Energy Storage & Local Government

Transcription

1 Energy Storage & Local Government Alameda County Energy Council July 14, 2017 Jin Noh, Policy Manager California Energy Storage Alliance (CESA)

2 About CESA The California Energy Storage Alliance (CESA) is a 501c(6) membership-based advocacy group committed to advancing the role of energy storage in the electric power sector through policy, education, outreach, and research. CESA was founded in January 2009 by Janice Lin and Don Liddell. CESA s mission is to make energy storage a mainstream energy resource in helping to advance a more affordable, clean, efficient, and reliable electric power system in California. 2

3 CESA Members Board Members Adara Power Amber Kinetics American Honda Motor Bright Energy Storage BrightSource Energy Brookfield Consolidated Edison Customized Energy Solutions Demand Energy Doosan GridTech Eagle Crest Energy EDF Renewable Energy General and Series A Members ElectrIQ Power emotorwerks Energport Energy Storage Systems GAF Geli Green Charge Networks Greensmith Energy Gridscape Solutions Gridtential Energy Hitachi Chemical IE Softworks Johnson Controls Lockheed Martin AES Magnum CAES Mercedes-Benz Energy National Grid NEC Energy Solutions NEXTracker NGK Insulators NICE America Research Ormat Technologies OutBack Power Parker Hannifin Qnovo Recurrent Energy RES Americas Sharp Electronics Southwest Generation Sovereign Energy STOREME Sumitomo Electric Sunrun Swell Energy UniEnergy Technologies Younicos 3

4 Why Energy Storage? 4

5 Many Types of Energy Storage Technologies Energy storage technologies store energy for use when it is needed Electro-Chemical Mechanical Bulk Storage Thermal Mobile 5

6 Many Benefits of Energy Storage 6

7 California s Ambitious & Important Clean Energy Goals The 50% RPS by 2030 and 40% GHG emissions below 1990 levels by 2030 create a need for more energy storage to maximize renewables investments and manage grid reliability CAISO Net Load Curve Frequency of Real-time Intervals with Curtailments California s 2017 duck curve is ahead of schedule and is at estimated 2020 levels Source: CAISO 2013 Source: CAISO

8 California s Ambitious & Important Clean Energy Goals New policies drive urgency for flexible infrastructure and energy storage resources that reduce curtailments 8

9 Energy Storage Is Arriving Each of California s three investor-owned utilities (IOUs) are making major progress toward their 1,325 MW energy storage procurement target by 2020, including 99.5 MW of energy storage that was procured and operational in six months to address reliability issues stemming from limitations of the Aliso Canyon gas storage facility SDG&E has met its overall target but must still procure 7.5 MW to meet its customer domain target SCE has met its customer domain target and must now fulfill its overall target with T&D domain storage PG&E must still fulfill its energy storage targets in all three domains Updated May 2,

10 Expedited Aliso Canyon Procurement In six months, 99.5 MW of energy storage was procured and operational to address reliability issues stemming from limitations of the Aliso Canyon gas storage facility Utility Developer MW COD AltaGas Services / Greensmith /31/2016 SCE Powin Energy /31/2016 Tesla Energy /31/2016 GE Energy Storage /31/2016 SDG&E AES Energy Storage /31/2017 Total 99.5 Updated May 2,

11 Current Energy Storage Costs Source: Lazard

12 Current Energy Storage Costs Source: Lazard

13 Benefits Solutions Barriers Linking Energy Storage to its Benefits Key bills are needed to overcome some barriers that still exist that limit the realization of the benefits that energy storage can provide Financing, permitting, & interconnection costs Limited understanding of capabilities, values, & multiuse applications Limited procurement experience Not adequately modeled in grid planning SB 546 SB 356 SB 700 AB 1030 SB 338 AB 1405 SB 801 SB 338 AB 1405 SB 801 SB 338 AB 1405 Portfolio diversity and reliability Renewables integration GHG emissions reduction Customer/ratepayer cost savings 13

14 Identifying the Best Fit Storage Technology 14

15 Many Types of Energy Storage Technologies Energy storage technologies store energy for use when it is needed Electro-Chemical Mechanical Bulk Storage Thermal Mobile 15

16 Energy Storage Basics: Energy vs. Power 16

17 Customer-Sited Storage Characteristics by Technology Type Technology Strengths Weaknesses Best Fit Applications Lithium-ion battery storage Thermal storage Flow battery storage High energy density Ease of deployment Relatively low $/kwh and $/kw due to economies of scale Good roundtrip efficiency (> 80%) Fast response time (milliseconds) Established technology Good cycle life Low $/kwh for load shifting Relatively low $/kwh Scalable/flexible power-to-energy ratio Good cycle life & high usable SOC Flywheel High power-to-energy ratio Very fast response (milliseconds) Excellent cycle life & full usable SOC High roundtrip efficiency (> 85%) High cost for long durations Safety perceptions for some chemistries Energy degradation depending on technology and cycling needs Relatively lower usable SOC Low energy density Lower efficiency (< 70%) Mediocre response time Pump maintenance needed Low energy density Lower efficiency (< 70%) Mediocre response time Pump maintenance needed Low energy density Less suited for long durations High self-discharge rate Demand charge management TOU arbitrage Frequency regulation Flexible ramping Permanent load shifting PV integration Load shifting & balancing PV integration Flexible ramping Frequency regulation Power quality/ups Spinning reserves 17

18 Complexities to Energy Storage Characteristics It is important to pay attention to technology specifications (e.g., degradation, useful capacity, operating temperatures) and warranties in considering the selection, sizing, and controlling of energy storage technologies Note that most SGIPfunded storage is required to have 10+ year warranties. More on that later 18

19 Complexities to Energy Storage Characteristics There is no perfect battery type 19

20 Multiple Services from Energy Storage Energy storage can provide multiple services and stacking these values is important to maximizing its utilization and improving cost effectiveness 20

21 Finding the Best Fit Storage Technology 21

22 Finding the Best Fit Storage Technology Domain Short Duration (0-2 hrs) Medium Duration (2-4 hrs) Long Duration (6+ hrs) Customer Demand Charge Management Power Quality Resiliency TOU Bill Management PV Self Consumption Distribution Local/Flex RA Reliability/Resiliency Voltage Support Deferral Black Start Transmission System RA Wholesale Frequency Regulation Primary Frequency Response Spinning/Non-Spinning Reserves 22

23 Key Takeaways Energy storage power/energy requirements are a function of the desired application and use case and must both be evaluated for optimum technology selection Sizing the energy storage system requires a calculation of the maximum power and usable energy required for the application Energy storage costs should be carefully understood as all-in costs should account for usable energy/capacity and include cell, module, rack, and battery management system 23

24 What Can Local Governments Do? 24

25 Assess Your Load Most customer-sited energy storage systems must be selected and sized to meet the customer need first before pursuing additional revenue streams from the grid Therefore, a load assessment is needed to identify the most effective cost reductions and/or critical loads 25

26 Identify Load Management Strategies Depending on the load profile and the rate schedule, different energy storage technologies and operational strategies may be needed (e.g., clipping of peakiest loads vs. shifting of solar generation) 26

27 Take Advantage of Incentives The Self-Generation Incentive Program (SGIP) provides upfront and performancebased incentives for customer-sited storage, including for local governments 27

28 Take Advantage of Incentives Rules Roundtrip Efficiency Storage Sizing Commercial Availability Program Administration Application Process Participant Cap CA Supplier Adder Application Fee Operational Requirements Energy Efficiency Details 66.5% (ten-year average) Limited to actual/estimated annual peak demand NRTL system certification completed, or 10-year manufacturer s/service warranty Continuous First-come, first served and lottery for same-day applications in oversubscribed step 20% Developer s Cap 20% adder if at least 50% of manufacturing value-add occurred in CA 5% of requested incentive claim 130 full discharge equivalents per year (non-residential) EE audit at maximum cost of 5% of requested incentive payment but no investment required 28

29 Get Started Early with Permitting Processes Work with city/county jurisdiction offices to get all the necessary building permits, fire permits, etc. CESA is working on AB 546 to create an energy storage specific permitting process to streamline permitting, which may include a checklist for expedited or over-thecounter permitting CEC grant funding may be provided for a city/county to develop its expedited process and to deploy necessary online systems 29

30 Be Aware of New Procurement Opportunities AB 2868 was passed in September 2016 that requires the CPUC to direct the three utilities to propose up to 500 MW statewide of new distributed energy storage programs and investments that are incremental to the SGIP and the AB 2514 goals Up to 125 MW of the 500 MW can be sited behind the meter, prioritizing low-income and public-sector customers Many local government office buildings will be eligible for these new investments 30

31 Thank You. Questions? Jin Noh Policy Manager California Energy Storage Alliance (CESA)