When Solar+Storage Make Sense · 2018. 6. 27. · When Solar+Storage Make Sense Author: Nick Laws Subject: An NREL presentation details the benefits and challenges of solar plus storage

WhenSolar+StorageMakeSense

Nick Laws ResearchEngineer IntegratedApplicationsCenter

June13th2018 NAESCOTechnologyampFinancingWorkshop Milwaukee WI

WhenSolar+StorageMakesense CostsvsBenefitsCostsareeasy whataboutthebenefits

Financialbenefitscanbeachievedby

1Utilitybillreduction

-Peakshaving(demandchargereduction) -Time-shiftingPVproduction(energyarbitrage)

2Providingancillaryservices

3Meetingcriticalloadduringoutages

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WhenSolar+StorageMakesense CostsvsBenefitsCostsareeasy whataboutthebenefits

Financialbenefitscanbeachievedby

1Utilitybillreduction

-Peakshaving(demandchargereduction) -Time-shiftingPVproduction(energyarbitrage)

2Providingancillaryservices

3Meetingcriticalloadduringoutages

Toaccomplishanyofthesethingswell oneneedscontrols (andideallygoodforecasts) 3

Master Planning

Economic Dispatch

Resiliency Analysis

REoptDecisionSupportthroughouttheEnergyPlanningProcess

bull Portfolio prioritization bull Technology types amp sizes bull Microgrid dispatch bull Cost to meet goals bull Optimal operating strategies bull Energy security evaluation

Cost-effective RE at Army bases Cost-optimal Operating Strategy Extending Resiliency with RE

REoptwebsite hYpsreoptnrelgov 4

Renewable Generation Solar PV Wind Biomass etc

Energy Storage Batteries Thermal storage Water tanks

Conventional Generation Electric Grid Fuel Supply Conventional Generators

Goals Minimize Cost

Net Zero Resiliency

Economics Financial Parameters Technology Costs

Incentives

Utility Costs Energy Charges Demand Charges Escalation Rate

Operations Optimal Dispatch

REopt Energy Planning Platform Techno-economic Optimization

Energy Conservation Measures

Technologies Technology Mix Technology Size

Project Economics CapEx OpEx Net Present Value Dispatchable

Technologies Heating and Cooling Water Treatment

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Net Zero

Technologies Technology MixTechnology Size

Project Economics CapEx OpExNet Present Value

6

Renewable Generation Solar PV Wind Biomass etc

Energy Storage Batteries Thermal storage Water tanks

Conventional Generation Electric Grid Fuel Supply Conventional Generators

Goals Minimize Cost

Resiliency

Economics Financial Parameters Technology Costs

Incentives

Utility Costs Energy Charges Demand Charges Escalation Rate

Operations Optimal Dispatch

REopt Energy Planning Platform Techno-economic Optimization

Energy Conservation Measures

Dispatchable Technologies Heating and Cooling Water Treatment

Solar+Storagewithflatdemandcharges

Cost-optimaldemandtarget

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Astepback

1 Efficiencymeasurescomefirst 2 Demandmanagement(dependsoncosttoimplement) 3 Solar+Storage

8

Abilitytoshiftloadaffectsstoragesizinganddispatch 3

025

Nodemand 2

TOUEnergyRate($kWh)

SmallerSolar+Storagesystem

EnergyRate($kWh)

EnergyRate($kWh)

kW

kWmanagement 020

1

015 0

Cost-optimaldispatches fromREopt

3 025

2With demand 020 management 1

015 0

Recommendedreading reference [4] 9

SunlampStudy

reference [1] 10

SunlampStudy

AllscenariosresultinginSolar+Storagehad

andor

reference [1] 11

SunlampResultsRateStructurewhenS+Siseconomical

Everyscenariowithacost-optimalSolar+Storagesystemhadeither bull Demandcharges(TOUandorflat) bull TOU Energy rates bull orBoth

However notallscenarioswithdemandchargesandorTOU energyratesresultinS+Ssystems

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TOUEnergy+DemandCharges

SunlampResultsRateStructurewhenS+Siseconomical

Everyscenariowithacost-optimalSolar+Storagesystemhadeither bull Demandcharges(TOUandorflat) bull TOU Energy rates bull orBoth

However notallscenarioswithdemandchargesandorTOU energyratesresultinS+Ssystems

62ofscenarioswithS+S 13

SunlampLoweringTechCosts Ascostslower Solar+Storageiseconomicalwithlesscomplexratestructures

LoweringTechCosts

72 62 58 47

14Solar+StoragescenarioswithTOUEnergy+DemandCharges

Otherpotentialbenefits

bull Ancillaryservicemarkets bull Feed-inTariffsandNetEnergyMetering bull Resiliency

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Otherpotentialbenefits

bull Ancillaryservicemarkets bull Feed-inTariffsandNetEnergyMetering bull Resiliency

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Outage3 ($42k)

Energy45 ($666k)

Demand53 ($789k)BAU

Costs$1497k

$0

Am

ount

in T

hous

ands

($)

Optimal Solution PV 113 kWBattery 5 kW 6 kWh

Optimal Solution PV 134 kWBattery 32 kW 79 kWh

Resiliency Not Valued Resiliency Valued

CapEx OampM

Energy Savings Demand Charge Savings

Avoided Outage Costs

(excluding micro-grid hardware)

(excluding micro-grid hardware)

Benefits Costs Benefits Costs

NPV$29k

NPV$58k

$50

$100

$150

$200

$250

$300

ValueofResilience Balance costofsystem with

grid-connectedbenefits (billreduction)

reference [2] 17

Outage3 ($42k)

Energy45 ($666k)

Demand53 ($789k)BAU

Costs$1497k

$0

Am

ount

in T

hous

ands

($)

Optimal Solution PV 113 kWBattery 5 kW 6 kWh

Optimal Solution PV 134 kWBattery 32 kW 79 kWh

Resiliency Not Valued Resiliency Valued

CapEx OampM

Energy Savings Demand Charge Savings

Avoided Outage Costs

(excluding micro-grid hardware)

(excluding micro-grid hardware)

Benefits Costs Benefits Costs

NPV$29k

NPV$58k

$50

$100

$150

$200

$250

$300

ValueofResilience Balance costofsystem with

grid-connectedbenefits (billreduction) and

resiliency benefits

reference [2] 18

Challenges

bull Controls bull Numerousactiveandproposedresearchactivities

bull Benefitsaredifficulttounderstandandquantify bull REoptLite designedtohelp

bull Resiliency bull Microgridscanbeexpensive bull Difficulttodeterminevalueoflostload bull Difficulttomonetizeresilience

Recommendedreadingreference[7] 19

ChallengesControls Whatchargesthebatterymatters

reference [3] 20

ChallengesControls DispatchingandIslanding

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ExcessPV

ChallengesUnderstandingandQuantifyingBenefits

developernrelgovdocsenergy-optimizationreopt-v1

reoptnrelgovtool

NewResilienceCapabilitiesreleasedJune2018

system designed to survive 24 hour outagehas negativeNPV

accountingforAvoidedOutageCosts canmakeprojectNPVpositive

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Summary

WhenSolar+StorageMakeSense bull Grid-connectedbenefitsfromtariffwithdemandchargesandortime-of-useenergycharges

bull Ancillaryservicemarkets bull ValueofResilience

Hurdles bull Controlsystems bull Difficulttoquantifybenefits especiallytoplaceavalueonresilience

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Thankyou

wwwnrelgov

NRELPR-7A40-71813

NRELisanationallaboratoryoftheUSDepartmentofEnergyOfficeofEnergyEfficiency andRenewableEnergyoperatedbytheAllianceforSustainableEnergyLLC

References httpsopeneiorgwikiSolar+Storagereoptnrelgov

[1] Joyce McLaren Kate Anderson Nick Laws Pieter Gagnon Nicholas DiOrio Xiangkun LiIdentifying Critical Factors in the Cost-effectiveness of Solar and Battery Storage in Commercial BuildingsNRELPR-6A20-70813 February 2018

[2] Nicholas D Laws Kate Anderson Nicholas A DiOrio Xiangkun Li Joyce McLarenImpacts of valuing resilience on cost-optimal PV and storage systems for commercial buildingsRenewable Energy Volume 127 2018 Pages 896-909 httpsdoiorg101016jrenene201805011

[3] Emma Elgqvist Kate Anderson and Edward Settle Federal Tax Incentives for Energy Storage SystemsNRELFS-7A40-70384 January 2018

[4] Eric OShaughnessy Dylan Cutler Kristen Ardani Robert MargolisSolar plus Optimization of distributed solar PV through battery storage and dispatchable load in residential buildingsApplied Energy Volume 213 2018 httpsdoiorg101016japenergy201712118

[5] Kate Anderson Dylan Cutler Nick DiOrio Emma Elgqvist Nick Laws Dan Olis Andy WalkerOptimizing Storage and Renewable Energy Systems with REoptNRELPO-7A40-70333 December 2017

[6] Otto VanGeet Emma ElgqvistCampus Energy Approach REopt Overview and Solar for UniversitiesNRELPR-7A40-70252 October 2017

[7] Kate Anderson Nicholas D Laws Spencer Marr Lars Lisell Tony Jimenez Tria Case Xiangkun Li Dag Lohmann Dylan CutlerQuantifying and Monetizing Renewable Energy Resiliency Sustainability 10(4) 933 2018 httpsdoiorg103390su10040933

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Disclaimer

ThisworkwasauthoredbytheNationalRenewableEnergyLaboratory operatedbyAllianceforSustainableEnergy LLC fortheUSDepartmentofEnergy (DOE)underContractNoDE-AC36-08GO28308Funding provided by US Department of Energy Office of Energy Efficiency and Renewable Energy Federal Energy Management Program by the US Department of Energy Office of Energy Efficiency and Renewable Energy Solar Energy Technologies Office and by the Clean Energy Group Theviewsexpressedinthearticle donotnecessarilyrepresenttheviewsoftheDOEortheUSGovernmentTheUS Governmentretainsandthepublisher byacceptingthearticleforpublication acknowledgesthattheUSGovernmentretainsanonexclusive paid-up irrevocable worldwidelicensetopublishorreproducethepublishedformofthiswork orallow otherstodoso forUSGovernmentpurposes

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