IEEE Electrification Magazine - March 2014 - 51

problem is to "determine the generator set points so
that the overall cost of power generation is minimized, while respecting limits on generator's capacity
and transmission power flow
constraints." for most utilities,
the traditional unidirectional flow
of electricity shapes system controls, analytics, energy markets,
and operations. with the growth
of downstream demand-side
management, distribution utilities are now looking to defer conventional t&D costs. con edison
analyzed three years of historical
data from a 7.5-mw chP system
at 4-s intervals before they would
include the source in their longterm planning.
xx
Distribution system management:
when integrating large numbers
of microgrids, the communications, analytical, and operational
requirements are more complex
and time sensitive because of the narrower margins of
relatively small supply resources (fewer than 10 mw)
relative to traditional supply sources (hundreds of
mws). the distribution system operator needs
advanced communications and distribution management system (Dms) software to maintain a fleet of
microgrids (figure 6).

challenges of thousands, or even millions, of customers
that are both consumers and suppliers of energy.

Conclusion
although a framework can be envisioned of a net-zero energy distribution system based upon a fleet of
microgrids for supply, it will take a
considerable amount of effort to attach
hard numbers to each component of
the system and determine its overall
economic viability in the marketplace.
tradeoffs may be needed in the marketplace to balance supply, reliability,
efficiency, and economics. a fleet
microgrid-enabled distribution system
may increase the short-term Lcoe
while at the same time bringing counter-balancing local economic benefits.
in some markets with high retail rates,
a microgrid-enabled distribution system may be received more favorably,
especially in markets were power resiliency has also become a high priority. whatever happens,
community power will never be the same again.

The microgrid fleet
that we propose is a
simple PV solar and
combined heat and
power (CHP) hybrid
system based on
CERTS architecture
that embeds primary
control in each
distributed resource.

xx
Transactive local energy market structures and

operations: even if the technical power management
challenges created by microgrid supply and distribution management can be overcome efficiently, the
question remains as to whether this can be accomplished economically and equitably for all participating
parties. transactive energy market concepts have been
developed to solve the participation and economic

Figure 6. The distribution control room using ADMS. (Photo courtesy
of Schneider Electric.)

For Further Reading
advanced energy economy institute (aeei). (2013, apr.).
accelerating advanced energy in america: Perspectives of
advanced energy business leaders on u.s. energy Policy. Pa
consulting group, inc., prepared for: advanced energy
economy institute (aeei). [online]. available: http://www.
aee.net/acceleratingae
agora energiewende. (2013, feb.). 12 insights on germany's
Energiewende. [online]. available: http://www.agoraenergiewende.org/topics/the-energiewende/detail-view/
article/12-insights-on-the-energiewende/
K. beckman. (2013, oct.). rwe sheds old business
model. embraces energy transition. [online]. available:
http://www.energypost.eu/exclusive-rwe-sheds-oldbusiness-model-embraces-energy-transition/
r. binz. (2013, June 26). utility sector disruptive changes
(in eleven pictures), Public Policy consulting, Presentation
at: electric markets impact michigan's energy Decisions,
ann arbor, mi. [online]. available: http://erb.umich.edu/
slidePresentations/energy-futures-conference-2013/binzmichigan-Presentation062613.pdf
r. binz and r. Lehr. (2013, mar. 28). new utility business
models: implications of a high-penetration renewable
energy future. Presented to the western governor's association. [online]. available: http://www.westgov.org/wieb/
meetings/crepcsprg2013/briefing/Lehr-binz.pdf
a. bredenberg. (2011, June 27). german combined power
plant demonstrates real-time integration of renewables.
Thomasnet News, Green & Clean Journal. [online]. available: http://news.thomasnet.com/green_clean/2011/06/27/

IEEE Electrific ation Magazine / MARCH 2 0 1 4

http://www http://www.aee.net/acceleratingae http://www.agora http://www.energiewende.org/topics/the-energiewende/detail-view/ http://www.energypost.eu/exclusive-rwe-sheds-old http://erb.umich.edu/ http://www.westgov.org/wieb/ http://news.thomasnet.com/green_clean/2011/06/27/

Table of Contents for the Digital Edition of IEEE Electrification Magazine - March 2014