Resilient Energy Subscription for financing Community Microgrids

  1. Facilities located within the footprint of a Community Microgrid have the opportunity to procure resilience, through a monthly $/kWh RES fee that is separate from any existing rate tariffs. A facility will pay the RES fee to reserve a guaranteed allotment of daily delivered energy when the traditional transmission and distribution grids are unavailable for any reason, including natural disasters, terrorism, and repairs.
  2. Through RES fees, the Community Microgrid owner-operators will recover the COS that is required to meet the contracted RES obligations. As is standard in the utility industry, COS is determined by the capital expenditures (capex) associated with Community Microgrid assets, operational expenditures (opex) associated with operations and maintenance (O&M), and an appropriate rate of return.

Value-of-resilience methodology as the basis for RES

  • Tier 1: Critical loads are life-sustaining and/or mission-critical loads that should be configured for 100% resilience.
  • Tier 2: Priority loads that should be maintained as long as doing so does not threaten the ability to maintain Tier 1 loads.
  • Tier 3: Discretionary loads that should be maintained only when doing so does not threaten the ability to maintain Tier 1 and Tier 2 loads.

Tiering loads within a facility

  • Tier 1: Usually about 10% of a facility’s total load.
  • Tier 2: Usually about 15% of the total load.
  • Tier 3: The remaining load, usually about 75% of the total load
  • Tier 1 loads: Online 100% of the time.
  • Tier 2 loads: Online at least 80% of the time.
  • Tier 3 loads: Online at least 25% of the time.

Tiering facilities within a Community Microgrid

How RES overcomes three key Community Microgrid challenges

  1. Sizing initial Community Microgrids to meet initial guaranteed resilience requirements.
  2. Expanding Community Microgrids to meet potential expansions in guaranteed resilience requirements within the initial Community Microgrid footprint.
  3. Expanding Community Microgrids to larger distribution grid footprints that include guaranteed resilience commitments to an expanding list of RES-contracted facilities.

Sizing the RES for a specific facility

  • Use the VOR123 methodology to assess general load tier percentages and determine how much RES it wants to procure. The facility can use the VOR123 methodology to determine whether the cost of the RES contract will be less than the VOR123-derived value.
  • Use empirical experience from past grid outages or some other method to determine its load tiering, VOR, and appetite for RES fees.

Facilities with existing solar that contract for RES

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Accelerating the transition to #renewableenergy and a modern grid through technical, policy, and project development expertise. www.clean-coalition.org

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Clean Coalition

Clean Coalition

Accelerating the transition to #renewableenergy and a modern grid through technical, policy, and project development expertise. www.clean-coalition.org

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