Energy Storage in the Smart Grid Haresh Kamath Program Manager, Energy Storage and Distributed Generation NEDO Forum 2015 13 Feb 2015
Together Shaping the Future of Electricity EPRI s Mission Advancing safe, reliable, affordable, and environmentally responsible electricity for society through global collaboration, thought leadership and science & technology innovation. 2
Today s Power System Generation Delivery Customer Base Load Generation + Load Following Generation +/ Bulk Energy Storage = Customer Demand Interruptible Load DR 3
Transformation of the Power System A Highly Interconnected Power System that Optimizes Energy Resources 4
Transformation of the Power System Bulk Storage: Provide peaking and ramping service and increase grid flexibility Distribution Storage: Give operators more control over power flow Customer-Sited Storage: Decouple loads from the grid A Highly Interconnected Power System Energy storage that Optimizes can play Energy key roles Resources across the grid 5
Total Deployed Grid Storage Worldwide, July 2014 Pumped Hydro 141,000 MW 1,420,000 MWh 6 Sources: U.S. DOE, EPRI Estimates, Avicenne Batteries 387 MW 595 MWh Flywheels 898 MW 9 MWh Hydrogen Storage 3 MW 35 MWh Thermal Storage 1,570 MW 3,734 MWh Compressed Air 435 MW 4,010 MWh California Procurement Target 1325 MW Total Battery Capacity of U.S. Electric Vehicles on the Road 5450 MWh Total Battery Capacity of Consumer Electronics Sold in 2014 40,000 MWh
The historical challenges are fading Technical challenges Performance Life Efficiency $20,000 $/kw 2500 Installed Cost $/kw-yr 800 Operating Costs 700 2000 10000 600 1500 500 8000 400 80% 6000 1000 300 4000 200 500 100 2000 60% 0 0 0 Lead-Acid Li Ion Target Lead-Acid Li Ion Target Lead-Acid Li Ion Target Lead-Acid Li Ion Advanced (2012) (2012) (2015) (2020) (2012) (2015) Technologies (2015) (2020) (2020) (2012) (2015) Lithium Ion Battery Cost Efficiency 100% Round Trip Efficiency Mean Cycles before Failure 12000 Cycle Life Target (2020) Economic Challenges High Costs Small Value Streams Regulatory Challenges Lack of clear definition Framework designed for existing grid Vehicle Battery Pack Cost $15,000 $10,000 $5,000 $0 0 500,000 1,000,000 1,500,000 2,000,000 Regulation Services Worldwide Vehicle Battery Production Capacity (packs/yr) Costs of Lower costs Storage Generation Regulatory Rulings T&D Upgrade Deferral Demand Peak Reduction Potential Benefits of Storage Transmission & Distribution For Illustration Only Load Power Quality and Reliability New Business Models Policy Action 7
California Storage Mandate CPUC final ruling: Sept 2013 1.325 GW of storage in California by 2020 Pumped hydro > 50 MW not eligible Bi-annual targets (starting in 2014) with location / utility breakdown ~30% CAGR of storage capacity until 2020 Request for Offer process (changed from Reverse Auction) Some reduction and deferment possible if storage not cost-effective 8
CPUC Proposed Storage Procurement Targets 9
but many challenges remain The benefits and grid impacts of energy storage are still unclear in a grid designed to operate without storage The safety, reliability and costeffectiveness of storage solutions are still relatively uncertain 10 Grid deployment, integration, and operation of storage are still relatively immature Utilities, generators, system operators, renewables developers, storage vendors, and others are now racing to address these challenges!
Analyzing the Value of Storage For Illustration Only Disposal Operations and Maintenance Balance of Plant Power Electronics Battery Cost Frequency Regulation Energy Time-shift System Capacity Distribution Investment Deferral Power Quality and Reliability Market Services Rate-based Services Customer Side Services Costs of Storage Benefits of Storage The cost of storage is usually justified through multiple services 11
Facilitating Grid-Ready Storage Systems Energy Storage Technology Exploring technology tradeoffs Optimizing technology for utility applications Grid integration Establishing best practices for siting and permitting Standardizing the interface with the grid Modeling and analyzing the effects of storage on the grid 12 Power Conditioning Establishing appropriate operations and control Ensuring efficient and reliable operation Storage System Product Ensuring safety and reliability Understanding cost and performance Simplifying procurement and operation through standardization of specification and interfaces Communications and Control Defining interoperable protocols Developing operational and dispatch algorithms
Developing a track record Ultimately, the value of storage will only be made evident through deployment and experimentation Validation of technical performance and durability Photos courtesy of: DTE Energy, PG&E, Red Electrica Understanding grid impacts and benefits of the energy storage systems in real application scenarios Calculating the total cost of ownership for system Identifying technical gaps for storage to be efficient, responsive to market needs, safe, reliable and cost effective 13
Summary Storage may become an essential part of the future grid, by enabling enhanced power control, increased flexibility and greater reliability At present, storage has yet to prove itself technically and economically However, the technology is now available, and the economic, regulatory, and policy situation is evolving rapidly In the long run, storage may revolutionize electric power enterprise by allowing more efficient use of assets 14
Questions Questions? Comments? Suggestions? Please contact Haresh Kamath hkamath@epri.com (650) 855-2268 15
Together Shaping the Future of Electricity 16