©2010 www.sandc.com©2010 www.sandc.com

Energy Storage: Addressing Today’s Grid Energy Storage: Addressing Today’s Grid Challenges for Tomorrow’s Energy DemandsChallenges for Tomorrow’s Energy Demands

Brad RobertsBrad RobertsPower Quality Systems DirectorPower Quality Systems Director

S&C Electric CompanyS&C Electric Company

Grid Week September 2011Grid Week September 2011

The Grid Connected Energy Storage The Grid Connected Energy Storage Market is Large…..Market is Large…..

Estimated Global Installed Capacity of Energy StorageEstimated Global Installed Capacity of Energy Storage

Source: StrateGen Consulting, LLC research; thermal storage installed and announced capacity estimated by Ice Energy and Calmac.Note: Estimates include thermal energy storage for cooling only. Figures current as of April, 2010.

Grid-Purposed Energy StorageGrid-Purposed Energy Storage - - HierarchyHierarchy

Large Central Units100s of MW

Storage at Grid Edge10s of kW

Substation Batteries10s of MWGraphics adapted from an EPRI Presentation by Joe Hughes

Grid Storage BenefitsGrid Storage Benefits

• Prepare for new Revenue ModelsPrepare for new Revenue Models• Prepare for new Renewable & Reliability MandatesPrepare for new Renewable & Reliability Mandates• Prepare for new Customer BehaviorsPrepare for new Customer Behaviors

1- Strategic Benefits

• Energy ArbitrageEnergy Arbitrage• Frequency RegulationFrequency Regulation• Generation CapacityGeneration Capacity

3- Market Benefits

• T&D Capital DeferralT&D Capital Deferral• Service Reliability (DA)Service Reliability (DA)• Improve System EfficienciesImprove System Efficiencies• Voltage RegulationVoltage Regulation

2- Service BenefitsAll

three must

work together

synergistically to

justify widespread

storage deployment

Layered Intelligence Reaction TimesLayered Intelligence Reaction Times

Smart Grid Projects with StorageSmart Grid Projects with Storage

Project Name Size in MW Online Date

Unique Features

NEDO 1 MW 2011 Two battery types and solar integration

VACA-Dixon 2 MW 2011 Integration with 10MW solar plant

BC Hydro Golden and Field

2 MW (Total) 2012 Provide supplemental power to over 250 customers and avoid costs of new substation

Catalina Island 1 MW 2011 Supplement diesel generators in island community

Hitachi GST 4 MW 2012 Duel use as backup power system and peak shaving

Santa Rita Jail 2 MW 2011 Peak shaving and islanding scheme as part of overall smart grid implementation

Smart Grid Projects with StorageSmart Grid Projects with StorageProject Name Size in MW Online

DateUnique Features

Presidio Station 4 MW 2010 Supports an entire town of during outages and combines with smart grid distribution

Rock County Station

1 MW 2009 Integration with wind power to provide load leveling

East Busco Station

2 MW 2009 First integration of energy storage and smart grid distribution

Citizens Station 2 MW 2009 Up to 8 hours of supplemental power to increase system reliability

Balls Gap Station

2 MW 2009 Up to 8 hours of supplemental power to increase system reliability

Chemical Station

1 MW 2006 First system of its kind in United States and proved the use of energy storage in peak shaving to defer substation upgrades

CES – A Virtual Substation Battery CES – A Virtual Substation Battery

Communication & Control Layout

for CES

Utility Dispatch Center /SCADA CES Control Hub Integration

Platform

Substation

CES CESCESCES

CES is Operated as a Fleet offering a Multi-MW, Multi-hour StorageCES is Operated as a Fleet offering a Multi-MW, Multi-hour Storage

Grid Benefits:Grid Benefits:4) Load Leveling at substation4) Load Leveling at substation5) Substation Power Factor Correction5) Substation Power Factor Correction6) Ancillary services6) Ancillary services

Local Benefits:Local Benefits:1) Backup power1) Backup power2) Voltage correction2) Voltage correction3) Renewable Integration3) Renewable Integration

AEP Ohio and S&C Debut First Lithium-AEP Ohio and S&C Debut First Lithium-Ion-Based CES Ion-Based CES • First CES units in the world to be installed at customer First CES units in the world to be installed at customer

homeshomes• Sensing technology in CES units recognizes when Sensing technology in CES units recognizes when

homes lose electric power, and automatically provides homes lose electric power, and automatically provides back-up for up to several hours back-up for up to several hours

• S&C is contributing significant technological expertise to S&C is contributing significant technological expertise to the AEP Ohio gridSMART Demonstration Project, the AEP Ohio gridSMART Demonstration Project, providing customers greater energy control and providing customers greater energy control and improving electric distribution service and performanceimproving electric distribution service and performance

Next Steps for StorageNext Steps for Storage

• DOE Smart Grid and Storage stimulus projects will DOE Smart Grid and Storage stimulus projects will confirm the value of storageconfirm the value of storage

• Wyden Storage Act would provide the much needed Wyden Storage Act would provide the much needed Investment Tax Credits to stimulate growthInvestment Tax Credits to stimulate growth

• Storage participation in the Ancillary Services market Storage participation in the Ancillary Services market has proven very effectivehas proven very effective

• Storage will be a key component of higher penetration of Storage will be a key component of higher penetration of renewables and electric transportationrenewables and electric transportation