energy storage opportunities
TRANSCRIPT
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About ElectricityMatch
About Charlie HewittCharlie Hewitt has more than 20 years of in-depth energy experience having served in executive and managerial roles at some of the largest retail energy providers in North America. His expertise covers a wide range of retail energy disciplines including pricing, contracting, risk management, and credit. He holds an MBA from UT Arlington, MA and BS degrees in geology from UT Austin, and was a TXU environmental research fellow.
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Electricity demand is highly correlated with temperature. This causes demand to vary significantly throughout the day. Many generation resources are underutilized during off-peak periods while some generators are brought online only to meet peak power demand. This is an inherently inefficient use of generation resources.
The limiting factor in optimizing generation resource output has been the development of commercial or grid-scale energy storage solutions. Ideally, energy storage minimizes electric price volatility by storing energy generated in off-peak periods for use during peak periods.
Energy storage mitigates temporal imbalances in supply and demand and reduces price fluctuations in the day-ahead and real-time electricity markets. Storage can also be used for power grid stabilization and voltage support.
Energy Storage Overview
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Energy Storage TechnologiesEnergy storage technologies include pumped hydro, batteries, compressed air energy storage (CAES), thermal storage and flywheels. These technologies have different characteristics and applications.
As shown on the following slide, the contribution of generating capacity per project varies. Pumped hydro accounts for 93% of U.S. energy storage capacity while representing only 10% all energy storage projects.
Molten salt thermal storage and CAES also represent technologies with high energy storage capacities per project. Battery and other technologies have much lower capacities on per project basis. These varying capacity concentrations, along with fundamental operational differences, determine the suitability of energy storage applications.
For example, not all regions have the geographic requirements for pumped hydro storage. The smaller capacities of battery technologies make them ideal for voltage support and other specialized applications.
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Energy Storage Technologies
Technology MWNumber of
ProjectsPumped Hydro 26,645 45Molten Salt Thermal Storage 541 4Compressed Air Energy Storage 423 8Lithium-ion Battery 209 145Thermal and Ice Storage 136 92Lead-acid Battery 133 40Chilled Water Thermal Storage 130 16Electro-chemical 104 9Flywheel 98 32Gravitational Storage 50 1Flow Battery 39 29Nickel-based Battery 27 4Sodium-based Battery 23 21Other Technologies 13 8
U.S. Existing or Planned Energy Storage Projects
Source: http://energystorageexchange.com
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Energy Storage Project DistributionWith pumped hydro representing most of the U.S. energy storage capacity, it follows that states with geography favorable to that technology would dominate the market.
In fact, the ten states with the highest energy storage capacites all have significant pumped hydro projects. As shown on the following slide, capacity concentration is apparent with over 85% of the U.S. energy storage capacity sited in these states.
Lithium-ion battery storage , however, could significantly alter the energy storage landscape. Hawaii will supporting its photovoltaic electricity generation with a 12MW lithium-ion system. In Texas, a proposal was made in 2014 to install 9GW of lithium-ion battery storage. The scale of this proposed energy storage project would increase existing U.S. lithium-ion energy storage by over 40 times and establish Texas as the leading state for energy storage. New York and California are also expected to see a significant increase in lithium-ion storage in the coming years.
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Energy Storage Project Distribution
U.S. Existing or Planned Energy Storage Projects
Source: http://energystorageexchange.com
State MW % Number %California 6,555 22.8% 165 36.3%Virginia 3,279 11.4% 5 1.1%South Carolina 2,286 7.9% 3 0.7%Georgia 2,153 7.5% 4 0.9%Michigan 1,878 6.5% 7 1.5%Pennsylvania 1,847 6.4% 19 4.2%Massachusetts 1,721 6.0% 8 1.8%Tennessee 1,652 5.7% 6 1.3%New York 1,444 5.0% 27 5.9%Nevada 1,232 4.3% 8 1.8%TOTAL 24,047 83.5% 252 55.5%
Capacity Projects
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Energy Rate Implications
As retail electricity markets continue to grow and evolve, it is imperative that additional storage capacity be deployed to stabilize the power grid and optimize electricity rates.
The inherent inefficiency in the market resulting from temporal imbalances in supply and demand presents a significant opportunity to:
1. maximize existing generation assets, 2. more fully integrate renewable generation, and 3. support grid reliability while reducing the need for additional
transmission line construction.
In summary, further development of large scale energy storage will allow for a better matching of electricity supply and demand on an intra-day basis.