Definition

• A microgrid is a group of interconnected loads

and distributed energy resources within
clearly defined electrical boundaries that acts
as a single controllable entity with respect to
the grid.
• A microgrid can connect and disconnect from
the grid to enable it to operate in both grid-
connected or island mode.
• A smart microgrid is built upon Smart Grid.
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 What Does the Smart Grid Look Like?
• High use of renewables – 20% – 35%
• Distributed generation and microgrids
• “Net” metering – selling local power into the grid
• Distributed storage
• Smart meters that provide near-real time usage data
• Time of use and dynamic pricing
• Ubiquitous smart appliances communicating with the grid
• Energy management systems in homes as well as commercial
and industrial facilities linked to the grid
• Growing use of plug-in electric vehicles
• Networked sensors and automated controls throughout the
grid
 Industrialized World
• Increased penetration of renewable energy into the
generation mix
• Technology upgrades within the utility
• New systemic impact occurring behind the meter
• Distributed energy resources will likely become the
normal state; therefore, how do we integrate:
– analog-centric power system
– digital-centric information infrastructure
• Responding to these issues requires a new approach

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 Developing Countries
• Strategically deploy microgrid technologies
(Distributed Energy Resources - generation,
storage, controls, distribution, building
automation)
• Establish standard approach for physical and
cyber interconnections
• Create capacity for maintenance of the system
• Integrate resources and future requirements
for sustainability – design to scale
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 What Problems Microgrids Solve
• PRICE STABILITY
– Provides protection from market fluctuations
• RELIABLE ELECTRICITY
– Always available and not subject to utility grid shutdowns
• ELECTRICAL EFFICIENCY
– On-site generation and systems to maximize usage efficiencies
• SECURITY OF ELECTRICITY SUPPLY
– Protected from external forces or incursions
• ENVIRONMENTAL CONSERVATION
– Can use multiple sources or renewable and green energy
• SCALABILITY
– Horizontal (population growth) & Vertical (increasing use)
 Microgrid Strengths
• Absence of power
• Unreliable power
• Mixed utility integration (water, phone, gas)
• Rising grid energy costs
• Regional or national emission standards
• Expensive and delayed grid support
• Dispersed rural loads or supplies
• Reduce fuel usage
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 Smart Microgrids
• Non-proprietary MicroGrid architecture
• Grid-level agents, Site-level agents and Device-level
agents
• Built in decision support for policy based workflow
• Embedded behaviors for power analytics
• Agents operate autonomously
• Real-time, deterministic domains
• Performed using Smart Grid standards
 Different than “the grid”
• Consumer engagement with resources to solve power
issues locally
• High penetration of local renewables in residential,
commercial, and industrial
• Not passive but active control in distribution
• Two-way power flow in distribution
• Distribution can become a transmission resource
• Components are part of a cohesive system – high
dependency on standardization (physical and data)
 MicrogridCommunities
“Cells”of Microgrids
• Ideal for…
– Village • Networked Microgrids
– Rural Community • Aggregated Microgrids
– University Campus • Participate in grid and market support
– Business Park • Transactive markets
– Electric Cooperative • Individually, each offers unique
– Municipality capabilities
– Utility Distribution • Central management
– Military Base
• Owned by…
– Customer
– Developer
– Utility
– Investment trusts
 Energy Network
• Consumer engagement with resources to solve power
issues locally
• Increased, local renewables in residential, commercial,
and industrial
• Two-way power flow in distribution
• Transform from passive to active control in distribution
• Distribution becomes a transmission resource
 Value Proposition
• Balance energy between demand (load) and
onsite generation in real-time
• Balance between distribution grid and
microgrid
• Ability to island microgrid
• Manage procurement of energy from grid if
necessary

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 M

Conceptual Microgrid Layout

MicroGrid Industries Vi
• The Conceptual layer
defines all possible
domains that may be
engaged in the operation
of a microgrid
• New thinking on
microgrids relies on a
scaling of capability with
appropriate utilization of
renewables to meet the
end-customers needs
• Integrates end-use
applications with localized
generation and storage
Microgrids In A Complex System
MicroGrid Industries View (Cont.)

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Part Of The Microgrid Plan
MicroGrid Industries View (Cont.)

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Interconnected Village Renewables-Enabled Microgrids

Small City
Microgrid
VREM

Regional Distribution Network VREM

VREM

VREM Biofuels Complex

Regional
Solar Farm VREM

Regional
Wind Farm

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 Microgrid Generation Types
• Technology neutral
• Various renewable generation
sources may be integrated:
• Solar
• Wind
• CHP
• Waste-to-Energy
• Geothermal – small, modular and
portable units may provide the
foundation for microgrid generation
• Low temperature geothermal
requires less deep well steam and
may be installed quickly
•
Ownership Models
Utility model – the distribution utility owns and manages the microgrid to
reduce customer costs and provide special services (e.g. high power
quality and reliability) to customers on the system.
• Landlord model – a single landlord installs a microgrid on-site and
provides power and/or heat to tenants under a contractual lease
agreement.
• Co-op model – multiple individuals or firms cooperatively own and
manage a microgrid to serve their own electric and/or heating needs.
Customers voluntarily join the microgrid and are served under contract.
• Customer-generator model – a single individual or firm owns and manages
the system, serving the electric and/or heating needs of itself and its
neighbors. Neighbors voluntarily join the microgrid and are served under
contract.
• District Heating model – an independent firm owns and manages the
microgrid and sells power and heat to multiple customers. Customers
voluntarily join the microgrid and are served under contract.
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 Sustainable Communities
• Integrated Electric, Water, Building location
• Planned communities are more efficient
• Buildings participate with energy supply
• People take a proactive role in their
community
• Improved economic output compared to
unplanned communities
• Incorporates all consumer requirements
 Smart Microgrid Resiliency
• Zero fault current or voltage instability issues
• Well-behaved load with limited harmonics
• Outage ride-through: Generators don’t trip off
• Loads are de-coupled from distribution system
• Real-time adjustment of exports, with hard limits
• Ancillary services
• Can export into sectionalized grid during
 High-Impact Opportunity Areas
Seven Action Areas:
(1) modern cooking appliances and fuels;
(2) distributed electricity solutions – mini & micro grids;
(3) grid infrastructure and supply efficiency;
(4) large-scale renewable power;
(5) industrial and agricultural processes;
(6) transportation;
(7) buildings and appliances.
Four “Enabling” Areas:
(1) energy planning and policies;
(2) business model and technology innovation;
(3) finance and risk management; and
(4) Capacity building and knowledge sharing.
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 Smart Districts
• Integrated Electric, Water, Building location
• Planned communities are more efficient
• Buildings participate with energy supply
• People take a proactive role in their community
• Improved economic output compared to
unplanned communities
• Incorporates all consumer requirements
Interconnected Smart Districts
Small City
Microgrid
VREM

Regional Distribution Network VREM

VREM

VREM Biofuels Complex

Regional
Solar Farm VREM

Regional
Wind Farm

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Microgrid/District Energy Synergies
• Given the inherent benefits from each (Microgrids &
District Energy), the sum of the parts is greater when
combined than if separate
• Underground work excavated only once
• Optimized CHP placement minimizes real estate
allocation costs
• Reduced losses (thermal and electrical)
• New storage approaches improves efficiency
• Newer technologies offer lower operating costs
• Increased telemetry increases asset life (condition-
based maintenance vs scheduled)
 Microgrids applied to Smart Cities
• Phase 1 (individual service level): ICT to improve individual
city operations, such as real-time bus schedule
• Phase 2 (vertical service level): integrates related processes
and services by smart technology, such as citizens offered
information on transportation system’s real-time activity and
emergencies, road conditions, road repairs and detours.
• Phase 3 (horizontal service level): no distinction between
different service areas, with all parts now seamlessly
integrated within an efficient smart city ecosystem.
•
Rationale
Growing Energy Demand in Mega-Cities.
• Easier energy management in City due to its concentrated
demand and higher electrification rate.
• Keys for Energy Management in Cities.
- Electricity Storage
- Thermal Storage
- Regional Demand Control
- Electrification of Transportation
• Mega-Cities and isolated Rural Areas can cooperate in
Energy Supply & Demand, and Green Energy Investment.
New business model between Urban area and Rural area
➢Mega-Cities and isolated Rural Areas can cooperate in Energy Supply & Demand,
and Green Energy Investment.

Rural Area
Nuclear Geothermal Hydro Solar
◼Introduction of renewable energy
Wind
◼Green power supply

CO2 Economic Electric Rural Area

Reduction
Power
Revitalization Abundant natural
resources
水力発電
Urban Area

◼Concentration of energy demand Green

◼CO2 emissions increase Energy
Investment

Urban Area
（Mega-city）