Energy Storage at PGE. Regional Dynamics

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1 Energy Storage at PGE Building a Foundation for Deep Decarbonization Josh Keeling May 22, 2018 Regional Dynamics PGE initiatives: Pilot to scale flexible loads Transportation Electrification Community Solar Docket Storage Proposal DR/DER nascent in Pacific NW but that is changing NW Power & Conservation Council calls for 600 MW of DR OPUC requires all achievable, cost effective flexible loads (2016 IRP) Oregon passes 50% renewables by 2040 (SB1547) Coal retired by 2030 Transportation electrification Community solar Oregon passes Energy Storage Mandate (HB 2193) At least 5 MWh up to 38.7 MW by

2 Decarbonization at PGE PGE commissioned a Decarbonization Study to inform the next IRP and to help inform carbon policy conversations in Oregon The City of Portland and Multnomah County signed resolutions for deep reductions in GHG emissions o 100% clean & renewable electricity by 2035 o 100% economy-wide clean & renewable energy by 2050 #WeAreStillIn pledge o PGE joined 2,500+ businesses and local governments in pledging to do our share to meet obligations in the Paris Climate Agreement In the 2016 IRP, stakeholders expressed interest in seeing portfolios that meet GHG reduction targets o Current goal: 75% below 1990 levels by 2050 o Potential goal: 80% below 1990 levels by 2050 Ongoing cap and trade discussions o PGE is committing to meet our proportionate share of the state s greenhouse gas reduction goals 3 Electricity systems in a deeply decarbonized future will need new capabilities to efficiently integrate vast amounts of renewables Implications for the electricity system By 2050, most energy generation comes from variable renewables, like wind and solar 4 2

3 Balancing challenges Renewable generation exceeds load in 46% of all hours in a typical year Excess generation in a single hour may be as high as 8,000 MW in a typical year 5 Balancing solutions In a deeply decarbonized future, flexibility in the electricity system is provided by both generators and loads 6 3

4 Energy Storage at PGE 7 Storage Value by location Source: Rocky Mountain Institute (10/2015) The Economics of Battery Energy Storage

5 Near-Term Storage Roadmap Implementation Pilots for high reliability/resiliency and electrification potential Salem Smart Power Center (5 MW) Resilient, Renewable Power for Portland (R2P2) working group City of Portland Fire Station 1 - Solar+Storage (60kW system) Integrating energy storage into Energy Partner flexible load program OPUC Proposal ( MW) Batteries at generation, distribution, residential and microgrids Align with PGE s broader strategy and customer needs Planning Deeply integrate storage and other flexible resources into integrated resource planning Distribution Resource Planning to quantify locational value Support resiliency, reliability, renewable integration, capacity and market participation 9 Baldock Mid-Feeder A mid-feeder, solar-sited, PGE-owned energy storage asset 1 Unit 2 MW Charge / Discharge Rate 4 MWh Energy Storage Target In-Service: 2020 Installed at Baldock 2 MW (4 MWh) Solar Array in Aurora, OR Feeder contains 59% residential, 39% commercial, and 2% industrial Use-cases Typical: capacity, energy/ancillary services, transmission services During Outage: extended reliability for customers sectionalized from the fault 10 5

6 Coffee Creek Substation A substation-sited, PGE-owned energy storage asset 1 Unit MW Charge / Discharge Rate MWh Energy Storage Target In-Service: 2020 Tied to the 13 kv substation bus Sized to support the peak substation load Use-cases Typical: capacity, energy/ancillary services, transmission services During Outage: extended reliability for all customers downstream of substation 11 Generation Kick Start A generation-sited asset that can provide spinning reserve without burning fuel 1 Unit 4-6 MW Charge / Discharge Rate MWh Energy Storage Target In-Service: 2020 Located at the Port Westward 2 generation facility Utilizes a relatively small storage device (4-6 MW) to realize the full value of spinning reserves of an off-line turbine (18.9 MW) Use-Cases Typical: capacity, energy/ancillary services (including increased spinning reserves), transmission services 12 6

7 Microgrid Resiliency Pilot Customer and Community Microgrids, PGEowned / controlled energy storage asset 2-5 storage devices MW cumulative MWh cumulative Target for complete deployment: 2021 Integrated storage with customer-owned generation (e.g., solar, generators) 2-5 critical sites for community resiliency Pilot as an evolution to the DSG/flexible loads programs Use-cases Typical: capacity, energy/ancillary services, transmission services During Outage: extended reliability for 1 or more critical facilities 13 Residential Storage Pilot A residential-sited, behind the meter, PGE-controlled energy storage asset 500 units 3-6 kw each (2-4 MW cumulative) kwh each (6-8 MWh cumulative) Target kick-off: 2019 Storage device used for grid services except during an outage Utility-owned: Participant pays monthly fee for enhanced reliability Customer-owned: Participant paid for grid services Use-cases Typical: capacity, energy/ancillary services, transmission services During Outage: extended reliability for participating customer s critical loads

8 Building the Virtual Power Plant Meet ~6% of peak load by January MW flexible loads 38 MW of energy storage 135 MW standby generation Scale from emergency demand response to distributed, flexible portfolio Diverse ecosystem meeting both near-term and future needs Integrate portfolio into operations to maximize customer value and system efficiency 15 Questions? 16 8