Quantification of Ancillary Service Provision by Microgrid

87 Pages·2015·1.32 MB·English

Quantification of Ancillary Service Provision
by Microgrid
Sijie Qin
Department of Electrical & Computer Engineering
McGill University
Montreal, Canada
November 2015
A thesis submitted to McGill University in partial fulfillment of the requirements for the
degree of Master of Engineering.
(cid:2)c 2015 Sijie Qin
2015/11/13
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Abstract
Ancillary services are the services necessary to maintain the stability and reliability of the
operation of a power system. Traditionally, ancillary services are provided by the large
power plants and devices with appropriate capability and capacity; however, with the im-
provement of microgrid technologies, researchers and industry have started to consider
providing these services through microgrids. This thesis investigates the economic feasibil-
ity of providing ancillary services by means of microgrids. To do so, a cost-benefit analysis
is performed for a microgrid project with ancillary service provision considered as a feature
function. Three typical ancillary services are considered for this thesis, frequency regu-
lation service under normal operations, spinning reserve service under contingency events
and voltage control service. The microgrid comprises a natural gas-fired microturbine com-
bined heat and power (CHP) generator, a wind turbine generator, a lithium-ion battery
storage system and an aggregation of dispatchable loads. The distributed energy resources
in the microgrid are modeled. A methodology is proposed to quantify the costs and ben-
efits associated with the provision of ancillary services. The stakeholders are defined and
the benefits are allocated to the appropriate stakeholders. The proposed methodology and
models are applied to a test network. A parametric study is also conducted to analyze the
impacts of the key parameters of the microgrid so that the optimal parameter settings of
the distributed energy resources can be determined. From the results obtained, it can be
concluded that ancillary service provision can bring more benefits to a microgrid project
in the context assumed in this thesis.
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R´esum´e
Les services syst`eme sont les services n´ecessaires pour maintenir la stabilit´e et la fiabilit´e
du fonctionnement d’un r´eseau ´electrique. Traditionnellement, les services syst´eme sont
fournis par les grandes centrales ´electriques et l’appareillage ´electrique appropri´e; cepen-
dant, comme les technologies micror´eseau se sont am´elior´ees, les chercheurs et les industries
ont commenc´e `a envisager de fournir ces services par les micror´eseaux. Cette th`ese ´etudie
la faisabilit´e ´economique de fournir des services syst`eme par le micror´eseau, en effectuant
une analyse couˆts-b´en´efices pour un projet de micror´eseau avec la fourniture de services
syst`eme consid´er´ee comme une fonction distincte. Trois services syst`eme typiques sont
consid´er´es dans cette th`ese, 1) la r´egulation de fr´equence en fonctionnement normal, 2) la
r´eserve tournante pour contingence et 3) la r´eglage de la tension. Le micror´eseau comprend
une microturbine combinant production de chaleur et d’´electricit´e (CHP) aliment´ee au gaz
naturel, une g´en´eratrice ´eolienne, un syst`eme de stockage utilisant des batteries de type
lithium-ion et une agr´egation des charges contrˆolables. Une mod´elisation appropri´ee des
ressources ´energ´etiques distribu´ees dans le micror´eseau est d´evelopp´ee et une m´ethodologie
est propos´ee pour quantifier les b´en´efices et les avantages associ´es a` la fourniture de ser-
vices syst`eme. Les parties prenantes sont d´efinies et les avantages sont attribu´es aux parties
prenantes appropri´ees. La m´ethodologie et mod`eles propos´es sont appliqu´es a` un r´eseau de
test. Une ´etude param´etrique est ´egalement men´ee pour analyser l’impact des param`etres
cl´es du micror´eseau de sorte que les param`etres optimaux des ressources ´energ´etiques dis-
`
tribu´ees peuvent ˆetre d´etermin´es. A partir des r´esultats obtenus, on peut conclure que la
fourniture des services syst`eme peut apporter des b´en´efices suppl´ementaires `a un projet de
micror´eseau dans le contexte d´efini dans cette th`ese.
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Acknowledgments
First and foremost, I wish to offer my sincerest gratitude to my supervisor, Professor G´eza
Joo´s, who has supported me thoughout my thesis.
Besides my supervisor, I would like to thank Professor Raad Jassim, for his guidance in
the knowledge of engineering economics.
IalsowanttotakethisopportunitytothankPhDstudentMikeQuashie, forthediscussions
and collaborations we had.
My gratitude also goes to all my labmates in the power lab, for the time we spent together.
Financial support provided by the NSERC Smart Microgrid Network for a project on cost-
benefit analysis of microgrids led by Professor G´eza Joo´s is acknowledged.
Last but not least, I would to thank my wife, Xingyu, for her support, companionship and
inspiration during my graduate study.
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Contents
1 Introduction 1
1.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Literature review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2.1 Frequency and Voltage Control Services . . . . . . . . . . . . . . . 3
1.2.2 Ancillary Service Provision by Microgrid . . . . . . . . . . . . . . . 5
1.3 Related Previous Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.4 Problem statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.5 Thesis Scope and Contribution . . . . . . . . . . . . . . . . . . . . . . . . 8
1.6 Thesis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2 Cost-Benefit Analysis and Quantification Methodology 11
2.1 Cost-Benefit Analysis Framework and Discounted Cash Flow Criteria . . . 11
2.2 Stakeholders and Benefit Allocation . . . . . . . . . . . . . . . . . . . . . . 14
2.3 Quantification of Ancillary Services . . . . . . . . . . . . . . . . . . . . . . 14
2.3.1 Frequency Control Service . . . . . . . . . . . . . . . . . . . . . . . 14
2.3.1.1 Generating Unit . . . . . . . . . . . . . . . . . . . . . . . 16
2.3.1.2 Energy Storage System . . . . . . . . . . . . . . . . . . . . 19
2.3.1.3 Load . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.3.2 Voltage Control Service . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.3.3 Investment Deferral from Ancillary Service Provision by Microgrid . 23
3 Distributed Energy Resources Modeling 25
3.1 Natural Gas-Fired Microturbine CHP Generator . . . . . . . . . . . . . . . 25
3.1.1 Modeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.1.2 Capability and Profitability on Providing Ancillary Services . . . . 29
Contents v
3.2 Wind Turbine Generator . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.2.1 Modeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.2.2 Capability and Profitability on Providing Ancillary Services . . . . 31
3.3 Lithium-ion Battery Storage System . . . . . . . . . . . . . . . . . . . . . 33
3.3.1 Modeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
3.3.2 Capability and Profitability on Providing Ancillary Services . . . . 37
4 Case Study 38
4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
4.2 Base Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
4.3 Microgrid Case 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
4.4 Microgrid Case 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
4.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
5 Parametric Study 55
5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
5.2 Frequency Regulation Capacity of Microturbine CHP Generator At Low
Distributed Generation Penetration Level . . . . . . . . . . . . . . . . . . . 55
5.3 DG Settings at High Penetration Level . . . . . . . . . . . . . . . . . . . . 57
5.4 Inverter Sizing of WTG . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
5.5 Frequency Regulation vs. Spinning Reserve for ESS . . . . . . . . . . . . . 62
6 Conclusion 64
6.1 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
6.2 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
6.3 Future Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
A Cost-Benefit Analysis Calculation 66
A.1 Present Value and Annual Value of An Investment . . . . . . . . . . . . . 66
A.2 Levelized Cost of Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
References 68
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List of Figures
1.1 Some key ancillary services . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Frequency control during contingency event [6] . . . . . . . . . . . . . . . . 4
2.1 Ancillary service stakeholders, benefits and contributing factors to the benefits 15
3.1 Part load efficiency of a microturbine CHP system . . . . . . . . . . . . . . 27
3.2 Effective Electrical Efficiency of A Microturbine Generator . . . . . . . . . 29
3.3 WTG active power output with random wind speed . . . . . . . . . . . . . 32
3.4 Lithium-ion battery cycle life vs. DoD . . . . . . . . . . . . . . . . . . . . 36
4.1 Hourly load variation of IEEE RTS - 1996 . . . . . . . . . . . . . . . . . . 40
4.2 Peak shaving by ESS in Year 1 . . . . . . . . . . . . . . . . . . . . . . . . 45
4.3 Comparison of annual peak import power . . . . . . . . . . . . . . . . . . . 47
4.4 Cost Component of Microgrid Case 2 . . . . . . . . . . . . . . . . . . . . . 52
4.5 Revenue from Ancillary Service Provision for Microgrid Owner . . . . . . . 53
4.6 Annual Cost Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
4.7 Annual Benefit Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . 54
5.1 Total annual cost for customer vs. frequency regulation reserve quantity of
microturbine CHP generator, with microturbine CHP generator = 1 MW,
WTG = 2MW, ESS = 1 MWh . . . . . . . . . . . . . . . . . . . . . . . . 56
5.2 Annual Cost for Customer vs. WTG Capacity vs. Microturbine CHP Gen-
erator Capacity, with ESS = 1 MWh . . . . . . . . . . . . . . . . . . . . . 58
5.3 Total annual cost for customer vs. frequency regulation reserve quantity of
microturbine CHP generator, with microturbine CHP generator = 2 MW,
WTG = 5MW, ESS = 1 MWh . . . . . . . . . . . . . . . . . . . . . . . . 59
List of Figures vii
5.4 Total annual cost for customer vs. frequency regulation reserve quantity of
microturbine CHP generator, with microturbine CHP generator = 2 MW,
WTG = 4MW, ESS = 1 MWh . . . . . . . . . . . . . . . . . . . . . . . . 59
5.5 Total annual cost for customer vs. frequency regulation reserve quantity of
microturbine CHP generator, with microturbine CHP generator = 3 MW,
WTG = 5MW, ESS = 1 MWh . . . . . . . . . . . . . . . . . . . . . . . . 60
5.6 Comparison of annual peak import power . . . . . . . . . . . . . . . . . . . 61
viii
List of Tables
3.1 Part load efficiency of a microturbine CHP system . . . . . . . . . . . . . . 28
3.2 Effective Electrical of A Microturbine CHP Generator . . . . . . . . . . . . 28
3.3 Lithium-ion battery cycle life vs. DoD . . . . . . . . . . . . . . . . . . . . 35
4.1 BC Hydro Distribution Tariff . . . . . . . . . . . . . . . . . . . . . . . . . 40
4.2 Electricity Bill of Base Case . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4.3 Microturbine CHP Generator Parameters . . . . . . . . . . . . . . . . . . . 43
4.4 Wind Turbine Generator Parameters [76] . . . . . . . . . . . . . . . . . . . 43
4.5 Lithium-ion Battery Parameter . . . . . . . . . . . . . . . . . . . . . . . . 43
4.6 Electricity Bill of Microgrid Case 1 . . . . . . . . . . . . . . . . . . . . . . 44
4.7 After Tax Annual Capital Expenditure and Operating Cost of Microgrid
Case 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
4.8 BC Hydro Transmission Tariff . . . . . . . . . . . . . . . . . . . . . . . . 48
4.9 Electricity Bill of Microgrid Case 2 . . . . . . . . . . . . . . . . . . . . . . 49
4.10 After Tax Annual Capital Expenditure and Operating Cost of Microgrid
Case 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
4.11 Revenue from Ancillary Service Provision . . . . . . . . . . . . . . . . . . . 50
5.1 Reserve Quantity vs. Generator Efficiency . . . . . . . . . . . . . . . . . . 56
5.2 Cost comparison of oversizing a 1000 kVA inverter of DER and using capac-
itor banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
5.3 Comparison of Frequency Regulation Service and Spinning Reserve Service
for ESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
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List of Acronyms
AGC Automatic Generation Control
AS Ancillary service
BES Bulk Energy Supplier
CCP Common Clearing Price
CERTS Consortium for Electric Reliability Technology Solutions
CHP Combined Heat and Power
CRF Capital Recovery Factor
DCF Discounted Cash Flow
DER Distributed Energy Resource
DG Distributed Generator
DNO Distribution Network Operator
DoD Depth of Discharge
EAV Equivalent Annual Value
ESS Energy Storage System
EV Electric Vehicle
FERC Federal Energy Regulatory Commission
GC Grid Customer
GHG Greenhouse Gas
IG Induction Generator
IPP Independent Power Producer
LCOE Levelized Cost of Energy
MGC Microgrid Customer
MGCC Microgrid Central Controller
MPPT Maximum Power Point Tracking