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Tackling the Business Case For Energy StorageEnergy Storage - Ready to Help Manage Renewables, Demand Response, and
Improve T&D
Alaska Energy Storage WorkshopAnchorage, AKJune 20, 2012
America’s Cooperative Research Network
Over 900 co-opsServes 42 million Americans in 47 StatesCovers 75% of nation’s land massOwns 42% of all Distribution Line Totals 2.4 Million Line MilesPowered by 55,000 MW Delivers 178 billion kWh of generation annually 2
Timely Energy Innovations
Membership established CRN to Monitor, Evaluate and Apply Technologies that:
• Improve Productivity• Enhance Service• Control Cost
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Environmental
Thrifty
Com
mun
ity
Hardship
Business
RatesReliability
InformationPrivacy
Health
Conserve
Aesthetics
Safety
Regulations
Sustainable
Challenges
Solutions
Hurdles
Positive ValueFor Utilities
NRECA Technical Teams are Member DrivenOur Goal is to Help Clear the Hurdles
We start by listening – what challenges are faced?
Next we find and vet solutions and identify the hurdles
Research is then directed at moving the solutions past the hurdles through support for
Development Demonstration Deployment
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DFAAdvanced conductors
Dist. AutomationEdge Voltage Control
Superhydrophobic Coatings
Solar OptionsSolar PV DeploymentDG InterconnectionAdvanced Batteries
Compressed Air StorageElectricity from biomass
Electric VehiclesLED Lamps
Energy Efficiency Program Design
Demand Response ModelsCenter for Energy Innovation0
Multipollutant ControlCycling Damage to Coal Plants
Coal Ash RefiningMicroturbines
Fuel Cells
MultiSpeak®Secure Software Development
Fuzz TestingCloud Computing
Open Modeling Framework
SCADACVR
Remote Sensor TechnologyIntegral Disconnect
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Distribution Operations
Generation& Fuels
Smarter GridTransmission& Substation
Renewable &Distributed
Energy
EnergyInnovations
Research
Pure science To Applied science and bench
Development
Applied science and bench To Prototypes and 1st generation products
Demonstration
Refinement, “hardening” of technology and the mechanics of getting technology to the grid
Deployment
Accelerating wise adoption –Making the technology practical and accessible
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2012 Research Projects
Multi-Pollutant Control
Distribution Fault Anticipation
Superhydrophobic Coatings
LED Agriculture Lighting
Estimated Life of EE Improvements
Next Generation Utility IT
Secure Software Development
Energy Storage Breakthroughs Longer Life - 5,000 to 10,000 cycles now possible Costs have decreased by over 50% with multiple value streams now
providing payback in less than five years Large battery complexes are being built in >1 MW Acceptable efficiency of 70% or more Multiple value streams are possible
– Peak shaving – Frequency regulation – T&D asset deferral – Minimize cycling and two-shift damage from renewables to fossil plants
Renewable Energy Hurdles Economics Relative to Traditional Intermittency Integration Location, Location, Location Regulatory Mandates Member Expectations
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Energy storage has huge potential, but there are too many choices and not enough knowledge.
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Cooperatives and Energy Storage History of ES Projects
– McIntosh CAES– Golden Valley NiCad system– Crescent Electric BESS
Recent projects– Kauai PV firming– Kotzebue wind integration– Midwest EC distributed energy storage– Others
Ongoing research efforts– Energy Storage Handbook in coordination with DOE / Sandia / EPRI– Co-op specific Energy Storage Toolkit
There is a groundswell of interest, but lack of in-ground demonstration is a hurdle.
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Energy Storage Hurdles Technical uncertainty, changing technology Business case is not well understood Limited experience in real-world systems Specific utilities require specific solutions
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National Cooperative Energy Storage Deployment Initiative
• Listen to co-op needs• Work with vendors to develop a set of
designs• Optimize install requirements
Standardized Designs
• Work with CFC, Co-Bank others to develop business models
• Use National Purchasing Program to get economiesof scale
Consolidated Financing and
Purchasing
Nationwide pilot program across a range
of applications
Experience transfer to the entire cooperative
network through dedicated outreach
Leverage cooperative strengths and existing resources to gain experience for the whole community.
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Storage Evaluations
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Many companies and technologies choices Wide range of applications
– Short-duration needs (high current inrush for motor start, frequency regulation, ramp requirement of renewables)
– Long-duration needs (peak shaving, storing renewables)
Focus on your needs and the value streams first, the technology choice second
Storage is Different
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Cycle life/discharge pattern of the energy storage system is critical. (i.e., map out how the storage will be used)
Nomenclature – kWh, MWh, kW-h Evaluate energy storage using discounted cash flow analysis of the multiple value streams and not cost of electricity.
CRN working with co-ops to develop an RFI and RFP for purchasing an energy storage system.
Possible Value Streams For Energy Storage
Assuming low penetration of renewables Trim Daily Peaks
Capacity credit or demand charge reduction Frequency regulation
– (higher $$ in pay for performance for energy storage) T&D capital asset deferral
Avoid new distribution transformers or transformer banks Avoid line reconductoring and new lines (big $$$$)
Possible Value Streams For Energy Storage
Assuming low penetration of renewables Arbitrage value Firming and Shifting Renewables
Improve thermal plant efficiency/reliability Reduce CO2 emissions from thermal plants Reduce congestion and line losses Eliminate rapid ramp rate requirements
Additional Value Streams For Energy Storage
Assuming high penetration of wind, such as >10% wind energy Avoid damage to coal-fired power plants Prevent spilling of wind energy at night Additional need for frequency regulation Dynamic VAr support Improved service reliability
Emerging Storage Technologies Lithium-Ion & Lithium Titanate Batteries - Expensive but
costs dropping, acceptable cycle life, used for short bursts (spinning reserve, frequency regulation, managing high ramp rates)
Advanced Lead Acid – Improved cycling vs. traditional lead acid, but still low cycle life. Potential lower cost option
Zinc Air – Potentially low cost, but in early stage of development
Ultra-Capacitors (UCAPs) – Potentially lowest cost option, but in early stage of development
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Emerging Storage Technologies
Dry Cell Battery Technology – Low cost for short duration storage and acceptable cycle life
“Flow” Batteries – Megawatt scale, excellent cycling and low cost, but mechanically complex systems
Isothermal Compressed-Air Energy Storage (ICAES) – Potentially very low cost that could make 100 MW+ scale storage possible
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Silent Power Customer-Sited Distributed Energy
Storage (Smart Grid Demo) Modular units -- 5/10 kW power with
10/20 kW-hr storage (2 hours) Cycle life of 1000 -5,000 cycles (80/10) Customer benefits include backup power
as a UPS and renewable integration Potential utility benefits include ability to
store excess renewable energy and be dispatched for short- term demand response and peak shaving (for two hours), and manage motor start-up loads
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KEA-CRN Demonstration Objectives Manage the intermittency of Wind to reduce the number of diesel
generator startups Eliminate the spilling of wind Reduce diesel fuel consumption Provide local voltage and frequency regulation support Provide spinning reserve Increase the Penetration of wind to nearly 100% CRN monitoring performance, economics, and documenting the value
proposition
ASSESSING SMART GRID BENEFITS:THE OPEN MODELING FRAMEWORK
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OMF
and STORAGE
Hurdle: What’s the ROI? Technical uncertainty, changing technology Lack of consistent analytical tools
– Period modeled– Factors considered– Underlying assumptions– Algorithms– Metrics
Different approach necessary for different technologies – e.g., DG vs. CVR vs. Storage
Comparing analyses done with different models is inherently risky.
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Open Modeling Framework
Source Data Module
ReferenceInputModule
TechnologyModules
ReferenceOutput Module
GridModules
Monetization& VisualizationModule
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OMF: Technology Modules
The Technology Modules are being derived from existing models, refined to use the same or similar inputs and to produce common engineering outputs.
Source Data Module
ReferenceInputModule Technology
Modules
ReferenceOutputModules
Grid Modules
Monetization& VisualizationModule
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Source Data Module
ReferenceInputModule
TechnologyModules
ReferenceOutput Module
GridModules
Monetization& VisualizationModule
OMF: Reference Input Module
The Reference Input Module contains a refined superset of the data used by the complete set of technology modules – refined to remove duplicative data.
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Source Data Module
ReferenceInputModule
TechnologyModules
ReferenceOutputModule
GridModules
Monetization& VisualizationModule
OMF: Source Data Module
The Source Data Module provides links to basic source data such as the National Climatic Data Center and F.W. Dodge.
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Source Data Module
ReferenceInputModule
TechnologyModules
ReferenceOutput Module
GridModules
Monetization& VisualizationModule
OMF: Reference Output Module
The Reference Output Module collects the output from the technology and grid modules in a standard framework. These are typically direct costs rather than ROI, IRR, or calculated metrics and engineering impacts. 31
Source Data Module
ReferenceInputModule Technology
Modules
ReferenceOutputModule
GridModules
Monetization& VisualizationModule
OMF: Monetization & Visualization Module
The Monetization & Visualization Module takes data from the Reference Output Module and converts these into cost/benefit analyses displayed in tabular and graphical form. AND – it facilitates comparison of different analyses.
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OMF: Grid Modules
The Grid Modules are built around GridLab-D.
Source Data Module
ReferenceInputModule Technology
Modules
ReferenceOutputModule
GridModules
Monetization& VisualizationModule
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$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
NPV $/kW @2%
Low High
Range of Inputs
Value to G&T
Freq Reg Svs
Arbitrage
T&D def
Mitigate Cycling
Peak Shave PPC ZnBr
GCAES
Ex.: Value To G&T Assuming High Penetration of Wind
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
NPV $/kW @ 2%
Low High
Range of input value
Value to Dist Coop as LSE
Freq Reg Svs
Arbitrage
T&D def
Mitigate Cycling
Peak Shave
PPC ZnBr GCAES
Ex.: Value of Energy Storage To Distribution Cooperatives
Conclusions Energy Storage requires multiple value steams, which can pay for the
installed costs of a unit. Energy Storage offers more value to distribution cooperatives than G&Ts. Energy Storage is cost effective today when the right applications are
paired with an appropriate technology.
Energy Storage is essential to manage renewables.Co-ops likely to be early adopters.
Possible Risks and Cautions
Technologies are changing rapidly, so difficult to pick a winner
Promising technologies can fail due to corporation failings
If Energy Storage is sited for delaying T&D assets, it must be mobile to prevent being stranded in the future
Energy Storage Resources CRN partnering with Sandia National Lab and EPRI Revision of popular Handbook
– Application first, then technology
– Financial analysis tools
– RFP template
– Database of technologies
CRN to offer additional evaluation tools and sample RFPs as part of an “Energy Storage Toolkit.”
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Targeted release in 2012
Back-Up Slides
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Lithium-Ion & Lithium Titanate
Attribute Rating
Capital cost Fair at $600/kW-hr or $4200/kW-7 hours
Round-trip efficiency 90% to 95%
Lifetime in Cycle Life 4,000 to 16,000 deep cycles
Altair Nano 1 MW System
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Indianapolis Power & Light’s Altair Nano Lithium Titanate
2 MW/500 kW-h
EOS Energy Storage (Zinc Air)Attribute Rating
Capital cost Excellent at $160/kW-Hr or $2000/kW-7 hours
Round-trip efficiency ~65% to 70%
Lifetime in Cycle Life 2,000 to 10,000 deep cycles
Ultra-Capacitor1st Lighten the Load Inc.
Attribute Rating
Capital cost Excellent at $50/kW-hr to $150/kW-hr or $650/kW-7 hours to $1500/kW-7 hours
Round-trip efficiency ~90%
Lifetime in Cycle Life >>10,000 deep cycles
Xtreme Power’s Dynamic Power Resource Battery (Dry Cell)
Attribute Rating
Capital cost Fair at >$1000/kW-hr or ~$7000/kW-7 Hr
Round-trip efficiency
80% to 85%
Lifetime in Cycle Life
1,000 cycles at 100% DOD and 100,000 cycles at 20% discharge
Xtreme Power website
Dry Cell with proprietary formulas of fundamental alloys, such as copper, lead and tellurium
Premium Power Corp’s Zinc Bromide
Attribute RatingCapital cost Excellent at $270/kW-
hr or $2000/kW-7 hr
Round-trip efficiency
68% to 70%
Lifetime in Cycle Life
Est. 10,000 deep cycles
Premium Power Corp. TransFlow-2000 Modules
General Compression Isothermal Compressed Air Energy Storage (ICAES)
Sited in salt beds. Seasonal wind storage possible (100+ hours). Less than 1 second response.
Attribute RatingCapital cost Excellent at $1000/kW
for 10 hours and $10/kW-hr
Round-trip efficiency 75% to 80%
Lifetime in Cycle Life No known limitation in cycle life
ICAES Geologic Locations Relative to Class IV Wind Resources (in Blue)
General Compression
