Keeping Patagonia Pristine with an Environmentally Friendly Microgrid


As the global energy transition unfolds, its benefits will be felt not just in the world's population centers, but also remote regions such as Patagonia in Chile, one of the most pristine areas globally. A renewables-plus-storage microgrid is being deployed by local utility, SAESA, saving millions of dollars, eliminating thousands of tons of CO2, and ensuring that Chile's spectacular landscapes remain unspoiled.

SAESA's grid is served by run-of-river hydropower supplemented by diesel gensets. Hydro availability varies, requiring supplemental diesel generators to operate throughout the year to compensate when customer demand exceeds hydro output. Implementing a solution to replace/reduce/eliminate diesel dependence was essential to meet sustainability goals.

SAESA considered lithium-ion batteries but determined that the benefits were limited due to their relatively short storage duration. Iron flow batteries were evaluated, and it was determined they could reduce the need for generators by 75% (equivalent to nine out of 12 months yearly). Cost savings are estimated at $3 million over the system's 25-year life and approximately 12 years of diesel emissions (8.8 GWh) will be displaced.

Most importantly, SAESA will have the assurance that the system is safe and sustainable. This presentation will cover the project's design, development, and deployment.

Key Takeaways:
  • The benefits and effects of implementing a renewables-plus-storage microgrid in a remote region
  • The cost savings and environmental benefits associated with iron flow batteries
  • The value of using long duration storage to supplement small hydro and renewable energy
Speakers:

Hugh McDermott, microgrids expert
Hugh McDermott
Senior Vice President-Business Development
ESS Inc.

Mr. McDermott is the Senior Vice President - Business Development & Sales for ESS Inc. An energy sector executive focused on growing energy infrastructure and advanced energy technology businesses primarily addressing utility, industrial and commercial sectors, Mr. McDermott has served in numerous executive and leadership roles throughout his career in high-growth start-up companies as well as executive roles in public listed companies. Prior to joining ESS, Inc., Mr. McDermott was the Vice President Sales for Silver Spring Networks where he successfully led the company's market-building presence and key partnership development for Smart Grid and Smart City business across the APAC region. As Global Head of Business Development at Better Place, Mr. McDermott created the world's first smart charging commercial offering which leveraged networked electric vehicle charging infrastructure to provide dynamic load management and energy storage services to utilities, grid operators and energy traders. Mr. McDermott is a Hokie from VA Tech where he earned his BS in Mechanical Engineering in Power Systems.