"CAES and Renewables Integration - Insights for the PNW from European Experiences" 25 th July 2012

Transcription

1 "CAES and Renewables Integration - Insights for the PNW from European Experiences" 25 th July 2012

2 Overview of Gaelectric MATURE DEVELOPMENT PIPELINE STRONG BUSINESS FOUNDATION Energy Storage DISRUPTIVE APPLICATION OF PROVEN TECHNOLOGY Onshore Wind Ireland Gaelectric Onshore Wind USA FIRST MOVER ADVANTAGE ADDRESSING EXPORT MARKETS Offshore Wind Ireland OFFSHORE RESOURCE ONSHORE 2

3 Gaelectric in Montana CAES Site 270MW Coutts 60MW Liberty 600MW Tiger Ridge up to 340MW PNW Market Mid-C Hub BPA Network i. 80MW (2014) ii. 430MW (2015) Frenchman s Ridge 162MW Roy 104MW Geyser 313MW Harlowton 430MW Lonetree 80MW Kelly Hills 20MW Longhorn 35MW California Market NWE Network i. 100MW (2014) ii. 460MW (2015) Gaelectric Site Existing Transmission New Transmission/upgrades Substation

4 Storage Perspectives 4

5 At the Crossroads Wind is key driver for storage Way Forward Back to where we came Cross Roads 20% Renewables 50%+ Energy Business as Usual 5

6 A Story of Storage Nuclear was last great driver for storage 6

7 CAES Technology Overview 7

8 Proven Technology Operating ~ 50-Years Two existing diabatic plants today (Huntdorf and Alabama) 290MW and 110MW Commissioned 1978 and 1991 Developed to provide flexibility to nuclear plant and coal portfolio Proven technology with over 90% reliability 8

9 Compressed Air Energy Storage Hybrid generation/storage technology adapted for wind MW of compression increases demand = reducing curtailment MW of generation from storage and only 1/3 gas to re-deliver back to the grid 1,000 psi 700m Thermal Efficiency: 54% Heat Rate: 4,100 BTU/Kwhr Ramp rate: 27-30MW/min Capex $900k-$1.1mln/MW 9

10 Design Choices Key to Techno-Economics Cavern equipment design considerations key to development Design Considerations; 1. Efficiency compromised with increasing storage depth 2. Modular and can add compression and generation 3. Compressor to generator scale optimised for application 4. CAES for wind balancing, large and multiple compressors 5. Operating model using sophisticated tools to schedule store

11 Evolving CAES Technologies - Isothermal Technology is not standing still and niche applications emerging 11

12 Evolving CAES Technologies Advanced Adiabatic Large-scale heat storage is technically challenging Key Innovation High T/P Compressor/Air Turbine Capital cost = 1.2mln/MW Efficiency target of 70% 12

13 CAES Application in High Wind Systems 13

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15 Ireland The Wind Stats Peak Load of 5,500MW, wind ~2,000MW and night valley 2,500MW 15

16 CAES Application in High Wind System Temporal relationship between wind and demand resulting in curtailment 1 Wind penetration exceeds technical operating limit Wind curtailed - Negative Reserve 2 3. Wind output falls Positive Reserve and Energy 3 Penetration Ramp 16

17 Wind Disrupting Reliability Happening on a daily basis and across Europe 1 2,500MW 2 50% 12.00am Low Off-Peak Demand Wind Penetration Limit 4 3 Disturbance Events Curtailment over 5-hours 6 Depth MWs 5 Curtailment Increasing CO2 Wind depressing CO2 Duration Hours 17

18 Europe s Leading CAES Project Larne Phase 1 18

19 Solution is Scalable Europe Number of markets experiencing an immediacy of integration challenges Larne MW Moekow270MW Cheshire 270MW Yemgum 270MW Sager Meer 270MW Ref: Various Renewables Publications

20 Business Model and Benefits Benefit of avoided fuel for curtailment avoidance and cheap balancing 2020 Cost to System Cost = 150mln p.a. CO2 = 2mln tonnes System Value Contracted Balancing Avoided fuel + faster ramping Contracted Availability Avoided Curtailment + Avoided fuel for Ramp-Down Negative Reserve Balancing Energy Injection Withdraw Stor e Size Storage Storage Multiple Models to Emerge; 1. Contracted Ancillary Services 2. Hybrid involving AS and Trading 3. Merchant or contracted cavern 20

21 Drawing Insights to the PNW 21

22 A Common Theme Across the Pond CAES sits as a system tool provides service to avoid curtailment and balance wind Balancing Area ~ Balancing and Shifting Curtailment Service Curtailment CAES Load 22 Centralised balancing and Ancillary Services plant with trading optionality

23 g cwww.hydrodynamics-group.com 23

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25 Feasibility Study for Compressed Air and Thermal Energy Storage in Columbia River Basalts The Pacific Northwest possesses a very large wind resource capability for production of renewable energy but the rapid development of wind resources is overtaking the capability of the power system to integrate and balance intermittent wind generation, and to reliably transmit wind energy to loads across the western U.S. The challenges are rapidly increasing as the total wind generation capacity interconnected to the BPA system is expected to almost double to 6,000 MW by the end of The combined impact of the growth in wind and constraints on the hydroelectric system is an increasing frequency of over-generation events with curtailment of wind generation being used to manage the condition while protecting fisheries on the Columbia River system and its tributaries. The objective of this project is to complete a technical and economic feasibility study for two methods of subsurface energy storage that could be deployed in the Pacific Northwest to help manage over-generation events. The first method is through compressed air energy storage (CAES). CAES plants have a theoretical potential to return as much as 80 to 90% of the energy used for storage and can be cycled quickly for short duration load shaping. The second method is heat storage that would be recovered to produce electricity in an enhanced geothermal system, i.e. underground thermal energy storage (UTES). This method takes advantage of the excellent heat capacity characteristics of hard rocks and provides a longer-term storage and production option that nicely complements CAES. A hybrid system that combines both CAES and UTES also will be evaluated. The feasibility study will focus on storage within the Columbia River Basalt Group, which extends and is coincident with a very large fraction of the wind and thermal power generation resource in the region. PNNL has pioneered both laboratory and field pilot studies examining the potential for large-scale storage of natural gas and CO 2 in flood basalts. The results of these studies clearly suggest the potential of utilizing flood basalts for CAES and UTES. The feasibility study will assess both Wind and Major Thermal Generating Resources technical and economic viability of with Columbia River Basalt Extent (Outlined in these options at up to 150 MWGrey) for Energy Storage month storage capacity, commensurate with addressing a significant fraction of the over-generation events anticipated by BPA. Results of the feasibility study will be documented in a final report issued at the end of the 1-year duration project. Eight companies with a broad mix of technical, economic, and regulatory experience in the power industry are supporting PNNL and BPA on the study. For more information, please contact: Dr. B. Peter McGrail Pacific Northwest National Laboratory P.O. Box 999, MSIN K6-81 Richland, WA (509) pete.mcgrail@pnnl.go v Mr. Steve Knudsen Bonneville Power Administration P.O. Box 3621 Portland, OR (503) fsknudsen@bpa.gov

26 Gaelectric DGF CAES Project Montana CAES Site 26

27 Wider CAES Potential Depleted Gas Fields Large potential outside of Washington in depleted gas field

28 Balancing Hubs and Curtailment Sinks Export East to Large-Scale Curtailment Sinks, Re-directed West for Load

29 Potential Benefits Co-ordinate Storage Policy under integrated regional plan 1. Increase overall penetration levels, reducing curtailment, protecting REC values and PTCs 2. Distribute gains re optimal plant running, reduced need for cycling and ramping 3. Opportunity to co-optimise wind and hydro delivering further gains 4. Decreased emissions, lower overall integrations costs 29

30 Summing Up and Conclusions PNW and Europe have common integration challenges for wind, albeit with different reasons for curtailment CAES application challenging in Washington with greater potential in adjoining regional states in DGF Concept of curtailment hubs and wheeling under coordinated CAES storage policy is visionary but realisable Distributed gains can be realised by participants if developed under a common framework