Electricity Storage: A Key Component of Our Emerging Energy Future

Transcription

1 Electricity Storage: A Key Component of Our Emerging Energy Future Presentation to: THIRD INDUSTRIAL REVOLUTION: Canadian Executive Roundtable Meeting Toronto, Ontario May 28, 2009 Mark J. Tinkler Principal Energy Consultant Inc.

2 Five Dimensions of the Old Electricity Value Chain The Traditional Electric Utility: Vertically Integrated Large, centralized generation Regulated Single commodity offering Bundled price

3 Six Dimensions of the New Electricity Value Chain

4 Benefits of Energy Storage Electricity System Challenges Volatility Low Utilization Congestion Security Dirty Power Fuel Generation Transmission Distribution Services Hedge Risk Baseload Arbitrage Higher Utilization Stability Power Quality Energy Storage Value Offerings

5 Storage Applications Depend on Capacity: MW and MWh

6 Energy Storage Value Propositions - Examples Arbitrage: storing and moving low-cost power into higher price markets, reducing peak power prices. Security and assurance: voltage regulation, black start, frequency control, emergency power. Asset optimization: reducing the cycling and dispatch of large fossil units meant for baseload. Enhancing renewables: transforming take it when you can get it into scheduled power. A fuel-free electricity source into the peak markets. (Also, daily wind resource curves are often opposite the daily load demand curves) Transmission asset deferrals: postpone the need for new transmission assets depending on where storage assets are placed. Support distributed generation: Micro/mini-grids and on-site power systems must become at least as reliable as traditional grid-supplied electricity. Today s digital society/economy demands power quality several orders of magnitude higher. Storage assets placed at distribution-voltage substations and integrated into advanced DG devices and uninterruptible power systems.

7 Typical Mismatch of Wind Generation and System Load Negative correlation between diurnal fluctuation of load and onshore wind Implies diminished value for wind with increased penetration

8 Energy Storage Options and Applications

9 Worldwide Installed Energy Storage Capacity

10 Worldwide Installed Energy Storage Capacity

11 Historical Growth of Installed Energy Systems

12 Storage Technology Comparison - Overview

13 Storage Technology Comparison Relevant Applications

14 Key Application: Stabilizing Renewables

15 Wind Smoothing Application: Tomamae Wind Villa Wind Farm Field test on Hokkaido Island by JPower and Sumitomo at Tomamae Wind Farm Wind farm capacity: 30 MW VRB Flow Battery: 4 MW, 6 MWh Wind smoothing Sponsored by New Energy and Industrial Technology Development Organization (NEDO) One of several Sumitomo VRB installations Photo courtesy VRB Power Systems Inc.

16 Wind Smoothing Application: Tomamae Wind Villa Wind Farm VRB-ESS runs continuously to smooth wind farm production Charge/discharge Control strategy designed to maintain 50% battery depth of charge 20% of nameplate capacity smoothes wind output significantly

17 Rokkasho - 51 MW wind and 34 MW NAS hybrid system Wind farm: 51 MW NAS Battery: 34 MW, 245 MWh More than 50% nameplate capacity of wind farm Will show NAS can provide: Wind firming for weak grids and firm capacity Meet forecasted profile Time shift production to meet peak demand Provide regulation power and spinning reserve Fully Operational Aug 2008 Courtesy NGK Insulators, Ltd.

18 Solar Smoothing and Peak Shifting Application Wakkanai, Japan Courtesy NGK Insulators, Ltd.

19 Compressed Air Energy Storage (CAES) Power generation based on conventional gas turbine technology, but.. Substitutes low cost off-peak electrical power to compress and store air underground for later daytime use in turbine generation cycle Advantage: eliminates parasitic use of natural gas to compress air in CT or CCGT. Power plant uses about half the natural gas for same MW output from turbine Typical cycle: hr generation (day) 6 8 hr compression (night) Overall efficiency comparable to CCGT, but economics much less sensitive to gas price. Quick start-up, fast ramp (0 to full load in less than 15 Min.) Environmentally friendly 60% less emissions than simple cycle, 30% less than combined cycle gas (likely eligible for alternative energy tax incentives) Cost approx. $750/kW for 300MW facility, $250M Ontario has some of the best underground storage capacity/expertise (natural gas) in North America

20 Existing CAES Facilities Huntdorf, Germany - Built 1978, >7,000 starts - Rated at 290 MW for 2 hrs - Salt caverns, bar - Originally built for peak loads with a nuclear facility - Still in operation, helping with wind power intermittency McIntosh, Alabama - Built Rated at 110 MW for 26 hrs - 560,000 m 3 salt dome, bar - Compression using off-peak power of a nearby coal plant

21 New CAES Projects in Development Iowa Stored Energy Park 200 MW, Startup 2012 Norton, Ohio 800 MW

22 Economic Analysis of CAES Key Factors (vs F Class GT) Source: OPG CAES Study April 2003.

23 Summary: CAES Benefits Allows Storage of Off-Peak Energy for On-Peak Generation Quick Start-Up/Ramp-up Supports Ancillary Services : - Operating/Spinning Reserve; ~50% synchronized in 10 min - Voltage Regulation; Frequency Support from Generator and VAR Support from Compression Motors Increases Utilization of Transmission System During Off-Peak Supports Variance in Generation and Load - Sink for off-peak power allows for more efficient operation of conventional generation (coal, CCGT, nuclear) by avoiding turn-down - Allows storage of inconsistent supply from sources such as wind power (an emerging issue of concern for Ontario) - Consistent operation profile allows efficient Load Following - Minimal impact on performance due to ambient temperature The time is right for a detailed reassessment of CAES

24 Hydrogen as an Energy Carrier Biomass Transportation Hydro Wind High Efficiency and Reliability Solar Nuclear Oil Coal Natural Gas With Carbon Sequestratio on Zero/Near Zero Emissions Distributed Generation Source: U.S. Department of Energy. Hydrogen Production and Use Diagram

25 The Emerging Energy Supply Picture - Distributed Generation & Hydrogen?? Transport to Users H 2 Production H 2 System for Load Leveling H 2 H 2 H 2 H 2 H 2 eh 2 HES H 2 HES = Hydrogen Energy Station NG/Reformer HES

26 Competitive Energy Storage Technologies System Power Ratings Discharge Time at Ra ated Power Renewable Energy Storage Hours Days Power orage Small Sto Power Quality Seconds Minutes Long Du uration Hydrogen Energy Storage Flow Batteries Metal-Air Batteries ZnBr VRB PSB NaS Batteries Fly Wh heels High Energy Super Capacitors Lead-Acid Batteries Ni-Cd Li-ion Other Adv. Batteries High Power Fly Wheels High Power Supercaps Superconducting Magnetic Energy Storage Pumped Hydro Compressed Air Energy Storage Source: Electricity Storage Association 1 kw 10 kw 100 kw 1 MW 10 MW 100 MW 1 GW

27 Hydrogen Energy Storage System Wind Electrical grid Solar Industrial Hydrogen Hydrogen Fueling Grid Balancing Hydrogen Generation and Compression Module Hydrogen Storage Module Fuel Cell System Integration Software Power Electronics Remote Community Power OPPORTUNITY Hydrogen can be produced and stored economically for instantaneous electricity production Fuel cells can be used as electricity generators and over time replace conventional combustion power plants and diesel generators BENEFITS Match intermittent renewable energy supply with demand Enable renewable energy to be used for baseload power eliminating high cost and carbon emitting power plants Enable load profiling including grid optimization and peak shaving opportunities

28 Diesel/Hydrogen Storage Cost Parity Diesel fuel is the primary source of electricity in several thousand remote communities Fuel transport costs represent a significant component of fuel expenditures Hydrogen-based energy storage and power systems are competitive with diesel generators today, in many remote power applications $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Cost of Delivered Power ($/kwh) Generator/Fuel Cell Diesel Fuel Electrolyzer Compression Storage Electricity Diesel Genset ($7/USgal) Diesel Genset ($10/USgal) Current remote diesel power application costs vary based on transportation cost Hydrogen (Now ) Hydrogen (Target) Hydrogen (Future) In remote power applications our hydrogen storage and power solution is cost competitive with $10/USgal diesel Key assumptions: Diesel power cost of $600/kW, diesel cost of 12.5kWh / gallon, hydrogen system roundtrip efficiency of 30%, wind power cost of $0.06/kWh, and hydrogen energy storage (150kW + 5 days storage).

29 Case Study Renewable Power Generation PROBLEM STATEMENT Cost and storage issues associated with intermittent/ renewable energy generation HySTAT -A Hydrogen Station at Ramea Island, Nfld. OUR SOLUTION Wind-hydrogen advanced power system Combine wind turbines with hydrogen generation to maximum contribution by the intermittent wind resources Provided continuous high quality power BENEFITS Excess wind power is stored and used when needed Option of turning off diesel generators when demand is low Can run solely on wind and hydrogen

30 Concluding Thoughts (with thanks to Rob Brandon, NRCan) Storage Technologies are now providing the reliability and performance required; life time cost is still high but reducing as volumes increase From an Ontario utility perspective, T&D deferral and wind/transmission opportunities would seem to be the ones to investigate first. Targeted demonstrations are needed now, using the experience of US and international projects to first carry out studies of the expected value propositions in each of three cases: and Identification of a T&D capital deferment project plus capacity and arbitrage in Ontario Customer based storage There may be in Ontario an interesting opportunity to enable storage to allow more wind systems to be constructed, perhaps in good wind areas that have transmission constraints Consider the case for CAES

31 Electricity Storage: A Key Component of Our Emerging Energy Future Presentation to: THIRD INDUSTRIAL REVOLUTION: Canadian Executive Roundtable Meeting Toronto, Ontario May 28, 2009 Mark J. Tinkler Principal Energy Consultant Inc. Tel: tinkler.energyoptions@sympatico.ca Questions?