TeraVolt Energy

Industry Perspective on Energy Storage Issues

ERCOT ETWG17 Sept 2015

James A. “Hoss” Boyd, LtCol (Retired)TeraVolt Energy President & CEO

TeraVolt Energy Industry Perspective on Energy

Storage Issues

• TVNRG is a Texas based Solar Energy and Energy Storage Developer and the Texas Affiliate of Borrego Solar

• Presentation gives an industry perspective on Energy Storage benefits and inhibitors to development

• Cyrus Reed dovetails with “the Rest of the Story”

TeraVolt Energy Background

• NPRR 410 (posted 7 Sept 2011)– Described ES (Energy Storage) as both a load and a generator

• Recent developments highlight a third aspect of ES – Transmission and distribution line augmentation

– NPRR was withdrawn• PURA prohibits T&M (Transmission and Distribution) line

companies from owning generation assets– Technically no new electricity is generated---ES is just a

storage medium– Primary objections to addition of ES by T&M companies came

from generation companies.

TeraVolt Energy Questions to be Answered and

Benefits Gained

• What are ways ES would improve the ERCOT Grid?

• How would ES help T&M companies?• How would ES help both Renewable and

Traditional Generators?• How would ES benefit the ultimate consumer?

TeraVolt Energy Solutions

• No Changes to the Law should be necessary– PURA allows ES Operators to own and operate ES as

generation resources• Request the PUC allow T&M companies to contract with ES

Operators for grid support only, AND/OR• Request the PUC allow T&M companies to own ES on their

systems but require T&Ms to sell electricity marketing rights to ES Operators (who would also control the operation of the resources).(Note: These are solutions that may be already covered by ERCOT Rules and the PUC Regs but might need to be clarified or re-evaluated. Since this is from the limited perspective of the author, others may have better insight.)

TeraVolt Energy Benefits

– ES Developers would be incentivized to invest in the systems• ES Operators (as generators) could sell the electricity through the

ERCOT market as market participants, collect service fees from T&Ms, and receive incentives as a standby reserve resource

– T&Ms would have lower capital investment in line equipment• ERCOT could include the service charges for ES line support in

Transmission and Distribution Line Charges reimbursable to the T&Ms

– ERCOT would benefit from ES installed as standby resources

TeraVolt Energy Comments