Business & Technology Surveillance

Defining a Microgrid Using

IEEE 2030.7
By Douglas R. Danley

NOVEMBER 2019
Business & Technology Surveillance

Defining a Microgrid Using

IEEE 2030.7
By Douglas R. Danley

November 2019

SUBJECT MATTER EXPERTS ON THIS TOPIC

Robert W. Harris, PE
Senior Principal, Transmission & Distribution Engineering
[email protected]

Fathalla Eldali
Distribution Optimization Engineer, Integrated Grid
[email protected]

This article is a product of the Distributed Energy Resources Work Group

WHAT HAS CHANGED IN THE INDUSTRY?

Electric cooperatives are committed to providing safe, affordable, and reliable power to all members. Over the past
few years, there has been an increasing focus on reliability, especially as it refers to “resiliency,” which Sandia National
Labs describes as the ability to remain “operational in the face of adversity.”1 Adversity includes weather-related events,
such as ice storms, tornadoes, flooding, and hurricanes, as well as physical or cyber attacks on utility infrastructure.

Microgrids are becoming an option to enhance resiliency, starting with critical loads (e.g., military bases, medical
campuses, government offices, and protective services) and eventually to all customers. Utilities across the U.S.
(including some co-ops) have started implementing microgrids. However, full understanding of what constitutes
a microgrid, and how to specify them, is still in early phases.

A microgrid typically consists of distributed generation (fossil-based and/or renewable), energy storage, load control,
and distribution system management. In the U.S., it is usually connected to the main grid most of the time, and only
isolated (or “islanded”) under special circumstances. Because most microgrids operate in two fundamentally different
modes, there are many special considerations in planning, designing, and controlling a microgrid.

WHAT IS THE IMPACT ON COOPERATIVES?

Co-ops are increasingly evaluating advanced technology, such as distributed renewable generation (both utility
and customer managed), large scale and distributed energy storage, advanced load management, and “smart-grid”
applications, such as advanced metering infrastructure and smart-feeder switching. These technologies can have
more value if planned for integration into a microgrid, even if that is a future phase of grid development.

1 https://energy.sandia.gov/energy/ssrei/gridmod/resilient-electric-infrastructures
WHAT DO COOPERATIVES NEED TO KNOW OR DO ABOUT IT?
As the need for these systems becomes more common, it is important for co-ops to understand how they are
specified, especially with regards to new IEEE standards, such as IEEE 2030 and IEEE 1547-2018. As co-ops are
starting to implement microgrids on a wider scale, cost-efficiency will be improved through the use of existing
standards rather than treating every new system as a “blank slate” design.

Better understanding of microgrids and their operation will also help co-ops develop the financial structures
needed to support the different operational modes of a microgrid.

This article uses the structure suggested in the IEEE 2030.7 standard as a basis for developing the functional
specification for a microgrid.
 Defining a Microgrid Using IEEE 2030.7 |4

What Is a Microgrid? on how the microgrid should operate in prac-

tice. This is where the IEEE 2030.7 standard
Microgrids are an increasing part of the
comes in.
national discussion on resiliency, but the
concept is still new and evolving.
IEEE 2030.7-2017
The U.S. Department of Energy (DOE) defines
The IEEE 2030.7 4 standard offers the most
a microgrid as ‘‘a group of interconnected loads
comprehensive technical process for describ-
and distributed energy resources within clearly
ing the functions of a microgrid controller.
defined electrical boundaries that acts as a single
Although aimed at the controller, these
controllable entity with respect to the grid. A
The IEEE 2030.7 functional modes serve as a convenient
microgrid can connect and disconnect from the
standard offers the way to actually specify the full microgrid.
grid to enable it to operate in both grid-connected
most comprehensive or island-mode.”2 The standard reduces microgrid complexity
technical process
for describing to two steady state (SS) operating modes
CIGRÉ C6.22 Working Group’s Microgrid
the functions of a and four types of transitions (T), as shown
Evolution Roadmap, the International District
microgrid controller. in Figure 1:
Energy Association (IDEA), ARUP (an engi-
neering company), TrustRE, and IEEE stan- • SS1 – Steady State Grid Connected
dard 2030.7 all define microgrid in similar
terms—loads, distributed energy resources • SS2 – Stable Island
(which include distributed generation, storage • T1 – Transition from Grid Connected to
and load control), and the concept of operat- Steady State Island (Planned)
ing with or without a grid.3
• T2 – Grid Connected to Steady State Island
Although there is general agreement on what (Unplanned)
a microgrid should include, there has been
• T3 –Steady State Island reconnect to Grid
very little standardization on how to describe
the functional requirements of a microgrid or • T4 – Black Start into Steady State Island

FIGURE 1: Simplified Microgrid Control Flow Diagram

2 h ttps://www.energy.gov/sites/prod/files/2016/06/f32/The%20US%20Department%20of%20Energy%27s%20
Microgrid%20Initiative.pdf
3 Note: The TrustRE definition assumes off-grid operation (such as the co-ops operating in isolated Alaskan
communities), but more detailed analyses discuss what happens “when the little grid meets the big grid.”
4 https://standards.ieee.org/standard/2030_7-2017.html

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 Defining a Microgrid Using IEEE 2030.7 |5

SS1 – STEADY STATE GRID T1 – TRANSITION FROM GRID

CONNECTED CONNECTED TO STEADY STATE
In this mode, the microgrid is connected to ISLAND (PLANNED)
the larger grid. Assets in the microgrid can In some cases, an operator may want to oper-
provide services to the grid, including peak ate in the microgrid in islanded mode even
shaving, frequency regulation, renewable when the full grid is available. This might be
smoothing, reactive power support, and ramp for testing purposes, in advanced of a sched-
management. The microgrid controller pro- uled outage, or because it is simply more eco-
vides a single communication point to access nomic to operate as an island rather than grid
all of these services. connected. T1 describes the process that is
needed to provide a seamless transition
SS2 – STEADY STATE ISLAND between grid-connected and islanded modes.
In this mode, the microgrid has disconnected This would typically involve starting auxiliary
from the main grid and is operating inde- generation, if used, and balancing the load to
pendently (typically called “islanding”). This match the available generation. Once this is
requires an ongoing balance between loads achieved, the microgrid can be seamlessly
and local generation/storage capabilities. disconnected through the “point of intercon-
Depending on the generation capabilities in nection.” Local generation must also be capa-
the microgrid, it may be possible for this con- ble of switching from “grid-following mode”
dition to persist indefinitely. It is important to to “grid-forming mode.”
In a complex
microgrid with many realize that protective devices (overcurrent
devices, regulators, etc.) may require different In a complex microgrid with many generation
generation sources,
settings than in grid connected mode, because sources, it is important to define the genera-
it is important to
of the lower fault current and changes in tion component that is responsible for “form-
define the generation
component that direction of power flow within the microgrid. ing the grid.” This is typically the largest, most
is responsible for stable generator, although it might be a battery
“forming the grid.” Operating a stable island may also require inverter for microgrids that rely primarily on
load management, if the total generation is renewable generation. Other generators con-
insufficient to power the total load, or if a tinue in “grid following mode.” Protection set-
microgrid operating with energy storage does points on devices, such as solar and battery
not have enough reserve to provide full power inverters, are typically set for anti-islanding
for the entire day. Load control can come in protection of a large, stable grid and may need
many forms, from sectionalizing feeders to to be adjusted to prevent them from discon-
direct load control (typically for commercial necting if the microgrid voltage and frequency
customers) to standard demand response fluctuate more than in grid-connected mode.
techniques, including HVAC load control Some relays and other devices which normally
switches and direct thermostat control. operate in one direction may become bi-direc-
tional during microgrid operation, and it is
Microgrids whose generation sources are critical that setpoints on these devices be
entirely based on solar or wind will usually
adjusted correspondingly.
require energy storage to provide a buffer
between the variable energy sources and the
variable load. This will also require the ability T2 – GRID CONNECTED TO STEADY
to curtail generation sources, if storage is full STATE ISLAND (UNPLANNED)
and generation exceeds the load. A standard This is the IEEE 2030.7 version of an uninter-
generator (internal combustion or turbine) can ruptible power supply. When the main grid
provide some of these functions, but curtail- experiences a failure, the microgrid seamlessly
ment may still be necessary to prevent excess disconnects and forms an independent power
power being delivered to the grid, causing system (an island), while continuing to supply
high frequency/high voltage issues. loads. One of the key factors in this transition

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 Defining a Microgrid Using IEEE 2030.7 |6

is ensuring that the loads can be supplied by Once there is a stable generation source, loads
the local generation. This is easy in the case of can be brought online in a prioritized sequence.
a small, dedicated microgrid (e.g., a hospital),
but may be more difficult with a larger, more
Microgrid Equipment and
diverse microgrid, such as a distribution
feeder. In some cases, everything except Communications
critical loads may need to be disconnected The second part of specifying a microgrid
during the transition until additional genera- is to define the equipment and control sys-
tion resources can be brought online. Similar tems which make up the microgrid. This can
to the planned island, one generator will be done first (“Here is what we have, what
need to act as the “grid-forming” entity, and can we do with it?”) or second (“This is what
protection settings may need to be adjusted on we want to do, what do we need to do it?”)
inverters, regulators, and other equipment. or, most likely, in an iterative balance of the
two. Regardless of the approach, it is import-
ant to identify the generators, energy storage
T3 – STEADY STATE ISLAND
resources, load management, and automated
RECONNECT TO GRID
distribution system equipment that is avail-
This transition occurs when the islanded able within the microgrid, and then to define
In the transition of microgrid is ready to reconnect to the main how the microgrid controller will communi-
a microgrid to an grid. The “grid-forming” generator on the grid cate with the equipment.
independent power must have a “view” of the main grid, because
system during a it must adjust the frequency and phase angle
main grid failure, GENERATORS
of the microgrid to exactly match before
it is key that the reclosing (resynchronization), since reclosing Generators might include utility-managed
local generation can out-of-phase can cause serious damage to photovoltaic (PV) systems and fossil fuel gen-
supply the loads. local generators and protection equipment. erators (reciprocating gas/diesel engines, gas
turbines microturbines, fuel cells), as well as
In addition, the “grid-forming” generator behind-the-meter generators, such as commer-
must immediately switch to a “grid follow- cial or residential PV systems or even backup
ing” mode after the reconnection is finished. generators that are capable of synching with
If any loads have been curtailed, they can be the grid. (Note: In rare cases, local wind gener-
reconnected at this time. ators may be available, but these are typically
connected to the bulk electric grid and, there-
T4 – BLACK START INTO STEADY fore, not available as a local generation
STATE ISLAND resource.)

The fourth transition assumes that the grid It is important that one of the active gener-
has gone completely down and must be ators be operated as “grid-forming,” which
brought up in islanded mode. Note that this means that generator supplies the voltage
assumes that the microgrid has been isolated and frequency signal with which all other
from the main grid at the point-of-intercon- “grid-following” generators synchronize.
nection. This situation could occur because of This is typically either a traditional rotating
an unexpected outage that the microgrid con- engine-generator or a battery-based inverter.
troller cannot handle using a T2 stable transi- Since solar (and wind) are highly variable,
tion, or it might be necessary if the island does they cannot help “form the grid.”
not have sufficient generation or energy stor-
age reserve to continue to supply the basic Generation resources must be actively con-
loads and must, therefore, shut down. trolled. For example, PV arrays must have
curtailment capabilities in case the genera-
In this transition, the microgrid controller tion exceeds the load and any energy stor-
must curtail all but the most critical loads age resources are fully charged. This con-
and must then bring all available generation trol can either be active or based on some sort
online. This is especially important in a system of droop control. Inverter setpoints may also
with energy storage, since it is important to need to be adjusted to a more tolerant range
bring the storage up to at least partially full for islanded operation than setpoints which
before reconnecting loads. are suitable for grid-connected operation. This

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 Defining a Microgrid Using IEEE 2030.7 |7

can be an issue with behind-the-meter (BTM) and of a priority schedule of which loads are
consumer-owned solar inverters, since utilities the most critical if generation resources are
may not have control over these devices. As a limited. Since there are many different devices,
result, some solar and energy storage invert- this complicates the communications and
ers may not be able to stay connected to the cybersecurity requirements of the system.
grid, limiting their ability to help support the
microgrid. AUTOMATED DISTRIBUTION
SYSTEM EQUIPMENT
ENERGY STORAGE There are two major concerns for automated
Energy storage is a technology that sits some- distribution system equipment in a microgrid.
Load management where between generation and load manage- The first is the sectionalizers mentioned above,
is one of the ment. Battery systems, such as grid-scale which are used to perform low-resolution load
most important lithium-ion or flow batteries, can act as gener- management, such as rotating blackouts if
components of a ation resources, but must also be recharged necessary due to limited generation.
microgrid. with other resources. BTM consumer-owned
storage can also contribute resources, but care The second is the sensing and protective
must be taken to balance the needs of the con- equipment. An islanded microgrid will have
sumer versus the requirement of the microgrid. significantly different electrical characteristics
than when it is connected to the larger grid.
Thermal energy storage, such as controllable For example, current flow in a grid-connected
water heaters or ice storage (for commercial system will generally be from the substation
cooling), can also help stabilize the grid, towards the load. However, in an islanded
although these cannot actively contribute elec- microgrid, power flows may be bidirectional
tric power to the microgrid. One example of based on available resources, time of day, and
this is to use excess solar energy during the other factors. This means that devices, such as
day to “charge” water heaters, which can then reclosers, voltage regulators, and circuit pro-
be used even if the house is cut off as “non- tection devices, must be able to sense bidirec-
critical” during periods of low generation. tional flow and deal with it appropriately.
Another critical issue with islanded micro­
Electric vehicles (EVs) can also serve as
grids is that the available fault currents are
energy storage, if they are charged when
very different than when the system is con-
excess generation (from wind or solar, for
nected to the main grid. This means that
example) is available. In the future “vehicle-
protective devices, such as circuit breakers
to-grid” applications may enable EVs to act
and reclosers, may not operate as expected.
One of the largest as bi-directional energy storage.
challenges for a Modern devices contain relays which have
microgrid controller programmable trip characteristics, so a
LOAD MANAGEMENT microgrid may need to have access to these
is communicating
with a large number Load management is one of the most important devices to modify setpoints for the different
of diverse devices. components of a microgrid, since it is vital to modes of operation.
balance the (typically) constrained generation
with the desire to supply as much load as pos-
COMMUNICATIONS, CYBER SECURITY
sible. Load management can take many forms,
AND INTEROPERABILITY
including typical utility demand response
techniques (water heater and air conditioner In order to have the appropriate “situational
curtailment or thermostat control), remote- awareness” required in a microgrid, the micro-
disconnect meters at residences and small grid controller must communicate with a large
commercial entities, active load disconnects at number of diverse devices ranging from invert-
large commercial and manufacturing facilities, ers in utility-scale PV systems to residential
and feeder sectionalizing (disconnecting entire thermostats. This is one of the largest chal-
groups of users based on location). lenges of designing and operating a modern
microgrid. Not only are there a great variety of
The microgrid controller must have “situa- communications technologies (RF, cable, fiber,
tional awareness” of which loads are being PLC, cellular), but there are many different
served at different points in the microgrid, standards and protocols, and those used by

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 Defining a Microgrid Using IEEE 2030.7 |8

utilities (Modbus, DNP3, IEC 61850, OpenADR) Financial Considerations

can be very different than those used by
Utility billing used to be simple. A residential
consumer-oriented behind-the-meter (BTM)
bill typically had two parts—a fixed charge
protocols (Zigbee/ZWave, WiFi, Ethernet).
and an energy charge (kWh)—while a com-
Microgrid controllers can also be self-contained mercial bill might add one or more demand
(i.e., the microgrid controller talks directly to (kW) charges. More complex rates might
all end-use devices) or hierarchical (i.e., the involve time-of-use (TOU) charges for energy
microgrid controller talks with other controls, consumption. The advent of cost-effective dis-
such as SCADA, AMI/MDMs, OMS, PV clus- tributed generation introduced concepts such
ter controllers, BESS system controllers). Both as “net-energy-metering” and “feed-in-tariffs,”
cases require significant efforts into interoper- since the “prosumers” were both consuming
ability, which is simply a description of the and producing energy. BTM battery storage
desire for different devices to work together has the potential to change the basic profile of
without custom coding enhancements. (The a customer load, affecting both energy and
International Standards Organization is a bit demand, especially for TOU rates.
Cybersecurity more formal in describing interoperability as
Microgrids will add a new level of complexity
should be built into “the capability to communicate, execute pro-
to this subject. There are many questions that
the software process grams, or transfer data among various func-
as early as possible. will need to be answered, including:
tional units in a manner that requires the user
to have little or no knowledge of the unique • Who pays for the upgrades needed to
characteristics of those units.”5 ) create a resilient microgrid? Is this shared
evenly among all customers, even if they
Closely related to communications and interop- will not necessarily receive the same
erability is cybersecurity. Maintaining secure benefits during microgrid operation?
communications is a daunting task considering
the vast diversity of devices, communications • Does a customer pay a different rate to
technologies, and protocols in use today. have access to microgrid energy during
Devices in the field must have the ability to an event? Does this apply all the time, or
determine whether a request for status or con- only during microgrid operation?
trol is valid, and must make sure that their • If the energy and other services to power
responses are secure and can only be decrypted the microgrid are coming from a variety
Microgrids will
by the appropriate controller. The various of utility-owned and third-party genera-
add a new level
microgrid control systems must ensure that the tors (such as rooftop PV systems), how
of complexity to
data they are receiving is valid, and that the are these generators metered and compen-
utility billing.
commands they send out are received and sated for their services? Some examples:
executed appropriately, without being hacked/ Is energy from a battery which can be
hijacked by a malicious actor. In general, supplied at any time more valuable than
cybersecurity should be built into the software energy from solar? Is energy to recharge
process as early as possible. Additional chal- the battery cheaper than energy used to
lenges can occur when the microgrid controller charge the battery, to account for round
wants to access BTM equipment at residences trip efficiency?
or commercial entities, since these are often
behind some kind of firewall, and may or may
not be as secure as the utility-controlled part
of the network.

5 https://www.iso.org/obp/ui/#iso:std:iso-iec:2382:ed-1:v1:en

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 Defining a Microgrid Using IEEE 2030.7 |9

Summary
The IEEE 2030.7 Standard for Specification of steady-state islanded—and the four transitions
Microgrid Controllers provides an excellent modes associated with these two states. The
basis for planning and specifying a microgrid, developer should also be able to describe all
whether it is a small, dedicated microgrid for generation and load management used in the
a single building, or a complex microgrid microgrid, as well as the communications
covering significant segments of a distribu- needed to interface with all the various
tion utility. devices and control programs.

The microgrid developer should be able to Finally, the developer must address new
describe all elements of the two primary financial issues associated with microgrid
operation modes—grid-connected and operation. n

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 Defining a Microgrid Using IEEE 2030.7 | 10

ABOUT THE AUTHOR

Douglas Danley designed and installed his first PV system in 1982 while serving as a
Peace Corps Volunteer in Botswana, Africa. He has designed a wide range of distributed
generation and energy storage projects both in the U.S. and in many countries around
the world, ranging from off-grid solar-diesel village electrification systems in the
Peruvian Amazon to utility-scale PV systems in the U.S. He recently served as Principal
Investigator for SUNDA, a four-year NRECA/DOE project to reduce barriers for electric
co-ops who choose to implement utility-scale PV systems, and served as a consultant
on a co-op microgrid project. Mr. Danley is currently developing a cost-effective solar
electric cooking system for developing countries. Mr. Danley has a degree in Mechanical
Engineering from the Massachusetts Institute of Technology.

QUESTIONS OR COMMENTS

• Robert W. Harris, PE, Senior Principal, Transmission & Distribution Engineering

[email protected]
• Fathalla Eldali, Distribution Optimization Engineer, Integrated Grid
[email protected]
• To find more resources on business and technology issues for cooperatives, visit our website.

DISTRIBUTED ENERGY RESOURCES WORK GROUP

The Distributed Energy Resources (DER) Work Group, part of NRECA’s Business and
Technology Strategies department, is focused on identifying the opportunities and
challenges presented by the continued evolution of distributed generation, energy storage,
energy efficiency and demand response resources. For more information, please visit
www.cooperative.com, and for the current work by the Business and Technology
Strategies department of NRECA, please see our Portfolio.

LEGAL NOTICE
This work contains findings that are general in nature. Readers are reminded to perform due diligence in applying these
findings to their specific needs, as it is not possible for NRECA to have sufficient understanding of any specific situation to
ensure applicability of the findings in all cases. The information in this work is not a recommendation, model, or standard
for all electric cooperatives. Electric cooperatives are: (1) independent entities; (2) governed by independent boards of
directors; and (3) affected by different member, financial, legal, political, policy, operational, and other considerations.
For these reasons, electric cooperatives make independent decisions and investments based upon their individual needs,
desires, and constraints. Neither the authors nor NRECA assume liability for how readers may use, interpret, or apply the
information, analysis, templates, and guidance herein or with respect to the use of, or damages resulting from the use of,
any information, apparatus, method, or process contained herein. In addition, the authors and NRECA make no warranty
or representation that the use of these contents does not infringe on privately held rights. This work product constitutes
the intellectual property of NRECA and its suppliers, and as such, it must be used in accordance with the NRECA copyright
policy. Copyright © 2019 by the National Rural Electric Cooperative Association.

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