UTILITY SCALE STORAGE BATTERY INVESTMENTS

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Andra Heath
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San Francisco Marriott Fisherman s Wharf San Francisco, CA

1 CONFERENCE UTILITY SCALE STORAGE BATTERY INVESTMENTS The Technology, Challenges and Business Case February 7-8, 2017 San Francisco Marriott Fisherman s Wharf San Francisco, CA EUCI is authorized by IACET to offer 1.0 CEUs for the conference

2 OVERVIEW The concept of storage batteries is not new to the electric power industry. However, the universal application of utility scale storage batteries as an integral component of the U.S. electric power industry transmission and distribution systems is quite new. Currently, the battery technology is on advancement trajectory with the expectation of higher energy density and lower cost. As a result, the U.S. regulators and public utility commissioners are mandating use of storage batteries and the electric utilities are gradually learning how to integrate storage batteries in their power grids. In parallel, the investment and finance communities do realize the potential growth of storage battery market. However, they have difficulty in making the economic case for such investments. Arguably, the application of utility scale storage batteries is in its infancy. However, it has the potential to become an integral component of modern power grids thus creating huge investment opportunities for the utilities and private investors and even end-users. The integration of a large number of intermittent and non-dispatchable renewable resources such as wind and solar power plants have created situations which are referred to as Over- Generation. That is, there is excess generation which cannot be used locally and due to lack of transmission capacity cannot be transferred to areas where load centers are located. In addition, rapid drop of generation during early afternoon as the solar plants reduce output has created a severe need for ramping capability. Further, the power production from wind and solar resources are not always coincident with demand. Therefore, the emerging power grids have a natural need for storing energy. Storage technologies range from traditional pumped storage plants to the latest electro-chemical storage batteries and ultracapacitors. The key storage battery attributes include high speed of response, controllability, modularity, scalability, expandability, flexibility and transportability. These are exactly the kind of attributes that the emerging power industry will need over the foreseeable future. In addition, recent advancements in material sciences include increases in energy density, reduction in size and space requirements and defect free battery manufacturing are expected to create viable economics for storage batteries. Further, advancements are being made in monitoring storage battery conditions, power electronics devices and controls, and smart bidirectional inverters. In an aggregate, advancement in storage battery technology and downward prices will create a very unique and natural position for storage batteries. Storage battery technology is therefore realistic, timely and achievable and can be made cost effective, thus becoming the obvious choice for storing energy for a stable electric and resilient power grid. Similar to other new technologies there are challenges. The key challenge is creation of a compelling economic argument for battery storage. The economic argument and value proposition are challenged by the following: 1. Cost of battery cells 2. Cost of interconnection 3. Cost of network upgrade and balance of the system 4. Life expectancy, number of charge cycles 5. Operation and maintenance costs 6. The revenue stream Power purchase agreements or PPAs This seminar provides an overview and guided tour of proven battery technologies from different manufacturers, challenges of interconnection, investment requirements, typical storage battery power purchase agreements, settlement equations and investment guidelines. The seminar materials provide valuable information on a full spectrum of applications for utilities, regulatory agencies, project developers, private investors, finance firms, wholesale market participants, and owners of existing wind and solar power plants. Attendees will be provided with a copy of the presentations and other reference materials This seminar concentrates both on technical issues and finance issues. An electrical engineering degree is not required to attend this seminar. PAGE 2

3 LEARNING OUTCOMES Attendees will gain hands-on and practical skills in the following areas: The 21st century electric power grid The emerging role of storage batteries Storage battery applications in solving electric utility issues Applications of storage batteries for renewable resources Overview of battery technologies by different manufacturers Storage battery costs Storage battery study process Electric utility performance requirements Investments in utility scale storage plants Storage battery power purchase agreements (PPA) Criteria in storage battery RFOs Storage battery interconnection process WHO SHOULD ATTEND This event is an essential curriculum for electric utilities, investment firms, battery manufacturers, etc. financial firms, private investors, regulatory agencies, renewable resources, power contract specialists, utility regulators, policymakers, as well as technology developers. Parties interested in investing in storage batteries Utility engineers interested in storage batteries Transmission owners which host interconnection of renewables and storage batteries Manufacturers of storage batteries Developers of renewable resources Investors/financers of battery storage and renewable projects New transmission planners specializing in integrating renewable resources Utility procurement specialists Power contract specialists State and regional regulators Regulatory and government relations Commissioners and regulatory staff Attorneys and legal councils Owners of property suitable for development of renewables PAGE 3

4 AGENDA TUESDAY, FEBRUARY 7, :30 9:30 am Registration, Continental Breakfast and Welcome 9:00 9:45 am Emerging Role of Utility Scale Storage Batteries This presentation provides a perspective on the 21st Century electric utility and the emerging role of storage batteries in the electric power industry. Industry trends, regulatory trends, challenges, general characteristics of the power grid and the key success factors in development of new storage battery power plants will be reviewed. The discussion topics include: 21st Century electric power grid Industry need and requirement for storing energy Storage battery characteristics Storage battery technology trends Emerging role of storage battery power plants Storage battery market segments Storage battery market outlook Regulatory trends Utility procurement Challenges to overcome Key success factors in developing storage battery projects Dr. Eddie Dehdashti, Principal, Power Applications and Research Systems, Inc. 9:45 10:45 am Tesla Energy Products Tesla Energy Products is a division of Tesla and is an active player in stationary storage markets. Tesla has already deployed over 300MWh of capacity from residential to utility-large scale systems. With the Powerwall and the Powerpack, Tesla can offer various system sizes and capabilities. Tesla manufactures its Energy product at its Gigafactory, in Reno Nevada. Tesla Energy Products overview Powerpack system overview Product design and advantages Key applications Economics and value propositions Ms. Maud Texier, Senior Product Manager, Tesla Energy - Palto Alto, California 10:45 11:00 am Morning Break 11:00 am pm Samsung Energy Storage Samsung is a key player in utility scale energy storage and has a special Division (Samsung SDI) for investing in utility scale energy storage. Samsung manufactures its own batteries. This presentation provides an overview of Samsung s perspective on utility scale energy storage power plants. The discussion topics include: Utility scale storage battery perspective General configuration and characteristics Technology challenges Implementation challenges Utility justifications Utility scale storage battery interest Mr. Fabrice Hudry, Vice President Samsung SDI- San Jose, California (Invited) PAGE 4

5 AGENDA TUESDAY, FEBRUARY 7, 2017 (CONTINUED) pm Group Luncheon 1:00 2:00 pm Powin Energy Powin Energy is a U.S. energy storage technology company. It builds energy storage systems using its own proprietary monitoring and control technology. Powin builds energy storage systems per customer requirements using commercially available batteries per specific performance requirements of its customers. This presentation provides an overview of Powin s perspective on implementation of the utility scale energy storage power plants. The discussion topics include: Design philosophy Technology challenges Monitoring and control Utility scale project customization Key technical advantages Cost advantages Mr. Virgil Beaston, Chief Technology Officer- Powin Energy-Portland, Oregon Representative 2:00 3:00 pm NEC Energy Solutions NEC Energy Storage Solutions is a subsidiary of NEC Corporation of Japan and manufactures complete utility storage solutions. NEC Energy Solutions has built a number of utility scale storage plants worldwide. This presentation provides an overview and perspective on NEC Energy s utility scale energy storage power plant design philosophy and implementation. The discussion topics include: Design philosophy Utility scale installations Implementation requirements Key advantages Expected costs Mr. Bud Collins, CEO, NEC Energy Solutions, Westborough, Massachusetts 3:00-3:15 pm Afternoon Break 3:15 4:15 pm ViZn Energy Vizn Battery is a U.S. company with its own proprietary technology with specific advantages for large scale storage system located in front of the meter and at the grid edge. ViZn s versatile 20-year batteries are equally adept at delivering long duration energy services and short duration power services from a single platform. This presentation provides an overview of Vizn s perspective on utility scale storage battery investments. The discussion topics include: Vizn s Design philosophy Utility scale use cases Implementation requirements Key advantages and comparisons Expected investment costs Operation and maintenance costs Michael Grunow, Vice President of Marketing, ViZn Energy, Inc. PAGE 5

6 AGENDA TUESDAY, FEBRUARY 7, 2017 (CONTINUED) 4:15 5:15 pm Tokyo Electric Power Company Tokyo Electric Power Company (TEPCO) is a Japanese utility. However, it has designed and developed its very own batteries which can withstand up to 4,500 charge/discharge cycles. TEPCO is involved in the installation of a number storage projects in the U.S. and elsewhere. This presentation provides an overview of TEPCO s perspective storage battery monitoring system and on utility scale energy storage power plant design and implementation. The discussion topics include: Utility scale storage battery operation TEPCO s battery design philosophy General configuration and characteristics Technology challenges Number of charge/discharge cycles Life expectancy Utility justifications Utility scale storage battery project interests Mitsuaki Yasuoka, Manager, TEPCO U.S. WEDNESDAY, FEBRUARY 8, :30 9:00 am Continental Breakfast 9:00-10:00 am PG&E Power Purchase Agreements The Power Purchase Agreement (PPA) defines the revenue stream of a storage battery investment. Unlike wind and solar power plants storage batteries act both as load and generation and have a different type of settlement philosophy. Understanding how utilities calculate the revenue stream is critical to developing an economic model for a storage battery investment. This presentation discusses various components of PG&E s storage battery PPA. The discussion topics include: Structure of PG&E s PPA PPA duration Compensation for capacity Compensation for energy Monthly service fee Accounting for degradation in performance Accounting for deviations Settlement equations Example of revenue stream Ms. Marie Fontenot, Manager, Competitive Solicitations, PG&E Energy Policy and Procurements Ms. Christina Yagjian, Principal, Renewable Transactions, PG&E Energy Policy and Procurements PAGE 6

7 AGENDA WEDNESDAY, FEBRUARY 8, 2017 (CONTINUED) 10:00 11:00 am General Electric Combining solar and wind projects can create added benefits and is expected to become a trend. General Electric Company has developed a unique combined storage battery and gas turbine with unique characteristics. The Southern California Edison is due to receive an installation soon. This presentation discusses various components of PG&E s storage battery PPA. The discussion topics include: Benefits of combining Storage with other resources Flexibility and benefits Coordinated operation Interconnection challenges Economics and value proposition Nicholas Miller, General Electric Company, Schenectady, New York (Invited) 11:00-11:15 am Morning Break 11:15 am 12:00 pm PARS Energy Summary and Concluding Remarks This talk provides a summary and conclusions and the intended transfer of knowledge on storage batteries for this Seminar. The discussion topics include: Role of storage batteries in future power grids Emerging storage battery markets Storage battery market segments Summary Conclusions Closing Remarks 12:00 pm Conference Adjourns PAGE 7

8 INSTRUCTIONAL METHODS PowerPoint presentations will be used in this event. REQUIREMENTS FOR SUCCESSFUL COMPLETION Participants must sign in/out each day and be in attendance for the entirety of the conference to be eligible for continuing education credit. IACET CREDITS EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET). In obtaining this accreditation, EUCI has demonstrated that it complies with the AN-SI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the AN-SI/IACET Standard. EUCI is authorized by IACET to offer 1.0 CEUs for the conference. EVENT LOCATION A room block has been reserved at the San Francisco Marriott Fisherman s Wharf, 1250 Columbus Ave, San Francisco, CA 94133, for the nights of February 6-7, Room rates are US $219 plus applicable tax. Call for reservations and mention the EUCI event to get the group rate. The cutoff date to receive the group rate is January 9, 2017 but as there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations early. REGISTER 3, SEND THE 4TH FREE Any organization wishing to send multiple attendees to these conferences may send 1 FREE for every 3 delegates registered. Please note that all registrations must be made at the same time to qualify. SPONSORSHIP OPPORTUNITIES Do you want to drive new business through this event s powerful audience? Becoming a sponsor or exhibitor is an excellent opportunity to raise your profile before a manageably sized group of executives who make the key purchasing decisions for their businesses. There is a wide range of sponsorship opportunities available that can be customized to fit your budget and marketing objectives, including: Platinum, gold, or VIP sponsor, Reception host, Networking break host, Tabletop exhibit, Workshop sponsor, Lanyard sponsor, Luncheon host and Breakfast host. PAGE 8

PLEASE SELECT UTILITY SCALE STORAGE BATTERY INVESTMENTS CONFERENCE ONLY: FEBRUARY 7-8, 2017: US $1395, EARLY BIRD on or before JANUARY 20, 2017: US $1195 Please make checks payable to: PMA" EVENT

9 PLEASE SELECT UTILITY SCALE STORAGE BATTERY INVESTMENTS CONFERENCE ONLY: FEBRUARY 7-8, 2017: US $1395, EARLY BIRD on or before JANUARY 20, 2017: US $1195 Please make checks payable to: PMA" EVENT LOCATION A room block has been reserved at the San Francisco Marriott Fisherman s Wharf, 1250 Columbus Ave, San Francisco, CA 94133, for the nights of February 6-7, Room rates are US $219 plus applicable tax. Call for reservations and mention the EUCI event to get the group rate. The cutoff date to receive the group rate is January 9, 2017 but as there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations early. I'M SORRY I CANNOT ATTEND, BUT PLEASE ME A LINK TO THE CONFERENCE PROCEEDINGS FOR US $395 How did you hear about this event? (direct , colleague, speaker(s), etc.) Print Name Job Title Company What name do you prefer on your name badge? contact our offices at (201) Address City State/Province Zip/Postal Code Country Phone List any dietary or accessibility needs here CREDIT CARD INFORMATION Name on Card Account Number Billing Address Billing City Billing State Billing Zip Code/Postal Code Exp. Date OR Enclosed is a check for $ to cover registrations. Security Code (last 3 digits on the back of Visa and MC or 4 digits on front of AmEx) Substitutions & Cancellations Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before January 6, 2017 in order to be refunded and will be subject to a US $ processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCI s liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our our offices offices at at (201) PAGE 9

FUNDAMENTALS OF BATTERY STORAGE

COURSE FUNDAMENTALS OF BATTERY STORAGE March 11-12, 2019 Atlanta Marriott Northwest at Galleria Atlanta, GA Excellent, dynamic, highly knowledgeable speaker. Keeps up to date with date with industry developments.