Energy Storage Overview Peninsula Clean Energy Board Meeting January 24, 2019 For: Peninsula Clean Energy Presented by: ICF
Energy Storage Topics What is Energy Storage? Services and Applications What Does It Look Like? How Much Does They Cost? PCE Goals and Energy Storage 1/24/2019 2 Prepared for Peninsula Clean Energy.
What is Energy Storage? 1/24/2019 3 Prepared for Peninsula Clean Energy.
What is Energy Storage? • Technologies to store electricity when it is not needed so that it is ready to use when there is demand for electricity • This is increasingly important with high % of renewable energy sources 1/24/2019 4 Prepared for Peninsula Clean Energy.
How is Energy Storage Described? Storage is like a bucket of water… Term Energy Storage Bucket of Water Energy Amount of energy stored (kWh or MWh) How much water the bucket can hold Capacity Power Rate at which energy is charged or How fast the bucket can filled/emptied Capacity discharged (kW or MW) Duration Ratio of energy and power capacity How long it takes to fill/empty the bucket (hours) Efficiency The amount of energy lost during Water splashes when filling/emptying charging/discharging (%) Cycle Life The number of charges/discharges Holes in the bucket form over time before energy capacity falls below a certain level 1/24/2019 5 Prepared for Peninsula Clean Energy.
What Types of Storage Exist? • Scale: utility, commercial and industrial, residential • Type of service o front of the meter (FTM): grid services, ancillary services o behind the meter (BTM): customer services • Stand-alone or coupled with generator • Stationary or mobile (trailer, electric vehicles) 1/24/2019 6 Prepared for Peninsula Clean Energy.
Duck Curve - CAISO Typical Solar Storage Modified Profile Generation Profile Source: https://www.caiso.com/Documents/FlexibleResourcesHelpRenewables_FastFacts.pdf 1/24/2019 7 Prepared for Peninsula Clean Energy.
Services and Applications 1/24/2019 8 Prepared for Peninsula Clean Energy.
FTM Services Relevant to PCE Grid Infrastructure Service Application Description Resource Adequacy Resource Adequacy Supply capacity to meet peak electricity demands Energy Arbitrage Store excess energy and dispatch when valuable Ancillary Services Standby capacity for unplanned capacity losses Reserves occur Energy Arbitrage Frequency Regulate frequency of grid to maintain power quality Regulation Reserves Frequency Regulation 1/24/2019 9 Prepared for Peninsula Clean Energy.
BTM Services Relevant to PCE Customer Energy Management Application Description TOU Bill Reduce energy purchases during peak TOU Bill Management consumption hours Management Demand Charge Reduce consumption when demand Demand Charge Reduction charges high Reduction PV Self- PV Self- Store PV generation for use later Consumption Consumption Backup Power Provides energy during power outages Backup Power 1/24/2019 10 Prepared for Peninsula Clean Energy.
Stacking Services Storage owner can combine (stack) various applications to increase revenue opportunity 1/24/2019 11 Prepared for Peninsula Clean Energy.
Renewable Specific Applications - Wind 1/24/2019 12 Prepared for Peninsula Clean Energy.
Renewable Specific Applications - Solar 1/24/2019 13 Prepared for Peninsula Clean Energy.
Renewable Load Matching Storage can shape the output of renewable energy to match load Very Large ESS Typical ESS 1/24/2019 14 Prepared for Peninsula Clean Energy.
What Does It Look Like? 1/24/2019 15 Prepared for Peninsula Clean Energy.
Many Types of Energy Storage Compressed Air Pumped Hydro 1/24/2019 16 Prepared for Peninsula Clean Energy.
What Technology is Relevant? Compressed Air Pumped Hydro 1/24/2019 17 Prepared for Peninsula Clean Energy.
Why? • Battery storage is: o Compact o Limited infrastructure requirements o Scalable • Lithium-ion is the clear front runner o Cost o Flexible o Mature • Others have promise but: expensive, limited services, lack field history • Performance considerations (Li-ion) o Efficiency à ~90% o Lifetime à ~ 10 years 1/24/2019 18 Prepared for Peninsula Clean Energy.
Residential Storage (Tesla) • Typically 3-10 kW, 5-20 kWh, 2 or 4 duration • Lithium ion batteries • Cost: $1025-1800/kWh installed • Typical Applications o TOU management o PV self consumption o Backup (LG Chem RESU) 8/27/2018 19 Prepared for Peninsula Clean Energy.
Commercial & Industrial Storage (Lockheed Martin) • Typically 50-500 kW, 50-2000 kWh, 2-4 hour duration • Lithium ion batteries • Cost: $725-1375/kWh installed • Typical Applications o TOU management o PV self consumption o Demand Charge Management o Power Quality/Backup (Tesla) 8/27/2018 20 Prepared for Peninsula Clean Energy.
Utility Scale Storage MODULE (NEC) RACK • Typically 5 MW, 20 MWh, 4 hour duration • Lithium ion batteries • Cost: $425-650/kWh installed • Typical Applications o Grid/Ancillary Services o Load Matching CELL o Energy Arbitrage 1/24/2019 21 Prepared for Peninsula Clean Energy.
How Much Do They Cost? 1/24/2019 22 Prepared for Peninsula Clean Energy.
$1025-1800/kWh (Resi) Storage System Costs $725-1375/kWh (C&I) (GTM Storage Summit 12/2018) • Battery cost main driver for all costs • Capital Costs o Installation o Batteries o Balance of system (everything else) • Operating Costs: o Maintenance o Energy capacity augmentation $1400-1850/kWh $425-650/kWh (Utility) (Utility) 1/24/2019 23 Prepared for Peninsula Clean Energy.
Costs – Past, Present, and Future (Brattle Group) (Bloomberg NEF) • Systems prices follow battery prices • 80% price drop since 2010 • ~$70/kWh by 2030, ~$40/kWh by 2040 1/24/2019 24 Prepared for Peninsula Clean Energy.
PCE Goals and Energy Storage 1/24/2019 25 Prepared for Peninsula Clean Energy.
PCE Policy, Goals & Objectives Reduce Greenhouse Gases (GHG) • Steady progress in reduction of PCE portfolio GHG • 90% GHG free in 2019 with target of 100% GHG-free in 2021 PCE Supply Portfolio • Evolve supply portfolio (energy) to ~100% renewable by/before 2025, subject to resource availability and market cost-effectiveness • Manage supply portfolio to match ~100% renewable supply with customer demand on an hourly basis How can energy storage support these goals? 1/24/2019 26 Prepared for Peninsula Clean Energy.
Opportunities for Storage and PCE • Energy o Shaping RE output to match load & meet ~100% RE objectives o Economically dispatch energy into CAISO day ahead or real time markets • Capacity (Resource Adequacy) o System, Local, Flexible o Storage can provide RA but must participate in CAISO markets • Ancillary Services o Regulation Energy Management - Frequency Regulation and Reserves New rules at CAISO are being developed and market for products/services is evolving 1/24/19 27 Prepared for Peninsula Clean Energy.
Thank You! 1/24/2019 28 Prepared for Peninsula Clean Energy.
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