Update on the New Mexico Green Grid Initiative NMGGI

1
Update on the New Mexico
Green Grid Initiative (NMGGI)

• May 22, 2009

2
What is the Green Grid, what is it supposed to do
and how will it do it?

• The U.S. energy grid is aging while our demands
  are increasing. We must find ways to improve
  energy generation and distribution using
  renewable sources in order to supplement
  traditional ones like coal and gas.
• The State of New Mexico and the Administration
  are committed to that goal, and the DOEs recent
  grants can help make it happen. By combining
  clean technology power sources with intelligent
  controls, the Green Grid can supply an
  important solution to Americas growing energy
  problem.

3
The GGI Components

• The GGI needs many components all working
• together to demonstrate the viability of clean
• energy technologies in microgrid installations.
• Some installations will be stand-alone while
• others will be clustered together or connected
• to the main grid.
• Each will rely on
• Renewable technologies - like solar, wind,
• geothermal, biomass and demonstrate their use
• in real-time mixed-use situations
• Smart controls like smart meters to make
  energy use more efficient
• Transmission Lines to move the new green
  energy within and through the State

4
Green Grid thrusts

• Technology Development
• Improved solar PV, energy storage, energy
  management and
• communication systems, smart inverters, modeling
  and simulation
• Demonstration Project
• Rural and/or urban microgrid demonstration
  integrated with
• utility-scale renewable energy sources
• Clean energy export
• Drive new energy economy in NM thru clean energy
  export
• to markets in CA, AZ, NV,
• Clean Manufacturing
• Solar thermal PV, wind turbines, biomass
  systems, control,
• cyber, and communications systems, smart
  inverters

5
Providing Secure Power
Transmission and Communications Control System

• Microgrid Energy
• Management System
• including protype MDM
• Modeling and
• Simulaiton
• Feeder protection
• Communications
• Infrastructure including cyber
• security

• Large Scale Photovoltaics
• Large Scale
• Storage
• Smart Inverter
• Controls

• Leverage PNM CSP initiative
• Utilize wind and other central
• generation investments

• Distributed Photovoltaics
• Smart Inverter
• Smart Residential control gateway/EMS
• Storage
• Load Control
• Electric vehicle interface

6
Background on the New Mexico Initiative

• Since the summer of 2008, the State has been
  coordinating the efforts of nine working groups
  comprised of both national labs, the States
  universities and colleges, the PRC, RETA, State
  Government departments and others to design a
  master project of integrated clean energy power
  generation (the Green of the Green Grid)
  combined with intelligent systems and controls
  for energy management (the smart component of
  the Green Grid).
• The original project was to model, simulate,
  test, design and build two microgrid
  demonstration installations, located in a rural
  and urban location in the State.

7
ARRA Funding Changed Everything

• When the DOE announced that ARRA (American
  Recovery and Reinvestment Act) funding for the
  smart grid (aka. Green Grid) would be
  possible, the working groups scaled up the
  project to upwards of 10 microgrid installations
  that would include other clean energy sources
  (geothermal, biomass, etc.) as well as mixed
  use (residential, commercial, industrial,
  municipal use, etc.) in a sub-station and
  distributive energy situation.
• The idea was to mirror usage of a more
  diverse set of needs that reflected those the
  entire Nation.

8
April 16th The DOE Guidelines Changed

• On April 16th, the DOE guidelines for smart
  grid installations radically changed the project
  parameters.
• Once thought to be in favor of larger
  projects in the hundreds of millions, the DOE
  issued stringent guidelines favoring smaller
  projects AND instituted a 50 local funding
  requirement. In addition, they split up the
  single project into three parts and prohibited
  one company (or entity) from bidding on all three
  parts.
• This new reality meant that an integrated,
  interoperable solution to Americas future grid
  would be nearly impossible to achieve.

9
The State of New Mexico Pushes Back

• On April 18th, the Governors Team devised
  a strategy to influence the DOE to change the
  guidelines, and on April 28th, the Governor
  pushed back.
• In a letter to DOE Secretary Chu (and to
  the NM Congressional Delegation), Governor
  Richardson addressed the flaws of the DOEs
  argument and strongly encouraged several major
  revisions
• 1. To increase the project size
• 2. To reduce the onerous 50
  local funding match
• 3. To integrate the projects,
  allowing single companies
• or entities to bid on the entire project

10
The New Mexico Strategy

• In order to build a consensus for the States
  position, a series of Green Grid Regional
  Discussions with New Mexico municipalities and
  utility companies were scheduled throughout the
  State beginning on April 22nd.
• Discussions were held in Albuquerque, Las
  Cruces, Clovis, Roswell, Gallup, Farmington,
  Espanola and Tucumcari. Nearly 100 persons from
  concerned towns, cities and utilities
  participated along with representatives from the
  Tribal communities.
• A massive letter-writing campaign was started.
  Mayors, utilities, energy companies and
  non-profit energy-related organizations were
  encouraged to write to the DOE and to the NM
  Congressional Delegation expressing their
  agreement with the States objections and
  supporting the new proposals.

11
New Mexico Strategy Pays Off

• May 18th DOE decides to increase project caps
  on individual Smart Grid Investment Grants from
  20 mill. to 200 mill., and on Smart Grid
  Demonstration Projects from 40 mill. to 100
  mill.
• This still leaves an untenable 50 matching
  requirement which must be lowered if the
  economics are to work properly.
• This (the match) will unfairly disqualify states
  like New Mexico that have developed proposals
  that demonstrate true potential, collaboration
  and integration. Gov. Richardson in a press
  release, May 19th

12
Planning for the Proposal

• The State will continue to develop a
  statewide initiative along with the States
  utility companies (DOE regulations mandate that
  all smart grid/green grid projects must have a
  power utility as a partner).
• The State will be prepared to submit its
  proposals by the expected July 17th
  deadline whether the projects
  are of a larger, integrated variety or smaller
  microgrid projects. This means that the proposal
  writing teams must be ready to begin their work
  as soon as the requirements are known.
• The State has its teams in place, and they
  include experienced proposal-writers from both
  national labs Sandia and Los Alamos. Project
  Leader, Stephan Helgesen of the EDD is working
  with the Governors Science Advisor, Tom Bowles,
  both labs and the NMGGI working groups to prepare
  the proposals and meet the DOEs deadlines.
•  

13
Next Steps for New Mexicos Businesses

• Companies and organizations wishing to
  participate in this initiative are encouraged to
  register their interest with the State by logging
  on to www.greengridnewmexico.org and follow the
  instructions. Municipalities are invited to do
  the same, but are also advised to initiate a
  dialogue with their power companies.
• On June 17th, the FOA (Federal Opportunity
  Announcement or call for proposals) will be
  issued. It will lay out the entire guidelines
  and requirements for the proposals and will start
  the clock ticking towards a deadline for
  submission of proposals some four weeks later.