CITY OF HOBOKEN NEW JERSEY TOWN CENTER DISTRIBUTED ENERGY RESOURCES MICROGRID FEASIBILITY STUDY 94 WASHINGTON STREET HOBOKEN, NJ 07030 ENGINEER 520 SOUTH BURNT MILL ROAD VOORHEES, NEW JERSEY 08043 BPU SUBMISSION August 24, 2018 2C17556‐RPT‐001 REVISED SUBMISSION January 24, 2019 TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY & BACKGROUND 5 2.0 PROJECT DESCRIPTION 9 2.1 Project Applicant 9 2.2 Project Partners 10 2.3 Total System Utility Load Analysis 21 2.4 Project Location 25 2.5 Ownership/Business Model 27 3.0 PROPOSED MICROGRID SYSTEM DESCRIPTION 28 3.1 Power Distribution System 28 3.2 Distributed Generation Resources 38 3.3 Distributed Automation Control System 45 4.0 MICROGRID COMMERCIAL STRUCTURE 51 4.1 Utility Commercial Issues 54 4.2 Energy Savings Potential (Electric Power) 60 4.3 Compliance with BPU Clean Energy Funds 61 5.0 COST ESTIMATE 61 6.0 FINANCIAL PRO-FORMA 62 6.1 Combined Heat and Power 62 6.2 Distributed Generation 63 6.3 Solar PV 63 6.4 Battery Storage System 63 6.5 Pro-Forma Results 64 6.6 Phased Approach 65 6.7 DER-CAM Model 66 7.0 PROJECT FINANCING 68 8.0 PROJECT BENEFITS 68 8.1 Performance Excellence in Electricity Renewal (PEER) 69 8.2 Project Next Steps 69 9.0 SCHEDULE & PERMITTING 70 10.0 CURRENT ELECTRIC & NATURAL GAS UTILITY UPGRADES 71 11.0 APPENDIX 72 REVISION HISTORY: the following major revisions have been made since the last submission to the BPU on 8/24/18: Section 2.3 was added to address the total system loads of the microgrid. Specific graphs from Appendix C were added to this section to better illustrate the total system electric & thermal loads. Section 6.5 was added to address the project financial pro‐forma results. Specific values from Appendix E were added to new tables to identify the project financial analysis. Section 6.6 was added to include results from additional financial pro‐formas developed to identify the savings of constructing specific microgrid features in phases. The results of these pro‐formas were also added to Appendix E. Section 6.7 was added to identify the results of the Rutgers University DER‐CAM modeling. An additional Appendix F was added to include the tables and graphs developed by Rutgers University. Section 9.0 was revised to include additional detail on permitting. 2 Abbreviations AAA Authentication, Authorization, Accountability AC Alternating current ATS Automatic transfer switch BGS Basic Generation service BGS‐ CIEP Basic Generation Service‐ Commercial and industrial energy pricing BHP Brake horse power BPU Board of Public Utility CEP Clean Energy Program CHP Combined heat and power CIA Confidentiality, integrity and availability CIEP Commercial and industry energy pricing CSP Curtailable service provider DC Direct current DCA Department of Community Affairs DER‐CAM Distributed Energy Resources – Customer Adoption Model DG Distributed generation DX Direct Expansion DoD Depth of Discharge ECM Energy conservation methods EDC Electric distribution company EDECA Electrical discount and energy competition act ESIP Energy Savings Improvement Program FEMA Federal Emergency Management Agency GDC Gas Distribution company GLP General Light and Power GOOSE Generic object oriented system‐wide events HMI Human Machine interface HSR High availability seamless redundancy HUMC Hoboken university medical center HVAC Heating ventilation and air conditioning ICS Industrial control systems IEDS Intelligent electric devices IEEE Institute of Electrical and Electronics Engineers ISO International standard organization kW Kilowatts kV Kilovolts KVA Kilovolt‐amperes LPL Large power and light PCC Point of common coupling PJM Pennsylvania, Jersey, Maryland Power Pool PRP Parallel redundancy protocol PSE&G Public Service Electric & Gas PTP Precision time protocol PV Photovoltaic RLM Residential load management RS Residential Service SCR Selective catalytic reduction SoC State of Charge SRECS Solar renewable energy certificates SUT Sales and Use Tax TOU Time of use TPS Third party supplier V Volt VFDs Variable frequency drive VLAN Virtual local area network WAN Wide area network 4 1.0 EXECUTIVE SUMMARY AND BACKGROUND The purpose of the Hoboken microgrid project is to power critical facilities when electricity from the larger grid is not available. Critical Facilities are defined by the essential nature of their service delivery – not necessarily just emergency services or ambulatory care – but facilities that absent their services the city would cease to function. The purpose of the feasibility study was to explore design alternatives within a financially viable business model to support installation of distributed energy resources, distribution infrastructure and control technologies. In total, 29 locations owned by several different project partners were studied in this report. The study area falls into two corridors that are defined by the Washington Street Corridor, and the Housing Authority Corridor. Each corridor will serve critical facilities, with Washington St. having the distinction of being predominantly above the existing .1% design flood elevation. The main control and dispatch for the microgrid are proposed for City Hall, and will be able to control both corridors. The Washington Street corridor is estimated to cost $30.5M at full build out and will be capable of dispatching approximately 7.4 MW of distributed energy resources that include natural gas & diesel reciprocating engines, combined heat and power, as well as solar + batteries. The Housing Authority corridor is estimated to cost $11.5M at full build out and will be capable of dispatching approximately 1 MW of distributed energy resources that include natural gas reciprocating engines. In addition to applying the best engineering practices, the project has been registered for PEER certification through the USGBC. Background The City of Hoboken is located in Hudson County New Jersey, along the Hudson River. The city is approximately one square mile with a population of over 55,000 residents. A significant portion of the city is positioned within the 1.0% floodplain and is susceptible to both coastal and stormwater flooding. During heavy rain events the city’s combined sewer overflow system becomes overwhelmed resulting in shallow urban ponding and wet weather discharges of sewerage to the Hudson River. On October 29, 2012 Super Storm Sandy exposed many of these vulnerabilities. The storm produced less than an inch of rain in the city; however, the 13 foot storm surge from the Hudson River resulted in 8 feet of flooding. Damages were estimated in the Billions. The City responded to Sandy with numerous approaches to increase adaptive capacity and build resilience that include: 1. A $230 million grant from the United States Department of Housing and Urban Development allocated to the New Jersey Department of Environmental Protection on behalf of Hoboken as part of its Rebuild by Design initiative. Rebuild by Design is a comprehensive flood protection project that addresses coastal storm surge and rainfall flooding. The coastal storm surge risk reduction project is expected to be completed in 2022. 2. Comprehensive long term planning efforts: o The Building Resilience Design Guidelines focused on consolidating numerous technical resources that reduce flood risk in building design and construction. o Improvement to Codes Ordinances and Standards around stormwater management 5 o A resilient Capital Improvements Plan, which is being updated in 2018 o A hazard mitigation element with cost benefit analysis, an update to the emergency operations plan, and continuity of operations plan o An Open Space and Historic Preservation element that identified mitigation strategies for historic properties, and improved the City’s understanding of recreation and open space opportunities to reduce flood risk. Adoption of the Green Building and Environmental Sustainability Element of the Masterplan in 2017, which articulates the City’s resiliency and sustainability approaches, projects and goals. A collaboration with PSE&G to consolidate and elevate all 3 substations into two state of the art substations. PSE&G also replaced all low pressure natural gas lines, with high pressure gas mains. These projects combined represent approximately $500,000,000 of investment. A design investigation by Sandia National Laboratories supported by the Department of Energy to install a municipal microgrid. The microgrid concept was developed because preceding, during, and following Superstorm Sandy the city’s electrical distribution system was de‐energized, and critical services lost the ability to function. To address municipal and citizen concerns related to prolonged electrical outages, and specifically the effect these outages have on the health and safety of urban residents, a memorandum of understanding was drafted between and among the Department of Energy Office of Electricity Delivery and Energy Reliability, the New Jersey Board of Public Utilities, Public Service Electric and Gas Company, and the City of Hoboken, New Jersey. The subject of the memorandum was to enhance electric power resiliency using advanced system design. Sandia National Laboratories was engaged to prepare a design summary that would enable the city to maintain power to critical facilities under a design basis threat. In the case of Hoboken, this threat was established as a prolonged power outage of at least 7 days, including a flood event exceeding the 100 year flood elevation, as established by the Federal Emergency Management Agency. In September of 2014, Sandia