ULTRACAPACITORS FOR GRID SCALE ANCILLARY SERVICES - AES 2013 Rev3

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ULTRACAPACITORS FOR GRID SCALE ANCILLARY SERVICES

Shaw Lynds, Senior Systems Engineer

Advanced Energy Solutions ConferenceNovember 2013

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About Maxwell

Maxwell was founded in 1965 430 Employees Revenue ~ $159 M (`12) Listed on Nasdaq – Symbol: MXWL Significant Ultracapacitor revenue

growth over last 5 years !

1992 Maxwell starts development of Ultracapacitors

1995 Maxwell introduces first large Ultracapacitors

2002 Fusion of Maxwell and Montena

2004 Maxwell produces own, proprietary Electrode

2007 Production start in China

2008 Opening of Automotive Office in Munich, Germany

2008 One Millionth Large UCAP cell (December 8)

2009 SOP First Automotive program

2010 Launch of ESM Module

2011 2nd Million Large UCAP cell produced (January 28)

2012 Further capacity expansions (1M cells/quarter)

Advanced Energy Solutions Conference - November 2013

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What is an Ultracapacitor?

Ultracapacitors, Electric Double Layer Capacitors, Supercapacitors are all synonyms Operating principle

• An electronic charge accumulator having extreme capacitor plate specific area and atomic scale charge separation distance.

• No chemical reactions during charge/discharge

Performance• Less then 1 sec time constant• 100k to >1M cycle life• Up to 15 year DC life

Separator

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ElectrodeElectrolyte

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Advanced Energy Solutions Conference - November 2013

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Fundamental Materials

The basic material to make Ultracapacitors is carbon

from coconuts!

Grind

Activation

Maxwell Electrode

CoatingRollingKneadingPasting

Charred Carbon Activated Carbon

Dry and chip shells

Maxwell Ultracapacitors

InsertImpregnateSeal

Advanced Energy Solutions Conference - November 2013

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Applications Advanced Energy Solutions ConferenceNovember 2013

Pitch Control Systems 5+ years in operation 17,500+ turbines in the field

Hybrid Buses 10+ years in operation 15,000+ buses in the field

Board Net Stabilization 4+ years in operation 750,000+ cars in the field

Grid Stabilization <1 year in operation 3 MW rated power

N E W

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Ultracapacitors for Grid Stabilization

What is Grid Stabilization?• When a large enough load is turned

on and off on the grid, it can cause voltage and frequency disturbances in the local area around it

• These disturbances are caused by the delay between when the load is switched on or off and how long it takes for the local generators to respond to the new demand level

• These local disturbances can be reduced by adding energy storage to fulfill local demand fluctuations until generators have time to respond.

Large viable loads cause local voltage and frequency disturbances

Adding energy storage can eliminate these local disturbances

Advanced Energy Solutions Conference - November 2013

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Yangshan Deep-Water Port Case Study

Crane operation causes constant voltage fluctuations on the local grid

The port is at the end of the worlds longest bridge, making larger transmission lines expensive

Why Shanghai's new port is using Ultracapacitors for voltage stabilization• When operating at capacity, Yangshan Deep-

Water Port’s 23 quay cranes have enough power draw to cause significant voltage fluctuations on the local grid for 10-15 seconds at a time

• Because the port is located at the end of a 20 mile bridge, increasing the transmission line capacity was determined to be too costly

• An energy storage system was needed to smooth out the short voltage fluctuations caused by crane operation, without requiring a larger transmission line

• Ultracapacitors were selected for their high cycle, and design life

Advanced Energy Solutions Conference - November 2013

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Yangshan Deep-Water Port Case Study

Yangshan Deep-Water Port Solution• A total of 126 of Maxwell's 125V modules

were chosen for energy storage• 3 MW rated power• 17.2 kWh stored energy• 20 seconds of reserve power

A total of 6,048 Maxwell 3000F cells10kV distribution

system

Provides voltage stabilization for the port

Six 500kW arrays

Advanced Energy Solutions Conference - November 2013

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The Need for Grid Stabilization at Home

Renewable energy such as solar is highly variable and can cause local disturbances

• Similar to port cranes, voltage and frequency disturbances are caused when the solar power plant output changes faster than grid generation can respond

• In areas of high solar penetration, these disturbances can lower the power quality to the point where local consumers are adversely effected

Large viable loads cause local voltage and frequency disturbances

Large viable sources like solar can cause local disturbances as well

Advanced Energy Solutions Conference - November 2013

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The Need for Grid Stabilization at Home

SunPower’s 250 MW California Valley Solar Ranch installation CAISO:Renewable power on

Sunday, August 18, 2013

A CAISO record of 1.8 GW of solar power generation set in May

California has a renewable power source goal of 33% by 2020

At present, the need for grid stabilization is small but growing fast • Solar represent less then 5% of California's

power at any point in time and is expected to double by 2020

• As solar reaches higher levels of penetration on the grid it could outpace generation’s ability to respond to its output variability

Advanced Energy Solutions Conference - November 2013

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How the Grid Responds to Variability

How loads are balanced on the gridSource: Eyer, Jim, and Garth Corey. Energy Storage for the Electricity Grid. Sandia National Laboratories, Feb 2010.

Southern Califorina Edison’s power quality chartSource: Power Quality Handbook. Southern California Edison Power Quality Department, 2013.

Normal load variability is balanced by responsive generation (regulation) to maintain power quality

• To sell regulation power on the ancillary services market, a plant must be able to respond to constant power adjustment requests and ramp it a new output level within five minutes.

• Currently California ISO purchases between 350 and 600 MW of regulation on the ancillary services market, or about 1-1.5% of peak generation each day to maintain power quality standards

Advanced Energy Solutions Conference - November 2013

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Why Renewables Require More Ancillary Services Advanced Energy Solutions Conference - November 2013

Source: Short-Term Variability of Solar Power by Andrew Mills of Lawrence Berkeley National Laboratory, Oct 2010 Solar power is a high variability source!

• Light cloud cover can cause large swings in output power in much less then in five minutes

• Output swings of 40% in under a minute are not uncommon

• Much like with the port cranes, large changes in solar power output can cause local area disturbances

Source: Lenox, Carl. Variability In A Large-Scale PV Installation. SunPower, October 2009.

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A Simple Grid Model Advanced Energy Solutions Conference - November 2013

Grid power with 50% solar penetration and power plant with a 5 min ramp rate

The effects of increased solar power on the grid can be seen with a simplified grid model

• Model consists of a single power plant with a 5 min ramp rate and dedicated entirely to regulation, a constant power load and solar plant of varying power output

• The power regulates its output to try and maintain load balance within power quality bounds

• If the power quality bounds are violated, the load trips off for five seconds and then resets

• This simple model shows that the grid will become unstable at solar penetration levels above 20%

In the model, the grid becomes unstable at solar penetration levels above 20%

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A Simple Grid with Energy Storage Advanced Energy Solutions Conference - November 2013

Grid power quality with 50% solar penetration and 30 sec of energy storage

Energy storage allows greater solar penetration while maintaining power quality

• The addition of energy storage allows solar fluctuations to be smoothed, and allows the power plant time to respond to the increased demand

• The model shows that as little as 20 seconds of reserve capacity allows solar penetration to double to 40% without load shedding trips

• Increasing levels of energy storage produce diminishing benefit, with 30 seconds of backup required at 50% solar penetration.

Load shedding trips as a function of solar penetration and energy storage

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Characteristics of Energy Storage for Solar Advanced Energy Solutions Conference - November 2013

Characteristics of energy storage required to stabilize solar output for 5 min ramp rate grid regulation

• For solar penetration levels of less then 50%, only 10-30 seconds of energy storage would be needed to ensure local power quality

• Based on modeling, the 30 second reserve capacity would cycle the equivalent of 8.6 complete cycles on an average summer day

• Based on the energy storage medium to match the 20 year life of the solar array, it would require a cycle life of 60k cycles or greater

One month

One day

One hour

One hourInput form solar array

Net output smoothed to 5 min ramp rate

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Characteristics of Energy Storage for Solar Advanced Energy Solutions Conference - November 2013

Selected energy storage technologies typical cycle life

Selected energy storage technologies specific energy vs. back up time

The reserve time and cycle needs of stabilizing solar power for grid regulation fits well with ultracapacitor power characteristics

• Ultracapacitors provide a 2-3X smaller solution than batteries for 20 seconds of reserve capacity

• Ultracapacitor cycle life enables system design life in the same range as the PV array with out over sizing the system

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Ultracapacitor Grid Demonstrations

Based on the premise that ultracapacitors stabilize solar power on the grid, Maxwell is demonstrating the technology at two sites in a California Energy Commission Funded Project:• The Phase I system will have a

30kW rating and be installed at UCSD in 2014 to demonstrate stabilization of a 28kW CPV system

• The Phase II system will have a 250kW rating and be installed at a larger CPV array in the desert in 2015

The conceptual 28kW cabinet design and demonstration site location at UCSD

The conceptual 250kW design to be demonstrated in 2015

Advanced Energy Solutions Conference - November 2013

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Summary Advanced Energy Solutions Conference - November 2013

Ultracapacitors show promise for providing grid scale ancillary services such as stabilization of solar power to a allow greater penetration of renewables

• Ultracapacitors have already proven to effectively stabilize local grids with highly variable loads

• Stabilizing solar power output for grid regulation appears to have similar power characteristics

• For such high power, low reserve time applications, ultracapacitors have the potential of providing a solution that is 2-3X smaller then comparable battery solutions

• Ultracapacitors are one of the few storage technologies capable to matching the design life of a solar array

• Maxwell is excited about the application of ultracapacitors for grid scale solar power stabilization, and is currently preparing demonstration sites to show the viability of the concept