The Use of Battery Systems to Address Power Grid Issues and Feasibility of Energy Storage Functions from Technical, Economical and Regulatory Aspects Hiroshi Kuniyoshi Japan Smart Community Alliance New Energy and Industrial Technology Development Organization
Today s Speech 1. Introduction Background to this Presentation 2. Collection and Analysis of Cases Using Battery Systems as Power Grid Energy Storage 3. Conclusion 1
Need for Batteries as Grid Energy Storage Controllable energy demand and supply Batteries Renewable energy Controllable Variable 2
Need for Batteries as Grid Energy Storage Example: The Californian Duck Curve Variable Controllable Source) CAISO 3
Background to this Presentation This Presentation is based on the work that is on going at GSGF s Energy Storage Work Group GSGF members Australia Ireland Canada Israel Denmark Japan EU Korea Flanders Mexico France The Netherlands Great Britain Taiwan India Turkey Norway United States GSGF Work Groups Flexibility Cyber Security Energy Storage Lead: WG Members: Australia France Korea Denmark Norway The Netherlands Flanders Ireland United States 4
Introduction of NEDO and JSCA NEDO JSCA New Energy and Industrial Technology Development Organization Established: 1980 Japan Smart Community Alliance Established: 2010 Personnel: around 800 Budget FY2015: Approximately \130 billion ( 1 billion) Members: around 300 companies Board members: Mitsubishi Electric, Hitachi, Toshiba, Itochu, Toyota, Panasonic, etc. Secretariat: NEDO 5
Outline of White Paper Business Opportunities for Battery Energy Storage Systems Why batteries? Scalability No location constraints Fast response Main Tasks Collection of possible grid-related issues associated with external environmental change Collection and analysis of cases using battery systems as energy storage to address system issues Recommendations on effective introduction of battery systems to solve grid-related issues Schedule: Publish White Paper in December Source) http://www.nedo.go.jp/news/press/aa5_100459.html 6
Energy Storage Functions System wide services Generation Transmission Distribution 5 Voltage Control DER Consumer Prosumer 3 Renewable Integration 1 Frequency Control Supply Demand 4 Microgrid Load (kw) 2 Load Leveling 7 Time
Best Practice (Frequency Control) Frequency control in PJM area Quick responsiveness makes batteries suitable for frequency control AES uses batteries made by NEC in PJM Frequency Regulation Market Pay for Performance Increased revenue for following signal accurately; reduction of total costs for frequency regulation (FERC Order 755) Source) NEC presentation material, EUW 2014 8
Best Practice (Load Leveling) Load leveling in rural areas in Queensland, Australia Cutting the peak at substation level to avoid local congestion Ergon Energy Peak cutting in highly radial grid (Single Wire Earth Return lines) with high PV penetration and dropping utilization rate Distribution grid investment deferral through cutting local peaks at feeder level with batteries (Grid Utility Storage System) Load leveling for Single Wire Earth Return lines Concept of Load leveling/peak shifting for Substation GUSS Battery: SAFT Battery 121 kwh Substation Battery Time Source) Ergon Energy 9
Best Practice (Renewable Integration) Wind Energy integration on Hawaii, Grid Storage Solution (NEC) Compensate outputs in fluctuation caused by renewable generation by placing batteries near the generation units Combining battery with wind and/or PV increases forecastability and dispatchability Auwahi Wind Farm, 11 MW/4.4 MWh GSS Source) Application: Renewable Ramping Grid Storage Solution, NEC 10
Best Practice (Voltage Control & Microgrid) Voltage control in distribution grid Miyako Island mega-solar microgrid demonstration Consumer Prosumer PV:4.0MW, Battery:4.1MW PV PV Sub Station Distribution substation Demand Block A Demand Block B Demand Block C Demand Block D 101V ±6V Voltage With PV, full generation Without PV Distance from distribution substation transformer PV: Photovoltaic NAS: Sodium sulfur battery SVR: Step Voltage Regulator SVC: Static VAR Compensator Source) http://www.okiden.co.jp/shared/pdf/news_release/2010/101015.pdf 11
Preliminary conclusion (1) Expected market expansion for battery storage Renewable integration is seen as the big potential end market for battery energy storage Frequency control has high return and economic feasibility, but small volume Load Leveling and Microgrid has good economic feasibility in limited circumstances General trend is as below, but with many exceptions Frequency Control Load Leveling Microgrid Supply Demand Load (kw) Time Renewable Integration Time 12
Preliminary conclusion (2) Effectiveness of changing regulations Changing regulations can create new market opportunities Regulations should evaluate technologies neutrally, so batteries can be used according to their strengths Pay for Performance in PJM, System Services in Ireland Requiring dispatchability of large scale variable generation (no examples yet) Fast Frequency Response, etc. Output New services System Services introduction in Ireland Existing services New services Effectiveness of batteries Event ms 5s 90s 20min 20h 13
Preliminary conclusion (3) Conquering economical hurdles There are markets where batteries are already feasible R&D in batteries will continue, increasing performance and decreasing cost, but economics is still the biggest hurdle Need to fill gap in going from demonstration project to large scale commercial operation Creation of markets to spur more production of batteries to lower the price Market Paying Price Current Battery cost Subsidy Regulation Mass Production effect Improving economics scenario Renewable Integration Microgrid Frequency Control Load Leveling Volume 14
Conclusion 1 There are already markets/applications where batteries economically make sense 2 Creating an effective regulation framework that can appropriately (neutrally) evaluate batteries is important 3 The main future potential market is renewable integration, and due to increased shares of renewables, the introduction of batteries will continue 15