Need for Energy Storage

ELECTRIC POWER I " ... '"'...,.~ ~ , -~! ., I

RESEARCH INSTITUTEEPr21

Need for Energy Storage Renewable Portfolio Standard, AS 32 Greenhouse Gas Reductions Smart Grid and Demand Response

Dan Rastler Program Manager

California Energy Commission IEPR Committee Workshop Energy Storage for Renewable Integration Sacramento, CA

April 28, 2011

Panel Questions

• How can Energy Storage help California achieve the Renewable Portfolio Standard?

• How will Energy Storage help California achieve AB 32 Goal?

• How can distributed energy storage be used to help California achieve its future energy goals?

• What can be done to better define the role of energy storage in the California Grid of the future?

• What can be done to support the implementation of the Assembly Bill 2514 Energy Storage development, demonstration, and deployment plan activities?

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

California Drivers for Electric Energy Storage Solutions

~~~II ELECTRIC POWER ~I-IC:; RESEARCH INSTITUTE


EPRI R&D Identified 10 Key Applications along the entire Electricity Grid... (not comprehensive}

.ral'ta (OESS)

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---------------------~ ISO/Bulk/Renewable Integ. Utility Grid Support Customer Energy Mgt

t=~1211 ElECTRIC POWER~I- RESEARCH INSTITUTE


Roles for Energy Storage in CA See EPRI Research Reports: 1022261,1020676 Applications, Benefits and Costs of Energy Storage Systems

EPr211~:... An EPRI Executivd Summory

Electric Energy Storage Technology Options A Primer on Applications, Costs & Benefils

Inlroduclion

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Electricity Energy Storage Technology Options AWhile Paper Primer OIl AppIicalions, Costs and Benefits

=1=1211 ElECTRIC POWER RESEARCH INSTITUTE


EPRI Energy ~torage Program Research Perspectives

• Present o~tions meet few of the long-termteChnical targets we would like to see on the grid.

• Near Term Goals: Identify high value applications; SpecifyApp Reqts; test ana validate; quantify value; support grid integration.

• Long Term Goals:advance new technologies that can fully address needs for tomorrow's grid.

Installed Cost

4500 I i

3000

~ ~

1500

o

Cycle Ufe

~ 12000 I ;:]

'ffi. ~ 9000 .... .2 ~ 6000 Q)

"0 ;; 3000 c: co

~ 0

NAS Ulon Target (2010) (2015) (2020)

NAS Ulon Target (2010) (2015) (2020)

Operating Costs

700 .,.----------,

.... >.

~ 350 ~

o

Round Trip Efficiency

100%

80%

60% .,

NAS Ulon Target (2010) (2015) (2020)

NAS Ulon Target (2010) (2015) (2020)

E~f211 ElECTIIC POWER -,- RESEARCH INSTITUTE

© 2011 Electric Power Research Institute. Inc. All rights reserved. 6

The Role of Energy Storage on the CA Grid ... each location requ,ires different requirements I solution

--.. Ancillary ·1 ~ - -- Bulk.

Services ..... Storage

Storage Loads PHEV I V2G E~~II ElECTRIC POWER

Renewables Wind I PV Integration

Commercial Loads

C&I Energy Mgt

Commercial Loads

Distributed Storage

Ancillary Service Storage

.~... I.

InfrastructureLoads

Industrial Loads

•.....•••

Transmission Substation

I I .. •

Smart Grid

Dist. Gna SUPP,ort

Industrial

•

Central Plant

Resioential Residential

-I-I~ RESEARCH INSTITUTE © 2011 Electric Power Research Institute, Inc. All rights reserved. 7

•

What can be done Storage must be a complete product...

Power Conditioning System

• DC to AC conversion

• Charging control

• Reactive power management

• Integration point to the grid

Balance of Plant

• Data acquisition and controls

• Thermal management

• Communication and Control

• Physical structure

• Shipping and Installation

• Easy Interconnection

~~1211 ElECTRIC POWER-=I~ llEStARCH INSTITUTE


1:..

Regulatory framework

Market framework

Operational algorithms

• Communications and control protocols

• Object models

• Cybersecurity

• Protection schemes

• Understanding capacity implications

• Islanding

• Interface with public and local agencies

Storage Imust be integrated with the grid

•

•

•

t=~1211 elECTRIC POWER RESEARCH INSTITUTE


Recommendations for California

"Accelerate and enable a portfolio of energy storage options which are 'grid-ready', cost effective, safe and reliable by 2015."

Focus on Options that solve industry problems:

Renewable Integration Utility T & D Grid Support End-User Energy Mgt

E~f211 fLEC...C pown-,- AESUICH INSTITUTE


Recommendations: Lead the Way for Storage Solutions in CA

• Establish Clear Targets for Safe, reliable, cost-effective, gridready energy storage solutions

- Identify where storage brings the most value to CA Stakeholders

- Specify clearly what the storage system has to do & problem(s) it is solving

- Test, evaluate, and validate the storage product (s)

- Determine the effects on the grid: impacts and operational value

- Assess the true value of storage in real-life application

1-~1211 ELECTRIC POWER .- RESEARCH INSTITUTE© 2011 Electric Power Research Institute, Inc. All rights reserved. 11

Recommendations for CA

• Productization - Functional Requirements - Product Integration - Validate via: Testing and Evaluation

before wide spread deployment • Grid Integration

- Ensure Storage Systems are Grid Compliance .

- Demonstrated Use-Cases and Value - Tools and Analysis to Determine

Grid Effects, optimal locations for storage and Pfanning

• Uses, Benefits, and Costs - Problems Storage is trying to solve - Business Cases - Applications and Roles - Policy to accommodate alternative

business models Costs of Benefits of Storage Storage

E~1211 ELECTRIC POWER -.- IfSEARCH INSTITUTE



Energy Storage to SUlmort Wind Integration • Conduct Integrated California Market and Grid Simulations ( Supply, T&D,

Demand) under RPS to better define the Role, Location, Optimal Mix of Storage Options which can contribute to CA Policy Goals;

• Use above Analytics to establish a Road Map and Application / Solution (s) for CA which are cost effective and achieve desired impacts;

• Define Functional Requirements and Technically Specify Storage Solutions / Requirements

Energy Storage to sUIW0rt Load Serving Entities and Communities • LSE's near and long-term planning to investigate use of storage as part of

Smart Grid; Distribution infrastructure support; end-use peak mgt. • Analysis to assess impacts and operational value • Analysis of benefits and costs to support business case • Policy to accommodate cost recovery and alternative business models

, ~1211 ELECTRIC POWER -.- RESEARCH INSTITUTE



- Consider: Storage Services to participants in CA 330/0 RPS • Bundled products - wind + storage

• Shaping and Storage Services (firming off-peak wind, self-schedules)

• Dynamic capacity to deal with variability in wind

- Assess Storage Options as alternative to transmission investments

- Asses Storage: Fast response, higher quality MWs

- Assess Storage as option to improve grid reliability

- Consider market based incentives for renewable energy performance

- Assess Storage role in demand side management programs (DR/DSM)

- Peak shaving (reduction of wholesale electricity prices)

- Congestion management (transportable storage assets)

- Deferral of investments in transmission & distribution

E~f211 ElleTlle POWER -.- . - RESEARCH IHSTlTUn


Together...Shaping the Fluture of Electricity

t=~1211 elECTRIC POWER':1-:-' RESEARCH INSTITUTE


Documents

Need for Energy Storage