Electric Energy Storage Applications in the Electric Enterprise

Opportunities and Challenges in the

Industrial Sector

California-France Forum on Energy Efficiency Technologies

San Francisco, CA

October 25-26, 2011

Dan Rastler

Electric Power Research Institute

2© 2011 Electric Power Research Institute, Inc. All rights reserved.

Introduction / Overview

• Drivers for Energy Storage Solutions

• Overview of Applications

• Landscape of Electric Energy Storage Options

•Opportunities and Challenges in the Industrial Sector

• Today’s Panel

3© 2011 Electric Power Research Institute, Inc. All rights reserved.

Drivers for Electric Energy Storage Solutions in the U.S.

• Managing Increased Wind and PV Penetration on the Grid

• Increased need for Flexible Grid: Ancillary Services / Balancing

• Transission and Distribution Grid Asset Management

– Managing Grid Peaks,T&D Capital Deployment, Outage Mitigation

• High Penetration of Distributed Photovoltaic systems on the Grid

• Enhancing the value of a Smart Grid: Peak Energy Management; End-use energy management.

4© 2011 Electric Power Research Institute, Inc. All rights reserved.

ThermalStorage

Bulk Storage

The Roles of Storage on the Grid

V2G

Ancillary Services

DistributedStorage

DistributedStorage

ResidentialStorage

CommercialStorage

Industrial Storage

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Opportunities for Energy Storage in the Industrial Sector

Opportunities and Solution Applications:

• Reliability, Back-up, Energy Mgt.

• Power Quality, UPS, Energy Mgt.

• Energy Mgt. and T&D Grid Support

• Energy Mgt. with Renewables

• Energy Mgt. with CHP

Challenges:

• Need low cost storage systems: <<$500 / kW-h installed

• Technical Risk >> Need demostrated solutions

• Options offer Limited Energy >> Hybrid systems with DG

• Business Model >> that maximizies benefits

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Landscape of Energy Storage Solutions - Examples For Industrial Sector Applications

MWs to kWs: min to hours of energy duration

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Opportunity: Industrial CHP + Storage? 13.5 GW Nationwide (10 GW Industrial, 3.5 GW Commercial)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Po

ten

tial

Cap

acit

y (M

W)

Commercial

Industrial

Source: Analysis by Resource Dynamics CorporationNotes: Assumes no state or Federal incentives, no power export

2010 State Monthly Average Natural Gas PricesEstimated Economic potential based on 10 year positive NPV

8© 2011 Electric Power Research Institute, Inc. All rights reserved.

Energy Storage with Distributed Generation

CHP Systems, PV Systems

+

+

CTs

Fuel Cells

Photovoltaics +

9© 2011 Electric Power Research Institute, Inc. All rights reserved.

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000

Wholesale Freq. Reg. (15 min)

Wholesale Freq. Reg. (1 hr)

Transportable T&D Deferral

Transportable Distribution Deferral

Sta. T&D Deferral

Sta. Distribution Deferral

Ind. DESS

Com. DESS

Ind. Energy Mgmt.*

Com. Energy Mgmt.*

Ind. PQ & Reliability

Com. PQ & Reliability

ESCO Res. Storage

Res. Energy Mgmt.*

Res. Backup

Application Value $/kW-h of Storage

Targeted Value

High Value

Challenges: Need Low Cost Storage Systems Energy Storage Application Value Analysis Total Resource Cost Test (TRC) as a Proxy for Allowabe Storage System Cost

Value: $/kW-h of usable energy storage

Caveat: Energy storage systems to address

each application will vary in cost, depending on

size, location, and system power-to-energy ratio.

10© 2011 Electric Power Research Institute, Inc. All rights reserved.

Challenges: Business Model which enables monetization of benefits

EPRI Research Assessing the Locational Value and Benefits of Energy Stoarge

11© 2011 Electric Power Research Institute, Inc. All rights reserved.

Energy Storage as Part of Smart GridExample Con Edison Demonstration Project

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Key EPRI Energy Storage Resources

• Key Reports:

• Electric Energy Storage

Technology Options: A White

Paper Primer on Applications,

Costs and Benefits

(EPRI 1020676)

• Executive summary

(EPRI 1022261)

• Functional Requirements for

Electric Energy Storage

Applications on the Power

System Grid (EPRI 1022544)

13© 2011 Electric Power Research Institute, Inc. All rights reserved.

Today’s Panel

• Eric Cutter – E3

• Geoffroy Ville – McPhy Energy

• Jim McDowall – Saft

• Tom Stepien – Primus Power