Sgs all presentations_8-30-2011

Smart Grid Society2011 SUMMER EVENT

ALSTON & BIRD, Atlanta, GAAugust 30th from 11:30am - 1:30pm

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EVENT SPONSORS

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Jack ShawPresident, Breakthrough Business Technologies [email protected]

Jack has spoken to thousands of business executives in over 20 countries about innovations in business technology.

Welcome

mailto:[email protected]

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Session Agenda

OUR SPONSORS

Smart Grid: A 360o View of Battery Storage

» 11:30 am LUNCH BUFFET» 12:00 pm – SESSION BEGINS» Jack Shaw – Welcome - SGS Board

˃ President, Breakthrough Business Technologies

» Dan Rastler – Keynote Speaker, EPRI˃ Senior Project Manager, Energy Storage Program, Palo Alto, CA

» Sean Atkins – Moderator, Alston & Bird˃ Partner, Alston & Bird, Regulatory Storage Expert, Washington, DC

» Ken Caird – GE Energy˃ Senior Transmission and Distribution Systems Engineer

» Clifton Black – Southern Company˃ Senior Research Engineer

» Vincent Pusateri – GS Battery (USA)˃ Senior Director, New Business Development

» 1:30 pm SESSION ENDS

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Dan RastlerSr. Project Manager, Energy Storage Program, Electric Power Research Institute (EPRI), Palo Alto, CA; [email protected]

Keynote Speaker


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Sean AtkinsPartner, Alston & Bird, Regulatory Storage Expert, Washington, DC [email protected]

Moderator


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Overview of Regulation of Electric UtilitiesThe Federal Energy Regulatory Commission oversees:

˃ Transmission of electric energy˃ Wholesale sales of electric energy (i.e., sales for resale)

State authorities (e.g., Georgia Public Service Commission) regulate:

˃ Local distribution of electric energy˃ Retail sales of electric energy (i.e., sales to end-users)

Many publicly-owned electric utilities (e.g., municipal utilities) are largely self-regulating


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Classifying Electric Utility Assets Regulators set terms and conditions for adding new electric utility technologies and determine cost recovery for those technologies based on the classification of the asset as Generation, Transmission, or Distribution


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Electricity Storage Can Provide Many ServicesMaintaining service to transmission customers

˃ Supplying reactive power or acting as a virtual replacement transmission circuit in the event of a line trip

Generation-related services˃ Shifting electricity to periods of peak demand ˃ Providing ancillary services (e.g., frequency regulation, load-

following)

Distribution-related services˃ Provide voltage support or acting as a virtual replacement

distribution circuit in the event of a line trip ˃ Support for demand response


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Regulatory Uncertainty on Electricity StorageAncillary services

˃ Some regions have already adjusted ancillary service rules to accommodate electricity storage. Proposed FERC regulations will also address this issue

˃ FERC has issued a Notice of Inquiry on other ancillary services policies and accounting treatment for storage technologies

Recovery of storage costs in transmission rates˃ FERC has reached different conclusions in two recent cases

Current FERC policy on cost-recovery for electricity storage assets is to address these issues on a case-by-case basis


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State Options for Electricity StorageUtilities installing electricity storage to support the distribution system can be included in bundled retail rates

˃ In regions with integrated resource planning, electricity storage can be included in the range of available resources to meet a utility’s overall service obligations

Possible specific procurement requirements/targets for electricity storage

˃ In 2010, California passed a law requiring the state utilities commission to determine appropriate targets (if any) for each utility to procure cost-effective electricity storage systems

State regulation of storage is also expected to evolve


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Sr. Research Engineer, Southern Company [email protected]

Clifton Black


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Overview» Southern Company’s Vision» Storage Applications » Considerations » Demonstrations


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Storage in Southern Company’s Smart Grid VisionA Facilitating Resource


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Energy Storage Applications


Grid Support Generation

Peak Shaving

Ancillary Services

Renewable Integration

Arbitrage

Customer End Use

Volt/VAR Support

T&D Capital Deferral

Approach:

Stack benefits to maximize value

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Considerations» Economics

» Benefits clear – Business case not as clear» Cost Recovery mechanism?

» Asset location» Where should the storage asset be located?

» Ownership» Utility, third party developer, end use customer?

» Business Model » Appropriate model: metering, rate ?

» Application – Technology Marriage » Power/ Energy, Footprint, Charge/Discharge Time, Maintenance etc.

» Need for Experience » Integration/operational challenges» Lifetime cost» Demos underway


16 Smart Grid: A 360o View of Battery Storage

» Evaluating 10 GreenSmith Li-Ion battery storage systems rated 6kW and 24kWh each

» Transportable 500kW - 2.8MWh Premium Power Zn-Br Flow Battery

Energy Storage Demonstrations

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Sr. Transmission and Distribution Systems Engineer, GE Energy [email protected]

Ken Caird


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Technology Examples

Battery Energy Storage Systems (BESS)

Li batteries (Li-ion, Li-Air), Flow batteries (VRd), Sodium Sulfur (Na/S), Lead-Acid, Sodium-metal halide( GE’s DurathonTM).

Mechanical Systems Flywheel: Energy stored in a rotating mass.

Electromagnetic Systems Superconducting Magnetic Energy Storage (SMES): Stores energy in a magnetic field in a coil of superconducting material.

Hydrogen Storage Fuel Cells: available energy is used to electrolyze hydrogen, which can be used to generate electricity through a fuel cell.

Fluid Storage Compressed Air Energy Storage (CAES): uses the elastic potential energy of compressed air. Stored compressed air is used to drive turbines & generate power.

Vehicle-to-Grid EV batteries as controllable load.

Energy Storage Technologies

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» BESS:• Bridging Power: provide operating reserves, load following, and reserves to mitigate RE

uncertainties (e.g., forecast, commitment errors) • Secondary power source where regulations limit the use of diesel generation • Energy Management: enables SmartGrid flexibility to move power over longer timescales • Community-based BESS offers storage hub, enabling Smart MicroGrids• Co-locate with PVs to share power electronics

» Flywheel, SMES:• Power quality applications for SmartGrid to enable variable DER penetration (frequency

regulation): rapid response, high efficiency.

» Hydrogen Energy Storage:• Energy Management: enables SmartGrid flexibility to move power over longer timescales » Hydrogen Assisted Renewable Power System (HARP) in Bella Coola, B.C. (GE Digital

Energy and Powertech): Integration of renewable hydroelectric power and clean fuel cell technology to displace diesel generation and reduce greenhouse gas emissions. The benefits will be optimized through the use of a microgrid system which will wirelessly monitor and react to changes in supply and demand.

SOURCE: NREL Technical Report NREL/TP-6A2-47187, January 2010. The Role of Energy Storage with Renewable Electricity Generation.

GE DurathonTM

Beacon Power Smart Energy 25

Flywheel

Application to Smart Grid

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» CAES:• Energy Management, enabling SmartGrid flexibility: Absorb surplus

electricity from renewables during off-peak periods in the form of compressed air, and then use the compressed air to generate power during peak demand periods. Zero emissions, efficiency ~70%

» Adiabatic-CAES: GRC Munich: ADELE project:» Unlike other A-CAES, ADELE stores and then uses the immense amount of

thermal energy generated during the air compression process to later help produce the electricity.

» Isothermal-CAES: SustainX (GE funded):» The key to I-CAES is a water spray that keeps the air at a constant

temperature through the compression and storing process. Allows efficiency to near 90%.

» Vehicle-to-Grid:• Utilizing EV batteries as a SmartGrid DER

o Source of dispatchable demand and demand response o Controlled charging can be timed to periods of greatest variable DER output,

while charging rates can be controlled to provide contingency reserves or frequency regulation reserves

• Distributed storage: EVs can partially discharge stored energy into the SmartGrid

CAES:Large scale grid

storage, air “battery” can

compensate for RE intermittency

Application to Smart Grid

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Energy storage applications and technologiesSource: Electricity Storage Association, April 2010

Storage Applications & Technologies Comparison

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KeyDriversfor DG

Value TrendStorage

1 MW / 1 MWh

$1.0 - $3.0/W

Meet targets for renewables

High, very high in some places

Build quickly to meet growth High

Reduce COE …use waste heat High

Reliability High

Reduce peak demand High

ReduceT&D losses Medium

Defer T&D investment Medium

Create sense of ownership Medium

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… Market attractiveness

Storage

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Sr. Director, Business Development, GS Battery (USA) [email protected]

Vincent Pusateri

PV WITH STORAGE TO COMMERCIAL APPLICATIONS


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Albuquerque, NM

PV/Storage project – Albuquerque, NM• 15kW PV system with battery storage • (3) 5kW Power Conditioning Systems with PV

and battery inputs • (2) of the PCS units have (32) SLC70-4 batteries

connected at their input for a total of 20.48kWh of storage

Mesa del Sol Project Summary


Demonstrated Storage Benefits:TOU Energy Cost Management

Renewable Energy Time-Shift

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Mesa del Sol Data Collection

SAMPLE RECORDED

DATA


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MdS PV/Battery System• Forest City the Building Owner is selling all of the renewable energy produced by their PV system to

PNM under the REC Solar Energy Incentive Program at $0.14/kWh.• Under the current setup, the batteries are charged ONLY from PV so all energy returned to the grid

is renewable energy.• The estimated PV production for the entire year will be approximately 27MWh. This is worth

approximately $3,780 per year. The system is also set up for TOU Energy Cost Management. This is accomplished by shifting the stored renewable energy in the battery to coincide with the utility TOU On-peak time period. This is worth approximately $2,066 (See table below). Together, both these benefits are worth approximately $5,850 per year.NEW MEXICO ELECTRIC SERVICES RATE No.3B CALIFORNIA PACIFIC GAS & ELECTRIC A-6 PLAN

Power (kWh)June-August (92 days) All other months (273 days)

Power (kWh)Summer (May-October, 184 days) All other months (181 days)

Charge (USD/kWh)

Money earned (USD)

Charge (USD/kWh)

Money earned (USD) Charge (USD/kWh) Money earned

(USD)Charge

(USD/kWh)Money earned

(USD)0.3692 $0.0393037 $0.01 $0.0393037 $0.01 1.1930 $0.1218300 $0.15 $0.12503 $0.1491608

76.71 $0.0844232 $6.48 $0.0699376 $5.36 48.4265 / 27.091 $0.44703 $0.201

82 $27.12 $0.16794 $12.6824090

On-peak time period (8:00-

20:00)

Net total (USD/day) $6.49 Net total

(USD/day) $5.38On-peak time period (12:00-

18:00)

Net total (USD/day) $27.26 Net total (USD/day) $12.83

Net total (USD/92 days) $597.14 Net total

(USD/273 days) $1,468.58 Net total (USD/184 days) $5,016.01 Net total

(USD/273 days) $2,322.51

Off-peak time period

(20:01-7:59))

Net total for 1 year (USD/year) $2,065.72Off-peak time period (21:30-

8:30)Net total for 1 year (USD/year) $7,338.53

Net total for battery's life (3000 life cycles, 70%DOD, 8.22 years) $16,980.21

Part-peak time period (other time period)

Net total for battery's life (3000 life cycles, 70%DOD, 8.22 years) $60,322.70

Mesa del Sol PV Storage Solution


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Roswell, GAGS BATTERY (USA) Inc.• PV/Battery System – Roswell,

GA• 30kW PV system with battery

storage• (6) SMA 5kW PV Inverters and

(3) SMA Sunny Island Battery Charger/Inverters

• (24) SNS-3000 for a total of 3000Ah (144kWh) of storage

• Demonstrated Storage Benefits:• TOU Energy Cost

Management• Electric Service Reliability

and Power Quality (UPS)

GS Battery Project Summary


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GS Battery Data Collection


GSB Battery Storage System

Recorded Data for typical day

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GSB PV System• GSB is selling all of the renewable energy produced by their PV system

to Georgia Power under the “RNR-6” electric service tariff at $0.17/kWh.

• The estimated PV production for the entire year will be approximately 50MWh. This is worth approximately $8,500 per year.

• PV/Battery system cost after federal and state grants/tax incentives was around $116,000 so the payback will be approximately 13 years.

Min. GSB PV Production per year per simulation (PVWATTS) = 49890 kWh

Rate that power company will pay = $0.17 per kWh Total GSB Revenue per year from PV Production = $8,481.30

Total Directional Metering fees per year ($2.68 per month) = $32.16

Total GSB Revenue per year minus metering fees = $8,449.14



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Economics GSB Battery Storage System• Storage benefits used include UPS for office lighting/receptacles, clean room fans, and walk-in

cooler AND TOU (Time Of Use) Energy Cost Management• GSB switched to “TOU-EO-5” electric service tariff which is summarized below along with

other example rates:

Energy produced/consumed per day (June through

September)

GEORGIA CALIFORNIA

TOU-EO-5 (GSB Current rate) TOU-MB-2 (Example rate) PG&E/ AG-RA plan (Example rate)

Discharge

Time kWh Charge USD/kWh Money earned Charge USD/kWh Money earned Charge USD/kWh Money earned

14:01-19:00 50.38 $0.161670 $8.14 $0.202774 $10.22 $0.377150 $19.00

19:01-21:00 19.78 $0.072986 $1.44 $0.036758 $0.73 $0.134950 $2.67

Charge

21:01-23:00 -18.75 $0.072986 -$1.37 $0.036758 -$0.69 $0.134950 -$2.53

23:01-7:00 -55.31 $0.072986 -$4.04 $0.007828 -$0.43 $0.134950 -$7.46

7:01-14:00 -10.1 $0.072986 -$0.74 $0.036758 -$0.37 $0.134950 -$1.36

On-Peak time period Net total (USD/day) $3.45 Net total (USD/day) $9.45 Net total (USD/day) $10.31

Off-Peak time period Net total (USD/year) $420.42 Net total (USD/year) $1,152.83 Net total (USD/year) $1,258.15

Super Off-Peak time period Net total for 12 years (USD) * $5,045.08 Net total for 12 years (USD) $13,833.91 Net total for 12 years (USD) $15,097.85

* 12 years is based on rated 1500 cycles @ 50% DOD [batteries used 4 months (122 days) per year]

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Battery Storage Economic AnalysisGeorgia Power TOU-MB-2 rate (June - September = 122 days)

Georgia Power TOU-MB-2 rate (365 days)

PV charging Grid charging PV charging Grid charging

Battery Type SNS (3000Ah) SNS (3000Ah) SNS (3000Ah) SNS (3000Ah)

Available Energy of 48V battery system @ 70% DOD (kWh) 100.8 100.8 100.8 100.8

Discharging cost benefit per day $20.44 $20.44 $20.44 $20.44

Charging cost per day $0.00 $2.75 $0.00 $2.75

Net total per day $20.44 $17.69 $20.44 $17.69

Net total per yearly use $2,493.63 $2,158.55 $7,460.46 $6,457.95

Cost of battery system $18,000.00 $18,000.00 $18,000.00 $18,000.00

Life (years)of battery system based on rated cycle life 12 12 5 5

Total savings over life of batteries $29,923.60 $25,902.57 $37,302.31 $32,289.74

Payback (years) 7.22 8.34 2.41 2.79

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» Utility: Improved grid reliability with stacked cumulative values , reduce CO2,Deferred Spending for Generation and T&D

» Customer: TOU Economics, UPS for critical loads Green Social Value

» The economic payback model varies by Storage location, TOU Utility rates and battery life and cost of the power system

Battery STORAGE BENEFIT Smart Grid


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» Charging batteries off grid with PV is most cost efficient today but TOU rates changes are needed

» Storage Enhances SMART GRID Communication Reliability

+ =

Battery STORAGE BENEFIT Smart Grid


Sgs all presentations_8-30-2011

Technology

energy storage program

electricity storage

o view of battery storage11

o view of battery storage7

o view of battery storage8

o view of battery storage9

o view of battery storage10

o view of battery storage16