Three Policies Make Storage Market. October 12, 2011

Transcription

1 Three Policies Make Storage Market October 12, 2011

2 Overview Repeated use of MW-scale battery Storage started in 2009 in Hawaii with requirement on renewables. FERC rulemaking for compensation of fast resources in Frequency Regulation. Clarify definitions of Storage as Transmission. 11/16/2011 2

3 Renewables Integration* State of Hawaii combines small island grids with great renewable energy resources Limited sources of flexibility leads to challenges in managing variability Procurement of variable renewables continued, *with first-in-the nation generator ramping limits, up and down

4 Demo proved concept Power (MW) Ramp Control Profile Proof of Performance :00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 Time (hh:mm:ss) Total WTG (MW) XP (MW) Net to Utility (MW) Ramp Rate (MW/min) Ramp Rate Profile :00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 Time (hh:mm:ss) RR without XP RR with XP 4

5 Location Application DPR Oahu, HI Wind COD Q Services Kahuku Wind Power Largest US Wind Application in Service 15 MW / 10 MWh Ramp Control, Smoothing, Voltage Support The DPR is integrated with the operation of First Wind s 30 MW Kahuku wind farm, enabling interconnection at the end of an existing 46 kv radial line and compliance with HECO s stringent PPA ramp control and smoothing requirements. 5

6 Location Application DPR Lanai, HI Solar COD Q Services MW / 0.5 MWh Ramp Control, Ancillary Services Lanai Solar Doubling Renewable Output Lanai Sustainability Research s 1.2 MW solar farm, capable of 30% of grid s peak load, was curtailed to 600 kw, until it could guarantee that output will not vary by more than ±360 kw/min. With DPR smoothing power, project is allowed increased output to full capacity, as well as provide ancillary services. 6

7 Kaua i Island Utility Cooperative Taking Advantage of DPR Versatility Location Application DPR Kaua i, HI Solar COD Q Services 1.5 MW / 1.0 MWh Responsive Reserves, Ramp Control, Ancillary Services The KIUC DPR will mitigate the variability of a 3 MW solar PV project for the Kaua i Island Utility Cooperative. This marks Xtreme Power s first direct sale to a utility, and first project to provide responsive reserves. 7

8 Fed Policies for Ancillary Services Federal Energy Regulatory Commission Order 890 allows for Storage to supply Ancillary Services ISO markets are open, liquid and transparent Presently, generator capacity paid to be available to move up and down Current compensation reform to Pay for Performance, Storage poised for growth

9 Compensation NOPR FERC Proposed Rule in Feb 2011: - Two part payment Capacity and Mileage - Incorporating performance scores to ensure procurements are economical and transparent - Reduced total regulation requirement expected, based on increased performance

10 Transmission and Incentives Energy Policy Act 2005 defined Storage as Advanced Transmission for Federal Power Act section FERC has made case-by-case decisions on Storage serving as Transmission. Two general inquiries explore definition and process to treat Storage as Transmission, and continue added incentives for investment.

11 Transmission and contingencies Asset is defined by use. Transmission has an automatic response to transmission conditions. Storage asset that is triggered by a transmission disturbance is serving a transmission function. Should be paid for by rates. Storage that uses energy prices, or a schedule, or acting in response to loads or generation is not part of transmission service, but rather is a substitute to transmission service. Paid for by energy market.

12 Loss of Line: Storage Engages 150 MW Capacity: 200 MW 100 MW Capacity: 200 MW 100 MW Capacity: 200 MW Generator A 50 MW Capacity: 50 MW Load Center: 400 MW Generator B The supply flowing on interrupted transmission line now comes from 50 MW storage. Loading on line rises only to 150 MW, not 200 MW in prior slide. Storage runs until system stabilizes. 12

13 Mike Jacobs Concord, MA