Microgrids: A Critical

Component of U.S.
Energy Policy

May 20, 2010

Galvin Initiative Background

Started by former Motorola Chairman Robert

Galvin in response to the 2003 Northeast

Blackout
The initiatives goal is to develop, demonstrate
and open source an improved design for the
delivery of electric power, a design that:
will not fail the consumer, or Perfect Power
is based on smart microgrid, or consumer focus
is a journey of continuous improvement
The Galvin Initiative is developing prototypes of

smart microgrids

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Consumer Have the Right to:

Reliable power
Choose electricity service and participate in

markets
Access electricity pricing and usage data
Hold their supplier to performance standards

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Electricity System Waste

Wasted $,
Billions

Wasted,
$/MWh

Wasted fuel

~ $150

$40

Outages/Repair

~ $100

$25

Wasted Capital

~ $40

$10

Emissions Cost

~ $65

$15

Water Cost

~ $75

$20

Total Waste

~$430

$110

Waste Type

Copyright The Galvin Project. All rights reserved.

Microgrid Transformation
Microgrid
Smart Switch
Smart Switch

Local Substation

Substation
Area Area
Substation

Renewable,
waste heat,
no carbon

Central Power
Natural Gas
5
Transmission
5

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Rapid
Prototyping
Microgrids
Concept

IIT Smart Distribution Prototype

Smart
Meter

Smart
Switch

10 MW

Smart
Loop

Backup, CHP, Solar, UPS

6

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Naperville Microgrid
Outage Duration (minutes) per Customer, 1996 - Present

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Innovative Policies
Microgrid aggregation
Microgrid long-term property assessed

financing (PACE)
Energy districts
Allow local government to build, own and

operate new smart microgrids

Allow local governments to invest in and direct

utilities to make smart grid improvements

If all else failsmunicipalize

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Investment and Impacts Estimates

Metric
Baseline Total Current Usage
Grid Reliability Improvements
Community Aggregation
Wind, 30MW
CCCT, 20 MW
Bio-energy, 5MW
Lower cost and revenue
Clean Energy Financing, PACE
Solar PV, 7.5 MW
Efficiency/DR/Home Automation
Cogeneration , 15MW
Storage/DG, 10MW
Total

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Investment
$ millions
100

Source
Carbon,
Energy,
Tons,
mmbtu
4,700,000 245,000
70% reduction

Delta Cost,
~$/MWh
12

60
60
30

-13%
-6%
-10%

-9%
-20%
-9%

2
8
2
-15

60
50
30
20
410

-2%
-20%
-4%
0%
-54%

-2%
-16%
-9%
-4%
-69%

9
-8
0
0
10

Federal Policy Reform Ideas

Federal reliability and performance metric

standards
Make the consumer principles in EISA 2007

mandatory
Federal matching of low interest loans for

local governments to direct smart microgrids

Encourage FERC to expand consumer choice

and ISO markets that value consumer

participation
Ensure new legislation like cap and trade

values consumer participation

10

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