Advances in Energy Storage and Implementing a Peak Shaving Battery at Fort Carson

Transcription

1 Advances in Energy Storage and Implementing a Peak Shaving Battery at Fort Carson Travis Starns Business Development Manager - AECOM Nov. 20, 2018

2 Agenda Applications for energy storage Advances in energy storage technologies Fort Carson peak shaving battery 2

3 3 Applications for Energy Storage

4 Gigawatts (GW) Changing Landscape in Electricity Generation Utilities plan more renewables and distributed energy resources Annual Electricity Generating Capacity Additions and Retirements (GW) IN LAST 5 YEARS: Non-renewables: 43 GW Renewables: 55 GW FROM : Wind/solar account for ~50% of utility-scale additions. Flexible generation needed Mediate supply and load in locations with high renewables Positive impact on GHG emission targets Permitting and installation of new grid infrastructure Challenging in many areas Source: U.S. Energy Information Administration, Annual Energy Outlook 2018, Feb. 6,

5 Trends in Energy Storage Lithium-Ion Battery Cell Price ($/kwh) Wide deployment of electric vehicles is driving battery prices to decline. Solar industry is adopting energy storage to drive business. Increased self consumption Solar firming/intermittency Ramp control Leverage available tax credits Demand reduction during shoulder hours Source: Bloomberg NEF 5

6 Energy Storage Technology Survey by Market Segment Generation/ wholesale Transmission and distribution End-user or aggregator Utility scale storage Batteries Pumped Hydro Compressed Air Energy Storage (CAES) T&D Management Batteries Flywheels CAES Behind the meter Batteries Thermal 6

7 Behind-the-Meter Energy Storage Drivers Time of Use load shifting Backup/security (resiliency) Wholesale arbitrage Fuel saving (Electric Vehicles) Demand charge management Ancillary services 7 Presentation Title

8 Behind-the-Meter Energy Storage + Incentives + Cost, cost and cost + Demand charge management + TOU load shifting + Automotive fuel savings, Utility bundled solutions + Renewable pairing Challenges Cost, cost and cost Grid interconnection capacity Electricity forecast uncertainty Participation/eligibility of storage in electricity markets Tariff structure 8 Presentation Title

9 Interest in Behind-the-Meter Storage Systems by Utilities 2017 US Electricity Sales (MWh) by Market Segment Utilities focus on electricity system: Reliability: withstand uncontrolled events Security: withstand attacks (physical, cyber) Resilience: adapt to changing conditions and recover from disruptions Non-residential (C&I) customers: Accounted for 63% of electricity sold in 2017 Account for ~13% of utility customer base Rate schedules typically include demand charges that can account for 70% of electricity costs Source: Sales_Ult_Cust_

10 Utility Interest in Behind-the-Meter BESS Demand response Grid infrastructure deferral Regulatory mandates Virtual power plant Aggregation Local grid support Electric Utility Meter Standard Residential Load Phoenix - AZ C&I, Federal Facilities Residential 10 EV s

11 11 Advances in Energy Storage Technology & Applications

12 Energy Storage Technology Summary Seconds Minutes Hours Discharge Time at Rated Power Fast Response Systems Grid Support and Balancing Advanced Lead Acid Super Capacitor Flow Batteries Sodium Sulphur Fly Wheel Bulk Power Compressed Air Energy Storage Lithium-Ion Pumped Hydro Storage 1 kw 10 kw 100 kw 1 MW 10 MW 100 MW 1 GW Typical Efficiency 45-70% 70-85% >85% 12

13 Battery Storage and Gas Turbine Hybrid Southern California Edison retrofit gas peaker stations with Li-Ion BESS Provides spinning reserves Ancillary and grid support services Reduce fuel and water consumption during operations Saves 2 million gallons of water Reduce emissions by 60% Reduced operations & maintenance Maintains flexibility in balancing demand and variable generation from renewable resources 13

14 Long Duration Battery Storage Technologies: Flow Batteries Flow batteries consist of two liquid tanks, membrane and two electrodes Multiple chemistries offered: Iron-Chromium Vanadium Redox Zinc-Bromine Technically viable solution for applications > 4 hrs. No energy degradation Low cost of ownership 2MW/8MWh Vanadium Redox Flow Battery Long useful life 14

15 Long Duration Energy Storage Technologies: Liquid Air Energy Storage (LAES) Air turns to liquid -196 C Store liquid air in insulated, unpressurised tanks Thermal expansion used to drive turbine Bulk storage capability with no geographic constraints Source: Highview Power 15

16 Long Duration Energy Storage Technologies: Advanced Compressed Air Energy Storage (A-CAES) Convert electricity into compressed air Store compressed air in underground accumulator Isobaric Hydrostatically compensated Significantly smaller volume required compared to traditional (diabatic) CAES Flexible siting characteristics No hazardous chemicals or fossil fuels Source: Hydrostor, Inc. 16

17 MW A-CAES Plus Solar for Baseload (20 MW) Industrial site in Australia Peak Load: ~140 MW Demand charges have increased by 90% over last 18 months Solar: 120 MW Storage: 20 MW (discharge rating) Business Case Drive Operational Savings Reduce demand charges Reduce need for new grid infrastructure Provide reliability services to the grid Voltage support Synchronous inertia Leverage additional operational savings as a source of back-up power during operation A-CAES + Solar PV Industrial Site Demand Grid Power (Grey Area) Firm commitment (Solar direct & Storage) 17 Direct PV to Site Operations (White Area) Half Hour 17

18 Fort Carson: Peak Shaving Battery

19 Fort Carson Background Fort Carson & Surrounding Military Communities Air Force Academy Buckley AFB Fort Carson: ~137,000 acres Pinon Canyon Maneuver Site: ~ 235,000 acres Training installation with over 26,000 Soldiers assigned Over 14 MSF of facility space Cheyenne Mountain Air Station Fort Carson Peterson AFB Schriever AFB Three government-owned substations Pinyon Canyon 19

20 Emerging Approach ESPC to Deliver BESS Rate 2017 ONP Demand (kw) $17.28 OFFP Demand (kw) $9.34 ONP Supply (kwh) $ OFFP Supply (kwh) $ Significantly reduce electricity demand charges Right-size BESS to optimize project ROI Potential use-cases to consider at your facility: TOU shifting Solar-firming Frequency/voltage support 0.14% Microgrid support

21 Load (MWV) BESS for Peak Shaving The maximum savings per month is a function of maximum BESS discharge rate Baseline load Modified load Battery capacity (MWh) With a smaller capacity battery: Choice of discharge point determines savings Increase discharge rate to increase savings Limiting factors: Maximum discharge rate (MW) Total battery capacity (MWh) Accuracy of peak forecast Five consecutive days in August Denotes on-peak demand period

22 Load (MWV) Fort Carson: Load Profile (August 2015) 34,401 Billing demand the greatest 15- minute load during on-peak hours in the billing period 15-minute interval data August 2015

23 Load (MWV) Fort Carson: Peak Demand Reduction (August 2015) 34,401 31,050 The difference between peak and the battery engagement level is where the peak demand charge is reduced. Actual demand Battery discharge level Days where ceiling for peak demand is established

24 Fort Carson: Peak-Shaving Sequence $58,000 in on-peak demand charge savings for the month of August. 15-minute interval data August 2015

25 Ft. Carson BESS System Summary 2017 GridStar 300 kw/600 kwh Power Rating 4,200 kw (14 modules) Energy Rating 8,500 kwh (14 modules) Voltage 480 VAC Round Trip % ~86% Dimensions 144 x 60 x 96 inches/module Control System GELI - EOS Operational Life Expectancy 21 years

26 Axis Title Fort Carson ESPC: Estimate of Demand Savings Year 1 Demand Charge Savings $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 df $436,000 Year 1 savings $713,000 Year 19 savings (Assumes 4% escalation rate) Est. 83 full cycles/annum Duty cycle $20,000 $10,000 $- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 26

27 000 Considerations for Battery Energy Storage Importance of interval data Analysis and design Power and energy requirements Duty cycle (impact to system degradation) Control system and predictive modeling Existing/planned distributed energy resources Tariff/rate structure 27

28 Key Takeways Escalation of demand charges are likely to continue Li-Ion BESS are expected to continue to dominate market share as cell costs continue to decline ESPC delivery model is emerging approach to BESS deployment Energy storage technology selection and right sizing for optimal ROI Independent of commodity escalation Presentation Title 000 Established framework for equitable allocation of risk Guaranteed performance of BESS Multiple use cases for cost savings and resiliency

29 Travis Starns Business Development Manager AECOM