Grid Storage Solution - NEC

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Primary Reserve GSS™

Grid Storage Solution

THE NEED FOR PRIMARY RESERVE

�� Electric power grids must maintain frequency (50Hz or 60Hz depending on region) or risk a blackout

− Frequency can fluctuate due to disturbances in generation, load, or transmission

�� Primary Reserve resources serve to immediately stabilize the grid’s frequency

− Ramp up and down in response to fluctuations in grid frequency; responds automatically in seconds

�� Generators reserve 3% to 5% of their capacity for Primary Reserve

− Also known as Frequency Response, Frequency Containment, Primary Frequency Control, or Spinning Reserve

Reserve capacity

Generator output is limited

to provide primary reserve

Generator can provide increased

output with a GSS™ providing

its primary reserve obligation

GENERATOR GENERATOR + GSS™

Gen

erat

or P

ower

Out

put

Risk of blackouts

Risk of blackouts

60

59

59.559.9 60.1

60.5

61

HzGrid Frequency

Totalblackout

Totalblackout

Emergency Emergency

Low High

Too Low - more power needed

Too High - reduce power

Normal Range

THE ROLE OF ENERGY STORAGE

�� A battery energy storage system can effectively replace a generator’s reserve generation capacity obligation

− The NEC Energy Solutions GSS™ has been successfully used in this manner since 2009 and is the highest performing reserve asset in the region, faster and more consistent than other resources

VALUE PROPOSITION

�� Release of 3%-5% reserve capacity allows generation plants to increase output

�� Additional generation capacity increases generator’s revenue

�� Depending on the price of energy, and the nature of the reserve requirements, this can yield significant return on investment for the energy storage owner

�� Energy storage also provides faster, more precise, and more consistent response than traditional assets for primary reserve

GSS™

Generator

Pow

er O

utp

ut

Time

GSS™ is capable of much faster response times (in milliseconds) and power output ramp rates than traditional generators.

�� A stable grid is critically important to support Chile’s mining industry

�� In 2009, a 12MW, 4MWh GSS™ was installed in the Atacama Desert at the Los Andes substation in northern Chile to provide primary reserve to support a local power plant

�� In 2011, a second 20MW, 5MWh GSS™ was installed by the sea coast at Angamos, also in northern Chile, to replicate the success of the Los Andes site but supporting a different power plant

�� Both units have been performing with faster response, greater consistency, and higher availability than any other reserve resource in the region

�� Power plant output is now consistently higher than it was before by about 5%, providing increased revenue for their owners

NEC Energy Solutions, Inc.155 Flanders Road Westborough, MA 01581 (508) 497-7319 www.neces.com© 2014 NEC Energy Solutions, Inc. All rights reserved. MD100130-001 1

case study:

CDEC-SING* (Chile)

GRID

FREQUENCY

GSS

MW

50.5

50.0

49.5

49.0

48.8

15.0

10.0

5.00

0.00

-5.0

-10.

-15.

49.91 Hz

48.91 Hz

49.91 Hz

June 1114:48:00

14:50 14:52 14:54 14:56:15Time of Day

Grid Frequency

GSS™

100 105 110 115 120 125 130 135 140 145 150

25

20

15

10

5

0

Num

. Ob

s.

(MW)

Without GSS™ With GSS™

12.5MW/4MWh GSS™

Los Andes

20MW/5MWh GSS™

Angamos

Operational data from Los Andes taken June 11, 2011

Generator average output increased 5% after addition of the GSS™.

The GSS™ has responded faster and more consistently to frequency disturbances than any other primary reserve unit in Chile.

*The Center for Economic Load Dispatch of the Northern Interconnected System (CDEC-SING) is the entity in charge of coordinating operation of the electric utility grid in Northern Chile.

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