Tutorial on Using Energy Storage for the Electric Grid

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Transcription:

Tutorial on Using Energy Storage for the Electric Grid Critical Power 2015 Milwaukee, WI May 13-14, 2015 Kevin Fok Senior Project Manager kfok@lgchem.com (248) 825-1043

Course Syllabus Objective: To provide a brief overview of the fundamentals of energy storage and its selection and use for electric grid applications. A case study of a large-scale project is provided. Course Instructor: Kevin Fok Company: LG Chem Phone: (248) 825-1043 E-Mail: kfok@lgchem.com Topics: 1. The Electric Grid 2. Utility Types, Regulation, and Policy 3. The Role of Energy Storage 4. Applications and Operational Uses 5. System Schematic and Technologies 6. Procurement and Deployment Process 7. Case Study 2

LG Group at a Glance LG was founded in 1947 as the first Korean chemical company and has successfully expanded its business portfolio to a broad range of products and solutions in the chemical, electronics, and telecommunications and services sectors Founded 1947 Revenue (2014) $148B USD Employees 226,000 Chemicals 16 LG Chem LG Hausys LG Life Sciences LG Household & Healthcare Electronics 17 LG Electronics LG Display LG Innotek LG Siltron Telecommunications & Services 16 LG U + LG CNS LG International SERVEONE... 3

LG Chem Top-tier manufacturer of lithium-ion batteries globally Wide range of lithium-ion battery solutions for mobile, automotive, and energy storage applications http://www.lgchem.com/global/battery 4

Proven Experience in R&D, Manufacturing, and Deployment Consumer Electronics 1995 Started battery R&D 1999 Mass production of Prismatic battery 2000 Mass production of Polymer battery 2012 Top Tier vendor (global market share of ~20%) 2013 Released first stepped batteries and curved batteries for mobile devices Automotive 2001 Started developing high power and high capacity LiB for Hybrid Electric Vehicle 2009 Mass production of LiB for Hybrid Electric Vehicle (Hyundai and Kia) 2010 Mass production of LiB for Plug-in Hybrid Electric Vehicle (GM) 2011 Mass production of LiB for Pure Electric Vehicle (Renault, Ford) 2012 Mass production of LiB for Plug-In Hybrid Electric Vehicle (Volvo) 2014 Continued to be selected by major OEMs (Audi, Daimler, and others) for xev batteries Energy Storage 2009 Deployed residential & grid-scale batteries for Jeju Smart Grid Demonstration in Korea 2010 Selected as Residential Energy Storage Unit (RESU) supplier to SCE 2011 Selected as a LiB supplier to SMA and ABB 2012 Mass production of residential PV ESS (Germany) 2012 Commissioned large-scale ESS in Swiss utility grid project (EKZ) 2013 Selected as turnkey provider for SCE Tehachapi Storage Project (TSP) 2014 TSP commissioning and grand opening ceremony 2014 Selected for large-scale ESS (10.8 MWh for Energiequelle and 20 MWh for Akuo Energy) 2014 NextEra commissioned 20 MW ESS with LGC batteries for market operations 2015 Selected for home ESS by Eguana and by Gexpro for Commercial & Industrial ESS 5

U.S. Electric Grid National Public Radio: Visualizing The U.S. Electric Grid - http://www.npr.org/templates/story/story.php?storyid=110997398 6

Electric Grid Infrastructure Statistics: http://www.nerc.com/aboutnerc/documents/understanding the Grid DEC12.pdf Generators: 10,000 units Transmission: 45,000 transformers, 365,000 miles of lines (equivalent to over 65 roundtrips between NYC and LA) Distribution: 6,000,000 miles of lines (equivalent to over 1,000 roundtrips between NYC and LA) Bratelle Group, An Introduction to Electricity Grid Infrastructure: System Complexity in a Rapidly Changing Industry. Energy Information Administration, http://www.eia.gov/energy_in_brief/article/power_grid.cfm. 7

U.S. Electric Utilities Over 3200 utilities in the US. Most customers served by Investor- Owned Utilities (IOUs). American Public Power Association, 2013-14 Annual Directory & Statistical Report 8

Utility Types in the U.S. Investor-Owned Utilities Private businesses that have the fundamental objective of producing a profit for their investors. Regulated and granted service monopolies in certain geographic areas Obliged to serve all consumers. Municipal Utilities Nonprofit government entities that are organized at either the local or State level. Cooperative Owned by their members (the consumers they serve). Federal Agencies in the U.S. Government 9

Regulatory Jurisdiction For IOUs - Simplified http://http://www.nerc.com/aboutnerc/documents/understanding the Grid DEC12.pdf Regulatory Jurisdiction Federal Energy Regulatory Commission (FERC) Independent System Operators (ISOs) / Regional Transmission Operators (RTOs) Public Utilities Commissions (PUCs) Wholesale Public Utilities Commissions (PUCs) Retail 10

Storing Electrons Electrons are constantly traveling on the electric grid highway Energy storage helps provide options to park or rest electrons to be used later 11

Approach, Policy, and Regulation Energy storage has been widely studied and recently, widely publicized Approach o Previous approaches involved developing systems for specific applications o The current approach is bundling applications and having systems with durations on the order of hours Policy and regulation have major roles o The asset type (generation/transmission/distribution) for energy storage can be a challenge since it spans all traditional asset types o Compensation and value stream monetization need to be considered 12

Organizations Industry organizations unite stakeholders, foster collaborations, provide education, develop policy, and develop standards. Electric Power Research Institute http://www.epri.com Energy Storage Association http://energystorage.org/ California Energy Storage Alliance http://www.storagealliance.org/ New York Battery and Energy Storage Technology Consortium http://www.ny-best.org/ Modular Energy Storage Architecture Standards Alliance http://mesastandards.org/ 13

Policy Developments Advancing Energy Storage Recent Federal Energy Regulatory Commission (FERC) orders: o Order No. 755 (2011) improves compensation rates in wholesale electric markets for fastresponding resources. o Order No. 784 (2013) requires utilities to account for the speed and accuracy of regulation resources (which help balance power system load and generation within minutes) when determining reserve requirements. The order also requires utilities to report financial and operational information on energy storage assets. o Order No. 792 (2013) amends an earlier rule to include energy storage technologies and to streamline the time and cost associated with interconnecting new energy resources. Recent state policies: o California created an energy storage mandate in 2013 that requires its three largest investorowned utilities to add a combined 1.3 gigawatts (GW) of energy storage to the grid by 2020. The state also created a demand response and energy efficiency roadmap with a number of new objectives, one of which focuses on demand load shapes and includes additional opportunities for energy storage. o In 2015, New York announced the Reforming the Energy Vision plan. This plan includes reforms to the energy industry, requiring the integration of energy efficiency, solar, wind, and other clean energy technologies, including energy storage, onto the grid in order to reduce energy bills and provide customers with more control over their energy use. The DOE Energy Storage Database includes a detailed policy database and tracker. http://www.energystorageexchange.org/policies 14

Impact of New Policies and Commercial Applications Today In Energy, April 3, 2015, U.S. Energy Information Association http://www.eia.gov/todayinenergy/detail.cfm?id=20652# 15

Applications and Locations Adapted from Moving Energy Storage from Concept to Reality: Southern California Edison s Approach to Evaluating Energy Storage Used with permission from Southern California Edison 16

Operational Uses From Moving Energy Storage from Concept to Reality: Southern California Edison s Approach to Evaluating Energy Storage Used with permission from Southern California Edison 17

Suggested References on Energy Storage Applications Electric Power Research Institute, Electricity Energy Storage Technology Options, A White Paper Primer on Applications, Costs, and Benefits http://www.epri.com/abstracts/pages/productabstract.aspx?productid=000000000001020 676&Mode=download Sandia National Laboratories, Energy Storage for the Electricity Grid: Benefits and Market Potential Assessment Guide, A Study for the DOE Energy Storage Systems Program http://www.sandia.gov/ess/publications/sand2010-0815.pdf Department of Energy/Electric Power Research Institute, DOE/EPRI 2013 Electricity Storage Handbook in Collaboration with NRECA http://www.sandia.gov/ess/publications/sand2013-5131.pdf Southern California Edison, Moving Energy Storage from Concept to Reality: Southern California Edison s Approach to Evaluating Energy Storage https://www.edison.com/content/dam/eix/documents/innovation/smart-grids/energy- Storage-Concept-to-Reality-Edison.pdf 18

Balancing Supply & Demand - Frequency Regulation Energy storage systems are being commercially used to provide frequency regulation ancillary services. PJM, PJM 101, November 1, 2011 19

Renewable Energy Firming Energy storage facilitates the integration of renewable energy into the grid by mitigating capacity fluctuations due to cloud cover and intermittent wind. S. Chu, U.S. Department of Energy, Investing in Our Energy Future, Grid Week, September 21-24, 2009, Washington DC. D. Hawkins, CAISO, Grid of the Future, 30th Utility Energy Forum, May 5-7, 2010, Tahoe City, CA. 20

Outages and Storms Energy storage can help with strengthening the grid against weather and infrastructure events. www.weather.com, October 2013 www.nyiso.com http://www.military.com/daily-news/2015/04/07/ge neral-dc-power-outage-shows-nations-infrastructur e.html 21 http://www.graphs.net/201211/top-10-hurricane -sandy-infographics-2012.html/power-outages-o f-hurricane-sandy

Infrastructure Energy storage provides grid hardening and addresses the aging infrastructure. The 2015 Report Card will be released later this year. http://www.infrastructurereportcard.org/a/#p/energy/overview 22

Demand Charges and Peak Shaving Electricity services: o Generally understood: Customers charged for electricity used (kwh) o Less understood: Larger customers are sometimes charged for the highest rate of electricity used during a period of time (such as 30 minutes). o Demand is the customer requirement made upon the utility for the reserve of certain capacity (kw) so that the electricity is available as needed. Information and examples: o Consolidated Edison http://www.coned.com/customercentral/newbill.asp o Northeastern Utilities https://www.northwesternenergy.com/docs/default-source/documents/e- Programs/E-demandcharges.pdf For industrial and commercial customers who have demand charges, peak shaving can provide cost savings. 23

Peak Shaving The figure below shows an example of peak shaving. The system is charged at night when the system load is low and discharged during the day when the system load peaks. Power Time of Day http://en.openei.org/wiki/distributed_generation 24

Energy Storage System Schematic The diagram below shows the general structure. An actual example will be reviewed in the Case Study. 2013 Energy Storage Association Website http://www.electricitystorage.org/technology/about_energy_storage/storage_systems 25

Technologies In Figure 19, these comparisons are very general, intended for conceptual purposes only; many of the storage options have broader duration and power ranges than shown. Department of Energy/Electric Power Research Institute, DOE/EPRI 2013 Electricity Storage Handbook in Collaboration with NRECA 26

Examples of Large Energy Storage Projects in the U.S. Source: DOE Global Energy Storage Database: http://www.energystorageexchange.org/ McIntosh CAES Plant In-ground Natural Gas Combustion Compressed Air 110 MW / 26 hour duration Bath County Pumped Storage Station Open-loop Pumped Hydro Storage 3 GW / 10 duration AES Laurel Mountain Lithium-ion Battery 32 MW / 15 minute duration Southern California Edison Tehachapi Energy Storage Project Lithium-ion Battery 8 MW / 4 hour duration Beacon Power 20 MW Flywheel Frequency Regulation Plant Flywheel 20 MW / 15 minute duration 27 JC Penney Headquarters Ice Thermal Storage 4.425 GW / 12 hour duration

System Analysis Full range of customers purchasing systems for o Gaining testing and operating experience o Commercial operations For commercial projects, analysis models are typically proprietary References that describe considerations and valuation methods: o Electric Power Research Institute, Electricity Energy Storage Technology Options, A White Paper Primer on Applications, Costs, and Benefits http://www.epri.com/abstracts/pages/productabstract.aspx?productid=000000000 001020676&Mode=download o Southern California Edison, Moving Energy Storage from Concept to Reality: Southern California Edison s Approach to Evaluating Energy Storage https://www.edison.com/content/dam/eix/documents/innovation/smartgrids/energy-storage-concept-to-reality-edison.pdf 28

Upfront Preparations It is important to recognize that typically, most projects are unique, even if standard system building blocks can be used Identify: Purpose Power and energy required Discharge duration, frequency, and load profile Site location and real estate area Site status, readiness, and access Regulatory requirements processes, if applicable Interconnection requirements Communication and controls interfaces Data monitoring and reporting Commissioning and system acceptance testing requirements Training requirements Lead time and scheduling requirements Permitting requirements Invest in spending time in advance to specify all details as much as possible; subsequent changes result in increased costs, schedule delays, and increased labor hours An EPRI ESIC Working Group is working on system implementation and integration processes 29

General Example Process for Procurement & Deployment Initiate discussions with stakeholders Perform project and financial evaluation Identify requirements and scope Continue discussions with stakeholders Identify potential vendors Issue Request for Proposals Inform Stakeholders Develop Request for Proposal & Evaluation Criteria Obtain RFI responses Issue Request for Information Host Pre-Bid Meeting & Site Walk Evaluate Proposals Select Vendor Execute Contract Install Decommission Operate and Maintain Place Into Service Perform System Acceptance Test Commission 30

One Example of Initial System Analysis: ES-Select Software Sandia National Laboratories, ES-Select Tool: http://www.sandia.gov/ess/esselect.html Department of Energy, Sandia National Laboratories, ES-Select Documentation and User s Manual, Version Number 2.0 http://www.sandia.gov/ess/esselectupdates/es-select_documentation_and_user_manual-ver_2-2013.pdf 31

Case Study: Tehachapi Energy Storage Project At a windy mountain pass on the edge of the Mojave Desert, North America s most potent collection of batteries used for storing unused power is humming its way toward an electricity revolution. Bloomberg October 13, 2014 http://www.bloomberg.com/news/articles/2014-10-13/giant-battery-unit-aims-at-wind-storage-holy-grail-commodities Photo Credit: Kevin Fok 32

Case Study: 8 MW/32 MWh Tehachapi Energy Storage Project LG Chem Press Release: http://www.businesswire.com/news/home/20140924006016/en/north-america s-largest-battery-energy-storage-system#.vcap3ab3bcr 33

Case Study: TSP Site Layout Photo courtesy of Southern California Edison 34

Case Study: TSP Use Cases Transmission 1. Provide voltage support/grid stabilization 2. Decrease transmission losses 3. Diminish congestion 4. Increase system reliability 5. Defer transmission investment 6. Enhance value and effectiveness of renewable energy-related transmission System 7. Provide system capacity/resource adequacy 8. Integrate renewable energy (smoothing) 9. Shift wind generation output Market 10. Frequency regulation 11. Spin/non-spin/replacement reserves 12. Ramp management 13. Energy price arbitrage 35

Case Study: TSP Construction and Installation 36

Case Study: Grand Opening Battery Room Tour Photo courtesy of Southern California Edison 37

Course Summary & Recap 1. The Electric Grid 2. Utility Types, Regulation, and Policy 3. The Role of Energy Storage 4. Applications and Operational Uses 5. System Schematic and Technologies 6. Procurement and Deployment Process 7. Case Study 38