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1 presentation by George Gross University of Illinois at ChampaignUrbana for the PSERC Webinar February 13, 2018 LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN GRIDS WITH INTEGRATED RENEWABLE ENERGY RESOURCES © 2018 George Gross, All Rights Reserved

LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

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Page 1: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

1

presentation by George Gross

University of Illinois at Champaign–Urbana

for the PSERC Webinar

February 13, 2018

LARGE – SCALE ELECTRIC ENERGY

STORAGE INTEGRATION IN GRIDS

WITH INTEGRATED RENEWABLE

ENERGY RESOURCES

© 2018 George Gross, All Rights Reserved

Page 2: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

2

OUTLINE OF THE PRESENTATION

The critical importance of energy storage

Overview of ESR technologies

ESR roles and applications to power systems

The current status of storage

The California push for storage deployment

The opportunities and the challenges ahead

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3

ESRs IN THE NEWS

Page 4: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

4

THE DIRE NEED FOR STORAGE

The electricity business is the only industry sector that sells a commodity without sizeable inventory

The lack of utility–scale storage in today’s power system drives electricity to be a highly perishablecommodity

The deepening renewable resource penetrationsexacerbate the challenges to maintain the demand–supply equilibrium for every time scale

Storage provides added flexibility to maintaindemand–supply balance around the clock

Page 5: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

5

CHANGING REALITY IN POWER SYSTEMS

Mitigation of climate change impacts and sustainability

are key drivers of the growing deployment of

renewable resources to reduce CO2 emissions

In various jurisdictions, legislative/regulatory

initiatives stipulate specific targets with the dates

by which they must be met to result in a cleaner

environment

Page 6: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

6

RENEWABLE PORTFOLIO STANDARDS (RPS)

Source: http://www.dsireusa.org/resources/detailed-summary-maps/; February 2017 6

Page 7: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

7

MISALIGNMENT OF WIND POWER OUTPUT AND LOAD

0

50

100

150

200

250

win

d po

wer

out

put (

MW

)

24 48 72 96 120 144 168 3,000

4,000

50,00

6,000

7,000

8,000

load

(MW

)

hour

wind power

load

Page 8: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

8

NEED FOR LARGER AND FASTER RAMPING RESERVES

day

peak

load

frac

tion

1.0

0.5

0

load

loadminus windoutput

large ramp up required

Adapted from: M. Lange & U. Focken, “Physical Approach to Short-Term Wind Power Prediction”, Springer, 2006

large ramp down required

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9

0

2,000

4,000

6,000

8,000

0

6,000

12,000

18,000

24,000

30,000

0:00 4:00 8:00 12:00 16:00 20:00

net load = load − wind − solar output (MW)load (MW)

INCREASED FLEXIBILITY NEEDS

load

wind output solar output

net load

time

8,300 MW over 3 hours

10,600 MW over 5 hours

12,200 MW over 3 hours

Page 10: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

10

26,000

0

22,000

18,000

14,000

10,000

0:00 4:00 8:00 12:00 16:00 20:00

CAISO DAILY NET LOAD CURVEUNDER DEEPENING PENETRATION

net load (MW)

hourSource: CAISO

Page 11: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

11

CURTAILMENT PERCENTAGES OF WIND GENERATION : 2007 – 2013

0

2

4

10

win

d en

ergy

cur

tailm

ents

(%)

2007 2008 2009 2010 2011 2012 2013

6

8

12

14

16

18

MISO

ERCOT

PJMNYISO

Page 12: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

12

CAISO NEGATIVE RTM PRICES

0

20

40

100

nega

tive

RTM

pri

ce o

ccur

renc

es

60

80

120

140

160

2013

2012

2014

0:00 4:00 8:00 12:00 16:00 20:00 24:00

major shift of increases in negative real–time price

occurrences to mid–day hours

hour

Page 13: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

1313

ENERGY STORAGE TECHNOLOGIES

increasing capacityincreasing capability

CAES

lead–acid batteryflywheel

NaS battery

SMESLi–ion battery

Ni–Cd battery

pumped storage

flow battery

advanced lead acid battery

EC capacitor

Page 14: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

14

THE STORAGE RESOURCE PHASES

charging phase

idle phase

discharging phase

Page 15: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

15

PRINCIPAL ROLES ESRs CAN PLAY

Storage enables deferral of investments in:

new generation resources

new transmission lines

distribution circuit upgrades

Storage is key to the development of microgrids in

both grid–connected and autonomous situations

Page 16: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

16

MORE ROLES ESRs CAN PLAY In short–term operations, storage provides:

flexibility in time of energy consumption: demand shift; peak–load shaving

ability to delay the start up of cycling units levelization of substation load reserves and frequency regulation services demand response action capability to provide voltage support

Storage can, also, provide virtual inertia service to replace part of the missing inertia in grids with integrated renewable resources

Page 17: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

17

12,000

13,000

14,000

15,000

16,000

17,000

CYCLING UNITS WITHOUT ESRs

Source: ISO–NE

(MW

)

time of day0 2 4 6 8 10 12 14 16 18 20 22 24

20,000reserves

17,000

16,000

15,000

14,000

13,000

12,000

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18

12,000

13,000

14,000

15,000

16,000

17,000

CYCLING UNITS WITHOUT ESRs

Source: ISO–NE

(MW

)

time of day0 2 4 6 8 10 12 14 16 18 20 22 24

20,000reserves

peaking units17,000

16,000

15,000

14,000

13,000

12,000

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19

12,000

13,000

14,000

15,000

16,000

17,000

CYCLING UNITS WITHOUT ESRs

Source: ISO–NE

(MW

)

time of day

cycling units

0 2 4 6 8 10 12 14 16 18 20 22 24

20,000reserves

peaking units17,000

16,000

15,000

14,000

13,000

12,000

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20

12,000

13,000

14,000

15,000

16,000

17,000

CYCLING UNITS WITHOUT ESRs

Source: ISO–NE

(MW

)

time of day

start–up the cycling units

cycling units

0 2 4 6 8 10 12 14 16 18 20 22 24

20,000reserves

peaking units17,000

16,000

15,000

14,000

13,000

12,000

Page 21: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

21

12,000

13,000

14,000

15,000

16,000

17,000

CYCLING UNITS WITH ESRs

Source: ISO–NE

(MW

)

start–up the cycling units

time of day

cycling units

20,000

0 2 4 6 8 10 12 14 16 18 20 22 24

peaking units

17,000

16,000

15,000

14,000

13,000

12,000

reserves

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22

12,000

13,000

14,000

15,000

16,000

17,000

CYCLING UNITS WITH ESRs

Source: ISO–NE

(MW

)

start–up the cycling units

time of day

cycling units

20,000

0 2 4 6 8 10 12 14 16 18 20 22 24

peaking units

17,000

16,000

15,000

14,000

13,000

12,000

supplied by ESRs

reserves

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23

12,000

13,000

14,000

15,000

16,000

17,000

CYCLING UNITS WITH ESRs

Source: ISO–NE

(MW

)

start–up the cycling units

delay

time of day

cycling units

20,000

0 2 4 6 8 10 12 14 16 18 20 22 24

peaking units

the ESRs contribute

to the reserves

17,000

16,000

15,000

14,000

13,000

12,000

supplied by ESRs

reserves

Page 24: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

24

LOAD AND LMP

Source: NE ISOtime of day

load

(M

W)

0 2 4 6 8 10 12 14 16 18 20 22 2411,000

12,000

13,000

14,000

15,000

16,000

17,000

Page 25: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

25

0 2 4 6 8 10 12 14 16 18 20 22 2411,000

12,000

13,000

14,000

15,000

16,000

17,000

LOAD AND LMPlo

ad (

MW

)

time of day

average load

Source: NE ISO

Page 26: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

26

LOAD AND LMP

Source: NE ISO

pric

e (

$/M

Wh

)

time of day

load

(M

W)

average demand

0 2 4 6 8 10 12 14 16 18 20 22 2411,000

12,000

13,000

14,000

15,000

16,000

17,000

50

60

70

80

90

100

110

120

130

Page 27: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

27

LOAD AND LMP

Source: NE ISO

average price

time of day

load

(M

W)

average demand

pric

e (

$/M

Wh

)

0 2 4 6 8 10 12 14 16 18 20 22 2411,000

12,000

13,000

14,000

15,000

16,000

17,000

50

60

70

80

90

100

110

120

130

average price

average load

Page 28: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

28

STORAGE UTILIZATION

Source: NE ISO time of day

load

(M

W)

pric

e (

$/M

Wh

)

0 2 4 6 8 10 12 14 16 18 20 22 2411,000

12,000

13,000

14,000

15,000

16,000

17,000

50

60

70

80

90

100

110

120

130charging phase idle phase discharging phase

Page 29: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

29

RTM demand

LMP IN A SYSTEM WITHOUT STORAGE

$/MWh

LMP

MWh/h

RTM supply

Source: http://oasis.caiso.com/, hub TH_SP15 (June 9, 2015)

Page 30: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

30

RTM demand

$/MWh

LMP

MWh/h

ESR discharge output

RTM supply

Source: http://oasis.caiso.com/, hub TH_SP15 (June 9, 2015)

ESR DEPLOYMENT IMPACT ON LMP

LMP with ESR

Page 31: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

31

0

200

400

600

800

1,000

1,200

12 AM 5 AM 10 AM 3 PM 8 PM

$/M

Wh

hour

low – price hours

ESR DEPLOYMENT IN RTMs

high – price hours

Source: http://oasis.caiso.com/, hub TH_SP15 (June 9, 2015)

Page 32: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

32

IMPACTS OF CALIFORNIA ROOFTOP SOLAR

GWh

05

1015202530 other renewables

20 64 12108 181614 242220$/MWh

distributed solarutility-scale solar

imports

thermalnuclear

hydroelectric

CALIFORNIA ROOFTOP SOLAR IMPACTS: MARCH 11, 2017

-200

204060

226420 1412108 201816 24

real-time average hourly prices

hour of day

Source: US EIA based on https://www.eia.gov/electricity/data/eia861m/index.html and http://www.caiso.co

hour of day

Page 33: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

33

26,000

0

22,000

18,000

14,000

10,000

0:00 4:00 8:00 12:00 16:00 20:00

CAISO DAILY NET LOAD CURVEUNDER DEEPENING PENETRATION

net load (MW)

hourSource: CAISO

10,386 MW April 9, 2017

Page 34: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

34

INTEGRATION OF STORAGE WITH SOLAR RESOURCES

13:56 14:10

sola

r pla

nt o

utpu

t (M

W)

ESR energy discharged

Page 35: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

35

STORAGE APPLICATION IN MICROGRIDS (μgs)

A μg is a time–varying network in the distribution

grid with control of its resources to either consume

or generate electricity or act as an idle entity with

zero injection/withdrawal in the isolated mode

Storage plays an integral role in the management

of generation and load resources in a μg and thus

is a critical component in the development of grid–

connected, autonomous and community μgs

Page 36: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

36

MICROGRID: DEFINITION

A microgrid (μ g) is a network of interconnected

loads and distributed energy resources, within

clearly defined geographic boundaries, with the

properties that it is a single controllable entity,

from the grid perspective, and that it operates

either connected to or disconnected from the grid,

i.e., either in the parallel or in the islanded mode.

Page 37: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

37

APPLICATION IN MICROGRIDS

Santa Rita Jail Microgrid

Page 38: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

38

ESR GRID APPLICATIONS

application ESR owner interest grid impacts

substation transformer overload avoidance

economic overload condition mitigation

reliability improvement

variable energy generation curtailment

avoidance/reduction

more effective renewable energy

resource harnessing

increase of fraction of green energy used and reduce pollution

energy shift from low – to high – demand periods

collect arbitrage benefits

low–load condition mitigation and cost

reductionreplacement of reserves requirements from the

units in a generation plant

relaxation of reserve requirements limits on the plant units

reliability improvement

Page 39: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

39

CHALLENGES THAT STORAGE CAN EFFECTIVELY ADDRESS

variable energy resource integration challenge

the way storage addresses the challenge

the pressing needs for adequate ramping capability incontrollable resources

fast ms–order ESR response timescan meet the steep raise/lower

ramping requirements

variability, intermittency and uncertainty associated with renewable resource outputs

ESRs are instrumental in smoothing renewable outputs and in higher renewable energy harnessing

increased need for frequency regulation resources for

flexibility in grid operations

ESRs provide regulation with 2 – 3 times faster response times

than gas turbines

Page 40: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

40

STORAGE TO THE RESCUEtoday’s electricity grid with

limited storage capacity/capability

future electricity grid with measurably increased

storage capacity/capability

any increment in peak demand requires use of polluting and

inefficient power plants

additional peak demand is met by ESRs that shift the times of

energy consumption

reserves requirements are met by expensive and polluting

fossil–fired generators

reserves provided by ESRs reduce dependence on the contributions to reserves by conventional units

renewable generation has to be “spilled” whenever the supply exceeds the demand or under

congestion situations

clean, renewable energy is stored in ESRs during low–demand periods, leading to reduced

dependence on conventional units

Page 41: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

41

KEY BENEFITS OF GRID – INTEGRATED ESR DEPLOYMENT Deployment of ESRs

raises system reliability

improves operational economics

provides operators with additional flexibility

to optimize grid operations and manage grid

congestion

increases renewable output utilization

Page 42: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

42

KEY BENEFITS OF GRID – INTEGRATED ESRs

ESR deployment reduces GHG emissions because

ESRs

facilitate renewable resource integration

reduce the system reserves requirements on

the conventional fossil–fired resources

displace the generation of inefficient and

dirty units used to meet peak loads

Page 43: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

43

CURRENT WORLD STORAGE STATUS

There are currently 1,619

ESR projects implemented

throughout the world with a

total capacity of 193,127 MW

288 out of these projects

are in California with a

capacity of 7,512 MW

California: 4 %

rest of the world: 96 %Source: DOE Global Energy Storage Database, http://www.energystorageexchange.org/projects

global storage capacity

Page 44: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

44

BATTERY ENERGY STORAGE SYSTEMS (BESSs)

Many practitioners consider the installation of BESSs to most effectively address the challenges to integrate deepening penetrations of renewable resources – the holy grail of energy storage

A BESS may be highly efficient and can discharge the stored energy with high ramp rates

The development of new, very large, highly effi–cient batteries, appropriate for utility–scale storage, is predicted to grow into a huge business

Page 45: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

45

BESS

Source: http://www.bbc.com/news/business-42090991

Page 46: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

46

US UTILITY – SCALE ANNUAL BATTERY INSTALLATIONS

Source: EIA https://www.eia.gov/todayinenergy/detail.php?id=34432

Page 47: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

47

US UTILITY – SCALE BATTERY INSTALLATIONS

Source: EIA https://www.eia.gov/todayinenergy/detail.php?id=34432

Page 48: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

48

NOTREES PROJECT – GOLDSMITH, TX(36 MW / 23.8 MWh)

Source: http://www.energystorageexchange.org/projects

An advanced lead–acid battery system project with the objective to reduce the output variability of the

153–MW wind power plant

Page 49: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

49

AES LAUREL MOUNTAIN – ELKINS, VA(32 MW / 8 MWh)

Source: http://www.energystorageexchange.org/projects

The Li–ion batteries are installed in a 98–MW wind farm to provide operating reserves and frequency

regulation in the PJM system

Page 50: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

50

SCE PILOT PROJECT – ORANGE, CA(2.4 MW / 3.9 MWh)

Source: http://www.energystorageexchange.org/projects

The set of Li–ion batteries relieves transformer overloads and defers distribution network upgrades to ensure summer–time demand peak loads are met

Page 51: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

51

BUZEN SUBSTATION – BUZEN, FUKUOKAPREFECTURE (50 MW / 300 MWh)

Source: http://www.energystorageexchange.org/projects

The world’s largest BESS serves to provide demand – supply balance

Page 52: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

52

NEW PUSH IN ESR DEPLOYMENT

Advancements in storage technology, cost reduc–

tions and regulatory initiatives have invigorated

the interest in large–scale grid–connected ESRs

The push to deeper renewable resource penetra–

tions leads to the wider deployment of storage –

as both a distributed and a grid resource

Major deployments include utility–scale batteries,

flywheels and battery vehicle (BV) aggregations

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53

THE VEHICLE–TO–GRID (V2G)FRAMEWORK AS A PRACTICAL ESR

The use of bidirectional power flow interconnec–

tions of the BVs under the V2G framework allows

aggregations of BVs to constitute a storage project

whose total capacity and capability can provide a

valuable resource to the grid

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54

EVs ON THE ROAD

1,200

800

600

400

0

200

1,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Financial Timeshttps://www.ft.com/content/31d68af8-6e0a-11e6-9ac1-1055824ca907

number in use (’000)

otherGermanyUKFranceNorwayNetherlandsJapanChinaUS

Page 55: LARGE – SCALE ELECTRIC ENERGY STORAGE INTEGRATION IN … · The critical importance of energy storage Overview of . ESR. technologies ESR . roles and applications to power systems

55

SALES OF NEW EVs

0 5 10 15 20 25

Source: Financial Timeshttps://www.ft.com/content/31d68af8-6e0a-11e6-9ac1-1055824ca907

as % of new registrations

Norway

Netherlands

Sweden

France

China

UK

Germany

US

Japan

total

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56

TESLA MODEL 3 RESERVATIONS

116151

181 200232

254280

325

050

100150200250300350400

0 2 11 15 24 34 50 168

num

ber

of re

serv

atio

ns

number of hours after announcementSource: http://electrek.co/2016/04/03/tesla-model-3-reservations-timeline/, issued April 2015

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57

BARRIERS TO LARGE–SCALE STORAGE DEPLOYMENT

The pace of energy storage deployment has been very slow in the past, mainly due to the extremely high costs of storage

The reductions in storage costs over the past decade have remained inadequate to stimulate the large–scale deployment of ESRs

The high costs of storage present a chicken and egg

problem: costs remain high due to low demand and the high costs impede any growth in demand

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58

CALIFORNIA

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59

CALIFORNIA163,696 square miles; 3rd

largest US state by area;

4 % of the size of Europe

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60

CALIFORNIA163,696 square miles; 3rd

largest US state by area;

4 % of the size of Europe

38 million people

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61

CALIFORNIA163,696 square miles; 3rd

largest US state by area;

4 % of the size of Europe

38 million people

Sour

ce: h

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electricity consumption

is 8 % of US total of

293,269 GWh

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62

CALIFORNIA PUSH FOR STORAGE DEPLOYMENT

The CA government has recognized the significant

role storage can play in the grid and the need for a

bold move on storage to drastically reduce the storage

price through a sharp increase in demand

The recent CPUC mandate to deploy 1,325 MW of

cost–effective energy storage by 2020 in California

launches a major push for the global storage sector

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63

CALIFORNIA PUSH FOR STORAGE DEPLOYMENT

The CPUC energy storage requirements arise from the 2010 Assembly Bill 2514 (AB 2514)

AB 2514 required the CPUC to “open a proceeding to determine appropriate targets, if any, for each load–serving entity to procure viable and cost–effective energy storage systems and, by October 1, 2013, to adopt an energy storage system procure–ment target, if determined to be appropriate, to be achieved by each load–serving entity by December31, 2015, and a second target to be achieved by December 31, 2020”

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64

GUIDING PRINCIPLES

1. The optimization of the grid, including peak

reduction, contribution to reliability needs, or

deferment of transmission and distribution

upgrade investments;

2. The integration of renewable energy; and

3. The reduction of greenhouse gas emissions to

80 percent below 1990 levels by 2050, per

California’s goals”

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65

THE CPUC STORAGE REQUIREMENTS

In Decision 13-10-040, CPUC has mandated a target

by 2020 of 1,325 MW of energy storage to be

installed by the three major jurisdictional investor

owned utilities (IOUs) by 2024

The CPUC Decision provides the framework with

whose specifications the procurement and

deployment of storage projects must comply

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66

THE CPUC STORAGE PROCUREMENT FRAMEWORK SPECIFICATIONS

Storage capacity targets for each of the 3 major

California IOUs

Procurement schedule for the authorized storage

projects

Storage capacity targets at each of the specified

grid interconnection point given below:

transmission

distribution

customer side of the meter

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67

THE CPUC STORAGE PROCUREMENT FRAMEWORK SPECIFICATIONS

Allowed deviations to meet the CPUC targets by:

shifts of the targets among the grid

interconnection points

ownership of storage resources by

IOUs, customers and third parties

deferral of IOU targets in the CPUC–

specified schedule

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68

IOU STORAGE CAPACITY TARGETS

IOU target(MW) %

PG&E 580 43.77

SCE 580 43.77

SDG&E 165 12.26

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STORAGE CAPACITY TARGETS AND GRID INTERCONNECTION POINTS

grid intercon–nection point

target(MW) %

customer side of meter 200 15.09

distribution 425 32.08

transmission 700 52.83

customer side of meter

distribution

transmission

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70

PROCUREMENT SCHEDULE

90

120

160

210

90

120

160

210

2030

45

70

0

50

100

150

200

250

2014 2016 2018 2020

stor

age

capa

city

pro

cure

d (M

W)

PG&E

SCE

SDG&E

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71

CUMULATIVE PROCURED CAPACITY

0

200

400

600

800

1,000

1,200

1,400

2014 2016 2018 2020

cum

ulat

ive

proc

urem

ent t

arge

t (M

W)

year

SDG&E

PG&E

SCE

total = 1,325 MW

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72

TOTAL PROCURED CAPACITY VERSUS TARGET CAPACITY

tota

l cap

acity

(MW

)

0

100

200

300

400

500

2014 2016procured procuredtarget target

PG&ESCESDG&E

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73

CPUC STORAGE PROCUREMENT FRAMEWORK FEATURES

The procurement targets are mandated for each

IOU and may not be traded among the IOUs

Biannual procurement applications are to be filed

by each IOU by March of each applicable year

At least 50 % of each project approved to meet the

targets must be owned by third parties, customers

or joint third party/customer ownership

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74

CPUC STORAGE PROCUREMENT FRAMEWORK FEATURES

The CPUC Decision 13-10-040 also sets the energy

storage procurement targets for Community Choice

Aggregators and the Electric Service Providers at 1 %

of their year 2020 peak loads; projects must be

initiated by 2020, with installation to be completed

by the end of 2024

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75

CURRENT STATUS OF ENERGY STORAGE PROCUREMENT IN CA

There has been an upsurge in behind–the–meter

projects that have helped the IOUs meet some of

their T&D storage targets in 2016 and 2017

Each IOU has invested also in large battery ESR

projects, currently under construction; the timely

completion of these projects is required to meet

the target of each IOU

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76

FROM 60 Wh BATTERY CELLS TO A LARGE–SCALE 32 MWh ESR (BESS)

56 × 18 × 151 × 4 ×

cell(60 Wh)

module(3.2 kWh)

rack(58 kWh)

section(8.7 MWh)

system(32 MWh)

Source: M. Irwin,”SCE Energy Storage Activities,” Proc. IEEE PES General Meeting, Denver, July 26-30, 2015

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77

PCS units

12 kV/66 kVtransformer

BESS building

LARGE – SCALE ESR

Source : SCE

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78

CPUC DECISION RAMIFICATIONS

The CPUC Decision is a harbinger of regulatory

initiatives in the large–scale grid–connected

storage domain that signals the realization by the

government of the significant role storage plays

to further the smart grid implementation

The CPUC Decision stimulus to reduce ESR costs

by increased demand is likely to reappear in

many other venues to promote wider ESR

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79

OPPORTUNITIES FOR LARGE–SCALE ESRs

The CPUC Decision is paving the way for new

opportunities in the storage sector The need for storage to meet the CPUC mandate

creates a strong push in the storage market and

considerably weakens the reluctance to invest in

the storage sector A key example is the new TESLA Gigafactory, the

large–scale NV plant in to manufacture storage

batteries for commercial and residential uses

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80

Li – ION BATTERY PRICES AND DEMAND

200

400

600

800

1,000

1,200

2010 2012 2014 2016 2018 2020 2022 2014 2026 2028 2030 0

annual demand in GWh

Source: Bloomberg New Energy Finance https://www.bloomberg.com/news/articles/2016-06-13/batteries-storing-power-seen-as-big-as-rooftop-solar-in-12-years

200

400

600

800

1000

1200

0

EV Li-ion battery cost global EV Li-ion demand$/MWh

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81

WILL STORAGE FOLLOW THE PATH OF PV SOLAR CAPACITY COSTS ?

80

0

60

40

20

1977 2017200719891983 1995 2001

$ / watt

0.24

year

76.00

Source: Bloomberg, New Energy Finance, and https://en.wikipedia.org/wiki/growth_of_photovoltaics

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82

CHALLENGES TO LARGE–SCALE STORAGE DEPLOYMENT

The deployment of large–scale ESRs brings forth many economic, regulatory and technical challenges

that must be overcome to effectively harness the myriad benefits such resources provide

While the of large–scale ESR implementations are certainly beneficial to grid operations, the actual quantification of the various benefits and impacts and their allocation to the ISO, the ESR owners and the customers is a very difficult problem

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83

analytic framework

appropriate metrics

new tools

battery life estimation

GRAND CHALLENGES

challenge

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84

battery data analytics

limitations to large–scale deployment

symbiosis of ESR and DRR

environmental impacts

GRAND CHALLENGES

challenge

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85

CONCLUDING REMARKS

In the development of sustainable paths to meet future energy needs, renewable resources must play a key role and storage is, by far, the most promising option to facilitate such paths

The CA mandate may provide the appropriate stimulus to jump start grid–connected storagedeployment and to further reduce storage prices

There remain daunting challenges at many levels – from science to engineering to policy – to effectively implement ESR deployment in the grid

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86

CONCLUDING REMARKS

We need to systematically address the major

challenges in storage technology improvement,

modeling and tool development, regulatory,

environmental and policy formulation arenas – to

name just a few – in order to realize the goal of

large–scale deployment of storage in future grids