Energy Storage 101Ed Burgess

September 23, 2016

Broad Electric Power System Applicability

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Bulk Storage

Ancillary Services

DistributedStorage

DistributedStorage Commercial

Storage

ResidentialStorage

Energy Storage Can Cut Across Multiple Silos

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» Storage has potential to lower ratepayer costs and to increase grid reliability.» Storage is not always cost effective based on a single use case, however

stacking multiple benefits can increase cost effectiveness.» Key challenge: identifying primary system need, then identifying secondary

benefits that storage can also provide.

Customer Programs

Customer Bill Management

Demand Response Participation

DER/EV interconnection cost management

Resource Planning

System Capacity

Flexibility / Ancillary Services

Fleet Optimization

T&D Planning

Transmission Asset Deferral

Distribution Asset Deferral

Operational Use Cases For Storage Systems

SOURCE: SCE 2011, HTTPS://WWW.EDISON.COM/CONTENT/DAM/EIX/DOCUMENTS/INNOVATION/SMART-GRIDS/ENERGY-STORAGE-CONCEPT-TO-REALITY-EDISON.PDF

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Size and Duration by Technology/Application

Source: Australian Renewable Energy Agency (7/2015): Energy Storage Study Funding and Knowledge Sharing Priorities 5

Energy Storage Use Cases (2010 – 2015)*

SOURCE: DOE ENERGY STORAGE DATABASE ACCESSED 9/7/2016 6

* - Chart reflects data collected from the DOE Global Energy Storage Database Accessed 2/16/2016. Database entries are self reported and use case categories are not mutually exclusive.

Electro-chemicalElectro-magneticPumped Hydro StorageThermal Storage

Use Case Example #1: Frequency Regulation

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» In order to synchronize generation assets to the AC grid, frequency must be held with tight tolerance bounds around 60 Hertz.

» Inverter-based resources such as energy storage can respond more quickly than conventional resources.

Service Response time Resources

Frequency Regulation

Dispatched to correct ACE; Response time up to 5 minutes

Thermal generation, demand response

“Fast” Frequency Regulation

Dispatched to correct ACE; Typical response time is 1-30 seconds

Storage, some demand response

Use Case Example #2: Avoid Curtailment/Overgeneration

Source: https://www.caiso.com/Documents/SB350Study-Volume5ProductionCostAnalysis.pdf 8

Potential Over-generation

▪ Small amounts of energy storage equivalent to 0.5% to 3.4% of peak capacity results in 9% to 30% reduction in unit starts

▪ Unit starts tend to be emissions intensive as well as costly

No

Sto

rag

e

0.4

125

GW

1.32

5 G

W

2.6

50 G

W

9%17%

30%

-

10,000

20,000

30,000

40,000

50,000

Scenarios

Unit Starts

Source: California Energy Storage Alliance

Only 2 hour storage

2, 4, & 6 hour storage

2, 4, & 6 hour storage

% of total CA Generation Capacity

0.5% 1.7% 3.4%

Curtailment Reduction in CA (kWh)

8.1% 23.3% 40.0%

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Results of CA Grid Model with Storage

Use Case Example #3: T&D Upgrade Deferral

SOURCE: DOE/EPRI 2013 ELECTRICITY STORAGE HANDBOOK IN COLLABORATION WITH NRECA, 2013 (FIGURE 11. STORAGE FOR TRANSMISSION AND DISTRIBUTION DEFERRAL)

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Incremental amounts of storage can defer the need for new T&D equipment

Dispatch for Transmission Deferral

» Storage is only a fit for T&D deferral in specific circumstances – recent examples: Con Edison Brooklyn-Queens Initiative PG&E Distribution Deferral Solicitation Boothbay Maine Pilot Project

Case Study: Puget Sound Energy Non-Wires Alternative

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Storage

ConfigurationSolves for

Power

(MWp)Energy

(MWh)

Duration

(hours)

Est.

Cost

($MM)

Includes

Non-Wires

Alternatives

Technically

Feasible

Meets

Requirements

Baseline

Eliminates Emergency (Green) + Reduces Normal Overload (Yellow)

328 2,338 7.1 $1,030 ✔ ✕ ✔

Alternate #1Eliminates Emergency Overload Only (Green)

121 226 1.9 $184 ✔ ✔ ✕

Alternate #2

Eliminates All Normal + Emergency Overloads (Green, Yellow and Red)

545 5,771 10.6 $2,367 ✔ ✕ ✔

Energy Storage Configuration Summary

Graphical Representation of Eastside Overload Scenario, 2021-2022 Winter Case (in MW)*

Storage Configurations Considered

*Shading represents ESS net injection requirements to meet overload scenarios:

Green – Emergency Overload Elimination; Yellow – Normal Overload Reduction; and

Red – Normal Overload Elimination

Baseline Configuration• Solves for Green + YellowAlternate #1• Solves for Green onlyAlternate #2• Solves for Green + Yellow + Red

Case Study: Brooklyn-Queens Demand Management

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Use Case Example #4: Local Capacity NeedsCase Study: SCE 2014 Procurement

261 MW procured (5x what CPUC had required in Decision 13-02-15) in Nov. 2014 to address local capacity needs two areas

Seller Resource TypeTotal

ContractsMW

Advanced Microgrid Solutions BTM Battery Energy Storage 4 50.0

AES FTM Battery Energy Storage 1 100.0

Ice Energy BTM Thermal Energy Storage 16 25.6

NRG FTM Battery Energy Storage 1 0.5

Stem BTM Battery Energy Storage 5 85.0

Total 26 261.1

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