of Distributed Generation in Power Quality and Reliability
The Role of Distributed Generation in
Power Quality and Reliability




Final Report




December 2005




Prepared for:

New York State Energy Research and Development Authority
17 Columbia Circle
Albany, New York 12203-6399



Prepared by:

Ken Darrow
Bruce Hedman
Energy and Environmental Analysis, Inc
1655 North Fort Myer Drive
Arlington, VA 22209

Thomas Bourgeois
Daniel Rosenblum
Pace Energy Project
78 North Broadway
White Plains, NY 10603 NOTICE

This report was prepared by Energy and Environmental Analysis, Inc. and Pace University's
Energy Project in the course of performing work contracted for and sponsored by the New York
State Energy Research and Development Authority and the US Department of Energy/Oak Ridge
National Laboratory (hereafter the "Sponsors"). The opinions expressed in this report do not
necessarily reflect those of the Sponsors or the State of New York, and reference to any specific
product, service, process, or method does not constitute an implied or expressed recommendation
or endorsement of it. Further, the Sponsors and the State of New York make no warranties or
representations, expressed or implied, as to the fitness for particular purpose or merchantability
of any product, apparatus, or service, or the usefulness, completeness, or accuracy of any
processes, methods, or other information contained, described, disclosed, or referred to in this
report. The Sponsors, the State of New York, and the contractors will assume no liability for any
loss, injury, or damage resulting from, or occurring in connection with, the use of information
contained, described, disclosed, or referred to in this report.


EEA/Pace Energy
i
The Role of DG in Power Reliability
Table of Contents

EXECUTIVE SUMMARY ........................................................................................................ES1
1. Introduction........................................................................................................................... 1
2.
Integraton of Distributed Generation and Power Quality ..................................................... 3
3.
Customer Perspective on Power Quality Issues.................................................................. 11
3.1 Power Quality & Reliability Problems Encountered at the Site....................................... 11
3.2 Costs Incurred Due to Power Quality and Reliability Problems ...................................... 12
3.3 Mitigation Measures Taken to Reduce the Costs of Incidents ......................................... 13
3.4 Site Analysis of DG/CHP Solutions................................................................................. 14
4.
Economic Analysis of Integrated Power Quality Distributed Generation Solutions.......... 17
4.1 Economic Performance Model ........................................................................................ 17
4.2 The Costs and Benefits of Power Quality/Reliability Mitigation.................................... 18
4.3 Distributed Generation Economic Benefits and Integration with PQ/Reliability ........... 21
5. Conclusions.......................................................................................................................... 27
Appendix A Summary of Power Quality Issues, Markets, and Solutions................................... A1
A.1 Normal Power Conditions .............................................................................................. A1
A.2 Definitions
of
Power
Quality Disturbances.................................................................... A3
A.2 Frequency of Power Quality Disruptions ....................................................................... A9
A.3 Premium Power Markets .............................................................................................. A12
A.4 Power Quality Technologies ........................................................................................ A17
Appendix B: Review of New York Power Quality Events and Utility Actions..........................B1
B.1 New York State Electric and Gas Corporation................................................................B5
B.2 Central
Hudson..............................................................................................................B11
B.3 Niagara
Mohawk ...........................................................................................................B15
B.4 Con
Edison ....................................................................................................................B18
Appendix C Case Information Based on Customer Interviews ....................................................C1
C.1 Bear Stearns March 3, 2004..........................................................................................C1
C.2 Cellu-Tissue March 9, 2004..........................................................................................C3
C.3 Harbec Plastics April 12, 2004 .....................................................................................C5
C.4 Jamaica Hospital Medical Center (JHMC)- April 13, 2004 ............................................C9
C.5 New York Warehousing and Logistics - March 5, 2004 ...............................................C11
C.6 Pace University March 5, 2004....................................................................................C13
C.7 Revere Copper - March 9, 2004.....................................................................................C15
C.8 Special Metal Corporation - February 25, 2004 ............................................................C18
C.9 Case Study Major Network Television and Radio Broadcasting Center ...................C21
Appendix D Power Quality Glossary .......................................................................................... D1
EEA/Pace Energy
ii
The Role of DG in Power Reliability
List of Figures
Figure ES1 Average Voltage Sags and Interruptions per Site per Year ..................................ES2
Figure ES2 Standby or Secondary DG System Offering PQ Support .....................................ES5
Figure 2.1 Typical Standby Generation Configuration.............................................................. 3
Figure 2.2 Standby or Secondary DG System Offering PQ Support......................................... 4
Figure 2.3 Primary DG System with PQ Responsibility for Critical Loads.............................. 5
Figure 2.4 DG with Soft Grid Connection Supporting Critical Loads ...................................... 5
Figure 2.5 Use of Intermittent DG within PQ Environment (Solar PV) ................................... 6
Figure 2.6 Use of Intermittent DG within PQ Environment (Wind) ......................................... 6
Figure 2.7 Ultra High Reliability System Using DC Bus (SurePower)..................................... 8
Figure 4.1 Typical System for PQ and Reliability Support ..................................................... 18
Figure 4.2 CHP System with Power Quality Functionality..................................................... 24
Figure A.1 Sinusoidal Waveform of Alternating Current ....................................................... A2
Figure A.2 Normal Operating Region for Electronic Equipment............................................ A3
Figure A.3 Average Voltage Sags and Interruptions per Site per Year................................. A10
Figure A.4 Distribution of Sags/Outages per Site per Year................................................... A10
Figure A.5 Duration of Facility Outage Following a 1-Second Power Interruption ............. A11
Figure A.6 Distribution Causes of PQ Complaints to Utilities.............................................. A12
Figure A.7 Estimated Annual U.S. PQ Equipment and Services Market.............................. A16
Figure A.8 Market Distribution of Total Estimated PQ Market for 2003 ............................. A17
Figure A.9 Dynamic Voltage Restorer Schematic and Physical Layout ............................... A21
Figure A.10 Schematic of a Double Conversion UPS............................................................. A22
Figure B1 Niagara Mohawk High/Low Voltage Events by Region ......................................B17
Figure B2 Niagara Mohawk Power Quality Events by Region.............................................B17

List of Tables
Table ES1 Estimated Total U.S. Cost of Power Quality Disturbances per Year......................ES3
Table ES2 Mitigation Effectiveness, Costs, and Break-even Value........................................ES7
Table 4.1 Assumed Power Quality Events and Customer Sensitivities.................................... 17
Table 4.2 Estimated Capital and Annual Costs of a UPS System with Standby Generator ..... 19
Table 4.3 Power Quality Disruptions for System with UPS and Standby Generator............... 20
Table 4.4 Mitigation Effectiveness, Costs, and Break-even Value .......................................... 20
Table 4.5 Comparison of Peak Shaving System Paybacks with and without Integration with
Power Quality and Reliability Function................................................................................. 22
Table 4.6 Impact of CHP System on Power