Energy Storage: An Asset to Ontario’s Smart Grid Presentation by the Corporate Partners of the Smart Grid Forum, Energy Storage working group To the Ontario Smart Grid Forum April 16 th 2012 CPC: Energy Storage Working Group 1
Who we are The CPC Energy Storage Working Group is a working sub group of the Smart Grid Forum’s Corporate Partner Committee. The group is made up of individuals from organizations representing Energy Storage manufacturers, integration providers, project developers, and providers of Energy Storage services. The goals of the CPC Energy Storage Working Group are: 1. Advance understanding of Energy Storage as key asset to the Smart Grid 2. Highlight existing hurdles to market adoption 3. Support the Smart Grid Forum in making policy recommendations CPC: Energy Storage Working Group 2
What is Energy Storage? Technologies Energy Storage is simply temporally shifting the availability of energy over time. Batteries Chemical Compressed Air Stored energy can be used in many ways to make the electrical grid Demand Side Storage work better. The uses of energy storage are as diverse as the Flywheels devices and techniques employed to store energy. Hydrogen Energy Storage Capacitors A common understanding of how to use Energy Storage is to Power-to-Gas capture less expensive energy when we don’t need it, store it, and Pumped Hydro use it later when energy is expensive. Thermal A more comprehensive look at Energy Storage points to using Energy Storage Applications storage more selectively on the grid for specific applications where their unique operating characteristics offer verifiable benefits that Ancillary Services are cost effective. Energy storage is a fundamental component for Deferral of Equipment Upgrades the smart grid and for incorporating large amounts of wind and Distributed generation facilitation solar. Grid Regulation Load Leveling Micro grid facilitation Power quality support Price arbitrage CPC: Energy Storage Working Group 3 Renewable Power integration
Analyzing Energy Storage is Complex Value from Energy Storage can: • Benefit multiple stakeholders • Depend on how quickly energy can be absorbed and released • Depend on how long energy is stored for • Depend on how frequently it can be used Different Energy Storage technologies have: • Very different characteristics • Tend to be best used for specific applications • Can be difficult to compare CPC: Energy Storage Working Group 4
Approach and Perspective HIGH LEVEL PERSPECTIVE 1. Focus on high leverage applications in Ontario 2. Highlight four specific near term opportunities and identify the barriers to their implementation 3. Make recommendations with respect to what needs to be addressed in Energy Storage Framework to achieve desired benefits CPC: Energy Storage Working Group 5
Energy Storage Working Group Presentation • Energy Storage Applications 1. Regulation Services 2. Renewable Energy Integration 3. Remote & Off Grid Communities 4. T&D Deferral and Time Shifting • Hurdles to Market Adoption in Ontario and Recommendations CPC: Energy Storage Working Group 6
Regulation Services: Application Overview FACTS • Regulation (sometimes called Frequency Regulation) is required to maintain second by second balance in electricity systems. • It has traditionally supplied by generators • It is generally procured as an ancillary service in organized markets CHALLENGE • In order to provide Regulation Services, generators are forced to deviate from optimal power output profiles • This increases costs, emissions and wear and tear on generation assets SOLUTION • By using fast responding storage resources, generators can be operated to maximize energy output, at minimum cost and emissions CPC: Energy Storage Working Group 7
Regulation Services: Benefits of Energy Storage COST EFFECTIVE • Less regulation required by using higher performing resources • Lowest marginal cost resource for system regulation • Increased availability of low cost clean hydro power • PJM expects overall regulation costs to decrease by 5 -10% by paying for fast responding energy resources HIGHER PERFORMANCE • Faster response • More accurately follows the signal • 2-3 times as much regulation per MW of energy storage vs. combustion turbine Fast Response Energy Storage Slow Ramping Generator Current resources (gas, coal, hydro) are slow Faster resources provide more CPC: Energy Storage Working Group effective regulation to the grid and respond imperfectly to the regulation 8 signal
Regulation Services: Ready for Market CANADA Enbala Power Networks demonstrates capability of load based storage regulation in response to RFP for pilot technologies. Smart Grid Fund proposals in process. Hydrogenics demonstrates capability of load based regulation to IESO in response to RFP for pilot technologies Temporal Power preparing to provide regulation services using flywheel technology. INTERNATIONAL • AES builds 10MW battery plant in NYISO for Regulation • AES providing Regulation Services in PJM from battery farm (32MW) • Alcoa providing Regulation (and other ancillary services) in MISO (total of 70MW) • Beacon Power builds 20MW flywheel plant in NYISO for Regulation • ENBALA Power Networks operating network of loads to provide commercial Regulation in PJM CPC: Energy Storage Working Group • ERCOT has qualified one load to provide Regulation directly (chemicals company) 9
Energy Storage Working Group Presentation • Energy Storage Applications 1. Regulation Services 2. Renewable Energy Integration 3. Remote & Off Grid Communities 4. T&D Deferral and Time Shifting • Hurdles to Market Adoption in Ontario and Recommendations CPC: Energy Storage Working Group 10
Renewable Energy Integration: Application Overview FACTS • Renewable Energy Installations are often located on the distribution system in remote locations • Distribution feeder lines were not designed to support generation assets • Distribution feeder lines are often long and have relatively low loads • Power output from Wind and Solar generators can change suddenly and dramatically CHALLENGE • Sudden and dramatic changes of power output from Renewable Energy generators cause power quality issues on the distribution line • Changes in power output can result in power quality, voltage and harmonics issues resulting in increased system losses, accelerated wear & tear on grid equipment, customer equipment damage and safety concerns SOLUTION • By locating fast responding energy storage near renewable energy generation, sudden and dramatic swings can be smoothed out using storage as a buffer while the grid makes necessary adjustments CPC: Energy Storage Working Group 11
Renewable Energy Integration: Benefits of Energy Storage COST EFFECTIVE • Often less expensive on a capital cost basis than upgrading distribution lines • Improves line losses by utilizing useful real power • Lessens wear and tear on expensive substation equipment IMPROVED POWER QUALITY • Improved power quality • Improved voltage • Improved harmonics OTHER CONSIDERATIONS • Quick and easy to deploy relative to upgrading a distribution line • Enables more renewable generation to be connected to a particular distribution line • Extends the distance on a distribution line from a substation where renewable integration can be connected • Benefits renewable energy producers by limiting trips, downtime, and equipment wear and tear CPC: Energy Storage Working Group 12
Renewable Energy Integration: Cases CANADA • Temporal Power 5 MW commercial demonstration • Renewable Integration on a distribution line in southwest Ontario on the Hydro One network • Commissioning in late 2012 INTERNATIONAL • Hydrogenics 1MW Power-to-Gas project for 140MW wind farm in Germany • 1.5 MW Advanced Lead Acid station • Many examples of Lithium Ion technology CPC: Energy Storage Working Group 13
Energy Storage Working Group Presentation • Energy Storage Applications 1. Regulation Services 2. Renewable Energy Integration 3. Remote & Off Grid Communities 4. T&D Deferral and Time Shifting • Hurdles to Market Adoption in Ontario and Recommendations CPC: Energy Storage Working Group 14
Remote Communities: Application Overview FACTS Wind • Northern Ontario, Quebec, NWT, Nunavut communities Solar typically run 500kW-2MW of Diesel systems for primary Run of River Hydro power generation • Mining sites, defense installations and ports in remote areas also rely on diesel for baseload power • The total cost including fuel logistics is $0.75-1.25/kWhr • Significant renewable generation resource exists in these Reliable Community Load areas but cannot be used due to poor dispatchability and Storage (300kW-2MW) intermittent nature Resource CHALLENGE • How to make use of renewable resources in remote areas • How to reduce or eliminate diesel fuel logistics completely SOLUTION • By adding reliable storage resources in correct proportion to renewable generation remote communities can achieve up to 100% renewable generation • Optimize or eliminate the need for diesel fuel CPC: Energy Storage Working Group 15
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