electricity storage in utility applications storage presentation - usea - 13...haresh kamath program...
TRANSCRIPT
Haresh Kamath
Program Manager, Energy Storage, EPRI
United States Energy Association
13 September 2013
Electricity Storage in Utility Applications
2 © 2013 Electric Power Research Institute, Inc. All rights reserved.
The Electric Power Research Institute (EPRI)
• Independent, non-profit,
collaborative research institute,
with full spectrum industry
coverage
– Nuclear
– Generation
– Power Delivery & Utilization
– Environment & Renewables
• Major offices in Palo Alto, CA;
Charlotte, NC; and Knoxville, TN
3 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Our Members…
• 450+ participants in more than 40
countries
• EPRI members generate more
than 90% of the electricity in the
United States
• International funding of more than
18% of EPRI’s research,
development and demonstrations
• Programs funded by more than
1,000 energy organizations
4 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Help Move Technologies to the Commercialization Stage…
Our Role…
Technology Accelerator!
5 © 2013 Electric Power Research Institute, Inc. All rights reserved.
EPRI Energy Storage Program Mission
Facilitate the availability and use of
grid-ready storage options
• Understanding storage technologies and
capabilities
• Identifying and calculating the costs and
values of storage
• Specification and testing of storage products
• Implementation and deployment of storage
systems
6 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Storage: A Flexible Asset for a Changing Grid
• A resource for shifting energy or load from one time to another
• A local source of capacity to supply peak demand and enhance reliability and resiliency
• A method to enable load shifting to improve asset utilization and defer capital investment
• An option to provide flexibility to mitigate variability from renewable generation
7 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Thermal Storage
Bulk Storage
The Roles of Storage on the Grid
V2G
Ancillary Services
Distributed Storage
Distributed Storage
Residential Storage
Commercial Storage
8 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Challenges to the Use of Energy Storage
8
• Efficiency was not high enough
• Life was not long enough
• Costs were not low enough
0
500
1000
1500
2000
2500
Lead-Acid
(2012)
Li Ion
(2015)
Target
(2020)
$/k
W
Installed Cost
0
100
200
300
400
500
600
700
800
Lead-Acid
(2012)
Li Ion
(2015)
Target
(2020)
$/k
W-y
r
Operating Costs
0
2000
4000
6000
8000
10000
12000
Lead-Acid
(2012)
Li Ion
(2015)
Target
(2020)
Me
an C
ycle
s b
efo
re F
ailu
re
Cycle Life
60%
80%
100%
Lead-Acid (2012)
Li Ion (2015)
Target (2020)
Effi
cie
ncy
Round Trip Efficiency
Technical challenges are one reason storage has not been widely implemented
For Illustration
Only, Targets are
Application Dependent
For Illustration
Only, Targets are
Application Dependent
For Illustration
Only, Targets are
Application Dependent
For Illustration
Only, Targets are
Application Dependent
9 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Challenges to the Use of Energy Storage
T&D Upgrade
Deferral
Costs of
Storage Potential Benefits of Storage
Power Quality
and
Reliability
Regulation
Services
Demand Peak
Reduction
For Illustration Only
The economic case for energy storage has not been straightforward
10 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Challenges to the Use of Energy Storage
Generation Transmission &
Distribution
Load
Storage
Storage does not fit neatly into the regulatory framework
11 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Lithium Ion Battery Cost
$0
$5,000
$10,000
$15,000
$20,000
0 500,000 1,000,000 1,500,000 2,000,000
Worldwide Vehicle Battery Production Capacity (packs/yr)
Ve
hic
le B
att
ery
Pa
ck
Co
st
Cost projections based on EPRI estimates, June 2010
for 20 kWh LMO/G PHEV batteries at vehicle pack level
2020 2015
2011
Battery Pack cost as a
function of
annual production volume
$10,000
$6,000 $5,000
Now, storage costs are falling
Investment in production capacity has made
low-cost storage possible
12 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Government-funded research has played a role…
• DOE ARRA Projects help stakeholders better understand construction and integration
– Four projects are complete and installed
– 11 more to go
• ARPA-E: Nearly 1/3 of program awards related to storage
– Developing early-stage technologies with potential for the future
• These programs also develop a strong technical resource for storage in the technical community
Sourc
e: P
NM
Sourc
e: A
RP
A-E
/ P
rim
us P
ow
er
Sourc
e: D
OE
13 © 2013 Electric Power Research Institute, Inc. All rights reserved.
…but business investment is also important
• Larger companies are
entering the market
– Multinationals investing
billions in research
– Large-scale
manufacturing plants built
over last 2-3 years
• Investment leverages
consumer electronics and
electric vehicle uses
Sourc
e: G
E
Sourc
e: LG
Chem
Source: KEPCO
14 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Deployment began with demonstrations…
15 © 2013 Electric Power Research Institute, Inc. All rights reserved.
…but has led to commercial deployment
• Most investment in
deployment has come
from IPPs and ESPs for
ancillary services
• Some deployment on
customer side of the
meter, but often owned by
developers taking
advantage of favorable
legislation (SGIP program,
demand response)
0
20
40
60
80
100
120
140
2008 2009 2010 2011 2012
Worldwide Installation of Grid-Connected Batteries
Lithium Ion
Lead Acid
Source: EPRI Estimates
16 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Governments are taking a hand…
• New storage legislation coming about in Japan, Germany, South Korea, California, New Jersey…
– Most storage legislation incentivizes customer-side storage
– California has mandated 1.325 GW of utility energy storage by 2020
• FERC Ruling 784 simplifies accounting rules for storage in the U.S.
17 © 2013 Electric Power Research Institute, Inc. All rights reserved.
California Storage Mandate
California AB 2514 (Sept
2010)
– Started out as a bill
establishing specific storage
procurement targets
– Final bill stated that CPUC
must “open a proceeding to
determine appropriate targets”
– CPUC conducted an “Order
Instituting Rulemaking”
Proceeding, to determine
framework for analyzing
storage needs
18 © 2013 Electric Power Research Institute, Inc. All rights reserved.
California Storage Mandate
• Initial Straw Proposal issued June 10th 2013
• Final Proposal issued Sept 3rd 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
19 © 2013 Electric Power Research Institute, Inc. All rights reserved.
CPUC Proposed Storage Procurement Targets
20 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Still, many challenges remain
• Tools for understanding the value
and grid impacts of storage are still in
development
• Grid-ready energy storage products
are the exception, not the rule
• Grid deployment, integration, and
operation of storage are still major
unknowns
Storage options will not become viable without a concerted, targeted,
industry-wide effort
21 © 2013 Electric Power Research Institute, Inc. All rights reserved.
The Future of Energy Storage
2020
2030
2010
Near Term:
Establish Expectations and
Develop Products for
Focused Markets
22 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Developing analysis tools for storage
• Leading analysts are
developing standard
analysis methodologies
for value and grid
impacts of storage
• Utilities and regulators
are now examining and
verifying these
methodologies
EPRI Energy Storage Valuation Tool 3.0
23 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Analyzing the Value of Storage
Battery Cost
Power Electronics
Balance of Plant
T&D Upgrade Deferral
Costs of
Storage
Benefits of
Storage
Power Quality and
Reliability
Regulation Services
Voltage Support
Inertia Support
Market
Applications
Rate Based
Applications
Demand Peak
Reduction
Photovoltaic
Peak Shift Customer Side
Applications
Battery Cost
Power Electronics
Balance of Plant
For Illustration Only
Using storage for multiple applications can be effective, but is highly site-dependent
24 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Creating a Complete Storage Product
Power Conditioning System
• Define critical functions
and performance levels
• Test capabilities to
understand optimal
performance
Storage Technologies
• Define duty cycle and
expectations for life and
efficiency
• Characterize performance
in different regimes
Product Integration
• Guidelines for integration
of components to ensure
proper performance
• Test and evaluate product
as a whole
Acquiring complete, working systems has been the most challenging part of energy storage efforts to date
25 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Enabling Storage Solutions
• Industry need: Reliable, cost-effective storage-based solutions in four areas:
– Large-scale bulk storage as a balancing resource for renewables (> 50 MW for several hours)
– Substation storage for transmission and distribution asset upgrade deferral (1 – 10 MW for 2 – 6 hours)
– Edge of grid systems (25 – 100 kW for 2 – 4 hours)
– Residential and commercial systems on the customer side of the meter (5 – 50 kW for 2 – 4 hours)
26 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Developing and Qualifying a Standardized Product
Objectives • Demonstrate technology and practices
throughout the lifecycle of a standard storage product
– Procurement
– Operations
– Value assessment
Approach • Facilitate transition from customized project
to a standardized storage product
• Deploy a qualification product at a utility site
• Validate expected interconnection and grid impacts with empirical data
• Compare estimated stacked value from models to achieved value in operations
27 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Facilitating Customizable Standard Products
• Utility members and vendors
collaborating to produce
common approaches,
functional requirements,
specifications, and test
plans for utility applications
• This work is in progress
through technical forums
such as the EPRI Energy
Storage Integration Council
28 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Field Deployment
• Installation, operations, and
disposal best practices
• Siting and permitting issues
• Safety and emergency
protocols
Grid Deployment and Integration
Grid Integration
• Physical interconnection
and protection protocols
• Methods for
understanding the effects
on the distribution system
Control and Dispatch
• Communication and
control protocol
• SGIP and cybersecurity
• Developing optimal
dispatch algorithms
Interconnection of storage to the grid is still relatively poorly understood
29 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Technology Watch and Strategic Intelligence
Bulk Storage for Renewable Generation
Storage for
Grid Support Application Needs;
Validated
Capabilities
Research programs are key…
Energy Storage
Valuation Tool
Strategic Intelligence Cost and Technology
Capabilities
Functional Requirements and Technical Specifications
Bulk Storage Technologies
Distribution Impacts and
Applications of Storage
CAES
Cost and Value Ranges for Storage Technologies in System Applications
0 500 1000 1500 2000 2500 3000
Compressed Air - Below Ground
Pumped Hydro
Compressed Air - Above Ground
Lead Acid Battery
NaS Battery
ZnBr Flow Cell
VRB Flow Cell
Lithium Ion Battery
$/kWh
Cost
Value
Storage Testing and Validation
Analysis of Bulk Storage Technologies
Collaborative research programs are directly influencing demonstrations and pilot programs
30 © 2013 Electric Power Research Institute, Inc. All rights reserved.
…to the goal of a standard approach to storage
Common Operations and
Dispatch Algorithms
Reference
Specifications
Interconnection
Standards
Benefits of
Storage
Costs of
Storage
Validated
Analysis Tools
A body of data that
informs future standards
for the application of
storage
31 © 2013 Electric Power Research Institute, Inc. All rights reserved.
The Future of Energy Storage
31
2020
2030
2010
Near Term:
Establish Expectations and
Develop Products for
Niche Markets
Long Term:
Creating More Effective
Storage Technologies
32 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Key Performance Metrics for Storage Technologies
Reliability
Cost
Efficiency
Control
• Durable, long-life components
• Operable under wide range of conditions
• Well-defined failure characteristics and expected life
• Low materials and manufacturing costs
• Low integration costs
• Low recycling and disposal costs
• High coulombic efficiency with low polarization
• Low self-discharge losses
• Minimal parasitic loads from cooling and other functions
• Well-defined use cases
• Effective and well-established control algorithms
33 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Time of First Introduction
1860 1950 1985 2015
Lead-Acid 25 – 45
Nickel-Cadmium 35 – 60
Lithium Ion 110 – 140
Nickel-Metal Hydride 50 – 75 E
nerg
y D
ensity (
Wh/k
g)
? ~400 Wh/kg?
100
0
50
400
2030
Future Directions?
Silicon Anodes
Advanced Lithium Ion 150 – 200
Court
esy
Y. C
ui gro
up,
Sta
nfo
rd
Univ
ers
ity
Today’s research is promising,
but will take time to commercialize!
1994
Sourc
e: E
nvia
Layered Cathodes
Lithium Sulfur
Lithium Air C
ourt
esy
Y. C
ui gro
up,
Sta
nfo
rd
Univ
ers
ity
Sourc
e:
Excella
tron
34 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Energy Storage
Key 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)
35 © 2013 Electric Power Research Institute, Inc. All rights reserved.
Together…Shaping the Future of Electricity