12.07.07Peter Curtis, President, Power Management Concepts, LLC

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Corporate and global environments have changed vastly over the last couple of decades. The mission critical industry requires new energy solutions to protect and secure critical infrastructures. While the design intent is more resiliency, to achieve this we as an industry need to think outside the box. We must not be confined to yesterday’s solutions in addressing today’s more diverse and more complex needs. To safeguard our critical infrastructure, while also improving business sustainability and protecting our environment, we need to consider revisiting solutions such as distributed generation into our mission critical energy model.

By incorporating distributed generation at strategic critical locations, we can create independence from aging power infrastructures and sustain our critical loads or digital society indefinitely without stressing the power grid further. In the interim the power grid can continue to support what it originally intended: lighting, manufacturing and convenience power as we transition to the next phase of energy delivery.

The world uses approximately 8,000 gigawatts of energy on a peak day. Approximately 10 percent of that energy is used to power and cool our critical infrastructures and other digital loads. Given the increasing power density of processors and servers, analysts predict significant growth rates in power requirements by 2010. Over the next couple of decades, to improve business resiliency, we will need to integrate distributed generation into our mission critical energy model. To transition our existing critical infrastructures we should consider installing microgrids. If a critical event occurs, taking down the national grid, the critical infrastructures would be insulated from these events and our national security would be safeguarded.

Generation Sources for a Microgrid

A microgrid is a collection of generators or alternative energy sources such as microturbines, fuel cells and photovoltaic, that creates a small standalone power network that can run indefinitely, independent of constraints such as fuel oil supplies and immune to outages such as the 2003 Northeast Blackout. These networks are intended to be primary and operate in concert with the grid, thus displacing the high cost energy serving critical load and improving energy delivery efficiency. Taking this concept one step further, point of use generation, when incorporated with high coefficient absorption chilling, can make large amounts of free cooling, further lowering operating costs. The combined heat and power energy produced from distributed generation also creates far fewer pollutants and greenhouse gases than an equivalent amount of power purchased from the grid.

Incorporating conventional technology with alternative energy solutions will allow the market to test newly integrated microgrids, embarking upon the next phase of distributed generation. Fuel cells or other alternatives won’t replace conventional systems in the near future but will compliment existing technology. As more critical systems come online they will become a viable alternative in smaller scale applications ranging from 1 MW to 20 MW. This is ideal for countries whose grid is unstable and infrastructure is not yet available. In a sense, these countries have an opportunity to leap ahead in technology in order to address today’s growing digital power requirements while also addressing reliability, resiliency, clean and secure power. These requirements were not necessary just a handful of years ago and alternative technology was not considered because it was not yet tested on critical applications. However in countries where the grid is unstable, it is a major improvement that satisfies all needs. Incentives may even be available to offset some of the upfront capital and installation costs.

Recent clean power advances and alternatives have been accelerated and are now being implemented by the largest corporate institutions taking leadership and global responsibility in their environmental principles and philosophy. Google, Fujitsu, United Technologies, Verizon, Bank of Omaha, and Bank of America, among many others, are currently setting a positive example by incorporating these technologies and instituting environmental stewardship.

Incorporating distributed generation in data centers provides a wide range of benefits. Primarily reliability is increased by bypassing problems associated with the grid. The grid has miles upon miles of exposed transmission lines and transformers that are vulnerable to a wide range of unpredictable elements. This reliability translates directly to more dependable service as long as operations and maintenance are attended to. Furthermore, onsite power generation deceases facility expansion time. Depending on the type of energy generation chosen, financial incentives and benefits are available for environmentally friendly technologies.

Distributed generation also benefits overall energy efficiency and helps protect the environment. On average, power plants require 2.5 kW of input energy for every 1.0 kW of power produced. There are additional losses as power travels through miles of transmission lines and multiple transformers. This leads to significant power loss resulting in about 33 percent overall average efficiency. A microgrid with high thermal recovery avoids these inefficiencies, achieving as high as 90 percent efficiency. The building’s “carbon footprint” compared to that of equivalent grid supplied power is greatly reduced, as well as are other air pollutants such as nitrogen oxides (NOX) and sulfur dioxide (SO2). The end result is clean, reliable, resilient power for the data center and far less drain on society’s energy reserves. Microgrids have an excellent opportunity in some cases to take advantage of renewable fuels, further attenuating the consumption of natural resources.

What about initial cost? Yes, there’s an initial cost but the cost of energy produced is less than purchased energy. Sure, it takes time to fully amortize such an investment, meaning the burdened cost of power is slightly higher along the way. Yet isn’t it time to have two types of power? “Regular” and “Premium” power just as we have with gasoline grades for compact and high performance cars. We need regular power for convenience power and premium power for critical and digital loads. The choice is now ours, we just need to make a conscious decision and move forward efficiently.

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Reader's Comments

Date	Comment
Jose Antonio Vanderhorst-Silverio 12.7.07	Mr. Curtis, "This is ideal for countries whose grid is unstable and infrastructure is not yet available." 1) Do utilities like the idea of cherry picking their most profitable territories? 2) Are the microgrids islands not to be ever interconnected to the grid? 3) What is supposed to be a smart grid?
Peter Curtis 12.7.07	Sir, Thanks for your comment. To clarify, the purpose of the article is purely to identify the new power requirements for ultra-high reliable facilities and not to suggest that the utilities are not performing. The digital society is growing everyday and the needs for critical infrastructures are different then when the electrical grid was first built. Utilities can also choose to own and operate micro-grids because customers/end-users don’t necessarily want to be in the power business. This could increase utility revenue, since increased reliability for those who need it is a new product. I see no reason why a micro-grid could feed the ultra-reliable infrastructure and the utility feed the convenience loads as long as safety is considered. Obviously there would be different price points. Regards, Peter M. Curtis
Jose Antonio Vanderhorst-Silverio 12.7.07	Thank you Mr. Curtis for your timely answer, It is not clear to me from your answer "I see no reason why a micro-grid could feed the ultra-reliable infrastructure and the utility feed the convenience loads as long as safety is considered," if the micro-grid will be an island independent from the grid, especially given the phrase "as long as safety is considered." I will assume that you intended that switching technology is up to the job of safety with the micro-grid interconnected to the grid. Under that assumption, I like that "there would be different price points." To me that means electricity without price controls (EWPC). I have been researching and writing for what has emerged as EWPC. In my work since 1995 I envisioned that the Dominican Republic and similar "countries have an opportunity to leap ahead in technology in order to address today’s growing digital power requirements while also addressing reliability, resiliency, clean and secure power." Please take a look at my article a Dominican strategy: customer-oriented risk management, which was published in the May-June 2006 issue of the IEEE Power&Energy Magazine. By "thinking outside of the" Vertically Integrated Utilities market structure "box," EWPC is a market architecture and design paradigm shift that has two interdependent markets that are the result of the impact of digital disruptive technologies. 1) A controlled transportation (T&D) utility market to be operated under an ultraquality imperative, and 2) An open and fully functional competitive market on the value chain generation-retail-customer under prudential regulations, instead of price control regulations. The smart grid is the disruptive technology needed to have the interconnected synchronized system at ultraquality. Second Generation Retailer will develop business model innovations (See The Sixth Disruptive Technology) with a mix of disruptive technologies, one of which is distributed generation. In this way, "By incorporating distributed generation at strategic critical locations, we can create independence from aging power infrastructures and sustain our critical loads or digital society indefinitely without stressing the power grid further. In the interim the power grid can continue to support what it originally intended: lighting, manufacturing and convenience power as we transition to the next phase of energy delivery," may become a more flexible and interdependent transition under EWPC. For more details about EWPC please go to the EWPC Blog in the Energy Central Network. Best regards, José Antonio Vanderhorst-Silverio, Ph.D. Systemic Consultant: Electricity

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