DOE Signals Microgrid Funding Opportunity for Remote, Underserved Communities
January 9, 2023
by Peter Maloney
APPA News
January 9, 2023
The Department of Energy (DOE) has published a notice of intent (NOI) on a possible upcoming funding opportunity for microgrids for underserved and Indigenous communities in remote and islanded regions of the United States.
The NOI (No. DE-FOA-0002933), issued by the DOE’s National Energy Technology Laboratory (NETL) on behalf of the DOE Office of Electricity, is for informational purposes only, and the DOE said it is “not seeking comments on the information in this NOI at this time,” but merely publishing the notice so interested parties are aware of the DOE’s “intention to issue a Funding Opportunity Announcement (FOA) in the near future.”
If the FOA is released, approximately $9.1 million in federal funds is expected to be available for awarding between six and eight new agreements for projects that would have a maximum duration of two years. The DOE said it intends to make the FOA available by the end of January.
The DOE anticipates that the planned FOA would include the following areas of interest:
- modular microgrid systems with standardized control/communication functionalities for a range of system sizes and renewable contributions,
- multi-port medium voltage direct current converter research and development for integration of microgrids and clean energy, and
- regional initiatives to support microgrid deployments within underserved and indigenous communities.
The DOE anticipates making three or four awards under the first category, one under the second, and two or three under the third category and contributing up to $1.25 million, $2 million, and $700,000, respectively, for each award in each of the three categories.
To achieve the intended objectives, the DOE said each proposed microgrid project should range from 100 kilowatts (kW) to 10 megawatts (MW) of aggregated capacity and improve reliability, resilience, decarbonization, and affordability.
For the purposes of the FOA, the DOE defines “underserved communities” as low-income, energy-burdened populations in which 30 percent of the community is classified as low income and has median spending of household income on energy that is equal or greater than 6 percent.
If the FOA is released, the DOE will require concept papers from the applicants. Applicants whose concept papers are approved by the DOE will be invited to submit a full funding application; others will be discouraged from submitting a funding application.
The DOE stressed that concept papers “are not being requested under this NOI.”
FERC, NERC to Investigate Grid Operations During Recent Winter Storm
January 3, 2023
by Paul Ciampoli
APPA News Director
January 3, 2023
The Federal Energy Regulatory Commission, the North American Electric Reliability Corporation, and NERC’s Regional Entities in late December announced that they will open a joint inquiry into the operations of the bulk power system during the extreme winter weather conditions that occurred during Winter Storm Elliott.
The severe cold weather during the storm in December contributed to power outages affecting millions of electricity customers across the country, they noted.
FERC, NERC, and the Regional Entities will work with other federal agencies, states, and utilities to identify problems with the performance of the bulk power system and, where appropriate, recommended solutions for addressing those issues.
“This storm underscores the increasing frequency of significant extreme weather events (the fifth major winter event in the last 11 years) and underscores the need for the electric sector to change its planning scenarios and preparations for extreme events,” said NERC President and CEO Jim Robb.
In its 2022-2023 winter reliability assessment, NERC said that a large portion of the North American bulk power system was at risk of insufficient electricity supplies this winter.
California Grid Operator Adopts Policies to Support Grid Reliability
January 3, 2023
by APPA News
January 3, 2023
California Independent System Operator governing entities in December adopted policies and tools to support system reliability.
The ISO’s Board and Western Energy Imbalance Market Governing Body approved the Energy Storage Enhancements and Resource Sufficiency Energy Enhancements initiatives in a joint meeting.
Both proposals are scheduled to be implemented by this summer when extreme heat can create high
demand for energy resources during critical hours.
With nearly 5,000 megawatts of storage resources now connected to the grid, the storage enhancements proposal reflects the ISO’s continuing work with industry stakeholders to refine its policies ensuring batteries are accurately priced in the real-time market and fully charged to provide energy when needed, CAISO said.
The Energy Storage Enhancements proposal adopted by the Board and WEIM Governing Body encompassed several refinements, including:
- Improved accounting of a battery’s state of charge, certifying the resources are
available when needed; and - Improved tools for exceptional dispatch to make sure the resources are
adequately compensated so the batteries’ energy is available to meet load during
peak hours.
The Board and Governing Body also approved the WEIM Resource Sufficiency Evaluation Enhancement Phase 2 initiative to make sure the WEIM entities have enough capacity and energy in the real-time market to meet their demand before voluntarily transferring electricity to other participants.
NERC Warns Changing Nature of Grid Could Threaten Long-Term Reliability
December 20, 2022
by Peter Maloney
APPA News
December 20, 2022
To ensure reliability, planners and operators of the electric power system will need to be particularly vigilant about the changing characteristics of the grid, according to the latest Long Term Reliability Assessment from the North American Electric Reliability Corp.
“The bulk power system is undergoing unprecedented change on a scale and at a speed that challenges the ability to foresee and design for its future state,” John Moura, NERC’s director of reliability assessment and performance analysis, said in a statement. “Managing the transformation and proactively preparing for the role that the grid will play is the greatest challenge to reliability over the next 10 years.”
Without careful planning, five trends could negatively impact the ability of the bulk power system to service the energy needs in North America over the next 10 years, the assessment said. Those trends are integration of inverter-based resources, growth in distributed energy resources, generation retirements, flat transmission growth, and increased demand growth.
While most areas in North America are projected to have adequate electricity supply resources to meet demand associated with normal weather, reserves in some areas do not meet resource adequacy criteria, NERC said.
Those areas are the Midcontinent Independent System Operator, California, and Ontario.
MISO is projected to have a 1,300-megawatt shortfall next summer that could continue to grow throughout the 10-year assessment period as coal, nuclear and natural gas generation retire faster than replacement resources are connecting, the assessment said.
California is adding enough new resources and retaining sufficient key generators to alleviate near-term capacity shortages, but variable resource output and changing demand could cause energy shortfalls, ranging from 1 to 10 hours, NERC projected.
Ontario will have a reserve margin shortfall of 1,700 MW beginning in 2025 that will continue to grow throughout the 10-year assessment period because of generation retirements and lengthy planned nuclear maintenance outages.
In addition, extreme weather events, like 2021’s Winter Storm Uri, and recent widespread heat waves in the West will continue to strain electricity resources over major parts of North America, even in areas where traditional resource adequacy criteria are met. In particular, the assessment noted that the U.S. Western Interconnection, Texas, New England and the Southwest Power Pool area are at “elevated risk of shortfall” during extreme weather events.
To ensure continued reliability, NERC recommended that grid planners and regulators should:
- consider extreme scenarios in their resource planning and be mindful of all-hours energy availability analyses and prioritize the development of reliability standard requirements;
- increase their focus on the technical needs – including data sharing, models and information protocols – to allow the bulk power system to operate with increased amounts of distributed energy resources, which can improve local resilience at the cost of reduced operator visibility into loads and resource availability;
- address the reliability needs of interdependent electricity and natural gas infrastructures by enhancing the guidelines for assessing and reducing risks through system and resource planning studies and develop appropriate reliability standards requirements to ensure corrective actions are put in place.
Last month, in its Winter Reliability assessment, NERC warned of insufficient electricity supplies this winter, identifying the Electric Reliability Council of Texas, MISO, SERC-East, Western Electricity Coordinating Council-Alberta, Northeast Power Coordinating Council (NPCC)-Maritimes, and NPCC-New England as the regions most at risk.
APPA “Beyond Disappointed” Transformer Production Funding not Included in Bill
December 20, 2022
by Paul Ciampoli
APPA News Director
December 20, 2022
The American Public Power Association “is beyond disappointed that funding to ramp up production of distribution transformers through the Defense Production Act” has not been included in the Dec. 19, omnibus appropriations bill, Joy Ditto, President and CEO of APPA, said on Dec. 20.
“This is a critical issue that several industries have raised, and on which the President has called for action. Despite our collective pleas over the past year to address this issue, supplies continue to dwindle, demand far outpaces production, and if action is not taken in the near term, the U.S. will face electric reliability concerns,” she said.
Electricity “is vital and underpins all aspects of our modern society. Without the reliability ensured by a steady supply of distribution transformers, we can’t accomplish any of our energy goals—including transitioning to cleaner energy sources or growing a strong economy,” Ditto said.
She said that APPA will continue to work “with our electric utility brethren and government partners to address this situation. We will also continue outreach to transformer manufacturers to seek their input on ways to step up to the challenge of adequately meeting the demand for these critical grid components.”
In recent comments submitted to the Department of Energy, APPA, the Edison Electric Institute, and the National Rural Electric Cooperative Association, said that DOE should use Defense Production Act authorities to prioritize distribution transformers, large power transformers, and other critical grid components ahead of other technologies, and it should act quickly to alleviate the most acute supply chain challenge with distribution transformers.
Groups Urge Congressional Appropriators to Fund DPA Authorities to Address Supply Chain Shortages
APPA and the electric trades augmented their comments on DPA with a letter for action on Capitol Hill. The electric trades, along with building trade organizations, recently sent a joint letter to Congressional Appropriations leadership requesting funding for DPA.
The groups requested that Congress appropriate $1 billion this year for the implementation of DPA authorities to specifically address the supply chain crisis for electric distribution transformers.
Puerto Rico Substation Modernization Initiative Gets Underway
December 7, 2022
by Paul Ciampoli
APPA News Director
December 7, 2022
LUMA Energy recently announced the launch of Puerto Rico’s federally funded Substation Modernization Initiative (SMI) with the modernization and reconstruction of the Manatí Substation in the municipality of Manatí.
In June 2020, Puerto Rico Electric Power Authority (PREPA) and the Puerto Rico Public-Private Partnership Authority selected LUMA Energy to operate, maintain and modernize the electricity transmission and distribution system of PREPA for fifteen years through a public-private partnership.
The Manatí SMI project represents an investment of more than $2.3 million in federal funding approved for phase one and over $55 million in federal funding estimated for the entire rebuild of the Manatí substation.
At the SMI launch event with LUMA were representatives of the Central Office for Recovery, Reconstruction and Resiliency and the Federal Emergency Management Agency (FEMA).
As part of the first SMI project, LUMA will replace outdated and obsolete oil circuit breakers with the industry standard 230-kilovolt gas circuit breakers, which it said will improve reliability and strengthen operational safety.
The Manatí SMI project, which is the first major work on this substation in the past 20 years, will include multiple phases with future improvements designed to replace aging equipment and reconfiguration of the entire substation, utilizing FEMA funding.
When completed, the Manatí SMI project will directly improve resiliency and reliability for the municipalities of Manatí, Barceloneta, Florida, Ciales, Morovis and Vega Baja, which are some of Puerto Rico’s most important industrial centers, LUMA noted.
Substation Modernization Initiative Details
The modernization of the Manatí substation is one of five substation modernization projects currently underway with a total of $58 million in already approved federal funds.
Among the projects that are estimated to begin construction in Q2 2023 include:
- Cataño substation project with an investment of $24 million,
- Costa Sur substation project (Phase 1) with an investment of $28 million,
- Culebra substation project with an investment of $2 million,
- Manatí substation project (Phase 1) with an investment of $2 million
- Vieques substation project with an investment of $2 million.
Over the last 17 months, LUMA has advanced federally funded FEMA projects, with 251 projects initiated representing over $6 billion in federally funded projects. A total of 23 projects are already under construction or in service.
Officials with Iowa’s Denison Municipal Utilities Detail Utility’s Response to Transformer Shortages
December 7, 2022
by Paul Ciampoli
APPA News Director
December 7, 2022
In a recent interview with Public Power Current, Rory Weis, General Manager of Iowa public power utility Denison Municipal Utilities (DMU), and Electric Manager Mike Wight, detailed how the utility is responding to delays for acquiring transformers due to ongoing supply chain challenges.
DMU’s Board of Trustees recently voted to allow utility staff to seek bids for a power transformer for a substation.
When asked to describe how supply chain issues have impacted the utility in terms of seeking bids for this transformer, Weis said, “the last substation transformer that we replaced approximately two years ago took close to a year to get. Supply chain issues now have pushed that out to, we’re being told, close to a two-year timeframe. We started the process a little sooner due to that fact so we can keep that project moving forward.”
Wight said that the utility has faced delays in orders for distribution transformers, noting that DMU ordered distribution transformers that were supposed to be delivered in July 2022 “and then we were told November and they’re still not here.” Wight said that the last email DMU got from its supplier indicated that the distribution transformer would be shipped this week.
With respect to the topic of pricing for transformers, Wight said that the last bid the utility received for the substation transformer was around $670,000 “and they’re estimating between $1.1 and $1.2 million on this one.”
As for the cost for distribution transformers, DMU has seen an increase in costs for 50 KVA single phase transformers in recent years.
With respect to the outlook for supply chain challenges and transformer delays, Weis said, “We hope we’re at the worst of it right now” and that it starts getting better, “but we have nothing to reference that to.”
Groups Urge DOE to Move Quickly to Alleviate Supply Chain Challenges With Transformers
December 6, 2022
by Paul Ciampoli
APPA News Director
December 6, 2022
The Department of Energy (DOE) should use Defense Production Act (DPA) authorities to prioritize distribution transformers, large power transformers, and other critical grid components ahead of other technologies, and it should act quickly to alleviate the most acute supply chain challenge with distribution transformers, the American Public Power Association (APPA), the Edison Electric Institute (EEI), and the National Rural Electric Cooperative Association (NRECA), said in joint comments submitted to DOE on Nov. 30.
The comments responded to a DOE request for information (RFI) that sought input from stakeholders on how DOE should use its authority under Title III of the DPA to address supply chain issues for clean energy technologies and distribution transformers.
“Recent surveys show our members are waiting longer than ever for transformers of all sizes, conductors, meters, circuit breakers, and other products,” the trade groups noted. “Industry cannot solve this challenge alone and thus we are pleased to see the government may use its authority under the DPA to address challenges created by shortages of transformers and other key components of the energy grid.”
“We respectfully urge DOE to prioritize distribution transformers, large power transformers, and other critical grid components ahead of the other technologies considered in the RFI,” APPA, NRECA and EEI said.
“Until we can address the shortages and supply chain challenges that are directly impacting reliability, we may not be able to accomplish many of the goals this administration has laid out for advancing clean technologies or expanding electrification,” they said.
“Most urgently, in the near-term, we urge DOE to act quickly to alleviate distribution transformer shortages, as this is the most acute supply chain challenge the electric industry is facing,” the groups said.
“We also ask DOE to establish longer-term efforts dedicated to supporting expanded domestic manufacturing capacity for large power transformers and other grid components that may take longer to address but are nonetheless critical to grid operations and therefore national security.”
The RFI comments also note that DPA authorities could be used for financial assistance, loan guarantees, and purchase commitments for transformer manufacturers that would help address labor shortages and the availability of materials that are hampering manufacturers’ ability to increase production.
Groups Urge Congressional Appropriators to Fund DPA Authorities to Address Supply Chain Shortages
APPA and the electric trades augmented their comments on DPA with a letter for action on Capitol Hill. The electric trades, along with building trade organizations, recently sent a joint letter to Congressional Appropriations leadership requesting funding for DPA.
The groups request that Congress appropriate $1 billion this year for the implementation of DPA authorities to specifically address the supply chain crisis for electric distribution transformers.
“Throughout 2022, the electric sector and representatives from residential and commercial building sectors have been calling attention to the unprecedented supply chain challenges both industries have been facing in procuring equipment used to maintain and grow the electric grid,” wrote APPA President and CEO Joy Ditto and leaders of the other groups. DPA authorities should be prioritized to immediately address increased production of distribution transformers.
President Biden Signs Legislation to Avert Railroad Strike
December 2, 2022
by Paul Ciampoli
APPA News Director
December 2, 2022
President Biden on Dec. 2 signed into law legislation that will avert a strike by railroad workers. In a recent letter to President Biden, Joy Ditto, President and CEO of the American Public Power Association (APPA), said that a work stoppage would “seriously threaten” the reliability of electric grids in public power communities.
The U.S. Senate on Dec. 1 voted 80-15 to prevent a strike by railroad employees by imposing contract terms on several unions that had rejected a tentative agreement struck with railroad companies in September. The House approved the imposition of contract terms on Nov. 30 by a vote of 290-137.
In a Nov. 18 letter to President Biden, Ditto noted that public power utilities rely on railroads to receive fuel, chemicals, and other equipment necessary “to provide their communities with essential electric service.”
A work stoppage “would seriously threaten the reliability of the electric grids in their communities, as well as further pressure already strained supply chains and increase prices at a time of already high inflation,” she said.
FERC Moves to Address Reliability Issues Tied to Growth of Inverter-Based Resources
November 27, 2022
by Paul Ciampoli
APPA News Director
November 27, 2022
The Federal Energy Regulatory Commission (FERC) on Nov. 17 took a number of actions addressing reliability issues tied to the growth of inverter-based resources (IBRs).
IBRs are solar photovoltaic, wind, fuel cell and battery storage resources that use power electronic devices to change direct current power, produced by generators, to alternating current power, to be transmitted on the bulk-power system. “As use of this technology grows, it is important to ensure that IBRs do not adversely impact the technical reliability of the grid,” FERC noted.
At the meeting, FERC Commissioners approved an order and a notice of proposed rulemaking (NOPR) containing directives and proposed directives to the North American Electric Reliability Corporation (NERC), to account for the increasing number of IBRs in the nation’s resource mix.
FERC Order
In the order, FERC directed NERC to submit within 90 days a work plan for Commission approval describing, in detail, how NERC plans to identify and register owners and operators of Bulk-Power System-connected IBRs that are not currently required to register with NERC under the bulk electric system definition but that in the aggregate have a material impact on the reliable operation of the Bulk-Power System.
Many IBRs connecting to the Bulk-Power System do not individually meet the current bulk electric system definition and, thus, are not registered with NERC, FERC staff said in a presentation. NERC’s Commission-approved bulk electric system definition defines the scope of NERC’s reliability standards and the entities subject to NERC compliance. This means that those IBRs are not required to comply with mandatory reliability standards or respond to NERC Alerts.
The order directs NERC to do three things. First, to complete modifications to its registration processes no later than 12 months after Commission approval of the work plan. Second, to identify all owners and operators of Bulk-Power System-connected IBRs that in the aggregate affect the reliable operation of the Bulk-Power System no later than 24 months of Commission approval of the work plan. And third, to register owners and operators of Bulk-Power System-connected IBRs that in the aggregate have a material impact on the reliable operation of the Bulk-Power System no later than 36 months after Commission approval of the work plan.
The order recognizes that smaller Bulk-Power System-connected IBRs may not present the same reliability impact in all circumstances as generation that has historically been registered. Accordingly, the order acknowledges that NERC may determine that the full set of reliability standard requirements otherwise applicable to generator owners and operators need not apply to all newly registered Bulk-Power System-connected IBR generator owners or operators.
NOPR
In the NOPR, FERC preliminarily finds that the reliability standards do not fully address the impacts of IBRs on the reliable operation of the Bulk-Power System.
The NOPR proposes to direct NERC to develop new or modified reliability standards that address four reliability gaps related to IBRs:
- Data sharing: Currently, IBR owners and operators do not consistently share IBR planning and operational data, and the information that is shared is often inaccurate or incomplete;
- Model validation: Once planners have IBR data, they must ensure the accuracy of such data to create valid system models;
- Planning and operational studies: Once planners and operators validate system models, they must include those models in planning and operational studies to assess the reliability impacts—both of individual and collective IBRs—on Bulk-Power System performance;
- Performance requirements: For example, IBRs’ ability to ride through system disturbances.
The NOPR proposes to direct NERC to submit a compliance filing within 90 days of the effective date of the final rule detailing a comprehensive standards development and implementation plan explaining how NERC will prioritize the development and implementation of new or modified reliability standards to address the reliability gaps.
The NOPR explains that NERC’s plan should take into account the risks posed to the reliable operation of the Bulk-Power System, standard development projects already underway, resource constraints, and other factors as necessary.
Comments in response to the NOPR are due 60 days after the date of publication in the Federal Register, with reply comments due 30 days later.
FERC also issued an order that approved reliability standards that are related to IBRs, which NERC proposed earlier this year.