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© 2021 Electric Power Research Institute, Inc. All rights reserved. www.epri.com October 2021 Energy Storage, DER, and Microgrid Project Valuation EPRI DER-VET™ Analysis in Action

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Page 1: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

October 2021

Energy Storage, DER, and Microgrid Project ValuationEPRI DER-VET™ Analysis in Action

Page 2: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m2

Storage, DER, and Microgrid Modeling Challenges

Benefit stacking is appealing… – More services = more value

– More services = more requirements But can they be satisfied?

Value of storage requires technology and site-specific analysis Complex co-optimization and

decision-making process

EPRI’s DER-VET™ (2021) and StorageVET® (2016 & 2019) address these challenges

Page 3: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m3

Network operator platform

Grid services from customers’

assets

A new type of grid investment

Customer Values

T&D ValuesEvaluate Grid Investment, Technologies, and Services

The Solution: Validated, Transparent, and Accessible DER Valuation and Optimization Tool (DER-VET™)

Greater reliability, resilience, and

value for all customers

Customer benefitsModels how DERs can Provide Customer Value Streams

DER-VET™ provides an open-source platform for calculating, understanding, and optimizing the value of DER based on their technical merits and constraints: www.der-vet.com

Page 4: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m4

DER-VET™ Value Proposition

DER-VET™ provides an open-source platform for calculating, understanding, and optimizing the value of DER based on their technical merits and constraints: www.der-vet.com

Bridges industry gaps in project-level energy storage, DER, and microgrid analysis

Creates a common communication tool among all stakeholders

Gives multiple analysis perspectives for every user and market

Page 5: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m5

DER-VET’s Past, Present, and Future

Access now at www.der-vet.com

2016EPRI StorageVET®

www.storagevet.com

2021EPRI DER-VET™ V1.1

500+ Userswww.der-vet.com

202XDER-VET User Group andOpen-Source Developer

Community

2013EPRI ESVT

Cost-Effectiveness of Energy Storage in California

https://www.epri.com/research/products/000000003002001164

2020EPRI DER-VET Beta

Page 6: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m6 © 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

DER-VET Architecture and Features

Page 7: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m7

Input and Output Examples in DER-VET

DER-VET Project Configuration Example DER-VET Dispatch Results Example

Page 8: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m8

Technologies in DER-VET

Page 9: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m9

Services in DER-VETBu

lk M

arke

t Ser

vice

s • Energy Time Shift• Load Following• Frequency

Regulation• Spinning Reserves• Non-spinning

Reserves• Resource Adequacy

CapacityT&

D Se

rvic

es • Upgrade Deferral• Reliability/Resilience

Cust

omer

Ser

vice

s • Retail Energy Time Shift

• Demand Charge Reduction

• Demand Response• Reliability/Resilience

Page 10: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m10 © 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

Long Duration Energy StorageCase Study

Page 11: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m11 © 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

Long Duration Energy Storage (LDES) DER-VET Analysis

Modeling Inputs– Round-Trip Efficiency (RTE) (Total AC power generated / total AC energy consumed)– Capital Costs (Anticipated costs for power [$/kW] & energy [$/kWh])– Operating Costs (Dwell energy losses, maintenance, and augmentation)– Startup Energy (Energy consumed during startup)

Type Technology Acronym TRLConcrete Thermal Energy Storage CTES 4Electro-Thermal Energy Storage ETES 3Gravitational Energy Storage GES 6Liquid Air Energy Storage LAES 6Lithium-Ion Battery Storage Li-Ion 9

M OTOR/ GENER AT

OR

M OTOR/ GENER AT

OR

M OTOR/ GENER AT

OR

Ho t Tan kWarm Tan k

C o o l Tan k

C o ld Tan k

Page 12: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m12 © 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

DER-VET Base Case and Sensitivities

Base All technologies were run using the original pricing curves in each region for

the 6-, 8-, and 10-hour duration cases (Li-ion batteries were also run at their prevalent 4-hour duration case)

Sensitivities Capital costs were adjusted

+10% / -30% Energy prices were modified

(mod) from their original (orig) RTE was adjusted +/- 5% points

Significant number of DER-VET cases: 1728 total

Pricing Orig Orig Orig Orig Orig Orig Orig Orig Orig

RTE Base Base Base High High High Low Low Low

Costs Base High Low Base High Low Base High Low

Pricing Mod Mod Mod Mod Mod Mod Mod Mod Mod

RTE Base Base Base High High High Low Low Base

Costs Base High Low Base High Low Base High Base

18 Cases per Technology per Hours of Duration

Page 13: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m13 © 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

DER-VET Results: Tech Duration vs. Revenue Requirements

Technology cost forecast is a key driver for LDES analysis

Duration, hours

LDES A

LDES B

LDES C

LDES D Li-ion

4 --- --- --- --- -236 -93 -39 -104 -70 388 -91 -36 -86 -60 103

10 -88 -34 -67 -50 170

6 hours

8 hours

10 hours

Revenue Requirement ($/kW-yr)

Page 14: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m14 © 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

Transmission Solar + Energy StorageCase Study

Page 15: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m15

LADWP Energy Storage Project #1

Los Angeles Department of Water and Power (LADWP) was required to meet its California Senate Bill SB801 requirements to procure energy storage

The study considers a 100 MW, 4-hour battery energy storage system paired with a 200 MW solar PV facility to be procured through a Power Purchase Agreement (PPA) with a third-party developer who would be able to claim Federal Investment Tax Credit (FITC) incentive

LADWP Full Report: Integrating Energy Storage System with Photovoltaic Generation: Analysis within Los Angeles Department of Water and Power (LADWP) Service Territory to Meet SB801 Requirements at http://www.epri.com/abstracts/Pages/ProductAbstract.aspx?ProductId=000000003002013007

Page 16: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m16

LADWP Case Results - Dispatch

Impact of grid charging constraints

DER-VET Optimized Dispatch Outputs

Storage charges from grid

Storage charging profile follows the PV profile

PV vs. Storage Dispatch – Jan. 11 – Constraint PV vs. Storage Dispatch – Jan. 11 – Constraint+ Restrict Charging from Grid

Page 17: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m17

LADWP Case Results - CBA

Several cases resulted in benefit-cost ratios greater than one for project starts years after 2022 as illustrated in the graph below

0.8 0.9 1 1.1 1.2 1.3

2021

2022

2023

Benefit-to-Cost Ratio

Star

t Yea

r

Case #1Case #2Case #3Case #4

Page 18: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m18 © 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

Microgrid Design for PSPS Events

Page 19: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m19

Microgrid Design - DER-VET Modeling Assumptions Identify potential Public Safety Power Shutoff

(PSPS) planned events and duration in California– A load profile is chosen from Aug-Dec time period with

the highest net energy demand– Load cannot be shed

Solar PV assumptions and limitations – Corresponding Solar irradiance profile – PV profile from TMY profile– PV can be curtailed

Battery ES assumptions:– Initial SOC at the start of outage event is 100%– Battery round trip efficiency – 91%– Hybrid solar plus storage installation – co-located at

the dc side

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0

500

1000

1500

2000

2500

PV Ir

radi

ance

Load

(kW

)

Time (Hour)

Load PV

Page 20: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m20

Load and PV Profile

LA - HospitalLA – Sec School SCE Feeder

Peak load – 1.4 MW24hr load requirement – 28MWh36hr load requirement – 43MWh48hr load requirement – 55MWh

Peak load – 0.9 MW24hr load requirement – 13MWh36hr load requirement – 18MWh48hr load requirement – 25MWh

Peak load – 2.16 MW24hr load requirement – 35MWh36hr load requirement – 48MWh48hr load requirement – 76MWh

00.10.20.30.40.50.60.70.80.91

0

500

1000

1500

2000

2500

10/1

9 0

110

/19

04

10/1

9 0

710

/19

10

10/1

9 1

310

/19

16

10/1

9 1

910

/19

22

10/2

0 0

110

/20

04

10/2

0 0

710

/20

10

10/2

0 1

310

/20

16

10/2

0 1

910

/20

22

PV Ir

radi

ance

Load

(kW

)

Time (Hour)

Load PV

00.10.20.30.40.50.60.70.80.91

0

500

1000

1500

2000

2500

11/2

9 1

011

/29

13

11/2

9 1

611

/29

19

11/2

9 2

211

/30

01

11/3

0 0

411

/30

07

11/3

0 1

011

/30

13

11/3

0 1

611

/30

19

11/3

0 2

212

/01

01

12/0

1 0

412

/01

07

PV Ir

radi

ance

Load

(kW

)Time (Hour)

Load PV 2163.37

676.74040.000.100.200.300.400.500.600.700.800.901.00

0

500

1000

1500

2000

2500

07-2

7 00

07-2

7 03

07-2

7 06

07-2

7 09

07-2

7 12

07-2

7 15

07-2

7 18

07-2

7 21

07-2

8 00

07-2

8 03

07-2

8 06

07-2

8 09

07-2

8 12

07-2

8 15

07-2

8 18

07-2

8 21

PV Ir

radi

ance

(p.u

)

Load

(kW

)

Outage Length (hour)

Load

Clear

Page 21: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m21

Microgrid Sizing Results

LA - HospitalLA – Sec School SCE Feeder

0

10000

20000

30000

40000

50000

60000

70000

0 5000 10000 15000

ES E

nerg

y Rat

ing (

kWh)

PV Installed Capacity (kW)

48h

36h

24h

0

10000

20000

30000

40000

50000

60000

70000

0 5000 10000 15000

ES E

nerg

y Rat

ing(

kWh)

PV Installed Capacity (kW)

0

10000

20000

30000

40000

50000

60000

70000

0 5000 10000 15000

ES E

nerg

y Rat

ing

(kW

h)

PV Installed Capacity (kW)

24h – 3.5MW PV+1.4MW/17MWh ES36h – 5MW PV+1.6MW/15MWh ES48h – 7.5MW PV+3MW/15MWh ES

24h – 5.5MW PV+1.9MW/9.2MWh ES36h– 5.5MW PV+1.9MW/17.2MWh ES48h – 5.5MWPV +2 MW/17.2MWh ES

2.5MW PV + 0.735MW/4.9MWh ES

The energy storage and PV size corresponding to the knee point. Knee-point is a point where adding more PV does not affect the size of energy storage significantly.

Page 22: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m22

Microgrid Cost Summary

LA - HospitalLA – Sec School SCE Feeder

Min Cost of covering 24, 36 and 48hr outage – 10M$, 14M$ and 17.5M$

Min Cost of covering 24, 36 and 48hr outage – 5M$, 7M$ and 8M$

Min Cost of covering 24, 36 and 48hr outage – 12M$, 16M$ and 21.5M$

0

5

10

15

20

25

30

35

0 2000 4000 6000 8000 10000To

tal I

nsta

lled

Cost

(M$)

PV Installed Capacity (kW)

24h36h48h

0

5

10

15

20

25

30

35

0 2000 4000 6000 8000 10000

Tota

l Ins

talle

d Co

st (M

$)

PV Installed Capacity (kW)

24h36h48h

0

5

10

15

20

25

30

35

0 1000 2000 3000 4000 5000

Tota

l Ins

talle

d Co

st (M

$)

PV Installed Capacity (kW)

48h36h24h

Page 23: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m23

Questions?

Visit www.der-vet.com– Download the tool for free– Reference case examples– Help and documentation

NOTE: Additional Detailed Case Studies in Appendix– T&D Upgrade Deferral– Military Installation Microgrid– Utility-Sited PSPS Microgrid– More details from case studies presented above

Page 24: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m24

Together…Shaping the Future of Energy™

Page 25: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m25 © 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

Additional DER-VET Background

Page 26: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m26

DER-VET™ User GroupOBJECTIVES: Demonstrate application and economic decision-making opportunities to

promote the applicability of microgrids and DER deployments Provide a forum to support tool usability, applicability, and user supported

feature improvements

Create a user community to learn and share experience and hare in training on DER-VET through meetings and webcasts

APPROACH: Access to advanced DER-VET modules, features, and datasets that promote

tool usability and user experience Annual Meeting to provide updates on tool functionality, facilitate user

experience sharing, and solicit inputs for tool development direction, new features, and updates

Quarterly Webinars to share feedback of new feature development and case studies

Personalized user training to facilitate for tool development and promote questions and answers

Personalized DER-VET User Training to Promote Applicability

3 yearsFunding

Collaborators: $45k3002020769

Ram Ravikumar rrav [email protected]

Miles Evans [email protected] Maitra [email protected]

Giovanni [email protected]

DETAILS CONTACT

Eligible for Self Directed Funds, Tailored Collaboration

Page 27: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m27

DER-VET Optimization Framework

Inputs

Electrical & Thermal Loads

Electricity & Gas Tariff Data

DER data

Site Weather Data

Outputs

Optimal DER Mix & Capacity

DER Dispatch

Quantitative Cost/Benefit

Incentives, Taxes & Financing

ObjectivesMinimize Operating Cost

Improve Reliability/Resiliency

Defer Asset Upgrade

Participate in Wholesale Market

Constraints

Battery Grid Charging Cap

Battery Cycling Limit

DER related constraints

Optimization Engine

Power Import/Export Cap

%

External Databases

OASIS, OpenEI, PVWatts, etc.

External Power Flow Tool

OpenDSS

*DER-VET is CEC funded open-sources software tool. https://www.der-vet.com/

Page 28: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m28

User-Defined Reliability Targets in DER-VET Un-planned Outages:

100% or <100% load coverage for target hours (ex. 4 hours) of any possible un-planned outages

Relational Definition: Reliability target for every outage length

0.7

0.8

0.9

1

1 48 95 142

Prob

abili

ty (p

.u)

Outage length (hours)

Reliability of a DG based microgrid

Designed microgrid’s Reliability

Microgrid is designed to have probabilistic reliability equal to or greater than the target

Planned Outages: 100% or <100% load coverage for target hours of planned outages

2000

2500

3000

3500

4000

Criti

cal L

oad (

kW)

Time

48 hrs48 hrs

0

0.5

1

1 3 5 7 9 11 13 15

Prob

abili

ty

Outage length (hours)

100% probability for 4 hours

Page 29: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m29

Energy Storage Implementation Strategies in DER-VET

Augmentation

Replacement

Oversizing

Modular Implementation

Time

Page 30: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m30

Degradation in DER-VET

Only consider calendar and cycling degradation of energy capacity with no compounding stress factors Cycle life curve input and %/yr calendar degradation input Images from NREL’s SAM tool (very similar degradation model)

Page 31: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m31

CBA in DER-VET: Time Horizon Solution

Beginning of Y1

Storage, LT = 10 years

PV, LT = 15 years

Genset, LT = 17 years

Where to end??

Slide Credit: Tanguy Hubert, EPRI

Analysis end time Shortest lifetime of all assets Longest lifetime of all assets Something else user-defined

Replacement User can turn automated

replacement on or off Remaining value/cost at end of

analysis Sunk cost (0$, do not consider) Salvage value (linear decline

over life or customized) Decommissioning cost

Annualize everything (ECC)

Page 32: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m32

OpenDSS + DER-VET Tool Interaction

Inputs to DER-VET:– From User Customer load profile (8760) Customer tariff

– From OpenDSS* Operational envelope (min/max power at POI OR min/max battery power,

depending on if load is already included in OpenDSS model) Outputs from DER-VET

– Optimal battery size– Customer electric bill savings

* https://www.epri.com/pages/sa/opendss

Page 33: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m33

Validation through Case StudiesCase List

Goals (WHY) Objectives (WHAT) DER Options & Features (WHICH)

Outcome (HOW)

Case Study #1

Customer DER portfolio sized for Bill Reduction and customer resilience

Check if the DER portfolio sized for bill reduction can also provide backup and improve customer resilience

Primary objective: Customer bill reduction. DER sized for this service

Secondary objective: Evaluate reliability in terms of load coverage

Blue sky day: ES+PV (retail services)Outage days: ES+PV+DG (optional)

User-defined critical load percentages to calculate reliability metrics

Metrics:

1. NPV comparisons (CBA), Payback period, Cost Normalization (e.g.: $/kW of DER installed capacity), Avoided costs per service

2. Critical load coverage comparisons ($/kW-yr)3. Reliability performance and load coverage

Case Study #2

Energy storage-enabled microgrid designed with the similar or better reliability than the conventional diesel generator-based microgrid

Check if net cost of operation is same/lesser than the conventional diesel generator-based microgrid

Primary objective: Reliability/Resilience

Secondary objective: Customer bill reduction

Blue sky day: ES+PV (retail services) Outage days: ES+PV+DG

User-defined Load coverage probability

User-defined critical load percentages to calculate reliability metrics

Metrics:

1. Critical load coverage comparisons ($/kW-yr)2. Reliability Performance based on targets and load

coverage curve comparison3. NPV comparisons (CBA), Payback period, Cost

Normalization (e.g.: $/kW of DER installed capacity), Avoided costs per service

Case Study #3

Improve community resilience during crisis (hurricanes, wildfire, PSPS events) with community & customer PV and Storage assets

Primary objective: Community Resilience, Improve grid reliability

Secondary objective: Market Participation

Blue sky day: ES+PV (market services)Outage days: ES+PV

User-defined outage durations

User-defined critical load percentages to calculate reliability metrics

Metrics:

1. Critical load coverage comparisons ($/kW-yr)2. Reliability Performance based on targets and load

coverage curve comparison3. NPV comparisons (CBA), Payback period, Cost

Normalization (e.g.: $/kW of DER installed capacity), Avoided costs per service

Page 34: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m34

Validation through Case Studies (cont.)Case List

Goals (WHY) Objectives (WHAT) DER Options & Features (WHICH)

Outcome (HOW)

Case Study #4

Customer DER + CHP portfolio sized for customer resilience + bill reduction

Primary objective: Customer bill reductionSecondary objective: Customer resilience

Blue sky day: Electric + Heating + Cooling CHP/CHP + other DEROutage days: CHP/CHP + other DER

User-defined outage durations

User-defined critical load percentages to calculate reliability metrics

Metrics:

1. NPV comparisons (CBA), Payback period, Cost Normalization (e.g.: $/kW of DER installed capacity), Avoided costs per service

2. Critical load coverage comparisons ($/kW-yr)3. Reliability performance and load coverage

Case Study #5

Leverage EVs as a grid resource to maintain mobility and reliability

Primary objective: Customer Bill reduction.Secondary objective: Customer resilience

Blue sky day: ES+PV+EV (retail services)Outage days: ES+PV+EV

User-defined outage durations

User-defined critical load percentages to calculate reliability metrics

Metrics:

1. NPV comparisons (CBA), Payback period, Cost Normalization (e.g.: $/kW of DER installed capacity), Avoided costs per service

2. Critical load coverage comparisons ($/kW-yr)3. Reliability performance and load coverage

Case Study #6

External Tool Integration: Assessing Non-Wires Solutions (NWS) impact on community feeder reliability.

DER-VET integration with power flow tools (e.g. EPRI’s OpenDSS)

Primary objective: Community feeder reliability improvements + capacity deferral (NWS)Secondary objective: Customer resilience

Blue sky day: ES+PV (grid services) Outage days: ES + PV

User-defined feeder reliability improvement targets

User-defined customer outage durations

User-defined critical load percentages to calculate reliability metrics

Metrics:

1. Critical load coverage comparisons ($/kW-yr)2. Reliability Performance based on targets and load coverage

curve comparison3. NPV comparisons (CBA), Payback period, Cost Normalization

(e.g.: $/kW of DER installed capacity), Avoided costs per service

Page 35: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m35 © 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

Transmission Solar + Energy StorageCase Study

Page 36: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m36

Site-Specific Energy Storage Analysis FrameworkDx and Tx Assessment

Develop enhanced Dx and Txplanning criteria, methods, and tools

Characterize Dx and Tx needs and solutions

Apply energy storage non-wires solutions (NWS) screening criteria and methods

Economic Evaluation

Design energy storage NWS solution including sizing, siting, controls, etc.

Assess energy storage Dx impacts

Evaluate stacked benefits, state of charge management, degradation, etc.

How do energy storage costs & value compare to conventional solutions?

What are the operating costs of the system?

What revenues might the added energy storage provide?

Alternative Evaluation

Page 37: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m37

Example: LADWP Transmission Project

Application Description StatusMarket Service Participation

Energy ArbitrageFrequency RegulationSpinning ReservesResource Adequacy

Buy low, sell highRapidly inject and remove powerDispatch power Real power reserve

Project has been Contracted and in

Execution

Long-term resource planning and operational reliability

Meet long-term reliability needs with both high renewables and storage penetration in and out of LA Basin

In-Progress

Page 38: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m38

LADWP Transmission Projects

Application Description StatusMarket Service Participation

Energy ArbitrageFrequency RegulationSpinning ReservesResource Adequacy

Buy low, sell highRapidly inject and remove powerDispatch power Real power reserve

Project has been Contracted and in

Execution

Long-term resource planning and operational reliability

Meet long-term reliability needs with both high renewables and storage penetration in and out of LA Basin

Concept Stage

Page 39: Energy Storage, DER, and Microgrid Project Valuation

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m39

LADWP Energy Storage Project #1

Los Angeles Department of Water and Power (LADWP) was required to meet its California Senate Bill SB801 requirements

The study considers a 100 MW, 4-hour battery energy storage system paired with a 200 MW solar PV facility to be procured through a Power Purchase Agreement (PPA) with a third-party developer who would be able to claim 30% Federal Investment Tax Credit incentive

LADWP Full Report: Integrating Energy Storage System with Photovoltaic Generation: Analysis within Los Angeles Department of Water and Power (LADWP) Service Territory to Meet SB801 Requirements at http://www.epri.com/abstracts/Pages/ProductAbstract.aspx?ProductId=000000003002013007

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LADWP Case Results - Dispatch

Impact of grid charging constraints

DER-VET (and StorageVET) Optimized Dispatch Outputs

Storage charges from grid

Storage charging profile follows the PV profile

PV vs. Storage Dispatch – Jan. 11 – Constraint PV vs. Storage Dispatch – Jan. 11 – Constraint+ Restrict Charging from Grid

Page 41: Energy Storage, DER, and Microgrid Project Valuation

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LADWP Case Results - CBA

Several cases resulted in benefit-cost ratios greater than one for project starts years after 2022 as illustrated in the graph below

0.8 0.9 1 1.1 1.2 1.3

2021

2022

2023

Benefit-to-Cost Ratio

Star

t Yea

r

Case #1Case #2Case #3Case #4

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Microgrid Design for PSPS Events

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Microgrid Design - DER-VET Modeling Assumptions Identify potential Public Safety Power Shutoff

(PSPS) planned events and duration in California– A load profile is chosen from Aug-Dec time period with

the highest net energy demand– Load cannot be shed

Solar PV assumptions and limitations – Corresponding Solar irradiance profile – PV profile from TMY profile– PV can be curtailed

Battery ES assumptions:– Initial SOC at the start of outage event is 100%– Battery round trip efficiency – 91%– Hybrid solar plus storage installation – co-located at

the dc side

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0

500

1000

1500

2000

2500

PV Ir

radi

ance

Load

(kW

)

Time (Hour)

Load PV

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Candidate Critical Load Facilities

Critical Load Facility Peak Load Energy Requirement for 48h Outage (Without PV)

SCE – Feeder with 137 customers (98% commercial) 2.2 MW 68.6 MWh

LA – Hospital 1.4 MW 55.3 MWh

LA – Sec School 0.9 MW 24.97MWh

Page 45: Energy Storage, DER, and Microgrid Project Valuation

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Load and PV Profile

LA - HospitalLA – Sec School SCE Feeder

Peak load – 1.4 MW24hr load requirement – 28MWh36hr load requirement – 43MWh48hr load requirement – 55MWh

Peak load – 0.9 MW24hr load requirement – 13MWh36hr load requirement – 18MWh48hr load requirement – 25MWh

Peak load – 2.16 MW24hr load requirement – 35MWh36hr load requirement – 48MWh48hr load requirement – 76MWh

00.10.20.30.40.50.60.70.80.91

0

500

1000

1500

2000

2500

10/1

9 0

110

/19

04

10/1

9 0

710

/19

10

10/1

9 1

310

/19

16

10/1

9 1

910

/19

22

10/2

0 0

110

/20

04

10/2

0 0

710

/20

10

10/2

0 1

310

/20

16

10/2

0 1

910

/20

22

PV Ir

radi

ance

Load

(kW

)

Time (Hour)

Load PV

00.10.20.30.40.50.60.70.80.91

0

500

1000

1500

2000

2500

11/2

9 1

011

/29

13

11/2

9 1

611

/29

19

11/2

9 2

211

/30

01

11/3

0 0

411

/30

07

11/3

0 1

011

/30

13

11/3

0 1

611

/30

19

11/3

0 2

212

/01

01

12/0

1 0

412

/01

07

PV Ir

radi

ance

Load

(kW

)Time (Hour)

Load PV 2163.37

676.74040.000.100.200.300.400.500.600.700.800.901.00

0

500

1000

1500

2000

2500

07-2

7 00

07-2

7 03

07-2

7 06

07-2

7 09

07-2

7 12

07-2

7 15

07-2

7 18

07-2

7 21

07-2

8 00

07-2

8 03

07-2

8 06

07-2

8 09

07-2

8 12

07-2

8 15

07-2

8 18

07-2

8 21

PV Ir

radi

ance

(p.u

)

Load

(kW

)

Outage Length (hour)

Load

Clear

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Microgrid Sizing Results

LA - HospitalLA – Sec School SCE Feeder

0

10000

20000

30000

40000

50000

60000

70000

0 5000 10000 15000

ES E

nerg

y Rat

ing (

kWh)

PV Installed Capacity (kW)

48h

36h

24h

0

10000

20000

30000

40000

50000

60000

70000

0 5000 10000 15000

ES E

nerg

y Rat

ing(

kWh)

PV Installed Capacity (kW)

0

10000

20000

30000

40000

50000

60000

70000

0 5000 10000 15000

ES E

nerg

y Rat

ing

(kW

h)

PV Installed Capacity (kW)

24h – 3.5MW PV+1.4MW/17MWh ES36h – 5MW PV+1.6MW/15MWh ES48h – 7.5MW PV+3MW/15MWh ES

24h – 5.5MW PV+1.9MW/9.2MWh ES36h– 5.5MW PV+1.9MW/17.2MWh ES48h – 5.5MWPV +2 MW/17.2MWh ES

2.5MW PV + 0.735MW/4.9MWh ES

The energy storage and PV size corresponding to the knee point. Knee-point is a point where adding more PV does not affect the size of energy storage significantly.

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Outage Length Variation – SCE case-study

Microgrid designs results for 24, 36 and 48h outage lengths

0

10000

20000

30000

40000

50000

60000

70000

0 2000 4000 6000 8000 10000 12000 14000

ES E

nerg

y Rat

ing

PV Installed Capacity (kW)

24h

36h

48h

There is a linear relationship for low levels of installed PV capacity

It is non-linear for high PV generation. The microgrid size depends on the load shape and PV generation coincidence

In this case-study, the knee point happens for PV size of 5.5 MW in all three cases

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Microgrid Cost Summary

LA - HospitalLA – Sec School SCE Feeder

Min Cost of covering 24, 36 and 48hr outage – 10M$, 14M$ and 17.5M$

Min Cost of covering 24, 36 and 48hr outage – 5M$, 7M$ and 8M$

Min Cost of covering 24, 36 and 48hr outage – 12M$, 16M$ and 21.5M$

0

5

10

15

20

25

30

35

0 2000 4000 6000 8000 10000To

tal I

nsta

lled

Cost

(M$)

PV Installed Capacity (kW)

24h36h48h

0

5

10

15

20

25

30

35

0 2000 4000 6000 8000 10000

Tota

l Ins

talle

d Co

st (M

$)

PV Installed Capacity (kW)

24h36h48h

0

5

10

15

20

25

30

35

0 1000 2000 3000 4000 5000

Tota

l Ins

talle

d Co

st (M

$)

PV Installed Capacity (kW)

48h36h24h

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T&D Upgrade Deferral Case Study

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Screening of Three Energy Storage Sites*Feeder 1 Feeder 2 Substation

Feeder 3 Feeder 4 Transformer (Feeding 3 & 4)

Overloaded Asset

Necessitating Action

379A underground cable limit8% Overloaded few hours/year

379A underground cable limit6% Overloaded few hours/year

400A switch12% Overloaded few

hours/year

(Next limit: 491A Voltage Regulator)

295A overhead cable limit

Not yet overloaded

15.45 MVA limitNot yet overloaded,

could be soon

Traditional Upgrade

Option and Cost

Reconfigure some load to adjacent feeder, also reconductoring

underground portion of feeder head cables to double ampacity.

$1.1 Million

Extend adjacent feeder and transfer some loads off of feeder

$0.1 Million

Build a new substation $5.9 Million

ProjectedLoad Growth

Rate0.5 �% 𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦 0.5 �% 𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦 1 �% 𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦

Additional Data Provided

by For Screening

• 2017 hourly feeder head currents (for each phase), total MW, and total MVAR

• 2008-2029 recorded/predicted yearly feeder head peak load values

• 2017 hourly feeder head currents (for each phase), total MW, and total MVAR

• 2008-2029 recorded/predicted yearly feeder head peak load values

• 2017 hourly feeder head currents (for each phase)• 2004-2029 recorded/predicted yearly feeder head peak load

values

* The three sites were identified by distribution planners.

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Screening Analysis Results - Choosing a Feeder for Detailed Analysis

Feeder 1 Feeder 2Substation

Feeder 3 Feeder 4 Transformer (Feeding 3 & 4)

Energy Storage Requirements in Year 10 to Defer

Capacity Investment

2 MW4.72 MWh2.4 Hour

1.47 MW9.07 MWh6.1 Hours

0.17 MW0.17 MWh

1 Hour

0 MW0 MWh0 Hours

1.22 MW3.4 MWh2.8 Hours

DistributionUpgrade Cost

Reconfigure feeder and

loads$1.1 Million

Reconfigure feeder and loads

$0.1 Million

Build new substation $5.9 Million

Estimate for Storage Installed Cost* (assuming

$900/kWh**)

~$4.2 Million ~$8.1 Million ~$3.1 Million

Substation transformer bank is the best candidate for detailed energy storage analysis due to the relatively high cost of the new substation

transformer bank as compared to the cost of the energy storage asset.* The energy storage cost estimates here do not include the value of storage secondary services, which will improve the overall economics of the storage project. The valuation of stacked secondary services is a part of the detailed storage analysis.** Source: Energy Storage Cost Analysis: Executive Summary of 2017 Methods and Results, EPRI, Palo Alto, CA: 2017. EPRI 3002012046.

Total storage required for

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Screening Analysis Results – Storage RequirementsCapacity Limits (Before Any Distribution Upgrades) Feeder 3 operational capacity is originally

limited to 400A by a substation switch. This switch will be upgraded increasing the feeder capacity to 491 Amps limited by feederhead voltage regulator

Substation transformer bank capacity is 15,451 kVA

Storage Capacity Requirement in Year 10 1.22 MW / 3.4 MWh (2.8 hrs) The capacity is needed seldom leaving room

for stacked secondary services

Storage MWs

0 1000 2000 3000 4000 5000 6000 7000

Time [Hours]

-4

-2

0

2

[MW

]

Storage SOC Deviation from Full

0 1000 2000 3000 4000 5000 6000 7000

Time [Hours]

-4

-2

0

2

[MW

h]

2018 2020 2022 2024 2026

Year

0

2

4

[MW

]

Storage MW Requirement

2018 2020 2022 2024 2026

Year

0

2

4

[MW

h]

Storage MWh Requirement

2018 2020 2022 2024 2026

Year

0

2

4

[MVA

]

Storage PCS MVA Requirement

Storage Capacity Requirements

MW MWh MVA*2017 0 0 02018 0 0 02019 0.08 0.08 0.082020 0.24 0.24 0.242021 0.4 0.54 0.42022 0.56 0.9 0.562023 0.72 1.38 0.722024 0.89 1.96 0.892025 1.05 2.6 1.052026 1.22 3.4 1.22

Stacked secondary services: Storage is not utilized for its primary asset deferral objective for much of the year. What

additional services could it provide when available?

Stacked-service

opportunities

* No inverter oversizing was considered for volt/var or other secondary services.

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Screening Analysis Results – Storage ScenariosConsider two energy storage scenarios for stacked-service and cost-benefit analysis Scenarios 1: Install full energy storage capacity (Year 10 requirement

1.22 MW / 3.4 MWh / 2.8 hrs) in Year 1– Advantage: More storage capacity immediately available for secondary

services– Disadvantage: High initial capital investment

Scenario 2: Increase energy storage capacity modularly as the capacity need increases– Advantages:

Take advantage of lower storage costs in the future Defer some of the initial investment Hedge against uncertainty: If the projected load growth does not

materialize, no unnecessary energy storage investments are made– Disadvantage: Limited storage capacity initially available for secondary services

Several energy storage vendors, e.g., Tesla Powerpack, offer such modular solutions– For example, assuming 50kW – 4 hour modular storage packs (e.g., Tesla

Powerpack), 30 Powerpacks would be required in Year 10 (total capacity of 1.5 MVA – 6 MWh – 4 hours)*

Added Battery (Inverter)

Total Installed Capacity

Total Installed Powerpacks(Inverters)

2018 0.5 MW(0.5 MVA)

0.5 MW – 4 Hours(0.5 MVA)

10 Powerpacks(1 Inverter)

2021 0.5 MW(0.5 MVA)

1 MW – 4 Hours(1 MVA)

20 Powerpacks(2 Inverters)

2024 0.5 MW(0.5 MVA)

1.5 MW – 4 Hours(1.5 MVA)

30 Powerpacks(3 Inverters)

* Less capacity may be needed if the load grows slower than anticipated.

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Secondary Non-Distribution Services Overview

Scenario B Scenario C

Energy Storage Size 1.5 MW, 3.75 MWh 3 X (0.5 MW, 1.25 MWh)

Year(s) Deployed 2018 2018, 2021, 2024

Analysis Timeframe 10 years 10 years

ES RT Efficiency 85% 85%

Service Price

Day Ahead Energy Price Local LMPs from 2017

Day Ahead Ancillary Services Market Clearing Prices from 2017

Services Modeled Day Ahead Energy ArbitrageSpinning & Non Spinning Reserves

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Storage Activity on an Unconstrained Day (2019)

Energy storage activity driven by price on an unconstrained day

Constraints ESS Activity

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Storage Activity on a Constrained Day (2026)

Energy storage activity driven by distribution requirements on a constrained day

1.21 MW Min. Discharge

Constraints ESS Activity

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Storage Activity Unconstrained vs. Constrained Day

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Cost-Benefit Analysis: Financial Parameters Assumed

Parameter ValueDebt/Equity Ratio ~50%Interest Rate ~5%ROE ~10%Discount Rate ~7%Inflation Rate 2.70%Federal Income Tax Rate 21%State Income Tax Rate 9.80%Property Tax Rate 1.19%

Allowed return on LTD

Assumed after-tax WACC

Assumed weighted

MN - 2019 Electric Multi-year

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Cost Assumptions for Measures Considered

All-in Storage System Cost

2017($2017)

2022 E($2017)

Annual Esc. Rate

Annual Esc. Rate incl. inflation

Useful Life

4 hrs $2,070/kW $1,360/kW -8.06%2.5 hrs* $1,473/kW $980/kW -7.83% -5.34% 10 yrs2 hrs $1,274/kW $853/kW -7.71%O&M** $10/kW-yr $11/kW-yr 2.07% N/A

**O&M costs are highly project specific and can vary widely, from $8 to $37/kW-yr.

2. Storage

*ECC calculated assuming financial parameters shown above

**O&M costs are highly project specific and can vary widely, from $8 to $37/kW-yr.

All-in Storage System Cost ($)

2017($2017)

2022 E($2017)

Annual Esc. Rate

incl. inflation

Useful Life

Calculated Economic

Carrying Cost (ECC)*

1.5 MW / 2.5 Hrs 2,209,500 1,469,625 -5.34% 10yrs 19.54%0.5 MW / 2.5 Hrs 736,500 489,875 -5.34% 10yrs 19.54%O&M** $10/kW-yr $11/kW-yr 2.70% N/A N/A

*Costs linearly interpolated from 2hrs and 4hrs configurations

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Time Horizon

Scenario 19 20 21 22 23 24 25 26 27 28 29 30 31 32

A

B

C

New SubstationNew ES

New substation

1.5MW / 3.75 MWh

0.5MW / 1.25MWh

0.5MW / 1.25MWh

0.5MW / 1.25MWh

Analysis horizon considered: 2019-2028

*Note that years on this slide refers to in-service years, while years on previous slide refers to construction years.

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CBA Results

Scenario / $2017 A (avoided) CAPEX OPEX MKT REV NPV

B- 3,460,026 3,062,132 115,429 352,466 634,931 B - market only 3,460,026 3,062,132 115,429 352,528 634,993 C- 3,460,026 1,845,991 77,209 228,716 1,765,542 C- market only 3,460,026 1,845,991 77,209 228,776 1,765,602

1. All scenarios considered yield positive economic returns. This is true even when not considering market revenues.

2. Scenario C –three smaller ES installed sequentially– yields better returns than a larger ES.

– Note: For ES #2 and #3, some costs are still to be recovered after 2028

3. Operation constraints for primary service only marginally reduce market revenues.

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Long Duration Energy StorageCase Study

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Long Duration Energy Storage (LDES) DER-VET Analysis

Modeling Inputs– Round-Trip Efficiency (RTE) (Total AC power generated / total AC energy consumed)– Capital Costs (Anticipated costs for power [$/kW] & energy [$/kWh])– Operating Costs (Dwell energy losses, maintenance, and augmentation)– Startup Energy (Energy consumed during startup)

Type Technology Acronym TRLConcrete Thermal Energy Storage CTES 4Electro-Thermal Energy Storage ETES 3Gravitational Energy Storage GES 6Liquid Air Energy Storage LAES 6Lithium-Ion Battery Storage Li-Ion 9

M OTOR/ GENER AT

OR

M OTOR/ GENER AT

OR

M OTOR/ GENER AT

OR

Ho t Tan kWarm Tan k

C o o l Tan k

C o ld Tan k

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DER-VET Base Case and Sensitivities

Base All technologies were run using the original pricing curves in each region for

the 6-, 8-, and 10-hour duration cases (Li-ion batteries were also run at their prevalent 4-hour duration case)

Sensitivities Capital costs were adjusted

+10% / -30% Energy prices were modified

(mod) from their original (orig) RTE was adjusted +/- 5% points

Significant number of DER-VET cases: 1728 total

Pricing Orig Orig Orig Orig Orig Orig Orig Orig Orig

RTE Base Base Base High High High Low Low Low

Costs Base High Low Base High Low Base High Low

Pricing Mod Mod Mod Mod Mod Mod Mod Mod Mod

RTE Base Base Base High High High Low Low Base

Costs Base High Low Base High Low Base High Base

18 Cases per Technology per Hours of Duration

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Energy Pricing Sensitivity

Original– Predicted based on expected

energy mix and demand profilesModified

– Original prices amplified 2x from overall annual average

– When negative values occur, these are reset to zero

– All pricing data offset to achieve equivalent average values vs. original average prices

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

1 9 17 25 33 41 49 57 65 73 81 89 97 105

113

121

129

137

145

153

161

169

177

185

193

201

209

217

225

233

241

249

257

265

273

281

289

297

Pric

e $/k

Wh

Hours

Original Modified

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DER-VET Results: Tech Duration vs. Revenue Requirements

Technology cost forecast is a key driver for LDES analysis

Duration, hours

LDES A

LDES B

LDES C

LDES D Li-ion

4 --- --- --- --- -236 -93 -39 -104 -70 388 -91 -36 -86 -60 103

10 -88 -34 -67 -50 170

6 hours

8 hours

10 hours

Revenue Requirement ($/kW-yr)

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LDES Deployment Driven by Future Macro-Economic Scenarios

GENERATION MIX STORAGE DURATION

Tech A Tech B Tech C Tech D

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Military Installation Microgrids

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PROBLEM STATEMENT (WHY?)

1. Design an ES enabled microgrid with the similar or better reliability than the traditional DG based baseline microgrid

2. Check if net cost of operation of the ES enabled microgrid is same/lesser than the traditional diesel generator-based baseline microgrid

Technical Reliability

Performance(during power

outages of 1 to 168 hours)

Net Lifecycle Cost

(per kW of peak critical load over 20

years)

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E

DCA

B

Installations Modeled are a Cross-Section of:

Geographies

Energy Market Areas

Sizes

Mission Activities

Military Services

SITES ANALYZEDSites Considered:

A. Naval Base Ventura County

B. March ARB

C. Holloman Air Force Base (AFB)

D. Fort Bliss

E. NAS Corpus Christi

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Three Types of Variables

Military Installation Conditions

- Critical Load Size & Shape- Solar and DG Assets

- Other Conditions

Secondary Services- Utility Retail Tariff Structure

- Wholesale Market Prices- Regulatory Rules in different

service territories

Energy Storage Technologies

- Lithium-Ion

71

INPUT DATA FOR THE ANALYSIS

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EXAMPLE MILITARY INSTALLATION CONDITONS

Peak load: 14 MW Peak critical load: 4 MW 7 diesel generators available:

– 750 kW each– 50,000 gallons of diesel available PV Nameplate rating: 830 kW

– Hourly PV irradiance resolution

0

1000

2000

3000

4000

5000

6000

129

358

587

711

6914

6117

5320

4523

3726

2929

2132

1335

0537

9740

8943

8146

7349

6552

5755

4958

4161

3364

2567

1770

0973

0175

9378

8581

7784

69

Pow

er (k

W)

Hours

Critical Load Critical Load -20 %PVN gen N-1 genN-2 gen N-3 gen

Critical Load Profile

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Secondary Services

BILL REDUCTION

Energy charge reduction Demand charge reduction Demand response

WHOLESALE MARKET

Energy arbitrage Frequency regulation Spinning reserves and non-

spinning reserves

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STORAGE TECHNOLOGY CONSIDERED

Li-Ion battery (Mature technology) Round Trip Efficiency: 91% Battery Replaced every 7 years over the 20-year analysis horizon CAPEX cost derived from EPRI’s 2019 cost study* O&M Cost: $10/kW-yr

*Energy Storage Cost Assessments. Solar Plus Storage Cost Assessment and Design Considerations: Executive Summary

Also considered Flow Battery technology, but that data was proprietary

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BASELINE ANANLYSIS – PERFORMANCE METRICS

0.750.8

0.850.9

0.951

1 24 47 70 93 116139162

Prob

abili

ty

Outage length (hour)

Load Coverage Probability

Duration Probability (%)

24 hours 99.46%

168 hours 85.94%

Reliability Analysis - Critical load coverage probability as a function of outage length (hours)

Baseline Microgrid configuration: DG – 7x750kW+ PV – 830 kW

Cost Benefit Analysis Components MetricsBaseline NPV (20 Yr) (Cost)(Millions of $) $108.95 Baseline Critical Load Coverage ($/kW-yr) $135.50

Cost Benefit Analysis

Page 76: Energy Storage, DER, and Microgrid Project Valuation

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Energy Storage Enabled Microgrid Design

Technical Reliability

Performance(during power

outages of 1 to 168 hours)

Net Lifecycle Cost

(per kW of peak critical load

over 20 years)

Compared to Modeled

Baseline Microgrid

at each Installation with

no Storage, N+1 Back-Up

Diesel Generators,

solar PV, and UPS

Page 77: Energy Storage, DER, and Microgrid Project Valuation

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Final Microgrid Design Output

Baseline Microgrid Configuration

Li-ion ES Microgrid Configuration

Power and Duration - 4375kW 4hr

SOC Reservation (Reliability) - 5.16%

# Gensets 7 x 750 kW 5 x 750kWSecondary Services - Bill reduction

Note:1. Baseline and ES-enable design included PV2. The final microgrid design with ES replaced two generators from the baseline microgrid

Page 78: Energy Storage, DER, and Microgrid Project Valuation

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Microgrid - Reliability Performance

Duration Probability (%)

Baseline Li-Ion ES

24 hours 99.46% 99.85%

168 hours 85.94% 96.6%0.75

0.8

0.85

0.9

0.95

1

1 24 47 70 93 116 139 162

Prob

abili

ty

Outage length (hour)

Baseline Microgrid

Li-Ion Microgrid

Both the designed microgrid has better reliability performance than the baseline microgrid

Page 79: Energy Storage, DER, and Microgrid Project Valuation

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Li-Ion Storage Microgrid – Economic Performance

$0

$20

$40

$60

$80

$100

$120

$140

$160

Annu

al $/

kW P

eak

Criti

cal L

oad

Baseline

Li-Ion Microgrid

Cost Benefit Analysis ComponentsBattery Size 4375 kW, 4 hr

CAPEX Cost ($/kWh) $445/kWh

O&M Cost ($/kW-yr) $10/kW-year

Baseline NPV (20 Yr) (Cost)(Millions of $) $108.95

Investment Case NPV (20 Yr) (Cost)(Millions of $) $105.27

% NPV Improvement 3.38%

Baseline Critical Load Coverage ($/kW-yr) $135.50

Storage-Enabled Critical Load Coverage ($/kW-yr) $85.20

% Critical Coverage Improvement 37.12%

# Generators Retired 2

Profitable Secondary Service Retail Bill Reduction

Total Sec. Service Revenue ($) $8,785,963

Avoided Costs due to Demand Charge Reduction $4,850,519

Avoided Costs due to Energy Cost Reduction $3,935,444

$103.00

$104.00

$105.00

$106.00

$107.00

$108.00

$109.00

$110.00

NPV

(20

YrCo

st in

Mill

ions

of $

)

Baseline

Li-Ion Microgrid

Page 80: Energy Storage, DER, and Microgrid Project Valuation

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Economic Metric Li-Ion Microgrid – All Sites

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Microgrid Design for PSPS Events(Study for SCE)

Page 82: Energy Storage, DER, and Microgrid Project Valuation

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IntroductionProblems (Why?) Customer interruption during prolonged outages

(PSPS, scheduled maintenance) California State push to meet Clean Energy Targets and

GHG Emission Reduction targets

Solution Solar plus Storage Microgrids to build Resilient

Communities

Design (How?) Microgrid Design – Solar plus storage using DER-VET

to maximize resiliency and cost-efficiency

*DER-VET is a CEC funded open-source software tool *PSPS: Public Safety Power Shutoff

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Solar plus Storage Microgrid Design Overview

DER Technology Mix • Solar PV

• Energy Storage

Cost Benefit Consideration• DER ownership model: FTM utility owned

• Lifetime of assets and replacement• Analysis time horizon

• CBA Metrics: Total project NPV

DER Sizing & Operation• Primary Objective: Customer

Reliability/Resiliency for planned outage

• Secondary Objective: Maximize economic benefits from Wholesale market participation

Outage Horizon

500

1000

1500

2000

2500

LOAD

IN K

W

TIME

24 hrs 48 hrs

Page 84: Energy Storage, DER, and Microgrid Project Valuation

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Microgrid Candidate Selection Scenario

1. High frequency PSPS circuits (based on 2018 and 2019 data)

2. Candidate that can safely remain energized during PSPS events3. Screen out candidate with planned mitigation solutions4. Prioritize candidates based on key criteria (low income, no. of PSPS, critical and/or

disadvantaged customers, etc.)

Study conducted on one of SCE’s feeders:– Peak demand approx. = 2.2 MW– No. of customers = 137 customers– Customer type = 98% commercial and industrial circuit

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Microgrid Design - DER-VET Input Identify potential planned outages and duration

– Load profile to identify microgrid demand Solar PV assumptions and limitations

– Solar irradiance profile and dependability percentages – (0, 27 %, 42%, 100%)

– PV limited by land availability – Size varied between 0.5 MW -30 MW (carport, ground mount)

– PV can be curtailed Battery ES assumptions:

– Initial SOC at the start of outage event is 90%– Battery round trip efficiency – 91%– Hybrid solar plus storage installation – co-located at the dc side– No duration constraint

0

500

1000

1500

2000

2500

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pow

er (k

W)

Hour

Load

24 Hr Load Profile

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24 Hour Outage DER Sizing

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Optimal Microgrid Design – 24-hour Outage

1.6

1.7

1.8

1.9

2

2.1

2.2

0.5 2

3.5 5

6.5 8

9.5 11

12.5 14

15.5 17

18.5 20

21.5 23

24.5 26

27.5 29

ES P

ower

Rat

ing (

MW

)Th

ousa

nds

PV Size (MW)

'0%PV_Clear'

'27%PV_Clear'

'42%PV_Clear'

'100%PV_Clear'

Min power rating for the storage = Peak Load (~2.2 MW)

Energy rating of the battery decreases with increase in installed PV capacity until the knee point

0

5

10

15

20

25

30

35

40

45

0.5 2

3.5 5

6.5 8

9.5 11

12.5 14

15.5 17

18.5 20

21.5 23

24.5 26

27.5 29

ES E

nerg

y Ra

ting (

MW

h)Th

ousa

nds

PV Size (MW)

0%PV_Clear

'27%PV_Clear'

'42%PV_Clear'

'100%PV_Clear'

ES Power Rating ES Energy Rating

Knee point 0

10

20

30

40

50

60

70

80

90

100

0.5 2

3.5 5

6.5 8

9.5 11

12.5 14

15.5 17

18.5 20

21.5 23

24.5 26

27.5 29

PV C

urat

il(%

)

PV Size (MW)

'0%PV_Clear'

'27%PV_Clear'

'42%PV_Clear'

'100%PV_Clear'

PV curtailment happens at and after the knee point

PV curtail % = [Sum of curtailed PV energy at each time step / Sum of total PV energy at each time step]

PV Curtailment

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PV Curtailment and the ‘Knee Point’

There is direct correlation between PV curtailment and Knee point– PV curtailment happens at and after the knee point

0

5

10

15

20

25

30

35

40

450.

5 23.

5 56.

5 89.

5 1112

.5 1415

.5 1718

.5 2021

.5 2324

.5 2627

.5 29

ES E

nerg

y Ra

ting (

MW

h)Th

ousa

nds

PV Size (MW)

0%PV_Clear

'27%PV_Clear'

'42%PV_Clear'

'100%PV_Clear'

ES Energy Rating

Knee point 0

10

20

30

40

50

60

70

80

90

100

0.5 2

3.5 5

6.5 8

9.5 11

12.5 14

15.5 17

18.5 20

21.5 23

24.5 26

27.5 29

PV C

urat

il(%

)

PV Size (MW)

'0%PV_Clear'

'27%PV_Clear'

'42%PV_Clear'

'100%PV_Clear'

PV Curtailment

Knee point for 42% PV case is 9MW

PV curtail % = [Sum of curtailed PV energy at each time step / Sum of total PV energy at each time step]

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Outage Simulation – Solar (9 MW) + Storage (2.2MW/11.5MWh)

0

500

1000

1500

2000

2500

3000

3500

4000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pow

er (k

W)

Outage length (Hour)

42%PV_ClearLoad

0

0.2

0.4

0.6

0.8

1

1.2

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

SOC

(p.u

)

Outage length (Hour)

42%PV_Clear

Load and PV Profile

SOC Profile

• SOC is not 100%, so there is no PV curtailment in this case

• Excess PV generation is charged in ES and so there we can see an increase in battery SOC %

Min ES size: Power= 2.2 MWEnergy= 11.5 MWh

Page 90: Energy Storage, DER, and Microgrid Project Valuation

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Cost-Benefit Analysis - Assumptions Benefit Services and Modeling Approach EPRI Financial Assumptions

Benefit Services Modeling Assumption

Reliability*:100% Load coverage for Planned Outages(3 events X 24 hrs)

Reserve 100% Energy Storage Capacity for 24 hrs

Wholesale Market Participation

Co-optimized for- Energy arbitrage - Frequency Regulation

Design Parameters Value

Discount Rate 10%

Inflation Rate 2%

Economic Carrying Cost (PV) 10.64%

Economic Carrying Cost (ES) 15.11%*

BenefitsCosts

*Considers Federal Income Tax Credit (ITC) for solar plus storage assets

For illustration propose only (not in scale)

*Reliability: Value of service calculated based on customer minutes of interruption (CMI) and customer type (residential, commercial, industrial) ES O&M

PV O&M

ES CAPEX

PV CAPEX

Reliability

MarketServices

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48 Hour Outage DER Sizing

Page 92: Energy Storage, DER, and Microgrid Project Valuation

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0

1

2

3

4

5

6

7

8

9

500

2000

3500

5000

6500

8000

9500

1100

012

500

1400

015

500

1700

018

500

2000

021

500

2300

024

500

2600

027

500

2900

0

ES P

ower

Rat

ing (

MW

)Th

ousa

nds

PV Size (MW)

'0%PV_Clear'

'27%PV_Clear'

'42%PV_Clear'

'100%PV_Clear'

0

10

20

30

40

50

60

70

80

90

500

2000

3500

5000

6500

8000

9500

1100

012

500

1400

015

500

1700

018

500

2000

021

500

2300

024

500

2600

027

500

2900

0

ES E

nerg

y Ra

ting (

MW

h)Th

ousa

nds

PV Size (MW)

0%PV_Clear

'27%PV_Clear'

'42%PV_Clear'

'100%PV_Clear'

0

2

4

6

8

10

12

500

2000

3500

5000

6500

8000

9500

1100

012

500

1400

015

500

1700

018

500

2000

021

500

2300

024

500

2600

027

500

2900

0

Min

ES D

urat

ion (

Hour

)

PV Size (MW)

'0%PV_Clear'

'27%PV_Clear'

'42%PV_Clear'

'100%PV_Clear'

Min ES Size – Allowing PV Curtail – 48 hr Outage

Min power rating for the storage is about 2 MW (~peak load). Similar to the 24 hr outage case

Energy rating follows the same trend as in prevcase. The knee points are slightly different from the previous case

ES duration trend is also similar to 24 hour outage

ES Power Rating ES Energy Rating ES Duration

Knee point

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Min ES Size – Allowing PV Curtail – 48 hr Outage

0

10

20

30

40

50

60

70

80

90

0.5 2

3.5 5

6.5 8

9.5 11

12.5 14

15.5 17

18.5 20

21.5 23

24.5 26

27.5 29

ES E

nerg

y Ra

ting (

MW

h)Th

ousa

nds

PV Size (MW)

0%PV_Clear

'27%PV_Clear'

'42%PV_Clear'

'100%PV_Clear'

0

10

20

30

40

50

60

70

80

90

0.5 2

3.5 5

6.5 8

9.5 11

12.5 14

15.5 17

18.5 20

21.5 23

24.5 26

27.5 29

PV C

urat

il (M

W)

PV Size (MW)

'0%PV_Clear'

'27%PV_Clear'

'42%PV_Clear'

'100%PV_Clear'

ES Energy Rating PV Curtailment

Knee point

PV curtailment happens at or after the knee point

Knee point for 42% PV case is 10 MW

PV curtail % = [Sum of curtailed PV energy at each time step / Sum of total PV energy at each time step]

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Timeseries Plots for 42% PV Case’s Knee Point – 10 MW PV

Load and PV Profile

SOC Profile

-500

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47

Pow

er (k

W)

Outage length (Hour)

42%PV_Clear

Load

PV_Curtail

0

0.2

0.4

0.6

0.8

1

1.2

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47

SOC

(p.u

)

Outage length (Hour)

42%PV_Clear

There is some curtailment because excess generation is more than the Battery power rating of 2.03MW

Min ES size: Power=2.03 MWEnergy=17.81 MWh

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Microgrid Design Summary

Solar plus storage microgrid design using DER-VET– Ensured 100% load coverage during outage events and planned maintenance

– Demonstrated ability to determine a minimum size system to meet 24 hour microgrid demand

– Detailed cost-benefit analysis to estimate the net present value of the designed microgrid

SCE issued RFP in Q1 for potential microgrids deployment in 2020 – Decided to not pursue the proposed projects based on costs, technology– Following the Q1 RFP, SCE started reevaluating possibilities, applying lessons learned, and

developed site selection & evaluation criteria for potential 2021/22 microgrid deployment

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SCE’s EPIC Front-of-The-Meter (FTM) Microgrid Projects Control and Protection for Microgrids and Virtual Power Plants

– Development of hardware-in-the-loop (HIL) microgrid test-bed and demonstration of control & protection schemes

– Platform to design & integrate microgrids into SCE planning & operational processes

Smart City Demonstration– Partner with City to deploy FTM microgrid supporting critical facilities– Customer and utility-owned DERs to operate FTM microgrid (100% inverter-based) – Interface between Microgrid Control System and Grid Management System for

improved visibility and operation (island and resynchronize)

Service and Distribution Centers of the Future– Integrated electric fleet center field demonstration with managed EV charging and

DERs– Use of a FTM energy storage to support load management and resiliency

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StorageVET® Background

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StorageVET ® in Action

…and many others

Solar + Storage

T&D Deferral

Peaker Substitution

Customer Bill Savings

StorageVET® is a free, open source energy storage project valuation tool informing decision-makers across the electric grid

Get started at storagevet.com

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Together…Shaping the Future of Energy™