Advanced Energy Storage Technologies Pumped Hydro Storage is often - PowerPoint PPT Presentation

M ASSACHUSETTS E NERGY S TORAGE I NITIATIVE S TORAGE S TUDY U PDATE May 18, 2016 1

M ASSACHUSETTS E NERGY A PPROACH 1. Reduce and stabilize the rising cost of energy for consumers 2. Continue the Commonwealth’s commitment to a clean energy future GWSA GHG reductions: 25% by 2020 and 80% by • 2050 (1990 baseline) 3. Ensure that we have a safe, reliable, and resilient energy infrastructure 2

E NERGY S TORAGE I NITIATIVE • Storage is a game changer that can “Massachusetts will continue to lead play a part in solving our energy the way on clean energy, energy challenges efficiency and the adoption of • $10 million Energy Storage Initiative innovative technologies such as includes a study as well as funding energy storage.” for demonstration projects Governor Baker, Feb 2016, Accord for a New Energy • Robust stakeholder engagement Future Press Release “Given the recent advances in energy storage technology and cost- effectiveness, it is hard to imagine a modern electric distribution system that does not include energy storage.” Utility stakeholder perspective 3

Advanced Energy Storage Technologies Ø Pumped Hydro Storage is often referred to as a “conventional” storage technology Ø More recent emerging forms of energy storage such as batteries, flywheels, and new compressed air energy technologies are often referred to as “ advanced energy storage ” 4

Advanced Energy Storage is Growing Rapidly in the US Source: GTMResearch, U.S. Energy Storage: 2015 Year in Review, March 9, 2016 US Market for Advanced Energy Storage technologies expected to grow by 500% in five years 5

Storage In Commodity Supply Chains FOOD WATER GASOLINE OIL ELECTRICITY NATURAL GAS Warehouses Reservoirs Underground tanks Above-ground Energy Storage Depleted fields Grocery stores Above-ground Above-ground tanks Technologies Aquifers Freezers & tanks tanks Piping Salt caverns refrigerators Water bottles Tank trucks Pipelines Currently less than Currently less than Portable fuel tanks Above-ground tanks 1% of daily 1% of daily electricity electricity Storage capacity y more than 10% of daily y consu sumption consumption for MA consumption for MA The electricity market has a fast “speed of light” supply chain and the least amount of storage. This lack of storage creates a need for additional infrastructure to maintain market reliability. 6

Electric Grid is Sized for Highest Hour of Demand Top 1% of Hours accounts for 8% of Massachusetts Spend on Electricity Top 10% of Hours accounts for 40% of Electricity Spend 7

While Energy Efficiency has Decreased Average Energy Consumption, Peak Continues to Grow (1.5% per year) Capacity Factors of Generating Resources National Monthly Average, January 2013 – January 2016 (EIA) 100% Peaker Plants 90% 80% operate only 70% 2-7% of the 60% 50% time 40% 30% 20% 10% 0% Nuclear Muncipal Solid Waste Natural Gas Fired Coal Conventional Wind Petroleum - Steam Solar Photovoltaic Combustion Turbine Hydropower Combined Cycle (Massachusetts) Natural Gas Fired Landfill Gas and Turbine Source: ISO-NE State of the Grid- 2016 Growing peak results in inefficient use of grid assets, including generation, transmission and distribution, increasing the cost to ratepayers 8

Storage is “Game Changer” for Meeting Peak Massachusetts Winter Peak Day 2014 Peaking Intermediate Base LMP 10,000 800 $743/MWh 9,500 700 Peaking 9,000 600 8,500 500 8,000 Megawatts $/MWh 7,500 400 Intermediate 7,000 300 6,500 200 $70/MWh 6,000 Base 100 5,500 5,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Energy storage is the only technology that can use energy generated during low cost off-peak periods to serve load during expensive peak. 9

Increased Renewables Requires Grid Flexibility to Manage Intermittency Typical Solar Output 4000 3600 3200 Generation (kW) 2800 2400 Variable Output Generators Slow-ramping Generator 2000 Requires Fast and Flexible 1600 Resources to Maintain 1200 Balance and Reliability 800 400 6:00 13:00 20:00 Hours in a Day Renewable resources, such as solar, can have Storage has near instantaneous response to grid changes variable generation Fast-responding Energy Storage According to ISO-NE “State of the Grid – 2016” fast and flexible resources will be needed to balance intermittent resources’ variable output. Storage can provide this flexibility. 10

Amount of Distributed Generation has Skyrocketed • There are over 40,000 distributed solar projects in Massachusetts • Distributed generation is growing at rate of 400 installed projects per week REVERSE POWER SURPLUS SOLAR SURPLUS SOLAR CHARGE As distributed generation increases, utilities are challenged to manage reverse power flow at substations. Distributed storage can manage and optimize power flows. 11

Major Outages From Storm Events are More Common 10/29/2012 2/8/2013 February Nor'easter ("Nemo") 9/29/2011 10/29/2012 Hurricane Sandy 1/12/2011 3/13/2010 10/29/2011 2011 Halloween Nor'easter 10/9/2009 8/28/2011 Hurricane Irene 10/26/2008 6/10/2008 1/12/2011 January 2011 Blizzard 6/15/2007 12/26/2010 December 2010 Blizzard 8/2/2006 2/13/2006 12/11/2008 2008 December Ice Storm 10/16/2005 4/15/2007 April 15 Rain Storm 1/23/2005 9/29/2004 6/30/2001 June 30 Wind Storm 12/15/2003 9/16/1999 Hurricane Floyd 8/30/2003 11/17/2002 5/3/2002 Although total weather days have decreased, the • 6/16/2001 number of customer outages have increased due 7/21/2000 11/3/1999 to an increase in severe storm events 7/6/1999 Major (5% of EDC Area or Greater) Outages in 1/21/1999 Massachusetts 2/17/1998 Major storm events increase costs for the • 2/22/1997 utilities to maintain resiliency 0 200000 400000 600000 800000 1000000 1200000 Total Customers Interrupted Storage, especially when integrated with microgrids, can increase resiliency in storm events 12

High Electricity Costs Impact Massachusetts Businesses 2000 Example Massachusetts 1800 C&I Daily Demand Profile • Massachusetts has 1600 one of the highest Storage 1400 Discharging To electricity rates in Storage Load (kW) Reduce Peak 1200 the nation Charging During Low Demand 1000 • Commercial 800 electricity customers pay utility demand 600 charges based on 400 ISO-NE Peak customer’s peak 200 hour Hours in a Day 0:00 6:00 12:00 18:00 24:00 Massachusetts businesses, especially those with high electricity use, could use storage to better manage their peak and reduce electricity costs 13

Advanced Storage Optimization Model

Storage Use Cases Energy Storage has potential applications across the entire electricity value chain Source: 2015 Electric Power Research Institute 15

NextSteps • Storage Study is in it’s final stages – expect release in the coming weeks • Following the release of the study, DOER and MassCEC will issue an RFP for demonstration projects