an epri perspective on the future of distributed energy ...€¦ · an epri perspective on the...

An EPRI perspective on the future of Distributed Energy Storage

by Barry MacColl, Electric Power Research Institute - International

2© 2017 Electric Power Research Institute, Inc. All rights reserved.

Three Key Aspects of EPRI

Independent

Collaborative

Nonprofit

Independent

Objective, scientifically based

results address reliability,

efficiency, affordability, health,

safety and the environment

Nonprofit

Chartered to serve the public

benefit

Collaborative

Bring together scientists,

engineers, academic

researchers, industry experts


Our Members…

450+ participants in more than 30

countries

EPRI members generate

approximately 90% of the electricity

in the United States

International funding of over 25% of

EPRI’s research, development and

demonstrations


International EPRI R&D Collaboration

Over 25% of EPRI Collaboration Membership is International

SOUTH AMERICAArgentinaBrazil

AFRICASouth Africa

NORTH AMERICACanadaMexico

AUSTRALIAAustraliaNew Zealand

ASIAJapanIndiaMalaysiaPeople’s Republic of ChinaR.O.C. TaiwanSouth Korea

EUROPEBelgiumCzech RepublicFinlandFranceGermanyGreeceHungaryIrelandItalyNetherlandsNorwayScotlandSlovakiaSloveniaSpainSwedenSwitzerlandUnited Kingdom

Middle EastUAESaudi Arabia


Storage Changes Supply Chains

Refrigeration transformed food supply by allowing preservation of a highly perishable product

• Changed delivery mechanisms

• E.g. No more milk man

• Created new supply and demand patterns

• E.g. Winter produce from Chile

Energy storage may similarly transform when and where electricity is produced, transmitted, and used GE Monitor-Top

refrigerator, c. 1927

Picture rom digital collection of Mike Manning, retrieved 31 Oct 2013from http://en.wikipedia.org/wiki/File:Monitor_refer.jpg

http://en.wikipedia.org/wiki/File:Monitor_refer.jpg


The Drivers for a Storage Transformation

Policy and Regulatory Shifts– Regulatory evolution to accommodate storage

– Policy incentives and targets

Economic Transformation– Rapidly declining costs

– Monetization through markets and tariffs

Societal Change– Increased environmental awareness

– Desire for reliability and resiliency

Technological Advancement– New storage technologies

– Maturing product and understanding

$

Q


Are we reaching the Tipping Point for Storage?

Massive investment in lithium ion battery

manufacturing has caused the cost of the

technology to plummet over the last two years

– Installed costs less than $500/kWh reported for 2016

– EPRI estimates have been $350 - $500/kWh

by 2020

Prices have reached a very interesting level

– Still too high for “classical” storage applications such as

load leveling

– But applicable in niche applications such as peak

shaving for asset deferral, and peaker replacement


Residential Storage: The Difference a Year Makes

Tesla PowerWall 2Announced October 28, 2016

Tesla PowerWallAnnounced April 30, 2015

Power: 2 kWEnergy Capacity: 6.4 kWhWeight: 214 lbs.No Integrated Inverter

Installed Cost: ~$950/kW per hour of storage

Power: 5 kWEnergy Capacity: 13.5 kWhWeight: 264 lbs.Fully Integrated Inverter

Installed Cost: ~$580/kW per hour of storage

2x Energy2x Power60% less space


Solar + Storage: The Difference a Year Makes

September 2015: Kauai Island Utility Cooperative signs a Power

Purchase Agreement with Solar City/Tesla

– 17 MW solar array + 52 MWh battery

– 13.9 cents / kWh under 20 year PPA

January 2017: Kauai Island Utility Cooperative

signs a PPA with AES

– 28 MW solar array + 100 MWh battery

– 11 cents / kWh under PPA (unspecified period)

May 2017: Tucson Electric Power signs PPA with

NextEra

– 100MW solar + 30MW / 120MWh battery

– 4.5 cents / kWh over 20 year PPA

Sou

rce:

So

lar

Cit

y


Aliso Canyon: Less than a year from inception to installation

Aliso Canyon (California): Gas storage plant issues pushed California Public

Utilities Commission to call for energy storage to be installed to replace gas

peakers by the end of 2016

Several large-scale battery systems installed

20 MW / 80 MWh AltaGas Pomona Energy (SCE)

20 MW / 80 MWh Tesla Energy at Mira Loma (SCE)

2 MW / 8 MWh Powin Energy system at Irvine (SCE)

30 MW / 120 MWh AES Energy Storage at Escondido (SDG&E)

7.5 MW / 30 MWh AES Energy Storage at El Cajon (SDG&E)

Other systems to come

Systems were installed at breakneck speed

RFO / RFP issued in June 2016

Awards / CPUC Approval in September 2016

Several systems online by December 31st, 2016

Final commissioning Jan/Feb 2017


Has energy storage arrived?

Aliso Canyon shows that lithium ion batteries can be

attractive as peaker replacements years before expected

– Special conditions (reduced availability of gas) make energy storage

the preferred choice – even though prices may be somewhat higher

than gas turbines ($2000/kW)

– By 2020, storage at $1400/kW for 4 hours may be directly

competitive with natural gas turbines in some locations

But technology maturity is more than just cost!

– Does storage have a track record of safety, reliability and

predictable performance?

– How are we using the storage, and what is the business model?

– How do we incorporate storage into grid planning and operating

practice?


Gaps to Energy Storage Implementation

Real-world performance data

– Testing and evaluation in lab and field settings

– Collecting data from deployments to build track

record

Understanding the value of storage

– Learning how storage can be used to improve grid

design and operation

– Getting the most value out of an energy storage

deployment

Organizational adaptation to new technology

availability

– Developing best practices for design, deployment,

integration, operation, and disposal

– Incorporating storage into existing planning and

operations procedures


Building a Utility Energy Storage Deployment Program:

Pillars to Support Transition from R&D to Operations

Get the Data

Specify relevant data to safety, reliability, value

Consistent comparison

Performance/reliability track record

TESTING AND DATA

Analyze the Options

Identify and screen opportunities

Feasible and optimal location

Design for optimal lifecycle value

MODELING

Put into Practice

Guidelines for deployment

Customized tools

Technical training

IMPLEMENTATION


Understanding the Value of Storage

What are the potential benefits of energy storage?

– Capacity: Peaker replacement or non-wires

alternative

– Flexibility: System ramping, renewable variability

– Reliability: Electricity inventory for reserves

– PQ: Maintain voltage and power quality

How can we dispatch storage to optimize these benefits?– How do benefits “stack” and do they justify the

costs?

– What benefits are easily monetizable?

The industry is developing analysis methodologies and tools to support these studies


StorageVET™: Publicly-accessible storage valuation tool

Goal: support common understanding

of storage value between stakeholders

Consistently analyze storage across

range of uses, technologies, locations

Ongoing collaborative effort to apply

and refine tool through open forum -

EPRI Energy Storage Integration

Council (ESIC)

More info at www.storagevet.com

http://www.storagevet.com/


Energy Storage Integration Council (ESIC) Mission

To advance the integration of energy storage systems through

open, technical collaboration

Guided by Public Benefit Vision…Practical Needs for Real DeploymentMore info on products and enrollment at www.epri.com/esic

Develop and publish a robust set of evolving publicly available guidelines and tools in collaboration with ~1000 technical staff from utilities, developers, and research organizations

http://www.epri.com/esic


Identify Gaps

Define Work Needed

Collaborative development

Working group review

Publication and application

Energy Storage Integration Council (ESIC)

Develop energy storage integration guidelines and tools through industry collaborationStarted in 2013, 700 participants from utilities, suppliers and research community

Published products at ESIC website: www.epri.com/esic



ESIC Products Published to Date

Energy Storage Implementation Guide

Energy Storage Cost Tool and Template

Energy Storage Technical Specification

Template

Energy Storage Safety Guidelines

Energy Storage Test Manual

Energy Storage Commissioning Guide

Common Functions for Smart Inverters V4

StorageVET and Supporting Documentation

(www.storagevet.com)

Coming Soon: Request for Proposal Guide Available at ESIC Website:www.epri.com/esic



EPRI Research Questions on DER and AECs

1. What are the costs and benefits of customer-owned DER to achieve specific types of grid benefits?

2. With respect to design and deployment, where are optimal locations in a utility service territory that offer the greatest

benefit to ratepayers and the grid?

3. How can we evaluate distribution systems and optimize DER penetration?

4. How can we obtain useful insight into expected customer adoption and the impacts to the distribution grid?

5. How can we evaluate the design and sizing of microgrids and assess their benefits?

6. How can we develop demonstrations targeting specific types of communities—such as low income housing, new

residential construction, college campuses, and industrial and agricultural facilities—with a goal of understanding distribution

system impacts?

7. How can technologies to aggregate multiple types of DER be developed and demonstrated to enable both utilities and

aggregators to deploy and control DER effectively?

8. How can we develop customer programs to promote DER adoption that is targeted with respect to both technology and

location?

9. What are the economics and effectiveness of off-grid applications?

10. How can emerging technologies be integrated through AECs to enable underserved segments of the customer base—

such as low income, rural, and small business customers?

11. What innovative financing strategies can support development of such communities and make them financially attractive

or practical relative to developments lacking advanced energy attributes?


Developing Technologies of the Future


Today’s Key Takeaways

Energy Storage has Real Possibilities: Even after cutting through the tremendous hype, grid energy storage has substantial potential to make inroads into the electricity industry, through niche applications and specialized technologies at first, but proceeding into broader uses, with potential widespread adoption beginning between 2020 and 2025.

Lithium Ion Batteries are the Immediate Opportunity: A sharp drop in lithium ion prices in the last two years, and strong interest among developers and regulators, have resulted in a number of prominent deployments in niche applications. If successful, these deployments point the way towards broader application of battery storage in specific locations and uses, though prices are still far too high for more “classical” uses of storage such as load leveling or bulk storage of renewables. Other storage technologies will find it difficult to compete in the near term but may benefit from a mature storage market in the 5-10 year time frame.

Long-Term Research is Critical to Success: Present-day technologies meet some needs on the grid, but future needs require radically better technologies with more energy density, higher efficiency, better reliability and lower cost. These technologies cannot be developed without a systematic approach to research and development covering the entire spectrum of Technology Readiness Levels, from early proof-of-concept through demonstration, pilots, and deployment.


Together…Shaping the Future of Electricity


The U.S. Department of Energy (DOE) defines microgrids as

a group of interconnected loads and distributed energy

resources (DER) within clearly defined electrical boundaries

that act as a single controllable entity with respect to the grid.

A microgrid can connect and disconnect from the grid to

enable it to operate in both grid-connected and island mode.


Energy Storage Implementation Guide

A practical reference guide to the complete lifecycle of an energy storage project that organizes ESIC products and publically available materials, developed for utility project managers

Download at www.epri.com/esic



Energy Storage Cost Tool and Template

Excel tool for supporting that all energy storage project costs items are

accounted for and quotation requests and responses are clear

Vendor Quote

Cost Line Item Cost Input Options Vendor Input Units Vendor Quote Units

Total ESS Equipment Included-Itemized USD $1,525,000 USD

Battery / Energy Storage Medium Included-Itemized $1,000,000 USD $1,000,000 USD

Power Conversion System (PCS) Included-Itemized $350,000 USD $350,000 USD

Control Software Included-Itemized $25,000 USD $25,000 USD

Control Equipment Included-Itemized $50,000 USD $50,000 USD

UPS & Other Electronics Excluded USD Excluded USD

ESS Thermal Management System Included-Itemized $100,000 USD $100,000 USD

Pre-Engineered ESS Structural Components (e.g. containers & racks) Excluded USD Excluded USD

Other ESS Purchases N/A USD N/A USD




Energy Storage Technical Specification Template

Adaptable Excel tool for requesting requirements and receiving specs

for energy storage products and projects.




Energy Storage Safety Guidelines

Example Probability Risk Assessment

Guidance on energy storage safety throughout a project, including reference

codes and standards organized by functional area.




Energy Storage Test Manual

Manual to support consistent characterization of energy storage performance and

functionality, including specific, detailed procedures.

Auxiliary load determination

Round-trip efficiency

Available energy capacity

Charge duration

Rated continuous power

Response, rise, settling time

Harmonic distortion

Volt-VAR regulation

Charge/Discharge management*

Peak power limiting*

Startup/Shutdown time*

Self-discharge*

Autonomous frequency regulation*

*To be included in 2017 revision




Energy Storage Commissioning Guide

Develop a written commissioning plan with requirements, schedule, and budget

Develop a decommissioning plan with risk assessment, safety plan, disposal plan, and shutdown procedures

Refine commissioning plan and formalize through contract language

Commissioning, field and factory acceptance tests ensure system is operating to specification

Re-test or recommission as required by maintenance or performance monitoring

Guidelines for energy storage commissioning throughout a project, including

recommissioning and decommissioning.




Common Functions for Smart Inverters

IEEE 1547, IEC-61850, Rule 21

DNP3, SEP 2.0, Modbus

IEC-61850

Guide to industry on smart inverter functionality for PV/Storage function

definitions for communication and responses




Storage Value Estimation Tool

(StorageVET™) www.storagevet.com

Sophisticated web-hosted and publicly available storage optimization and cost-

benefit analysis tool supporting cross-stakeholder communication about CBA of projects



Energy Storage Request for Proposal Guide

Guide to support clear communication of project requirements and scope in

an RFP with links to other ESIC products supporting storage procurement

Responsibility matrix tool

Publication expected November 2017


Get involved with ESIC

For more information, visit www.epri.com/esic

Enroll today by sending an email to [email protected] with:

– Name

– Title

– Organization

– Address

– Email

– Phone


mailto:[email protected]

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