Microgrid and renewable generation integration: University of California, San Diego

•UCSD has dispatchable distributed energy resources that can support RE integration.•Each RE integration strategy is feasible and cost-effective in certain conditions.•Current tariffs and market prices are insufficient; alternative strategies are needed to leverage DER.•Co-optimization of thermal an...

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Bibliographic Details
Published in:Applied energy 2016-05, Vol.169, p.709-720
Main Authors: Sreedharan, P., Farbes, J., Cutter, E., Woo, C.K., Wang, J.
Format: Article
Language:English
Subjects:
Ancillary services
Combined heat and power
Distributed energy resources
Distributed generation
Incentives
Markets
Microgrids
Optimal dispatch
Peak load
Pricing
PV firming
Renewables integration
Strategy
Universities
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Summary:•UCSD has dispatchable distributed energy resources that can support RE integration.•Each RE integration strategy is feasible and cost-effective in certain conditions.•Current tariffs and market prices are insufficient; alternative strategies are needed to leverage DER.•Co-optimization of thermal and electrical systems, and of monthly and daily energy costs is essential.•Results are relevant to using campus, C&I loads and CHP resources to support renewables integration. This paper is a microgrid study of the University of California, San Diego (UCSD), a large campus with diverse distributed energy resources (DER). It highlights a microgrid’s “missing money”, which sharply differs from a natural-gas-fired generation plant’s “missing money” due to large-scale wind generation development. In response to UCSD’s expressed financial interest, we assess three strategies for integrating renewable generation: peak load shifting, onsite photovoltaic firming and grid support. While all three strategies are technically feasible and can be cost-effective under certain conditions, California’s current tariff structures and market prices do not offer sufficient incentives to motivate UCSD to offer these services. Alternative incentive mechanisms, which may resemble to those used to encourage renewable generation development, are necessary to induce UCSD’s DER offer for renewables integration. Such mechanisms are also relevant to commercial and industrial loads across California, including the vast combined heat and power resources.
ISSN:0306-2619
1872-9118
DOI:10.1016/j.apenergy.2016.02.053