The Expanding Role of Energy Storage in the Regional Power System

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1 SEPTEMBER 11, 2017 NEWTON, MA The Expanding Role of Energy Storage in the Regional Power System Innovation Northeast: 2017 Energy Storage and Microgrid Conference Carissa Sedlacek DIRECTOR, RESOURCE ADEQUACY

2 ISO New England Performs Three Critical Roles to Ensure Reliable Electricity at Competitive Prices Grid Operation Coordinate and direct the flow of electricity over the region s high-voltage transmission system Market Administration Design, run, and oversee the markets where wholesale electricity is bought and sold Power System Planning Study, analyze, and plan to make sure New England's electricity needs will be met over the next 10 years 2

3 Region Has Successfully Utilized Pumped-Storage Hydro and Flywheel Technologies for Energy Storage In New England, the predominant grid-scale energy storage is in the form of pumped-storage hydro Two large facilities built in the 1970s can supply almost 2,000 MW of capacity within 10 minutes Initially developed to provide fastresponse capability in the event that a nuclear power plant tripped offline From 2008 through 2015, a flywheel system provided regulation service in a pilot program helping balance the instantaneous demand of the regional bulk power system 3

4 Advanced Energy Storage Is Emerging in the Region Building on Existing, Large-Scale Storage Capability Battery storage projects totaling roughly 80 MW of capacity have requested interconnection to the regional power system Biomass, 37, <1% Hydro, 33, <1% Pump Storage, 66, <1% Solar, 925, 7% Battery Storage, 79, 1% Over the past year, 17 MW of storage have interconnected to the system Wind, 7,334, 55% Natural Gas, 4,876, 37% 4

5 The ISO works with developers to help integrate a variety of technologies into the markets ISO New England s markets are technologyneutral and designed to meet the region s reliability needs Each market has specific requirements Flexible resources will be needed to balance increasing levels of variable generation 5

6 How Ancillary Services Fit Into the Wholesale Electricity Markets Value of Wholesale Markets (in $ BILLIONS) Select Ancillary Markets (in $ MILLIONS) 6

7 Participation of Storage Is a Function of Many Factors Including the Size and Location of the Resource Services Size Physical Characteristics Location Larger (> 5 MW) storage resources generally participate directly in the wholesale markets and provide most of the services Smaller storage resources can participate in different ways, including aggregating with other resources 7

8 Storage Can Participate Directly in the Wholesale Markets on Both the Demand- and Supply-Sides On the demand-side, a storage resource can: Reduce a customer s capacity costs Provide reserves and regulation services On the supply-side, a storage resource can: Potentially provide capacity, reserves, and regulation services 8

9 Storage Can Participate Indirectly in the Markets Consumers can use energy storage to reduce costs, including: Capacity Energy Ancillary services This form of demand-side activity that does not require direct participation in the wholesale markets 9

10 The ISO Continually Evaluates Opportunities to Enhance the Market Design to Enable New Technologies Storage can participate in the markets today ISO has recently made rule changes to better integrate storage and other technologies into the markets The ISO is looking at further enhancements to better incorporate technologies into the markets and value reliability services The region will need flexible resources to help balance the quantities of wind and solar being added to the system 10

11 For More Information Subscribe to the ISO Newswire ISO Newswire is your source for regular news about ISO New England and the wholesale electricity industry within the six-state region Log on to ISO Express ISO Express provides real-time data on New England s wholesale electricity markets and power system operations Follow the ISO on Download the ISO to Go App ISO to Go is a free mobile application that puts real-time wholesale electricity pricing and power grid information in the palm of your hand 11

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