgrids. This paper presents an innovative evaluation framework for microgrid assets to capture economic benefits from various grid and behind-the-meter services in grid-connecting mode and resilience benefits in islanding mode. In particular, a linear programming formulation is used to model different services and DER operational constraints to determine the optimal DER dispatch to maximize economic benefits. For the resiliency analysis, a stochastic evaluation procedure is proposed to explicitly quantify the microgrid survivability against a random outage, considering uncertainties associated with photovoltaic (PV) generation, system load, and distributed generator failures. Optimal coordination strategies are developed to minimize unserved energy and improve system survivability, considering different levels of system connectedness. The proposed framework has been applied to evaluate a proposed microgrid in Northampton, Massachusetts that would link the Northampton Department of Public Works, Cooley Dickenson Hospital, and Smith Vocational Area High School. The findings of this analysis indicate that over a 20-year economic life, a 441 kW/441 kWh battery energy storage system, and 386 kW PV solar array can generate $2.5 million in present value benefits, yielding a 1.16 return on investment ratio. Results of this study also show that forming a microgrid generally improves system survivability, but the resilience performance of individual facilities varies depending on power-sharing strategies.

Evaluation of a battery energy storage system in hospitals for arbitrage and ancillary services

“…In normal grid operation, the imported energy was reduced and used to charge the batteries in cases where they have reached their minimum state of charge (SOC). A μG that includes a hospital was evaluated for resilience in islanded mode in the case of power outages and to offer economic benefits when connected to the grid [26]. Using distributed energy resources (DER) connected behind the meter which included BESS, PV, and DG, the μG in connected mode can make revenues by providing services to the grid or could provide behind the meter services directly.…”

“…As can be seen, there are limited discussions addressing the use of the battery in hospitals for grid services. The nearest research to this application is [26], which was not specific to hospitals or the health sector, and the hospital was one of three facilities included in μG, which also included a school and governmental public office. The main aim behind the proposed μG which included BESS was that the hospital was awarded a grant to develop a μG in response of resiliency initiative.…”

“…Li-ion batteries have dominated the residential and the large-scale markets due to: the recent fast decrease in the prices among other technologies, long operating life, and high efficiency [42]. Li-ion is preferred over lead-acid batteries for its deep discharge capability [26]. In addition, Li-ion ability to switch between charging and discharging mode quickly allows it to respond to frequency events when participating in ancillary services market [43].…”

Optimal Configuration with Capacity Analysis of PV-Plus-BESS for Behind-the-Meter Application

“…The techno-economic analysis of PV and BESS in BTM was applied to an electric vehicle fastcharging station with the small 4-port to obtain a return on investment (ROI) of about $22.4 k over 10 years by 46.5 kW/28.3 kWh BESS [19]. The resiliency analysis explicitly forms the microgrid survivability against a random outage by considering uncertainties associated with PV, the load, and distributed generator failures [20]. An evaluation for microgrid was proposed to get economic benefits from the various grid and BTM services in grid-connecting mode and resilience benefits in islanding mode [21].…”

Identifying Challenges in Engaging Users to Increase Self-Consumption of Electricity in Microgrids

“…In recent years, microgrids have increasingly been implemented in urban locations, in contrast to their historical use in remote settings serving small populations [1]. Lauded as a way to reduce emissions, empower communities and decentralize the power grid, microgrids are one form of an energy community [2] that offers a range of theoretical advantages [3,4]. Yet, as this paper aims to demonstrate, it is in their practical implementation that unanticipated challenges become more apparent.…”