Design P2P Energy Trading
Total Page:16
File Type:pdf, Size:1020Kb
Design a Peer to Peer Energy Trading Model: Can Residents Trade Excess Renewable Solar Energy with Industrial Users? William Jackson, Lara Basyouni, Joseph Kim, Anar Altangerel, Casey Nguyen Microgrid Exchange System After 100%, energy goes into the ground. Excess Renewable Solar Excess Renewable Wasted Solar Energy Energy Solar Energy Area =2503 kWh Area =520 kWh 1 Overview • Context Analysis • Stakeholders • Problem/Need Statement • Confluence Interaction Diagram • Gap Analysis • Concept of Operations • IDEF0 Diagram • Model Simulation • System Requirements • Physical Hierarchy • Model Results • Model Verification Plan • Graphical User Interface • Business Case • System Applications • Conclusion 2 Context Analysis-Cheap Solar • Installed Solar: Price of Solar Energy Trend is projected to drop Opportunity: Lower upfront solar costs goes down to below $50 per mWh in 2024 from $350 per mWh in 2009 . for residential users. Challenge: Technology gap still exists with distribution battery energy storage systems. Those limitations on storage capacity could result in excess solar energy production during peak daytime hours going into the ground. Wasted Solar Energy 1200.00 1000.00 ) 800.00 W n Residential k ( Demand y 600.00 g r e n Residential n “The greatest challenge that solar power faces is energy storage. E 400.00 Solar Generated GMU ENGR Solar arrays can only generate power while the sun is out, so they 200.00 Demand can only be used as a sole source of electricity if they can produce 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 and store enough excess power to cover the times when the sun is Hours hidden.” Source: The Energy Collective 3 Source: Bloomberg News: Solar Energy Source: Green Technical3 Media Source: NIST: Metrology for Distributed Smart Grid Storage Systems utilizing Advanced Battery Technology Context Analysis-Rising Energy Demand GMU Engineering Load Duration Diagram Rising Energy Demand: Poses potentially higher costs during peak demand, lower 400 capacity, higher levels of dependency from 350 300 regional energy providers, greater risk to the e u 250 l a V 200 traditional grid, and higher risk of power h 150 W outages. k 100 100% of the Day GMU 50 0 Engineering is at a minimum 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% of 250 kWh per hour per day % of Time Load Exceeds kWh Value annually. GMU Engineering Daily Yearly Load/Demand Profile of an Energy System/Utility We found this energy demand signature consistent in analyzing over 8600 lines of 400 ) 350 W historical data in a 12 month period. k 300 ( d 250 n a 200 m e 150 D Opportunity: Unutilized residential renewable solar / d 100 a o 50 energy could lower the energy demand from utility L 0 providers, lower costs for industrial users, and serve a M M M M M M M M M M M M A A A A A A P P P P P P 1 1 3 5 7 9 1 as a revenue stream for residents. 1 3 5 7 9 1 1 4 Hours of a day 4 Context Analysis-Rising Energy Costs Potential Savings Potential Savings of George Mason University Monthly Energy Costs $64,079.39 of $102,271.81 12000000 $600,000.00 y = 10.933x R² = 0.0005 Energy Cost Snapshot 10000000 $500,000.00 August 2016- s r 8000000 $400,000.00 a l l Sepetember 2017 o h D W y = 184.35x n i k Average R² = 0.00051 s n t i 6000000 $300,000.00 s y o g 262,866 kWh per day C r e y l n h E t over 14 months n 4000000 $200,000.00 o M Spring Summer 2000000 Fall Winter $100,000.00 0 $0.00 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 kWh Monthly Costs Linear (kWh) Linear (Monthly Costs) Linear (Monthly Costs) Opportunity: Potential Unused Renewable Solar Energy could levelized swings in monthly energy bills and utilized as a revenue with energy trading for residential 5 users. 5 Problem and Need Statements Problem: • Residents with solar panels generate electricity during daylight hours when the demand for electricity is at its lowest. In locations without net metering, the excess energy is not taken in by the utility and is wasted into the ground. Need: • There is a need for a P2P energy trading platform to mitigate exponential peak energy demand, stabilize monthly energy costs, reduce wasted energy, and utilize excess solar PV energy. The system is designed in which residences with available excess solar energy can pool their energy generated in daylight hours and trade at their own discretion. 6 What is a Microgrid? • Definition: “ A Microgrid is a group of interconnected loads and distributed energy resources within a clearly defined electrical boundaries that acts as a single controllable MEX entity with respect to the grid and can connect and disconnect from the grid to enable it to operate in both grid-connect or island mode.” • Nanogrid (Level 1)—serves a single building or load. • Campus Microgrid (Level 2) —customer owns and maintains assets to include distribution system behind the meters. • Community Microgrid (Level 3) —integrated into utility network with same technologies as campus microgrids but utility controls the system and distributed energy assets operating within the regulatory framework. 7 Source: “Deploying Solar-Plus-Storage Microgrids” by Colavito and Michael 7 Microgrid Energy Exchange System (MEX) MEX is a system designed to connected wasted renewable solar energy between residential producers and industrial consumers. The objective to take advantage of solar energy that would otherwise go into the ground when battery systems reaches to its maximum capacity during daylight hours when residential demand is at its lowest point (”Bathtub Effect”) and distribute that energy to an industrial user with a consistent energy demand. 8 Confluence Interaction Diagram Opportunity: The intersection of influencing environment factors provide the impetus of the Microgrid Exchange System to capitalize on unused renewable solar that would otherwise be wasted into the ground. 9 9 Context Analysis-Homeowners Associations General Statistics 1. 21.3 percent of the US are in community associations representing a value of $5.545 trillion dollars in value. 2. HOAs collected $88 billion in assessments from homeowners. Assessments include management services, utilities, security, insurance, common area maintenance, landscaping, capital improvement projects, and amenities. 3. Virginia has a total of 8,600 HOAs representing 1,735,000 residents as of 2016. 4. Virginia ranks 12th in the number of HOAs with Florida ranked as 1st with 47,900 HOAs. 5. The trend is continued strong growth of HOAs in the US and Virginia. Homeowners Association in the US 400,000 350,000 300,000 250,000 200,000 150,000 Numberof HOAs The trend is expected to continue with the growth of HOAs to 100,000 capitalize on opportunities to expand community solar 50,000 systems. 0 1970 1980 1990 2000 2002 2004 2006 2008 2010 2011 2012 2013 2014 2015 2016 10 Years Stakeholder’s Diagram Tensions [RED] 1. Regulators may classify the solar HOA development as a utility substation subjecting them zoning ordinances and restrictions. 2. County would be regulating body for zoning but solar HOA may require legislative approval under Code of Virginia. 3. Energy Companies could raise potential risk of solar HOA connected to the traditional grid network. Resolution of Tensions Developers and Builders establishing public-private partnerships, power purchase agreements with utility providers, and outline solar PV guidelines in the Articles of Incorporation along with the Covenants, Conditions, and Restrictions (CCR) for the HOA early in the process. 11 11 “Gap” Analysis • Gap for Residential and Industrial Users: • The gap is the ability to use potential excess solar PV energy production and avoid wasted energy produced during daylight hours from residential users to offset peak demand of industrial users to stabilize cost in overall electrical energy costs over time. • Win-Win Analysis: Lower all regulatory restrictions for residential solar PV systems collectively to trade with an industrial user, favorably renewable energy solar market on peer-to-peer energy trading, and continual use of passive renewable energy from residential users to eliminate unutilized wasted solar energy. Renewable Solar Energy Going to Waste Wasted Solar Energy Residential User Demand 1200.00 1000.00 800.00 Industrial User Demand n Residential Demand 600.00 n Residential Energy Energy (kW) 400.00 Solar Generated GMU ENGR 200.00 Demand 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hours 12 MEX Concept of Operations (Current Usage and Billing) Residential User Current Usage and Billing Process: • Consume energy through appliance loads throughout their household to include their HVAC. • Local Utility Provider (Dominion Virginia or NVEC) verifies consumption via metered system. • Local Utility Provider bills the residents for use on a monthly basis. • Customers are charged higher costs on a two-tiered rate for peak use (typically between 2pm -10pm daily) and off-peak rates (11pm to 10am daily). • Energy bills can vary significantly from month to month. 13 13 Source: Dominion Virginia Power MEX Concept of Operations (Proposed System) Wasted Solar Energy HOA Energy Usage and Billing Process: 1200.00 • Residents pay a flat rate for energy use each month 1000.00 over a 25 year period. ) 800.00 W n Residential k • HOA would use excess solar energy to trade with GMU ( Demand y 600.00 g r or an industrial user.