Electric Energy Storage Applications in the Electric Enterprise

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1 Electric Energy Storage Applications in the Electric Enterprise Opportunities and Challenges in the Industrial Sector California-France Forum on Energy Efficiency Technologies San Francisco, CA October 25-26, 2011 Dan Rastler Electric Power Research Institute

2 Introduction / Overview Drivers for Energy Storage Solutions Overview of Applications Landscape of Electric Energy Storage Options Opportunities and Challenges in the Industrial Sector Today s Panel 2

3 Drivers for Electric Energy Storage Solutions in the U.S. Managing Increased Wind and PV Penetration on the Grid Increased need for Flexible Grid: Ancillary Services / Balancing Transission and Distribution Grid Asset Management Managing Grid Peaks,T&D Capital Deployment, Outage Mitigation High Penetration of Distributed Photovoltaic systems on the Grid Enhancing the value of a Smart Grid: Peak Energy Management; End-use energy management. 3

4 The Roles of Storage on the Grid Bulk Storage Ancillary Services Distributed Storage Thermal Storage Distributed Storage Commercial Storage Residential Storage V2G Industrial Storage 4

5 Opportunities for Energy Storage in the Industrial Sector Opportunities and Solution Applications: Reliability, Back-up, Energy Mgt. Power Quality, UPS, Energy Mgt. Energy Mgt. and T&D Grid Support Energy Mgt. with Renewables Energy Mgt. with CHP Challenges: Need low cost storage systems: <<$500 / kw-h installed Technical Risk >> Need demostrated solutions Options offer Limited Energy >> Hybrid systems with DG Business Model >> that maximizies benefits 5

6 Landscape of Energy Storage Solutions - Examples For Industrial Sector Applications MWs to kws: min to hours of energy duration 6

7 Potential Capacity (MW) Opportunity: Industrial CHP + Storage? 13.5 GW Nationwide (10 GW Industrial, 3.5 GW Commercial) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 Commercial Industrial 1, Source: Analysis by Resource Dynamics Corporation Notes: Assumes no state or Federal incentives, no power export 2010 State Monthly Average Natural Gas Prices Estimated Economic potential based on 10 year positive NPV 7

8 Energy Storage with Distributed Generation CHP Systems, PV Systems CTs + Fuel Cells + Photovoltaics + 8

9 Challenges: Need Low Cost Storage Systems Energy Storage Application Value Analysis Total Resource Cost Test (TRC) as a Proxy for Allowabe Storage System Cost Res. Backup Res. Energy Mgmt.* Targeted Value High Value ESCO Res. Storage Com. PQ & Reliability Ind. PQ & Reliability Com. Energy Mgmt.* Ind. Energy Mgmt.* Com. DESS Ind. DESS Sta. Distribution Deferral Caveat: Energy storage systems to address each application will vary in cost, depending on size, location, and system power-to-energy ratio. Sta. T&D Deferral Transportable Distribution Deferral Transportable T&D Deferral Wholesale Freq. Reg. (1 hr) Wholesale Freq. Reg. (15 min) $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Application Value $/kw-h of Storage Value: $/kw-h of usable energy storage 9

10 Challenges: Business Model which enables monetization of benefits EPRI Research Assessing the Locational Value and Benefits of Energy Stoarge 10

11 Energy Storage as Part of Smart Grid Example Con Edison Demonstration Project 11

12 Key EPRI Energy Storage Resources Key Reports: Electric Energy Storage Technology Options: A White Paper Primer on Applications, Costs and Benefits (EPRI ) Executive summary (EPRI ) Functional Requirements for Electric Energy Storage Applications on the Power System Grid (EPRI ) 12

13 Today s Panel Eric Cutter E3 Geoffroy Ville McPhy Energy Jim McDowall Saft Tom Stepien Primus Power 13