1. RENEWABLE ENERGY INTEGRATION:
LESSONS FROM ISLAND GRIDS
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American Bar Association/New Jersey State Bar Association
Panel Discussion
September 24, 2013

2. Clinton Climate Initiative: Islands Diesel Reduction Program
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 Free advisor to governments to support
implementation of renewable energy projects
 Provide commercial, financial and legal advice
 Supporting geothermal, solar, wind, biomass,
distributed generation and efficiency projects
 Working with 20 island governments worldwide,
including the Pacific and African/Indian oceans

3. Islands at the Forefront: Power Prices & Climate Vulnerability
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POWER PRICES
 90-100% of power generated from diesel
 Power price typically ~ $0.40/kWh; can be
over $1.00/kWh
 Power costs are prohibitive for many
businesses
 Contribute to crippling levels of national debt
– 140% of GDP in Jamaica
CLIMATE VULNERABILITY
 Sea-level rise threatens low-
lying islands
 Hurricane Ivan (2004)
destroyed nearly 90% of
housing stock in Grenada
 Ocean acidification impacting
ocean-based industries
 Islands also at the forefront of demonstrating renewable energy penetration
Kiribati, Image by Ciril Jazbec

4. Vision: High Renewable Penetration
October 2012: Tokelau became 100% powered by renewables
1MW of solar coupled with storage
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Renewable energy: “The 4th Industrial Revolution”

5. Objectives of Renewable Energy Integration
 Achieve high penetration of renewables with consideration for cost, efficiency, and existing infrastructure
 Successful integration of intermittent renewables will maximize use of renewable and traditional assets:
- Renewable generation is used – not curtailed or dumped
- Traditional assets not required to do expensive idling or ramping
- Use most efficient “tool in the toolbox” for required services
 Storage as a solution for intermittent resource integration:
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Service Storage application
Frequency regulation Battery projects under development provide frequency regulation in PJM
Ramp control Technical requirements in Puerto Rico require PV facilities to limit ramping
to 10% of nameplate capacity per minute, requiring energy storage
Load (supply) shifting Batteries in Tokelau allow use of solar power at night

6. Case Study: Bonaire’s wind, battery and diesel system
Challenge
 Generators destroyed by a fire in 2004
 Government goal to generate power 100% from
renewable sources
 Population: ~16,000
 Peak demand: ~12MW
 Annual load: ~80,000MWh
Solution
 International tender in 2006 for whole-island
system including >50% wind penetration
 Installed wind, diesel, battery system in 2010:
- 10.8MW wind (Enercon)
- 14MW diesel (5x 2.8MW generators)
- 3MW battery (Nickel-Cadmium, Saft
Batteries)
 Wind penetration typically near 75%
 System of cost of $60mm; expected reduction in
power prices by 10-20%
 Battery provides:
- Frequency regulation (50hz system)
- Ramp control: can provide 3MW for up to 2
minutes to allow diesel to come online
- “Dump load” management: kept at 90%
charge to allow it to absorb and dissipate
excess generation as needed
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7. Case Study: Hawaii, US Leader in Renewable Energy Integration
Challenge
 Most oil dependent state in the nation: Imported
oil supplies 90% of energy (transport and
electricity)
 Spend $7bn per year outside of Hawaii to meet
energy needs
 Excellent endowment of intermittent renewable
resources, particularly wind
Solution
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Resource Optimization Underway
 Maui Electric currently using 91% of available wind energy, up from 72%
 Higher levels can achieved with changes to utility equipment and operating practices (NREL):
- June 2013 PUC order requires Maui Electric to lower fuel costs and reduce curtailment of wind
- Maui Electric plans to achieve 95-98% available wind energy utilization
 Hawaii Clean Energy Initiative goal of 70% clean
energy by 2030, 40% from renewables
 Maui has achieved renewable integration success:
- 200MW daily average peak load
- 72MW of wind capacity with 23MW of fully
incorporated battery storage that provide
frequency regulation and ramp control
- 37MW of distributed PV
- Three smart grid demonstration projects
underway with $64mm of funding
- Renewables represented 21% of Maui
Electric’s generation at the end of 2012

8. Select North American RTO Activities on Storage
 CAISO
- CPUC proposes to require 1.3GW of storage by 2020 from IOUs
- Proposes to use a reverse auction for procurement
 ERCOT
- Wind made up 7.4% of generation in Texas in 2012; panhandle wind is typically off-peak, shoulder
- Currently rely mostly on wind forecasting and generator ancillary services for integration
- Duke’s 36MW Notrees Wind Storage Demonstration project commissioned in March 2013
 Ontario
- Low carbon energy mix: 56% nuclear, 22% hydro, 15% gas, 3% wind and 3% coal generation in 2012
- Advocacy groups seeking to have storage incorporated into long-term planning to optimize grid
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9. The Atlantic Wind Connection and PJM
Atlantic Wind Connection impact
 Would be able to connect 7GW of offshore wind to
PJM, or 3.8% of the 2012 PJM capacity
 60GW of offshore wind potential on Mid-Atlantic
outer continental shelf, or nearly one third of 2012
PJM capacity
Possible PJM approach:
 Embrace energy storage as a versatile and efficient
technology solution for renewable energy
integration
 Take early-mover position in an emerging sector
that stands to revolutionize the power industry in
the low-carbon market
 Continue to optimize market for ancillary services
provided by storage projects
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10. Thank you!
Libby DeLucia
Associate | Clinton Climate Initiative
Clinton Foundation
77 Water Street, New York, NY 10005
Direct: 917-720-0279 | Mobile: 857-939-6446
edelucia@clintonfoundation.org | www.clintonfoundation.org
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Tokelau, www.tourist-destinations.com