Advances in Energy Storage and Implementing a Peak Shaving Battery - PowerPoint PPT Presentation

Advances in Energy Storage and Implementing a Peak Shaving Battery at Fort Carson Travis Starns Business Development Manager - AECOM Nov. 20, 2018

Agenda Applications for Advances in energy Fort Carson peak energy storage storage technologies shaving battery 2

Applications for Energy Storage 3

Changing Landscape in Electricity Generation Annual Electricity Generating Capacity Additions and Retirements (GW) Utilities plan more renewables and distributed energy resources FROM 2009 - 2017: IN LAST 5 YEARS: Wind/solar account Non-renewables: 43 GW for ~50% of Renewables: 55 GW utility-scale additions. Gigawatts (GW) Flexible generation needed – Mediate supply and load in locations with high renewables – Positive impact on GHG emission targets Permitting and installation of new grid infrastructure – Challenging in many areas Source: U.S. Energy Information Administration, Annual Energy Outlook 2018, Feb. 6, 2018 4

Trends in Energy Storage Lithium-Ion Battery Cell Price ($/kWh) Wide deployment of electric vehicles is driving battery prices to decline. Solar industry is adopting energy storage to drive business. – Increased self consumption – Solar firming/intermittency – Ramp control – Leverage available tax credits – Demand reduction during shoulder hours Source: Bloomberg NEF 5

Energy Storage Technology Survey by Market Segment Generation/ Transmission End-user wholesale and distribution or aggregator Utility scale T&D Management Behind the meter storage – – Batteries Batteries – – Flywheels Thermal – Batteries – CAES – Pumped Hydro – Compressed Air Energy Storage (CAES) 6

Behind-the-Meter Energy Storage Drivers Time of Use load shifting Fuel saving (Electric Vehicles) Backup/security (resiliency) Demand charge management Wholesale arbitrage Ancillary services 7 Presentation Title

Behind-the-Meter Energy Storage + Incentives Challenges + Cost , cost and cost… ‒ Cost , cost and cost… + Demand charge management ‒ Grid interconnection capacity + TOU load shifting ‒ Electricity forecast uncertainty + Automotive fuel savings, Utility ‒ Participation/eligibility of storage bundled solutions in electricity markets + Renewable pairing ‒ Tariff structure 8 Presentation Title

Interest in Behind-the-Meter Storage Systems by Utilities  Utilities focus on electricity system: • Reliability: withstand uncontrolled events 2017 US Electricity Sales (MWh) by Market Segment • Security: withstand attacks (physical, cyber) • Resilience: adapt to changing conditions and recover from disruptions  Non-residential (C&I) customers: • Accounted for 63% of electricity sold in 2017 • Account for ~13% of utility customer base • Rate schedules typically include demand charges that can account for 70% of electricity costs Source: “Sales_Ult_Cust_2017” www.eia.gov/electricity/data/eia861 / 9

Utility Interest in Behind-the-Meter BESS  Demand response  Grid infrastructure deferral  Regulatory mandates  Virtual power plant  Aggregation  Local grid support Electric Utility Meter Standard Residential Load Phoenix - AZ C&I, Federal Facilities Residential 10 EV’s

Advances in Energy Storage Technology & Applications 11

Energy Storage Technology Summary Fast Response Systems Grid Support and Balancing Bulk Power Hours Pumped Hydro Storage Discharge Time at Rated Power Flow Batteries Sodium Sulphur Compressed Air Advanced Lead Acid Energy Storage Minutes Seconds Super Capacitor Lithium-Ion Fly Wheel 1 kW 10 kW 100 kW 1 MW 10 MW 100 MW 1 GW Typical Efficiency 45-70% 70-85% >85% 12

Battery Storage and Gas Turbine Hybrid Southern California Edison retrofit gas peaker stations with Li-Ion BESS – Provides spinning reserves – Ancillary and grid support services – Reduce fuel and water consumption during operations • Saves 2 million gallons of water • Reduce emissions by 60% – Reduced operations & maintenance – Maintains flexibility in balancing demand and variable generation from renewable resources 13

Long Duration Battery Storage Technologies: Flow Batteries  Flow batteries consist of two liquid tanks, membrane and two electrodes  Multiple chemistries offered: • Iron-Chromium • Vanadium Redox • Zinc-Bromine  Technically viable solution for applications > 4 hrs.  No energy degradation  Low cost of ownership 2MW/8MWh Vanadium Redox Flow Battery  Long useful life 14

Long Duration Energy Storage Technologies: Liquid Air Energy Storage (LAES)  Air turns to liquid -196°C  Store liquid air in insulated, unpressurised tanks  Thermal expansion used to drive turbine  Bulk storage capability with no geographic constraints Source: Highview Power 15

Long Duration Energy Storage Technologies: Advanced Compressed Air Energy Storage (A-CAES)  Convert electricity into compressed air  Store compressed air in underground accumulator • Isobaric • Hydrostatically compensated • Significantly smaller volume required compared to traditional (diabatic) CAES  Flexible siting characteristics Source: Hydrostor, Inc.  No hazardous chemicals or fossil fuels 16

A-CAES Plus Solar for Baseload (20 MW) Industrial site in Australia A-CAES + Solar PV – Industrial Site Demand – Peak Load: ~140 MW 140 – Demand charges have increased by 90% Firm commitment (Solar direct & Storage) over last 18 months 120 Direct PV to Site – Solar: 120 MW Operations 100 (White Area) – Storage: 20 MW (discharge rating) 17 80 Business Case – Drive Operational Savings MW Grid Power (Grey Area) 60 – Reduce demand charges 40 – Reduce need for new grid infrastructure 20 – Provide reliability services to the grid 0 • Voltage support 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 Half Hour • Synchronous inertia – Leverage additional operational savings as a source of back-up power during operation 17

Fort Carson: Peak Shaving Battery

Fort Carson Background  Fort Carson: ~137,000 acres Fort Carson & Surrounding Military Communities  Pinon Canyon Maneuver Site: Buckley AFB ~ 235,000 acres Air Force Academy  Training installation with over 26,000 Soldiers assigned  Over 14 MSF of facility space Schriever AFB  Three government-owned Peterson Cheyenne AFB Mountain Fort substations Carson Air Station Pinyon Canyon 19

Emerging Approach – ESPC to Deliver BESS  Significantly reduce electricity demand charges Rate 2017 ONP Demand (kW) $17.28  Right-size BESS to optimize OFFP Demand (kW) $9.34 project ROI ONP Supply (kWh) $0.0480 OFFP Supply (kWh) $0.0228  Potential use-cases to consider at your facility: • TOU shifting • Solar-firming • Frequency/voltage support • Microgrid support 0.14%

Baseline load BESS for Peak Shaving Modified load Battery capacity (MWh) The maximum savings per month is a function of maximum BESS discharge rate With a smaller capacity battery: Load (MWV) – Choice of discharge point determines savings – Increase discharge rate to increase savings Limiting factors: – Maximum discharge rate (MW) – Total battery capacity (MWh) – Accuracy of peak forecast Five consecutive days in August 2015 Denotes on-peak demand period 21

Fort Carson: Load Profile (August 2015) Billing demand – the greatest 15- 34,401 minute load during on-peak hours in Load (MWV) the billing period 15-minute interval data – August 2015

Fort Carson: Peak Demand Reduction (August 2015) 34,401 The difference between peak and the battery Load (MWV) engagement level is 31,050 where the peak demand charge is reduced. Actual demand Battery discharge level Days where ceiling for peak demand is established

Fort Carson: Peak-Shaving Sequence $58,000 in on-peak demand charge savings for the month of August. 15-minute interval data – August 2015

Ft. Carson BESS System Summary 2017 GridStar – 300 kW/600 kwh Power Rating 4,200 kW (14 modules) Energy Rating 8,500 kWh (14 modules) Voltage 480 VAC Round Trip % ~86% Dimensions 144 x 60 x 96 inches/module Control System GELI - EOS Operational Life Expectancy 21 years

Fort Carson ESPC: Estimate of Demand Savings Year 1 – Demand Charge Savings $436,000 Year 1 savings df $80,000 $713,000 $70,000 Year 19 savings (Assumes 4% escalation rate) $60,000 $50,000 Est. 83 full cycles/annum Axis Title $40,000 Duty cycle $30,000 $20,000 $10,000 $- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 26

Considerations for Battery Energy Storage Importance of interval data – Analysis and design – Power and energy requirements – Duty cycle (impact to system degradation) 000 Control system and predictive modeling Existing/planned distributed energy resources Tariff/rate structure 27