Electricity Storage: A multi valued technology opportunity

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Transcription:

1 Smart Grid Forum Electricity Storage: A multi valued technology opportunity Rob Brandon, Office of Energy R&D, Natural Resources Canada 11 November 2008

Presentation Outline 2 Value Propositions of Electricity Storage Technology Status and Trends American Electric Power s Experience Federal Involvement in Storage Technology Conclusions The presentation will draw on material presented at a Workshop held in Toronto in June sponsored by Ontario Centres of Excellence, OPA,CEATI and NRCan (Ref 1) as well as presentations from the 2008 US DOE Peer Review (Ref 2)

3 Value Propositions The business concept of storage needs a value proposition i.e. a positive sum of multiple values less the initial and operational cost of storage. 14-17 separate values identified Many values not attributed back to the storage investor Consensus is emerging as to what opportunities will be adopted first, business case is site specific.

Benefit Categories 4 Electricity Supply Grid System Utility Customer Renewables Integration Incidental (Ref 3)

Electricity Supply 5 Electricity Supply Arbitrage: Store off-peak, Discharge on-peak ($/MWh) Supply Capacity ($/MW): Marginal Resource Ancillary Services Load following Area Regulation: Rapid up and down 2X Capacity Reserve Capacity (Black Start) Transmission Support: stability, damping capability Local Voltage Support

Grid System 6 Transmission Congestion Relief T&D Upgrade Deferral Is specially valuable if storage can be relocated Substation Onsite Power Backup

Utility Customer 7 Time of Use Rates: Load shifting OR Demand Charge Management: Load shifting Improve Power Quality Improve Reliability

Renewables Integration 8 Renewables Energy Time Shift: Renewables Capacity Firming: Appears that PV can be moved from 40% capacity on system peak to close to 100% with storage rated at about 20% of PV system capacity (Ref 4) Wind Generation Integration Power quality Ramping and load following issues Generation shortfalls (Forecasting errors)

Incidental Benefits 9 Reduced T&D losses(i 2 R losses) Increased Asset Utilization Reduced T&D Investment Risk (DOE/Sandia report due) Generation Dynamic Operating Benefits: EPRI analysis showed storage reduced: generation ramping part load generation operation leading to increased O&M costs, poor fuel efficiency and increased air emissions

Magnitude of Benefits 10 Transportable T&D Deferral plus Arbitrage and /or PQ/Reliability Customer Solution Renewable Energy Firming

Cost/Benefit for 1 yr T&D deferral followed by 9 yrs arbitrage plus capacity credit 11 650 $/kw T&D Deferral 395 $/kw Capacity and Arbitrage (Ref 6)

What Technologies are available? 12

Current Storage Cost Estimates 13 Ref 12

Installed Capacity Worldwide 2007 Pumped Hydro ES 110,000 MW Compressed Air ES 477 MW Lead Acid 125 MW Sodium Sulphur 200 MW Nickel Cadmium 26 MW Flow Batteries 38 MW (Ref 7) 14

AEP,a large US utility, has taken a leadership position in the US 15 2002: NAS-based system installed at AEP office park 2006: AEP installs 1 MW NAS in W. Virginia for substation upgrade deferral and peak shaving Sept 2007: AEP announces plans to install 6 MW of NAS batteries for peak shaving and islanding In 2009 a project for 4 MW for Peak shaving and UPS service for a community Near-term goal: 25 MW by 2010 Long-term goal: 1000 MW by 2020 We recognize that, today, energy storage is more expensive than most conventional solutions. The difference is the premium that we will gladly pay to insure a better future for our business Ali Nourai, Manager Distributed Energy Resources AEP (Ref 8)

Storage Values as defined by AEP 16 Short-Term Benefits Long-Term Benefits Upgrade Deferral Improved System Control Base Loading Assets Improved Service Reliability More Time for Service Restoration Displacing Peak Energy costs with Off-peak costs Enhance DG Penetration Ancillary Services (Ref 9)

AEP Evaluation of available technologies 17 (Ref 9)

18 (Ref 8) 2MW/14.4 MWh

19

20

21

22

Technology Trends 23 NGK s NAS system appears to have most commercial technology In July 2008 NGK announced that it would expand annual production from 90 MW to 150 MW Large scale deployment of NAS storage systems to firm up wind systems in Japan

Rokkasho 51 MW wind and 34 MW NAS hybrid system 24 Wind farm: 51 MW NAS Battery: 34 MW, 245 MWh More than 50% nameplate capacity of wind farm Show NAS can provide: Wind firming for weak grids and firm capacity Meet forecasted profile Time shift production to meet peak demand Provide regulation power and spinning reserve Tamakoshi, T,. NAS battery advancements. Electricity Storage annual meeting 2008, Anaheim California, May 19-22. NGK Insulators, Ltd, 2008.

Current Insights 25 Important to reduce operating cost as well as first cost. Round trip efficiency important Required to avoid storage cell replacement, preferable to reduce depth of discharge (DOD) or reduce annual cycles to periods of high value Transportable storage ( every 3-5 years) is a valuable asset This 1.2 MW storage system was relocated after 3 years by AEP

Small Scale Storage Systems Starting to become available 26 Significant R&D into storage systems for EV and PHEV transportation can be expected to result in improvements in cost and performance for small scale storage systems. These will build on the existing UPS business infrastructure. Two US companies, Gaia Power Technologies and GridPoint are developing customer solutions involving storage.

Federal Involvement in Storage 27 Technology Evaluation NRCan s CANMET Energy Technology Centre Grid Integration Program Testing of VRB 3kW/10 kwh flow battery Li-ion storage (National Research Council) Utility Scale Demonstration program Active member of CEATI interest group, NRCan funds partnering with utilities Participant in US DOE/NYSERDA/EPRI funded 1.2 MW NAS storage owned by NYPA Participant with OPA in 300 kw transportable storage located in Delaware

Institutional Issues 28 Uncertainty as to whether a storage system owned by an utility can be rate based. It should be noted that a storage system never generates power, hence there is a logical argument that it should be treated as a power conditioning system. Clarity from regulatory authorities is very necessary to reduce early deployment risk. The current pricing for renewable power does not recognize that power has a time of production value.

Utility Led Demonstrations needed 29 What is needed at the present time is targeted demonstrations, using the experience of US and international projects to first carry out studies of the value proposition in each of three cases Identification of a T&D capital deferment project plus capacity and arbitrage in Ontario Customer based storage There may be in Ontario an interesting opportunity to enable storage to allow more wind systems to be constructed, perhaps in good wind areas that have transmission constraints

Storage Cost Components and Government Support 30 US Energy Storage Subcommittee Draft report Recommends utility storage demonstrations with 30% capital support Ref 12 US Gov Support Ref 11

Conclusions 31 Technology is now providing the reliability and performance required; life time cost is still high but reducing as volume increases From an Ontario utility perspective, T&D deferral and wind/transmission opportunities would seem to be the ones to investigate first. Need regulatory and utility operator leadership to identify and deal with current institutional issues, Can utility owned storage be rate based? Can all values be captured by the storage investor? Need to explore through demonstration the issues, after first estimating the value proposition

References 32 1. OPPORTUNITIES FOR ELECTRICAL STORAGE TECHNOLOGIES AND APPLICATIONS IN ONTARIO. A Workshop on Energy Storage June 18 Toronto. OPA,CEATI,OCE,NRCan www.oceontario.org/pages/coeenergy.aspx?coe=en 2. 2008 DOE Peer Review Meeting on Energy Storage http://www.sandia.gov/ess/ 3. Hoff, Thomas E.; Perez, Richard;Margolis,Robert M; Increasing the value of Customer owned PV Systems using Batteries and Controls Aug 2005. http://www.cleanpower.com/research/customerpv/outageprotection_ases_2005.pdf 4. Eyer, Jim; Distributed Utilty Associates. 17 Electric Utility Related Electrical Storage Benefits featuring T&D Deferral. http://www.sandia.gov/ess/publications/conferences/2008/pr08_presentations/_presentations.pdf 5. Guide to estimating Benefits and Market potential for Electrical Storage in New York (with emphasis on New York City) NYSERDA Report 8723 http://www.nyserda.org/publications/8723_dua_nyserdastorage_report2.pdf 6. Schoenung,Susan M.; Eyer,Jim; Benefit/Cost Framework for Evaluating Modular Energy Storage February 2008 Sandia Report SAND 2008-0978 http://www.prod.sandia.gov/cgi-bin/techlib/accesscontrol.pl/2008/080978.pdf 7. Wolf, D, Sasha Berthold, T. Smolinka, J. Tuebke, P. Bretschneider, P. Ragden, Ch. Doetsch. Electrical energy storage - state of the art technologies, fields of use and costs for large scale application. Electricity Storage annual meeting 2008, Anaheim California, May 19-22. Fraunhofer UMSICHT, 2008. 8. Schoenung,Susan M.; Eyer,Jim; Benefit/Cost Framework for Evaluating Modular Energy Storage February 2008 Sandia Report SAND 2008-0978 http://www.prod.sandia.gov/cgi-bin/techlib/accesscontrol.pl/2008/080978.pdf 9. Nourai,Ali;American Electric Power; Dynamic Islanding for Improving Electric Service Reliability with Energy Storage http://www.sandia.gov/ess/publications/conferences/2008/pr08_presentations/nourai_aep.pdf 10. Nourai,Ali; Installation of the First Distributed Energy Storage System (DESS) at American Electric Power (AEP) Sandia Report June 2007 SAND 2007-3580 http://www.prod.sandia.gov/cgibin/techlib/access-control.pl/2007/073580.pdf

References 33 11 Nourai,Ali Application of Large-Scale Energy Storage Systems in AEP EESAT Conference Sept 2007 http://www.sandia.gov/ess/publications/conferences/2007/nourai_aep.pdf 12 US Department of Energy Electricity Advisory Committee http://www.oe.energy.gov/documentsandmedia/draft_energy_storage_technologies_report_as_of_ 10-31-08.pdf

Additional References 34 1. "VRB Power Systems Incorporated - The Energy Storage Company." March 7, 2008.http://www.vrbpower.com/docs/presentation_20080307.pdf (accessed June 16, 2008). 2. Tamakoshi, T,. NAS battery advancements. Electricity Storage annual meeting 2008, Anaheim California, May 19-22. NGK Insulators, Ltd, 2008. 3. "AEP to deploy additional large-scale batteries on distribution grid." AEP Newsroom. 11 Sept 2007. AEP. 17 Jun 2008 <http://www.aep.com/newsroom/newsreleases/default.asp?dbcommand=displayrelease&id=1397>. 4. Nourai, A. AEP energy storage projects and financial model for selecting sites. Electricity Storage annual meeting 2008, Anaheim California, May 19-22. American Electric Power, 2008. 5. Gyuk, I. Energy storage case studies. Storing Electricity - Physical Impossibility or Economic Necessity? Sydney Australia, Nov 1 2008. 6. "Use of the VRB energy storage system for capital deferment, enhanced voltage control and power quality on a rural distribution utility feeder - A case study in utility network planning alternatives." 7 March 2007. VRB Power Systems Inc.. 16 Jun 2008 <http://www.vrbpower.com/docs/casestudies/vrb-ess%20- %20Case%20Study%20Rural%20Feeder.pdf>. 7. "Beacon Power Wins Environmental Approval to Build 20 MW Flywheel Plant in Stephentown, New York." 19 May 20008. Beacon Power. 17 Jun 2008 <http://phx.corporate-ir.net/phoenix.zhtml?c=123367&p=irolnewsarticle&id=1147716&highlight=> 8. Rounds, R, Chet Lyons, John Enslin, Gerard Thijssen (KEMA), Georgianne Peek (Sandia National Lab). Design of 20- MW Flywheel-based Regulation Power Plant. EESAT 2007, San Francisco California, September 23-26. Beacon Power, 2007 9. Hemphill, B. Toward hybrid power systems, creating value with utility scale energy storage. Electricity Storage annual meeting 2008, Anaheim California, May 19-22. AES 10. Gardow, E. FirstEnergy Energy Storage. Electricity Storage annual meeting 2008, Anaheim California, May 19-22. FirstEnergy, 2008 11. Sayer, J. NYSERDA's energy storage program. Electricity Storage annual meeting 2008, Anaheim California, May 19-22. NYSERDA, 2008. 12. Gyuk, I. Plans and progress in energy storage at DOE. Electricity Storage annual meeting 2008, Anaheim California, May 19-22. US DOE, 2008

Additional References Canadian Research 35 M. Chamberland, and R. Brandon, Canadian Electrical Energy Storage Program, ESA 2007 Annual Meeting, Sept. 2007. P. Lautier, M. Prévost, P. Éthier, P. Martel, Off-Grid Diesel Power Plant Efficiency Optimization and Integration of Renewable Energy Sources, IEEE Canada Electrical Power Conference 2007, Montreal, Oct. 25-26, 2007. Bagen and R. Billinton, Incorporating well-being considerations in generating systems using energy storage, IEEE Trans. Energ. Conv., vol. 20, no.1, pp. 225-230, March 2005 C. Abbey and G. Joos, Coordination of Distributed Storage with Wind Energy in a Rural Distribution System, in Proc. IEEE Industry Applications Conference, pp. 1087-1092, 2007. J. Chahwan, C. Abbey, M. Chamberland, G. Joos, Battery Storage System Modelling, Design and Operation for Wind Energy Integration in Power Systems, CIGRÉ Canada Conference on Power Systems Calgary, Aug. 26-28, 2007. C. Abbey, J. Chahwan, M Gattrell, G. Joos, Transient Modeling and Simulation of Wind Turbine Generator and Storage Systems, CIGRÉ Canada Conference on Power Systems Montreal, Oct. 1-4, 2006. C. Abbey and G. Joos, Supercapacitor Energy Storage for Wind Energy Applications, IEEE Trans. Ind. Appl., vol. 43, no. 3, pp. 769-776, 2007. C. Abbey, K. Strunz, J. Chahwan, and G. Joos, Impact and Control of Energy Storage Systems in Wind Power Generation, Power Conversion Conference, Nagoya, April 2007, pp.1201-1206. L. Chen, Y. Liu, A.B. Arsoy, P.F. Ribeiro, M. Steurer, M.R. Iravani, Detailed modeling of superconducting magnetic energy storage (SMES) system, IEEE Trans. Power Deliv., vol.21, no.2, pp. 699-710, April 2006