Islands Microgrid Profiles Islands Global Remote Communities CaseStudy 2015
Islands Microgrid Profiles Islands Global Remote Communities CaseStudy 2015
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AUTHORS: ACKNOWLEDGEMENTS
Kaitlyn Bunker, PhD This casebook would not have been possible without the support, insights, and ideas of many
Stephen Doig, PhD interviewees and reviewers.
Kate Hawley
Jesse Morris We would like to especially thank those that participated in the interview process: John Booth, Isle of Eigg;
Cristina Clavijo and Lauren Frayer, El Hierro; David Edwards, Marble Bar and Nullagine; Simon Gamble,
*Authors listed alphabetically. All authors from Rocky King Island; Roy Montero, Bonaire; Glenn Ross, Falkland Islands; Darron Scott, Kodiak Island; Adam Simmonds,
Mountain Institute unless otherwise noted. Necker Island; David Waterhouse, Mawson Station; and Juergen Zimmerman, Coral Bay.
CONTACT: Special thanks to: Karen Crofton, Leia Guccione, Justin Locke, Jason Meyer, and Roy Torbert for their review and
insights on this casebook.
Stephen Doig, PhD (sdoig@[Link])
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Kate Hawley (khawley@[Link]) KY
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Bunker, Kaitlyn, Kate Hawley, and Jesse Morris. Rocky Mountain Institute (RMI)—an independent nonprofit founded in 1982—transforms global energy use to
Renewable Microgrids: Profiles from Islands and create a clean, prosperous, and secure low-carbon future. It engages businesses, communities, institutions, and
Remote Communities Across the Globe. Rocky entrepreneurs to accelerate the adoption of market-based solutions that cost-effectively shift from fossil fuels
Mountain Institute, November 2015. << [Link] to efficiency and renewables. In 2014, RMI merged with Carbon War Room (CWR), whose business-led market
[Link]/islands_renewable_microgrids >> interventions advance a low-carbon economy. The combined organization has offices in Snowmass and Boulder,
Colorado; New York City; Washington, D.C.; and Beijing.
Editorial Director: Peter Bronski
Editor: Laurie Guevara-Stone
Art Director: Romy Purshouse
The Clinton Climate Initiative serves as a partner to RMI and CWR to accelerate energy transition
in the Caribbean. The Clinton Climate Initiative (CCI) launched in 2006 to implement solutions to the root causes
of climate change. CCI works to improve building energy efficiency and advance building retrofits; to increase
access to clean-energy technology and deploy it at the government, corporate, and homeowner levels; to help
over 20 island nations reduce their reliance on diesel and adopt renewable energy; and to monitor, preserve, and
grow forests in line with national governments and communities. CCI’s approach addresses the major sources
of greenhouse gas (GHG) emissions and the people, policies, and practices that impact them, while also saving
money for individuals and governments, creating jobs, and growing economies.
TABLE OF CONTENTS
RENEWABLE MICROGRIDS | 3
THE ISLAND AND REMOTE
COMMUNITY ENERGY
OPPORTUNITY
01
THE ISLAND AND REMOTE COMMUNITY ENERGY OPPORTUNITY
THE LIVELIHOODS OF INDIVIDUALS and families community grids have no such luxury.1 Accordingly, Leading islands and
living on islands and in remote communities across residents of island and remote communities pay
the globe are directly tied to the availability and price some of the highest retail electricity prices in the remote communities,
of one volatile global commodity: oil. While oil is also world. While the average residential rate in most
used for various purposes in larger communities U.S. states is 12.5 cents per kilowatt-hour (USDi) for from the deserts of
across the globe, islands and remote communities electricity,2 the average in most Caribbean nations is
are disproportionately dependent on oil for their at least three times higher.3 Australia to the isles of
well-being. In these communities, oil powers the
way people move. It propels the ships and trucks These risks and drawbacks—paired with continuing
the United Kingdom,
that bring in goods from the outside. It enables the
tourism industry that keeps many of these local
cost reductions in solar, wind, and energy storage
technologies—suggest that an alternative to the
have already transitioned
economies afloat. It also powers the electricity
system in most of these communities. For well over
fully oil-based electricity systems of the past is now
available to islands and remote communities across
from 100 percent
100 years, oil has enabled remote communities the globe: affordable renewable energy. oil-based electricity
to generate electricity and enjoy the benefits of a
consistent electrical supply. However, unlike many Leading islands and remote communities, from systems to ones with
larger, non-isolated communities across the globe the deserts of Australia to the isles of the United
that are increasingly turning to a diverse supply of Kingdom, have already transitioned from 100 percent significant renewable
resources to generate electricity, most islands and oil-based electricity systems to ones with significant
remote communities continue to rely on oil and oil renewable penetration. These communities are penetration.
alone for their electricity and other energy needs. enjoying the many benefits that come with the
transition: operational cost savings, reliable and
Relying solely on oil for electricity generation has stable power, long term energy price stability, and
left island and remote communities exposed to reduced dependence on oil. This casebook profiles
several risks and drawbacks. Oil-based electricity islands and remote communities actively embracing
generation is often more expensive and subject to this transition in order to provide examples for other
price volatility, which can result in the use of risky communities looking to make the switch away from
fuel hedging strategies that can lock in prices for oil to efficiency and renewables.
years to come. Importing oil puts these communities
at risk of supply interruption, reducing energy
security. Furthermore, small-scale electricity systems
that aren’t connected to a larger electricity grid tend
to be more expensive and difficult to maintain: in the
U.S. and Europe, regionally interconnected grids can
support one another, whereas remote and island
i
All currency throughout this casebook is noted in U.S. dollars RENEWABLE MICROGRIDS | 5
02
RENEWABLE MICROGRIDS
3. ABUNDANT LOCAL RESOURCES. All the communities profiled in this casebook have an abundance of local
energy sources available for electricity generation. Wind energy provides the largest addition to the overall energy
mix of the cases profiled here (usually greater than 20 percent). By shifting away from imported oil to rely more on
local resources, communities can reduce the likelihood of system outage due to resource availability constraints.
ii
While the term “microgrid” is often used to describe many different things, in this casebook we use it to refer to small electricity grids supplying
island and remote communities, with no connection to a larger electricity grid. RENEWABLE MICROGRIDS | 7
iii
In this casebook, we define a renewable microgrid as any microgrid currently generating 30 percent or more of its annual electricity from renewables.
RENEWABLE MICROGRIDS
CHALLENGES
Although some of the renewable systems discussed in this casebook have been in successful operation for many
years, communities faced challenges transitioning from an oil-based microgrid. Three of the main challenges to
integrating renewables were grid stability, remote location, and administrative and bureaucratic requirements.
1. GRID STABILITY. Maintaining grid stability with renewable integration proved challenging in many cases.
Maintaining a reliable electricity system for the community’s residents is essential, so system operators must
incorporate renewables, especially those that are variable, in a way that preserves the operation of the overall
system. Using a phased integration approach, operators were able to see how to initially bring a small amount of
renewable technologies online, work with these while balancing the system, and then continue to step up their
renewable penetration by integrating more resources alongside energy storage and advanced [Link]
“We started adding renewables 18 or 19 years ago, and the challenges have
been technical. We had to solve the problems we uncovered as we went.”
- Mr. Simon Gamble, King Island
2. REMOTE LOCATION. Procuring and transporting new technologies and equipment as well as getting actual
construction crews on-site presents another challenge for remote locations. Often, only one or two operators live
nearby, so if major technical issues arise, teams must fly in to address the problems.
“The PV system was assembled and tested in Perth, then loaded into a truck
and driven (1,500 km) to the site. The concrete feet were also trucked in, after
being cast in a location about two and a half hours drive away.”
- Mr. David Edwards, Marble Bar & Nullagine
“It was challenging to align the timelines for the grants with the timelines
for the project.”
- Mr. Darron Scott, Kodiak
iv
While there are multiple definitions for renewable penetration, in this casebook we use the term to mean the percentage of annual electricity
generation that comes from renewable resources (which is included in a chart for each case). In addition, a chart showing the installed capacity of RENEWABLE MICROGRIDS | 8
each type of generation resource is included for each case, which is another way to think about renewable penetration.
RENEWABLE MICROGRIDS
LESSONS LEARNED
The pathways pursued by islands and remote communities to develop renewable microgrids provide examples of how
communities might embark on a similar transition. From the cases studied, we have identified several lessons learned
in order to help guide decision making within communities currently considering a transition from oil to renewables.
Transitioning to renewable microgrids can reduce costs. Reducing costs is not always a straightforward process.
Relying on more diversely and renewably powered microgrids led to reduced diesel usage in every situation
reviewed in this casebook. In some cases, reduction in purchased fuel resulted in reduced electricity prices, as
well as reduced operating costs. For many others, governments that provide subsidies to ensure equitable access
to electricity found that the addition of renewables reduced the amount of subsidy required, freeing up taxpayer
dollars for other investments. Creating a project, with the requisite business plan to lower overall costs and attract
investment, is a difficult and lengthy task, but one made easier with a deep understanding of the technologies,
processes, and pitfalls outlined in this document.
Adding renewables enhances microgrid system resiliency and stability. Microgrids with diverse resource mixes are
often less prone to system failure than microgrids that rely on a single resource, since they have multiple resource
options for electricity generation. In addition, when renewables are added to the grid, key components like power
electronics and control systems are added as well, enabling a more stable grid through better controls. At the same
time, relying more on local resources, and less on imported oil, increases overall resiliency for a community.
Energy efficiency is an important component of a renewable microgrid transition. It is well known that energy efficiency
measures such as lighting, more efficient appliances, and adding insulation are more cost effective than any generation
option. The importance of energy efficiency as a starting point for any transition is particularly acute for islands where
space for renewable technologies like wind and solar is typically in short supply. However, most of the profiled cases
underutilize energy efficiency, and indicate that energy efficiency should play a more prominent role in any transition plan.
Energy storage is a key component of largely renewable island and remote community microgrids. Every
community profiled in this casebook has either already integrated or is currently considering the installation of
flywheels, batteries, or pumped hydro energy storage systems. Generally speaking, renewables like solar and
wind can be integrated into diesel-based island and remote community microgrids at penetrations around 10 to 15
percent of annual electricity consumption without causing operational challenges.4 Above 20 percent, it is often
necessary to curtail renewable generation, implement demand response or load-shifting programs, or incorporate
energy storage. However, as penetration of renewable energy increases, energy storage—alongside smart
controls to enable load shifting—becomes an important component of any community’s transition.
RENEWABLE MICROGRIDS | 9
RENEWABLE MICROGRIDS:
10 CASE STUDIES
03
Image courtesy of Chris Rowe
RENEWABLE MICROGRIDS: 10 CASE STUDIES
FIGURE 1: THE 10 REVIEWED MICROGRIDS
02 08
03
09
01
10
WE INTERVIEWED UTILITY owners, grid operators, and microgrid engineering experts to develop 10 case
studies from around the globe that integrate a mix of energy efficiency and renewable energy. This diverse set
of examples demonstrates the potential for energy transitions for similar communities around the world. The
microgrids reviewed are illustrated in Figure 1 above. Figure 2 shows what percentage of the average annual
electricity generation in each location comes from renewable sources. In addition to the 10 cases outlined in
this section in detail, Appendix A includes additional information about 13 other islanded or remote microgrids
from across the globe.
RENEWABLE MICROGRIDS | 11
RENEWABLE MICROGRIDS: 10 CASE STUDIES
FIGURE 2: AVERAGE ANNUAL ELECTRICITY GENERATION, % RENEWABLE VS. FOSSIL
100
90
Average Annual Generation (%)
80
70
60
50
40
30
20
10 FOSSIL
RENEWABLE
0
BONAIRE KODIAK EL HIERRO FALKLAND KING MARBLE CORAL BAY ISLE NECKER MAWSON
ISLANDS ISLAND BAR & OF EIGG ISLAND
NULLAGINE
ICONS KEY
RENEWABLE MICROGRIDS | 12
BONAIRE, THE NETHERLANDS
POPULATION INSTALLED CAPACITY PEAK DEMAND AVG. ANNUAL RENEWABLE AVG. RESIDENTIAL RATE AVG. COMMERCIAL RATE
GENERATION
14,500 25,000 kW 11,000 kW 44% $0.34/kWh $0.34/kWh
56+44
beautiful marine reefs visited by 70,000 tourists every REPLACEMENT— Capacity (kW)
year. In 2004, a fire destroyed Bonaire’s existing diesel NOT DISPLACEMENT
power plant. Although disruptive, the event afforded Bonaire was presented with an
Bonaire and its residents an opportunity to design a opportunity to build a new renewable
new electricity generation system from scratch. After electricity system when the existing 11,000
immediately renting diesel generators, the government diesel power plant was destroyed. This
and local energy company began jointly creating a plan is in contrast to most cases profiled in 14,000
to generate 100 percent of Bonaire’s electricity from this casebook where diesel generators
renewable sources. The motivation behind the goal of 100 percent renewable electricity was to are typically partway through their
reduce the rates that residents pay for electricity, create local jobs, and serve as an example for operating life when a renewable
other islands and remote communities. Bonaire was one of the first Caribbean islands to set a goal transition begins. Existing generators Average Annual
56+ 44
and develop a plan to move towards a largely renewable future. often remain a part of a transitioning Generation (%)
renewable microgrid, especially as
Today, almost half of Bonaire’s electricity comes from wind power (44 percent). The 12 wind renewables are incrementally added
turbines installed can provide up to 90 percent of the island’s electricity during times of high to the system, and may even remain as
wind. A 100 kWh battery is included in the system and allows time for additional diesel generators backup power for a transformed system 44
to be started when there is a sudden drop in wind availability. The electricity rates paid by that operates mostly with renewables.
56
Bonaire consumers decreased from a peak of $0.50/kWh in 2008, when the island relied on the However, if some or all of the existing
temporary diesel generators for electricity, to $0.34/kWh today. Many of Bonaire’s 70,000 annual diesel resources in a system are
tourists explore the island’s famous marine reefs and the new renewable microgrid supports completely shut down before the end
branding efforts. of their available lifetime, grid operators
must accelerate the depreciation of DIESEL
Next steps in the island’s energy transformation toward a 100 percent renewable electricity existing diesel generators and incur WIND
system include solar farms, additional energy storage, and energy efficiency. The island is also those added costs into their overall
exploring local algae resources grown in the large salt flats on the island to create biofuel, which energy transformation plan. Bonaire
could then be used in existing generators. This could allow Bonaire to operate a 100 percent had no such constraints and, although
renewable electricity system with on average 40 to 45 percent of annual electricity generation they chose to use diesel generators to
from wind and 55 to 60 percent from biodiesel. support the newly constructed wind
turbines, they were able to design their
electricity system around renewables—
not the other way around.
RENEWABLE MICROGRIDS | 13
KODIAK, ALASKA, UNITED STATES
POPULATION INSTALLED CAPACITY PEAK DEMAND AVG. ANNUAL RENEWABLE AVG. RESIDENTIAL RATE AVG. COMMERCIAL RATE
GENERATION
13,000 75,000 kW 27,800 kW 99.7% $0.14/kWh $0.15/kWh
THE BOARD OF the Kodiak Electric Association (KEA) MULTIPLE BENEFITS Installed
45+13+42
cooperative set a vision statement in 2007 to cost- FOR COMMUNITY Capacity (kW)
effectively generate 95 percent of its electricity from MEMBERS
renewable resources by 2020. While the community of The addition of more renewable
Kodiak, an Alaskan island and the second-largest island resources has reduced KEA
30,000
in the United States, has been utilizing hydro resources customer rates 3.6 percent since
33,000
since 1984, the board’s vision drove the addition of 2000. Relying less on diesel fuel also
multiple wind farms and a third hydro turbine, enabling makes the rates more stable, since
the community to achieve an average annual renewable prices are not as closely tied to the 9,000
penetration of 99.7 percent. These new components were added in various steps after assessing fluctuating price of diesel fuel. Now
how much renewable energy the system could handle and what limitations existed at various that the wind turbines have been
levels of renewable penetration. added and the system is over 99 Average Annual
percent renewable, the community Generation (%)
1+17+82
The community had to overcome several challenges to develop the system. Kodiak’s remote is saving around $4 million per year.
location made wind turbine transport and installation difficult. There were issues related to the Along with lower electricity rates, 0.3
timeline of funding, system design, and turbine construction (which, due to extreme weather residents can now cost-effectively
variations, needed to take place in the summer). In addition, KEA had little knowledge on how switch from oil as a heating fuel 16.9
to manage grid frequency and voltage issues inherent to intermittent wind resources at a time in their homes to electric heat
when there weren’t many examples to draw from. Kodiak’s 3 MW (2 MWh) gel lead-acid battery pumps. This option saves money for
contributes to the stability of the system, and KEA recently added two 1 MW flywheel systems. residents of Kodiak and contributes
82.8
The flywheel will take over some of the workload from the battery, which currently charges and to a more efficient overall system.
discharges around 1,000 times each day. The pairing of multiple types of storage that operate
on different time scales effectively matches system needs, especially when variable renewable
penetration is high. KEA faces additional operational challenges because of Kodiak’s wet and DIESEL
windy climate, which can cause excess water to collect inside the turbine hubs. WIND
HYDRO
Kodiak’s economy relies heavily on the relatively electricity-intense fishing industry. Stable
electricity rates resulting from the new renewable system have led to an expansion in the fishing
industry, creating more jobs and tax revenue for the local government. The addition of the
flywheel will also enable a much larger crane to be operated at a major shipping pier without
negatively impacting microgrid operation. Since the crane has a highly fluctuating load that can
peak at 3 MW (18 percent of the average KEA load), the flywheel provides spinning reserve that
can handle these large, fast changes in load when the crane is in use.
RENEWABLE MICROGRIDS | 14
EL HIERRO, CANARY ISLANDS, SPAIN
POPULATION INSTALLED CAPACITY PEAK DEMAND AVG. ANNUAL RENEWABLE AVG. RESIDENTIAL RATE AVG. COMMERCIAL RATE
GENERATION
11,000 35,000 kW 7,600 kW 100% $0.15/kWh $0.17/kWh
35+33+32
Spanish Canary Islands, has recently completed a PAIRING WIND WITH Capacity (kW)
shift to generating 100 percent of its electricity from PUMPED STORAGE
renewables. The transition, driven by El Hierro’s HYDRO
residents, was linked to environmental concerns and During times of abundant wind,
11,300 12,700
the significant burden of high electricity demand from El Hierro’s immediate electricity needs
the desalination plant. Desalination and its energy are met by wind generation, and
requirements are a main concern due to the island’s excess electricity is used to pump
reliance on agriculture as a primary economic activity water up to a large storage lake. When 11,500
(exporting pineapples and mangoes) in an extremely the wind dies down and can’t meet the
dry climate. Combining wind with pumped storage electricity needs of the community,
hydro created a renewable microgrid capable of the water is released and hydro- Average Annual
100
meeting the island’s unique energy needs. powered turbines supply the needed Generation (%)
power. The island includes a location
The project was jointly funded by the local utility ideal for this type of energy storage:
Endesa, the Spanish government, and the Canary an extinct volcano crater where
Institute of Technology. Although the transition offered many low-carbon benefits, developers water can be pumped to a height of
also had to consider how the new system would impact the island’s physical environment and find 700 meters. While this arrangement 100
wind turbine locations that did not conflict with the Canary Islands’ status as an environmentally doesn’t suit all locations, El Hierro is
sensitive, protected territory. demonstrating the success of pairing
these two renewable options. The size
The 100 percent renewable electricity system is part of a wider island program in sustainable of the renewable energy system—
development. Other measures underway include increasing energy efficiency and an island-wide including the water storage location, DIESEL
shift from internal-combustion-powered vehicles to electric ones. As a part of this expansion the electricity-generating pumps used WIND
into sustainable transportation, the local government has begun to incentivize electric vehicle when the water is released, and the HYDRO
purchases, while utility Endesa is studying development, implementation, and maintenance of a wind farm—was determined based
network of charging stations. The current renewable system meets all of the electricity demands on the projected electricity demand
on the island. in 2030. This ensures that the system
can continue to provide renewable
electricity to the island and its
residents in the years to come.
RENEWABLE MICROGRIDS | 15
EL HIERRO, CANARY ISLANDS, SPAIN
Energy
FIGURE 3: TYPICAL PUMPED STORAGE
5
SYSTEM produced by
WITH WIND (ADAPTED FIGURE) the wind Electric
farm Grid
Wind Farm
Supplemental
energy supplied
by diesel if ever
necessary
Energy produced
Upper Storage Reservoir by the hydro
turbine
Lower Storage
Reservoir
Water is pumped up
to reservoir
RENEWABLE MICROGRIDS | 16
FALKLAND ISLANDS, UNITED KINGDOM
POPULATION INSTALLED CAPACITY PEAK DEMAND AVG. ANNUAL RENEWABLE AVG. RESIDENTIAL RATE AVG. COMMERCIAL RATE
GENERATION
2,500 8,580 kW 3,200 kW 33% $0.30/kWh $0.30/kWh
SOME THREE HUNDRED miles off the southern REDUCING RATES FOR Installed
77+23
Patagonia coast of South America, the Falkland Island ISLAND RESIDENTS Capacity (kW)
archipelago is home to an abundant wind resource In this system, as in many renewable
(4.5 m/s on average) and a community with a systems, energy produced by the
long-term goal to harness that vast energy potential. wind turbines directly displaces 1,980
Beginning in 2007, installation of several wind farms energy that would need to be
increased annual electricity generation from wind to generated from diesel fuel. This
one-third of annual consumption. means that less fuel has to be
6,600
transported to the islands and paid
When adding wind to the system, a key part of the strategy involved having the same group for by the community. On average,
own both the wind farm and the conventional power plant. The utility took a novel approach to the wind farms reduce diesel fuel
integrate deeper penetrations of wind and to maintain diesel generator loading and efficiency. use by 1.4 million liters per year, Average Annual
67+33
On the Falkland Islands, wind turbines are given a set-point target power and vary the pitch of creating a savings for the community Generation (%)
their blades to maintain that output. With consistent, predictable output from the wind turbines, that translates directly to customers’
diesel generators continue to run without large fluctuations in their loading (thereby maintaining electricity bills. As a result, since
generator efficiency) unless there is a significant change in the wind speed. Since the local utility 2007 the residents of the Falkland
33
operates both the diesel generators and wind farm, it was able to design this control strategy and Islands have seen a $0.12/kWh
enhance overall operation of the system. decrease in their electricity rate, from
$0.42/kWh to $0.30/kWh. 67
One challenge during the transition was allowing a period of time to train staff to operate the new
wind farm control desk. The utility delivered all projects on time and on budget, despite potential
risks around the fluctuating currency exchange rates and the islands’ remote locations.
DIESEL
Adding wind has not changed the reliability of this stand-alone system, which on average WIND
experiences just one or two outages per year. The system includes a small flywheel in order to
further increase the efficiency of the wind-diesel hybrid system. Although the utility conducted
both hydro and solar power experiments, the wind resource on the island greatly exceeds
the potential resource for either of these two technologies. The Falkland Islands are therefore
considering how to further utilize the wind, including considering additional energy storage and
heat pump technologies.
RENEWABLE MICROGRIDS | 17
KING ISLAND, TASMANIA, AUSTRALIA
POPULATION INSTALLED CAPACITY PEAK DEMAND AVG. ANNUAL RENEWABLE AVG. RESIDENTIAL RATE AVG. COMMERCIAL RATE
GENERATION
1,800 8,840 kW 2,500 kW 65% $0.19/kWh $0.19/kWh
JUST SOUTH OF MELBOURNE sits King Island, one PAIRING RENEWABLES Installed
of the many islands belonging to Tasmania in the Bass WITH SMART METERS Capacity (kW)
67+28+5
Strait. First sighted by explorers in 1798, the island Along with increasing the amount
390
was not officially settled until the 1900s, but is now of renewable resources in its King
home to approximately 1,800 residents and a story Island system, Hydro Tasmania
of transformative renewable energy. The King Island has incorporated smart meters
Renewable Energy Integration Project has helped with switching capability, deployed 2,450
the island transition from diesel to renewable-based into the community on a voluntary
electricity. Over the past 20 years, the island’s utility, basis. Smart meters allow the utility 6,000
Hydro Tasmania, has been installing renewable energy to monitor customer energy use in
systems, along with enabling technology such as energy storage, on the island, which now relies on real time, including hot water loads
renewables for 65 percent of annual electricity needs. The transition was driven by economics since and any local PV production. The
the cost of producing power from diesel generators alone exceeded the utility’s revenues. utility monitors and controls up to Average Annual
several interruptible loads in each Generation (%)
35+63+2
Using a stepwise approach, Hydro Tasmania has overcome many renewable integration challenges participating home or business,
2
to incorporate more renewable resources into the system. The first wind farm was built 18 years ago including water heaters and heating
as a first step in the energy transition process. When it became clear that additional wind could not and cooling systems. Having
be easily added to the existing system, Hydro Tasmania incorporated a 1.5 MW dynamic resistor real-time information about these
35
to allow the island’s existing wind turbines to contribute greater amounts of renewable energy and loads allows the utility to control
regulate system frequency. These advances provided reserves that help to avoid problems during and flexibly dispatch them as a
a quick shift in wind availability, and pushed the diesel generators to their minimum loading level, virtual power plant. Thanks to the 63
enabling higher levels of renewables in the system. As Hydro Tasmania sought to obtain further program’s success, Hydro Tasmania
contribution from the existing renewables, additional technologies became necessary, including two is investigating the expansion of the
1 MW flywheels, which work in concert with the dynamic resistor to allow the system to run with the smart meter program to additional
diesel generators completely off—sometimes for up to 22 hours a day. The flywheels also ensure customers on King Island beyond the DIESEL
that the system can shut down safely in the event of a system disruption. Finally, the microgrid now 110 initial volunteer participants. WIND
includes a 1.5 MWh battery that augments the performance of both the dynamic resistor and the SOLAR
flywheel by sustaining diesel-off operation through periods of reduced renewable generation.
By combining various renewable resources, storage, and control techniques, King Island has
reduced CO2 emissions by more than 50,000 tons to date, while improving reliability and power
quality. Hydro Tasmania is also experimenting with biodiesel blends in order to further reduce the
amount of oil used to produce electricity on King Island.
RENEWABLE MICROGRIDS | 18
MARBLE BAR & NULLAGINE, AUSTRALIA
POPULATION INSTALLED CAPACITY PEAK DEMAND AVG. ANNUAL RENEWABLE AVG. RESIDENTIAL RATE AVG. COMMERCIAL RATE
GENERATION
600 2,748 kW 820 kW 30% $0.19/kWh $0.22/kWh
MARBLE BAR AND NULLAGINE, two remote towns LEADING FIRST WITH Installed
82+18
with adjacent aboriginal communities located in Western ENERGY EFFICIENCY Capacity (kW)
Australia, were originally settled in the late 1800s during Along with including solar as a
a gold rush. In 2008, the power stations for these grids source of electricity generation in
508
were in need of replacement. Horizon Power, a utility the new system, both Marble Bar
company that operates 34 islanded microgrids and and Nullagine incorporated new
four connected power systems in Australia, decided levels of energy efficiency. As a
to incorporate renewable resources in the updated result of a customer engagement 2,240
system as a test case for what is possible. No other campaign, the residents of these
nearby towns had included renewables in their systems remote communities have an
at that time. The project was funded partially with a increased appreciation for how
government grant and partially by Horizon Power. The utility worked with power and automation much energy they use on a daily Average Annual
70+30
engineering company ABB and SunPower to design and build a system for each town that includes basis. Many residents spend a Generation (%)
single-axis tracking solar PV, diesel generators, and a kinetic flywheel. significant amount of their income
on electricity. Horizon Power
Flywheels, heavy revolving wheels that maintain momentum and store kinetic energy to enhance provided energy efficiency audits 30
system stability, are often used alongside wind turbines. However, in Marble Bar and Nullagine, to households throughout the
flywheels enable the grid to operate on very high penetrations of the local solar resource when it’s community prior to the integration
sunny. The flywheel allows the system to ride through short fluctuations (for example when a cloud of the solar system along with 70
passes), and also allows time for diesel generators to be turned on when there is a significant drop educational materials about energy
in solar availability or a large increase in load. However, the flywheel must continue spinning in usage and training sessions in
order to maintain overall system operation, even during the night when no solar power is available, the local language. The energy
D
which results in additional parasitic losses. As seen in several other cases, a flywheel often pairs audit processes and educational DIESEL D
better with wind than with solar due to wind’s comparatively higher capacity factor. information ensured overall buy- SOLAR
in of the new system. Community
Although residents did not see a change in electricity rates, the system has brought other members also had the opportunity
benefits to Marble Bar and Nullagine. First, the system is now more reliable, and renewables act to name the new solar systems in
as a hedge against increasing oil prices. Second, these two towns are recognized as leaders in each town.
renewable integration, and Horizon Power has been able to share its knowledge of how to design
and build a renewable system with other communities around the world through the Isolated
Power System Developers Forum.
RENEWABLE MICROGRIDS | 19
CORAL BAY, AUSTRALIA
POPULATION INSTALLED CAPACITY PEAK DEMAND AVG. ANNUAL RENEWABLE AVG. RESIDENTIAL RATE AVG. COMMERCIAL RATE
GENERATION
140 2,915 kW 600 kW 45% $0.19/kWh $0.22/kWh
77+23
coral starts right at the shore, forming Australia’s only WIND TURBINES Capacity (kW)
fringing reef. This small community’s chief activities are Another interesting feature of the
tourism and fishing, local industries that, until 2006, Coral Bay system is the use of
were powered entirely by isolated diesel generators. In Vergnet wind turbines, eight of which 675
2006, the small, remote Australian community made a are installed near the community.
big change. The entire turbine can be tilted and
lowered to the ground in the event
2,240
Previously, residents in this community relied on of dangerous weather. This process
their own individual generators to provide electricity can be completed by two people in
without a connected system, similar to the Isle of Eigg in Scotland. The new electricity system, less than an hour, and once lowered
while not connected to Australia’s larger grid, interconnects local residences and buildings, and the turbine can survive up to 300 Average Annual
55+45
is powered by 45 percent wind (on an annual basis). The new system was grant-funded, and km/h wind gusts—equivalent to a Generation (%)
developed through a power purchase agreement (PPA) with the generating utility, Verve Energy. Category 3 hurricane—without any
In order to balance the intermittent wind resource, the system incorporated two technologies: damage.6 The turbines can then
low-load diesel generators, and a 500 kW flywheel. The low-load generators are able to return to normal operation once
operate down to 10 percent of their rated load with minimal penalties to efficiency, which allows extreme weather passes. This same 45
more of the available wind energy to be utilized (see Figure 4 on the next page for a comparison tilting approach can be used to 55
of traditional and low-load diesel generator efficiency curves). The flywheel, part of ABB’s perform routine maintenance on the
PowerStore solution, provides stability to the overall system. Overall, the system can use up to wind turbine blades. Vergnet wind
97 percent wind power instantaneously, and powers 45 percent of the community’s loads from turbines currently operate in places
wind power annually. Although there’s no baseline to compare electricity rates directly (since where high winds and hurricanes are
there was previously not a connected system), the cost for individuals has gone down since they a concern, such as at the Maddens DIESEL
are no longer paying for fuel to run their own generators. Wind Farm on Nevis Island in the WIND
Caribbean.
The addition of the system was not without challenges. Many residents were wary of wind turbines
being located so close to town, but a well-designed community education process brought
everyone on board and generated buy-in on the project. Furthermore, construction was difficult
due to the remote location, where getting people on-site to build the system required several days
of travel. Currently, one full-time park employee is located on-site to provide day-to-day support.
RENEWABLE MICROGRIDS | 20
CORAL BAY, AUSTRALIA
FIGURE 4: EXAMPLE OF TRADITIONAL AND VARIABLE-SPEED
LOW-LOAD DIESEL GENERATOR EFFICIENCY CURVES.
45
40
35
30
Efficiency (%)
25
20
15
10
0
0 20 40 60 80 100
Load (%)
T RADITIONAL GENERATOR
VARIABLE-SPEED LOW-LOAD GENERATOR
RENEWABLE MICROGRIDS | 21
ISLE OF EIGG, SCOTLAND, UNITED KINGDOM
POPULATION INSTALLED CAPACITY PEAK DEMAND AVG. ANNUAL RENEWABLE AVG. RESIDENTIAL RATE AVG. COMMERCIAL RATE
GENERATION
100 250 kW 60 kW 87% $0.31/kWh $0.31/kWh
THE ISLE OF EIGG is a small island off the coast of A UNIQUE APPROACH Installed
26+10+2044
Scotland known for its beauty, wildlife (on average 130 TO MANAGING Capacity (kW)
bird species are recorded on the island each year), and ELECTRICITY USE
renewable electrification project. Prior to 2007, island On the Isle of Eigg, community
residents generated power at homes and businesses members agree to use electricity 64
using diesel generators. Furthermore, the buildings and responsibly; each home and 112
their diesel generators were stand-alone systems: no small business is capped at an
multi-building microgrid existed on the island prior to the instantaneous peak demand of 5 24
transition. Recognizing the drawbacks that come along with kW, while larger businesses and 50
a non-interconnected electricity system driven by diesel alone, the community created an integrated buildings can use up to 10 kW at
plan for a new, connected, all-island electricity system. Community members were involved throughout once. Residents prepay for their
the process. “What makes it work so well is that it’s ours [the electricity system],” says John Booth, electricity ahead of time via cards DIESEL
formerly a Director of the Isle of Eigg Heritage Trust and Volunteer Project Manager for the system. that slot into their electricity meters WIND
and are available for residents to SOLAR
Leadership from within the community is a unique feature of the Isle of Eigg’s electricity purchase once per week. It’s rare HYDRO
transformation. When residents decided that a diverse, connected electricity system would be better that anyone exceeds their maximum
than each home having its own individual generator, they quickly realized that building their own demand limit using this system, Average Annual
13+87
system would be cheaper than creating an electrical connection to the mainland grid. They also which has resulted in additional Generation (%)
decided to power their new system almost entirely with the island’s abundant renewable resources— cost savings since no truck rolls are
rain, wind, and sunshine. Since this was a brand new system combining three different renewable necessary to shut down or reactivate
13
sources of electricity, the community was forced to learn by doing as it transitioned—applying for building electricity access.
grant funding, securing permission to build, finding a contractor to design and build the system, and
training local residents on how to operate and repair the now renewable microgrid.
The system also includes a 720 kWh battery bank in order to guarantee that electricity will be 87
available at all times. When there is extra power available from renewable resources and the battery
is already fully charged, the system automatically activates heaters that pre-heat community buildings
keeping them warm and dry. Residents have reaped many new benefits from the system, the most DIESEL
prevalent of which is reliable power availability. Before the microgrid, individual buildings were at risk RENEWABLES
of power outages in the event of diesel generator failure. With an interconnected microgrid, risk of
power outages at individual homes has been reduced. Isle of Eigg residents are also now using local
energy resources and much less diesel fuel. A team of local residents has been trained to maintain
the system, which includes four part-time maintenance personnel, forestry jobs to harvest biomass,
and two “green project managers,”7 ensuring reliable electricity for all community members.
RENEWABLE MICROGRIDS | 22
NECKER ISLAND, BRITISH VIRGIN ISLANDS
POPULATION INSTALLED CAPACITY PEAK DEMAND AVG. ANNUAL RENEWABLE AVG. RESIDENTIAL RATE AVG. COMMERCIAL RATE
GENERATION
60 2,160 kW 400 kW 80% $0.24/kWh $0.24/kWh
IN 1978, ENTREPRENEUR Sir Richard Branson made SUCCESS THROUGH Installed Capacity (kW) -
44+42+14
a bid to buy a small Caribbean island. As a part of the AN INCREMENTAL Planned
Commonwealth Law, non-resident landlords were PROCESS
required to build a resort on the island or the government The addition of 300 kW of solar on
300
could reclaim ownership. At the time he purchased the Necker Island reduced diesel use
island, Sir Richard Branson took a risk as he lacked the by 15 to 20 percent. The various 960
funds to develop it immediately. Over time, he made a renewable resources, energy
home out of Necker Island, and situated Necker as a test storage, and controls are being 900
bed for an energy transition.8 Prior to 2014, diesel fuel implemented in phases so that the
was the only resource used to generate electricity for impact of each technology can be
island staff and visiting guests. In 2014, Richard Branson measured and validated before the
set down a path to phase out the use of all diesel fuel on the island. Thus far, 300 kW of solar next phase of the transition begins. Average Annual
photovoltaic (PV) have been installed with a single 900 kW wind turbine, a 500 kWh battery, and In addition, developers used an Generation (%) -
20+60+20
advanced microgrid controls planned for installation in 2016. off-site programmable load bank to Projected v
create a virtual version of the system
Necker is not only working to bring as much renewable energy online as possible (with a current in order to test different scenarios
75 percent renewable energy penetration target), but to deliver the additional 25 percent of diesel before actually installing renewable 20 20
reduction by the integration of energy efficiency and smart controls. The goal is to reach 100 percent resources and controls.
reduction in diesel fuel use. In addition to increasing the supply of renewable energy, Necker’s
system designers and contractors are retrofitting existing buildings with more efficient AC units and
upgrading insulation of many of the buildings while adding smart controls to further reduce diesel 60
consumption. Through these approaches, the island benefits from actually reducing usage,
not just adding generation, pushing Necker Island to the forefront of what is possible with a
renewable microgrid. With the addition of solar, the island is already seeing diesel fuel savings of DIESEL
15 to 20 percent annually. Once wind and storage come online in the near future, those savings WIND
will increase. The owner and developer of the new system, NRG, plans to incorporate deeper levels SOLAR
of energy efficiency to reduce overall energy demand, which will move beyond the 75 percent
renewable energy goal.
Currently, the Smart Island Economies team is supporting island partners in developing strategies
for transitions, including a process for open tenders to independent power producers and energy
efficiency providers for the region. Accordingly, Necker Island was the first island to issue an RFP
for design and construction of its new system as a part of the Smart Island Economies program.
v
For this example, these are projections for when the planned projects are completed in 2016. RENEWABLE MICROGRIDS | 23
MAWSON STATION, ANTARCTICA
POPULATION INSTALLED CAPACITY PEAK DEMAND AVG. ANNUAL RENEWABLE AVG. RESIDENTIAL RATE AVG. COMMERCIAL RATE
GENERATION
30 1,150 kW 450 kW 50% N/Avi N/A
48+52
research station south of the Antarctic Circle, and is the HEATING IN A HARSH Capacity (kW)
most distant of the three main Antarctic stations operated CLIMATE
by the Australian Antarctic Division (AAD). The wind turbines created an
additional impact on Mawson’s
Two unique features made this station an ideal place heating supply that’s of note for other
600 550
to incorporate renewables for electricity generation. remote microgrids with large heating
First, its remote location makes reliable delivery of requirements. Before adding wind
diesel fuel difficult. Second, the wind resource in and to the system, two diesel generators
around Mawson is outstanding. In 2002 and 2003, the AAD built two wind turbines at Mawson powered Mawson Station and extra
Station, serving on average thirty researchers. Before installation began, the AAD completed an heat from these generators heated
environmental impact assessment to ensure that the benefits of adding wind turbines outweighed many of the station’s buildings. With Average Annual
50+50
potential negative ramifications including impacts on wildlife and visuals. the addition of wind, just one diesel Generation (%)
generator runs for most of the year.
Mawson’s remote location and cold climate led to several challenges while preparing for and installing This slashes the diesel requirement,
two Enercon 300 kW wind turbines. The installation needed to bring in a 100-ton crane, requiring the but it also removes the extra heat
IMAGE: © JUSTIN CHAMBERS/AUSTRALIAN ANTARCTIC DIVISION
provision of a larger than typical icebreaking ship. Once the turbine components reached Antarctica, source from the now rarely used
bridges at the station had to be strengthened to bear the weight of the vehicles transporting the turbine. second generator. In response, 50 50
the AAD added an electric boiler
Interestingly, Mawson Station’s electrical loads go beyond thermal comfort, lighting, and plug-loads. to the system in tandem with the
The station also includes some luxuries for residents, such as a spa and a sauna, which require wind turbines. With any extra power
relatively large amounts of electricity compared to other day-to-day uses. In order to maximize fuel available from the wind turbines,
savings, the AAD worked to educate people about using these amenities only when wind energy is the electric boiler preheats water DIESEL
readily available, rather than at times when the diesel generators would need to turn on. to heat buildings. The boiler is also WIND
connected to Mawson’s system with
In 2014 alone, the wind turbines generated enough electricity to reduce Mawson’s diesel consumption a smart inverter, which provides
by 288,000 liters, directly saving the AAD $263,000 in fuel costs. The AAD also gained greater voltage and frequency support to
flexibility in scheduling resupply ships; instead of requiring a shipment of diesel fuel at least once per the microgrid. The result is similar to
year to meet the station’s needs, the AAD can now send a refueling shipment every other year. The having additional spinning reserves,
success seen at Mawson Station is already spreading, and other nations with operations in Antarctica since the boiler can ramp its output up
have incorporated renewable resources for electricity generation.9 Furthermore, the now 10-year old or down quickly when there is a shift
wind turbines are still operating at high levels of efficiency—even in the tough winter climate. in available wind.
vi
Since Mawson is a research station, the Australian Antarctic Division covers all costs, and rates are RENEWABLE MICROGRIDS | 24
not charged to specific customers for electricity use.
GLOSSARY OF KEY TERMS
04
GLOSSARY OF KEY TERMS
AVERAGE ANNUAL RENEWABLE GENERATION— ENERGY STORAGE—Technologies including but not RELIABILITY—The ability to deliver electricity to all
The percentage of electricity in a system that is limited to batteries, pumped hydro, and/or flywheels points of consumption, in the quantity and with the
generated from renewable resources over the that store energy to perform work at a later time. quality demanded by the customer.
course of a year; this is the definition of renewable Storage applications range from managing second-
penetration used in this casebook. to-second variations in power output to storing RESILIENCE—The ability of the electricity system to
energy over multiple days. resist failure and rapidly recover from breakdown.
AVERAGE COMMERCIAL RATE—The average rate
that a commercial customer pays for electricity today FLYWHEEL—A rotating mechanical device used to SPINNING RESERVE—Extra generating capacity
(after the renewable transition). store kinetic energy. that is immediately available to meet an increase
in load while also helping to maintain system
AVERAGE RESIDENTIAL RATE—The average rate INSTALLED CAPACITY—The total size of the frequency.
that a residential customer pays for electricity today various installed sources of electricity generation, in
(after the renewable transition). kilowatts.
DYNAMIC RESISTOR—A large resistive load, which MICROGRID—While the term “microgrid” is often
can be varied rapidly. On King Island, a dynamic used to describe many different things, in this
resistor is used to absorb excess wind generation casebook we use it to refer to small electricity grids
rather than spill it through shutting down or throttling supplying island and remote communities, with no
back wind turbines. Since the resistor can be adjusted connection to a larger electricity grid.
rapidly, this effectively converts spilled wind into
“spinning reserve” that can be used to supplement PEAK DEMAND—The highest electricity demand
diesel generation. Maintaining the power balance experienced by a system at a single point in time, in
between generation and demand in this way allows kilowatts.
the resistor to maintain system frequency.
PROGRAMMABLE LOAD BANK—Test equipment
ELECTRIC HEAT PUMP—A device that uses that emulates electric loads in order to perform
electricity to move heat from a cool space (such as functional tests of batteries and power supplies, such
outdoors) to a warm space (such as indoors), and can as solar panels. Being programmable allows tests to
be used as an alternative to a furnace. be automated, and allows changing load profiles to
be used for testing the power source.
RENEWABLE MICROGRIDS | 26
APPENDICES
05
APPENDIX A: ADDITIONAL ISLANDED OR REMOTE MICROGRIDS
02 20
08
13
12
03
23
09
18
01
21
15 14
11
07 06 16
17
22
19
05
04
10
01: Bonaire, The Netherlands 08: Isle of Eigg, Scotland, United Kingdom 15: Tokelau, New Zealand 21: Floreana, Galapagos, Ecuador
02: Kodiak, Alaska, United States 09: Necker Island, British Virgin Islands 16: Ti Tree, Kalkaringdi, Lake Nash, 22: Rottnest Island, Australia
03: El Hierro, Canary Islands, Spain 10: Mawson Station, Antarctica Australia 23: Over Yonder Cay, Bahamas
04: Falkland Islands, United Kingdom 11: Fiji 17: Denham, Australia
05: King Island, Tasmania, Australia 12: Graciosa Island, Portugal 18: Monte Trigo, Cape Verde
06: Marble Bar & Nullagine, Australia 13: Flores Island, Portugal 19: Hopetoun, Australia
07: Coral Bay, Australia 14: Northern Cook Islands, New Zealand 20: Ultsira, Norway
RENEWABLE MICROGRIDS | 28
APPENDIX A: ADDITIONAL ISLANDED OR REMOTE MICROGRIDS
FIGURE 5
COUNTRY CITY POPULATION AVERAGE AVERAGE AVERAGE OVERALL BASELINE INSTALLED PEAK
ANNUAL RESIDENTIAL COMMERCIAL GRID GRID YEAR CAPACITY DEMAND
RENEWABLE RATE RATE CONNECTION (kW) (kW)
GENERATION ($/kWh) ($/kWh)
(%)
Fiji 881,000 60 0.08 0.19 physical 1980 159,000 150,000
islands
Portugal Graciosa 5,000 70 0.17 0.15 physical 2013 9,600 2,200
Island island
Portugal Flores Island 3,900 50 0.17 0.15 physical 2009 6,080 2,000
island
New Zealand Northern 1,441 95 0.45 0.64 physical 2014 2,286 151
Cook Islands islands
New Zealand Tokelau 1,400 100 physical 2011 1,727 214
island
Australia Ti Tree, 1,139 30 0.22 0.26 remote grids 2012 2,400 770
Kalkaringdi,
Lake Nash
Australia Denham 800 50 0.22 0.32 remote grid 1997 2,410 1,200
Cape Verde Monte Trigo 600 95 remote grid 2011 47.3 3.75
Australia Hopetoun 350 40 0.16 0.32 remote grid 2006 3,440 650
Norway Ultsira 212 100 physical 2003 1,255 55
island
Ecuador Floreana, 200 100 0.091 0.092 physical 2009 159 50
Galapagos island
Australia Rottnest 100 40 0.42 physical 2005 1,240 560
Island island
Bahamas Over Yonder 0 96 physical 2009 1,075 400
Cay island
RENEWABLE MICROGRIDS | 29
APPENDIX B: LIST OF INTERVIEWEES
RENEWABLE MICROGRIDS | 30
ENDNOTES
1
Renewable Energies for Remote Areas and Islands (Remote), p. 18—22, IEA-RETD, April 2012. [Link] and
Remote Microgrids: Commodity Extraction, Physical Island, Village Electrification, and Remote Military Microgrids: Global Market Analysis and Forecasts, Navigant Research, 2013.
2
U
.S. Energy Information Administration, Electric Power Monthly, July 2015, [Link]
3
C
. Barton, L. Kendrick, and Malte Humpert. “The Caribbean has some of the world’s highest energy costs- now is the time to transform the region’s energy market,”
InterAmerican Development Bank, 2014, [Link]
transform-the-regions-energy-market/
4
J . Enslin, “Grid Impacts and Solutions of Renewables at High Penetration Levels,” Quanta Technology, [Link]
[Link]
5
J.I. San Martin, I. Zamora, J.J. San Martin, V. Aperribay, and P. Eguia, “Energy Storage Technologies for Electric Applications,” International Conference on Renewable Energy and
Power Quality (ICREPQ’11), April 13-15, 2011, [Link]
6
“ Wind for Microgrids,” Northern Power Systems, 2013, [Link]
7
“ The Ashden Awards for sustainable energy,” Ashden Awards Case Study Isle of Eigg Heritage Trust, Scotland, May 2010.
8
L . Murray, “How Richard Branson bought Necker Island,” Virgin Entrepreneur, 2015, [Link]
9
A . Schwartz, “Antarctica Turning to Solar, Wind Power,” CleanTechnica, January 2009, [Link]
RENEWABLE MICROGRIDS | 31
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