ENERGY STORAGE 101. Everything (!?!)* you need to know about energy storage

Transcription

1 The Energy Storage Forum: Building on Experience and Innovation November 17-18, 2015 ENERGY STORAGE 101 Everything (!?!)* you need to know about energy storage *in 30 minutes!! MARK TINKLER SENIOR ENERGY CONSULTANT CUSTOMIZED ENERGY SOLUTIONS

2 Power System Gamechanger? ENERGY STORAGE

3 Common Terms and Measures Power The maximum rated power at which the system can be charged or discharged. Measured in kw or MW and depends on the size of the system and the prescribed C-rate. State of charge (SOC) An expression of the present battery capacity as a percentage of maximum capacity. SOC is generally calculated using current integration to determine the change in battery capacity over time. Duration The discharge time at rated power from the upper state of charge limit to lower state of charge limit as specified for the application Depth of discharge (DOD) The percentage of battery capacity that has been discharged expressed as a percentage of maximum capacity. A discharge to at least 80 % DOD is referred to as a deep discharge.

4 Common Terms and Measures Roundtrip Energy Efficiency The useful energy output from an ESS divided by the energy input into the system, and expressed as a percentage, and including all system losses and electrical inefficiency involved in the storage of the energy under normal operating conditions. Cycle life The number of discharge-charge cycles the battery can experience before it fails to meet specific performance criteria. Cycle life is estimated for specific charge and discharge conditions. The actual operating life of the battery is affected by the rate and depth of cycles and by other conditions such as temperature and humidity. The higher the DOD, the lower the cycle life. C-rate This is a measure of the rate at which a battery is discharged relative to its maximum capacity. A 1C rate means that the discharge current will discharge the entire battery in 1 hour. A 2C = 30 minutes. For a battery with a capacity of 500 Ah, this equates to a discharge current of 500 A. Duty Cycle A charge/discharge profile that represents the demands associated with a specific application that are placed on an energy storage system (ESS).

5 Energy Storage: Diverse Asset Class Electro-Chemical Mechanical Bulk Mechanical (Flow battery / Lithium Ion ) Thermal (Flywheel) Bulk Gravitational (Compressed Air) Transportation (Ice / Molten Salt) (Pumped Hydro) (Electric Vehicles)

6 Mechanical & Electrochemical Storage Mechanical Storage Pumped Hydro Compressed Air Energy Storage Flywheel Sodium based (NAS/ Na-NiCl 2 ) Lead acid / Advanced Lead acid Lithium ion family of batteries Nickel based (NiCd/ NiMH) Zinc air Electrochemical Storage Batteries Flow Batteries Fuel Cells Vanadium redox Iron chromium Zinc bromine Hydrogen - bromine

7 Compressed Air Energy Storage (CAES)

8 Flywheels A flywheel is a mechanical battery that stores kinetic energy in a rotating mass. When charging, a flywheel uses power from the grid to power a motor that accelerates the flywheel to high speeds. When discharging, the flywheel is slowed down using the momentum of the wheel to drive the motor in reverse to act as a generator.

9 Advanced Lead Acid Battery Lead-Acid batteries consist of two electrodes: Lead and lead-dioxide immersed in sulfuric acid. Lead Acid Evaluation Criteria Cycle Life Energy Efficiency (%) Low Price Price Point ($/kwh) High Performance

10 Sodium-based Battery - NAS Sodium-sulfur (NaS) batteries use molten sodium and sulfur electrodes separated by a ceramic electrolyte Sodium Based Evaluation Criteria Cycle Life Energy Efficiency (%) Low Price High Performance Price Point ($/kwh)

11 Li-ion Battery Technology Li-ion battery uses graphite as the anode material and LiFePO 4 or LiCoO 2 or Lithium titanate or lithium nickel manganese cobaltate as the cathode. Li-Ion Batteries Evaluation Criteria Cycle Life Energy Efficiency (%) Low Price High Performance Price Point ($/kwh)

12 Flow Battery Technology Flow batteries use liquid electrolytes with fixed cells to store and regenerate power. Various flow battery chemistries exist such as vanadium redox, zinc-bromine, iron - chromium etc. Flow Batteries Evaluation Criteria Cycle Life Energy Efficiency (%) Low Price High Performance Price Point ($/kwh)

13 The Energy Storage Landscape IPPs / Project Developers PCS / Inverter Supplier Sodium Based Compressed Air Flywheel Lead Acid Li-Ion Batteries Flow Batteries

14 Global Trends Storage Technologies ENERGY STORAGE performance metrics: Capital cost ($/kwh) Cycle life Roundtrip Energy Efficiency Space footprint C-rate (duration) Usable SOC range Lead Acid batteries are the work horse for industrial and residential backup and provide lower capital cost solutions, while Li-Ion & Flow batteries are emerging as solutions for applications requiring higher cycle life. Several companies are now looking at improving the performance/cost ratio by implementing design and materials innovations. Innovations will emerge as game changers where different technologies are competing for similar applications.

15 Global Trends Manufacturing LEAD ACID batteries lead the energy storage market in production and sales LITHIUM ION batteries are currently being manufactured in the GW scale (portable, transportation and grid storage) FLOW BATTERIES are currently being manufactured on a MW scale. Production is likely to scale up significantly in the next 5 years Energy storage technologies are in the early stages of achieving economies of scale. As the costs come down, markets will expand, thus providing more opportunities to scale up. Lead acid is the oldest battery technology which is still being manufactured on a global scale. As the production of other technologies is ramped up over the coming years prices are likely to decrease due to economies of scale. Several manufacturing level innovations will be required to accomplish mass production of associated critical materials and systems.

16 Storage Cost & Performance Trends

17 Capital Cost / Cycle ($/kwh-cycle) Levelized Capital Cost (per Cycle) $10.00 Lead Acid NaS Li-Ion VRB CAES NaNiCL2 Na-Ion Diesel $ $0.10 $0.01

18 Energy Storage Market Overview Energy Storage is Rapidly Growing in the Global Context Expected 6,000 MW annual installation in 2017 and over 40,000 MW by 2022 (Including pumped hydro) - IHS Total capacity of energy storage will surpass 14,000 MW by 2022 (Excluding pumped hydro) Pike Research MW of energy storage projects were announced globally in alone Navigant MW North America MW Asia United States Snapshot 91.1 MW Europe 67.9 MW Other Global Growth Source: Pike Research

19 Storage Provides Value Across the Electric Grid Opportunity: Enables greater efficiency and reduced cost by balancing supply and demand over both short and long periods Challenges: Monetizing the benefits of storage, finding cost-effective applications, technology acceptance

20 Grid Storage Applications Source:

21 Grid Storage Applications Generation Energy Arbitrage Ancillary Services Frequency Regulation Spinning Reserves Supplemental Reserves *NEW* Ramping Capacity Peak Energy *NEW* Flexibility Reliability Voltage Support/Reactive Power Black Start Frequency Response Transmission & Distribution Upgrade deferral Reduce circuit and line overload Grid resiliency Outage mitigation Back-up power Voltage support/ power quality Congestion relief End-users Reduce Diesel Consumption for backup power Reduce Demand Charges Optimize Retail Rates Power Quality/UPS Onsite renewables Grid Operators (ISOs) can focus on Generation, Ancillary Services and DR, Utilities focus on T&D

22 Mapping Storage Technologies Duration of Storage Discharge Time at Rated Power Seconds Minutes Hours Integrating Renewables Renewables Reliability Services Ancillary Services T&D Energy Power Ramp Peak Non- Transmission Quality & Frequency Voltage Response Regulation Spinning Mitigation/ Shaving/ Spinning & Distribution Reserves Wind Diurnal Reserves Deferral Support Firming Storage Supercapcitor Flywheels Hydro Pumped Storage Advanced Lead Acid Batteries Lithium Ion Batteries Compressed Air Energy Storage (CAES) Flow Based Batteries Sodium Sulfur Batteries Wholesale Energy Hydro Pumped Storage Of the advanced storage technologies, Lithium Ion Batteries have highest market share (33%) followed by Advanced Lead Acid (23%)

23 Electricity Markets in North America Western Electricity Coordinating Council (WECC)

24 U.S. Storage Market: Current Status Today > 300 MW of Advanced Storage Projects in US Most projects in areas: With ISO/RTO markets Favorable policies for storage Remote areas with high energy prices (Hawaii and Alaska) 50% of projects built to provide Frequency Regulation

25 Drivers for Storage Market Growth Growth in Renewables High renewable energy penetration driving Policy Makers to encourage Storage New ISO/RTO market products to address renewables: Ramping, Frequency Response, Flexible Capacity Pay-for-Performance pricing for Frequency Regulation Utility concerns about grid resiliency Growing interest in Distributed Energy Resources (DERs) Cost of technology is coming down

26 Storage Applications

27 FERC Order 755: Pay-for-Performance Created new compensation rules for frequency regulation in all US ISO/RTO markets Recognizes value of speed and accuracy Slow-ramping Generator 1 Fast-ramping Storage 2 Superior speed and accuracy provide more value to the grid and should be compensated Sources: 1 Kirby, B. Ancillary Services: Technical and Commercial Insights. Wartsilla, July, pg Beacon Power

28 FERC Order 755: Two-Part Payment 1 MW Up Reg 1 MW Down Reg Fast Storage = 54 total ΔMW-miles Average generator = 12 total ΔMW-miles Capacity Payment ($/MW) Amount set-aside (MW) Includes Opportunity Cost May be adjusted based on state-of-charge Performance Payment ($/ΔMW) Sum of up and down movement mileage (ΔMW) Adjusted by accuracy Key financial factors will vary by technology type, ISO/RTO dispatch signal and energy management rules

29 Transmission & Distribution Deferral

30 Storage for Congestion Relief

31 Customer Site Applications Retail Energy Time-Shift On-Peak Demand Charge Reduction

32 Energy Storage for Wind Smoothing Wind Farm Output With Firming % 90% 80% MWs Hour Event 2 Second Resolution 70% 60% 50% 40% 30% 20% 10% 0% State of Charge

33 Solar + Storage: Hybrid Solution

34 U.S. ISO/RTO Market Initiatives Renewables driving need for Storage flexibility and ramping California ISO: Flexible Ramping Flexible Capacity MISO: Ramping PJM: Capacity Ramping (in future) Texas/ERCOT: Redesigning Ancillary Services Market Frequency Response CAISO Significant ramping needs

35 Smart Microgrid with Storage

36 Application Stacking - Illustrative Examples: Target System Cost per kw in 2018 (10% IRR, 5 Year Forecast) CAISO Market (4 Hr) CAISO Renewable Integration (4 Hr) $1,600 $1,600 $1,400 $1,400 $1,200 $1,000 $800 $600 $400 $200 Frequency Regulation Flexible Ramping Spinning Reserve Flexible Capacity for RA Energy Arbitrage $1,200 $1,000 $800 $600 $400 $200 ITC Wind firming (DA vs RT) Flexible Capacity for RA Flexible Ramping $- Low High $- 1 2 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 PJM Regulation (15 min) Frequency Regulation 24 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 PJM Customer-side (6 Hr) Spinning Reserves Economic DR Capacity Demand Charge $200 $- Low High $200 $- Low High Retail Energy Arbitrage Except for frequency regulation, need to stack multiple applications

37 Critical Factors for Developing Grid Scale Storage Understanding of the market rules & performance requirements Significant variation on rules for storage across the country Duration requirements, dispatch methodologies vary Technology selection and optimization of product configuration Analysis of potential changes in the supply, demand and transmission systems that can influence revenues and costs Operational optimization (e.g. response rate, state-of-charge management) and bidding strategies to maximize profit Co-optimizing multiple value streams Except for frequency regulation need multiple value streams Site selection and interconnection requirement

38 Drivers for Storage in Ontario Renewable Integration (RI) Surplus Baseload Generation (SBG) Conservation and Demand Management (CDM) initiatives Cap-and-Trade Regulatory mandate LTEP 2013 (remove barriers, 50 MW procurement, opportunities to integrate energy storage with renewable energy projects larger than 500 kw) Minister of Energy Directive, April 22, 2015 (review outcomes of 50 MW storage, options to further integrate storage in Ontario electricity market place)

39 Energy Storage Initiatives in Ontario Regulation Pilot RFP MW (4 MW Battery, 4 MW Demand Response, 2 MW Flywheel) Ontario Long Term Energy Plan (LTEP 2013) Target: 50 MW procurement Phase 1: 33.5 MW (procurement complete) Five companies selected in July 2015 Projects include battery, flywheel, hydrogen and thermal storage technologies Phase 2: 16.5 MW (completed, results to be announced)

40 Temporal Power - A Flywheel like no other A FLYWHEEL system stores electrical energy and can be thought of as a Kinetic Battery. Flywheels work by accelerating a rotating mass to a high speed and using the momentum to generate electricity when needed. Using fully recyclable components, Temporal Power flywheels are clean technology solving some of the most challenging issues on power grids around the world. PROBLEM: 20 MW of wind power connected to a 40 km Hydro One feeder line near Clear Creek, Ontario is causing significant voltage swings and power quality problems due to intermittent ramping of wind turbines Temporal Power Solution: 5 MW flywheel facility to provide power quality and voltage support Energy Storage Ontario 2014

41 Advanced Battery Storage - ecamion Energy Storage Ontario 2014

42 Hydrogenics: Power-to-Gas Power-to-Gas pilot plants today will drive commercial scale energy storage developments in the future Today: Hydrogenics has supplied electrolysers for 8 pilot projects in Europe and 4 of 5 projects 1 MW or larger and now contracting for a 2 MW (or larger) system in Ontario, Canada. Future: Hydrogenics next generation MW class PEM electrolyser greater economy of scale E.ON s 2MW Power-to-Gas Pilot Plant Operating in Falkenhagen Germany 40MW Power-to-Gas Plant Energy Storage Ontario 2014

43 HydroStor Underwater CAES Demo Facility Facility Specifications Located on Toronto Island, Toronto, Canada Compressed air stored in flexible accumulators 80 m depth located 5.2 km off-shore Pressurized air runs through expanders on demand 650 kw with 2 hours of storage Commissioned in Q Use of System Toronto Hydro operates and is testing the system Used for transmission & distribution line decongestion, arbitrage and operating reserve Energy Storage Ontario 2014

44 Northland Power - Pumped Storage The BIG project in the energy storage suite of solutions The Marmora project will use an (abandoned) flooded open pit mine and an upper reservoir in a closed-loop configuration. Combination pumps - generators will pump water up into the reservoir during off-peak periods and then release it back down through turbines into the mine during on-peak periods to generate electricity. The design provides for an average head of 140 metres producing 400 MW of generated power to enable time-shifting, energy balancing and to enable renewable energy sources. It will also help to address any surplus of base load electricity. Energy Storage Ontario 2014

45 CES Energy Storage Services Markets & Regulatory Storage Market Overview Studies ISO/RTO storage activity reporting Modeling and Consulting Price forecasts Economic analysis and valuation Optimization of product configuration Financial Advisory Help secure funding Project Development Site selection, interconnection Market Operations Customized assists clients from concept to market implementation

46 Questions? Toronto, Canada Carmel, IN Folsom, CA Houston, TX Endicott, NY Boston, MA Philadelphia, PA Washington, DC Mumbai, India Pune, India Customized Across the Globe Customized Energy Solutions Ltd Walnut Street, 22 nd Floor Philadelphia, PA USA Phone: Fax: Mark Tinkler Senior Energy Consultant Canada 532 Weller St., Peterborough, Ont K9H 2N6 Phone: Mobile: Customized Energy Solutions India Pvt. Ltd. A 501, GO Square Aundh - Hinjewadi Link Rd, Wakad Pune, Maharashtra India Phone: info@ces-ltd.com 2015 Customized Energy Solutions Ltd.