IEEE Power & Energy Society Technical Meeting

Transcription

1 IEEE Power & Energy Society Technical Meeting Energy Storage Policy Boston, MA January 21, SAFER, SMARTER, GREENER

2 DNV Merged with GL in September 2013 to Form DNV GL Det Norske Veritas Founded 1864 Headquartered in Norway 10,000 employees Strong position within Tankers Offshore Classification Power & Transmission System certification Created 2013 DNV GL Group Headquartered in Norway 16,000 employees A leading company within Classification Oil & Gas Energy Business Assurance Germanischer Lloyd Founded 1867 Headquartered in Germany 6,000 employees Strong position within Container Ships Ship Fuel Efficiency Marine Warranty Renewable Energy 2

3 DNV GL Group A Global Presence DNV GL Group Energy Maritime Oil & Gas Software Business Assurance ,000 $3.38B OFFICES COUNTRIES EMPLOYEES REVENUE 3

4 DNV GL Energy is a Global Powerhouse Serving the Needs of the Energy Market Having more than 3000 energy experts across the globe enables DNV GL Energy to deliver unparalleled value to our clients Our expertise spans renewable and conventional power generation, onshore and offshore, transmission and distribution, and sustainable energy use DNV GL invests approximately 5% of annual revenue on research and innovation and recently opened a Research & Innovation Hub, with smart grids and super grids as main focus areas We are a world leader in renewable energy offering advisory services across the project lifecycle for offshore and onshore wind, solar and marine renewables 80 years of accredited testing and certification of equipment for transmission and distribution of electricity With 10 energy-related labs, we have the most extensive suite, including the most powerful, independent High Power lab and the largest High Voltage Lab in the world We Understand the Business Consequences of Technical Decisions and the Technical Consequences of Business Decisions 4

5 Topics for Today s Discussion California Efforts in Energy Storage Ruling that was implemented Cost Effectiveness Process to support ruling Potential Implications of the ruling New York Best Battery & Energy Storage Lab Roles of Public Private Partnerships NY-BEST Commercialization & Test Center for Storage 5

6 California Storage Procurement Targets Ruling On October 17 th, 2013, the California CPUC voted 5-0 to implement the targets shown in the chart Ruling also included an additional 1% of Peak Load by Energy Service Providers Excluded large pumped hydro and CAES Systems Included Customer sided storage up to 50% Allowed the 3 IOU utilities to rate-base storage Utility perception?

7 Process that Led to Procurement Targets The California Public Utilities Commission initiated the Energy Storage Order Initiating Rulemaking (ES OIR) proceeding R to satisfy the terms of AB In general, the goal of the ES OIR is to, establish a record for decision making in R to satisfy the terms of AB 2514 (PUC Section 2836) with regard to establishing potential energy storage procurement targets for load-serving entities (LSEs). Requirements that needed to be met by the CPUC as specified in AB 2514, included: Open a proceeding to determine appropriate targets, if any, for each load-serving entity to procure viable and cost-effective energy storage systems. By October 1, 2013, adopt energy storage procurement targets, if determined to be appropriate, to be achieved by each LSE by December 31, 2015, and a 2nd target to be achieved by December 31, Ensure that the energy storage system procurement targets and policies that are established are technologically viable and cost effective. The final bullet is where the CPUC sought assistance from the CEC to help in the modeling to determine the cost effectiveness and viability 7

8 Cost Effectiveness Effort Stakeholder process was held in order to evaluate Use Cases to determine whether to encourage the adoption of storage by utilities Use Cases were set up to evaluate the following areas volunteers led evaluation of Use Cases (1) Distributed Storage, (2) Community Energy Storage, (3) Distributed Peaker Model, (4) VER-Sited Renewables, (5) Bulk Generation Storage, (6) Demand Side Management Example of Use Case set up shown below: Application (use case) Description/ Problem Solving Potential Compensation or Ownership Likely Siting Primary End Uses Conventional Solutions or Alternatives Energy Storage Case Study Example Community Energy Improve local service reliability. () Integration of distributed VREs () Voltage control () Utility Ratebased Third Party under contract Adjacent to loads, on utility easement >25 kw x 2 hr Service Reliability* D Deferral* T Congestion* Electric Supply* Ancillary Services* Transportability Capacitor Transformer Controls AEP CES Detroit Edison CES SMUD Solar Smart RES/CES Project SDG&E secondary storage projects Understanding that the modeling needs would be significant, CPUC reached out to the CEC and DNV GL to conduct the modeling for the Use Cases 8

9 Work Scope for DNV KEMA Evaluation Study Scope Develop methodologies to evaluate storage s cost-effectiveness Goal is to reach consensus on tools used to evaluate storage Perform example cost-effectiveness evaluations on a subset of the priority Use Cases identified in Phase 1 of the ES OIR Selected Use Cases Examined Transmission Connected Energy Storage Ancillary Services Storage, Frequency Regulation Only Comparative Portfolio of Storage Resource Additions (for evaluating system level impacts) Distribution Level Energy Storage Substation sited storage, for substation capacity upgrade deferral Distribution circuit sited storage, for photovoltaic (PV) related circuit upgrade avoidance and load growth related substation capacity deferral Demand Side (Customer Side) Energy Storage Customer Bill Reduction 9

10 Work Scope for DNV KEMA Evaluation Study Scope Develop methodologies to evaluate storage s cost-effectiveness Goal is to reach consensus on tools used to evaluate storage Perform example cost-effectiveness evaluations on a subset of the priority Use Cases identified in Phase 1 of the ES OIR Selected Use Cases Examined Transmission Connected Energy Storage Ancillary Services Storage, Frequency Regulation Only Comparative Portfolio of Storage Resource Additions (for evaluating system level impacts) Distribution Level Energy Storage Substation sited storage, for substation capacity upgrade deferral Distribution circuit sited storage, for photovoltaic (PV) related circuit upgrade avoidance and load growth related substation capacity deferral Demand Side (Customer Side) Energy Storage Customer Bill Reduction 10

11 DNV GL Energy Approach to Assessing Storage Energy Storage Valuation, Applying a Systems Perspective

12 Example of Cost-effectiveness Evaluation Conclusions: Distribution Use Cases, Deferral Case Deferral is the primary value benefit for the substation sited energy storage when other applications (e.g., ancillary services or renewable integration) are not considered. Larger sizes can allow for longer deferral periods, but can also add cost without much value if duration or capacity is in excess of system load management needs. Losses can decrease or increase, depending on the storage size and system set-up, but the cost and benefits of losses tend not to have significant effect on overall cost-effectiveness. The ability to move storage across multiple sites can increase deferral value for an incremental cost lower than the price of a new unit. Higher deferral costs, lower battery costs, and the ability to move across multiple sites in sequence can result in positive net values for this application.

13 Cost-effectiveness Evaluation Conclusions: Distribution Use Cases, PV Case Energy storage can facilitate PV integration while enabling additional potential system operational benefits, but within a limited range of cost-effectiveness Energy storage has potential to improve power quality, shift solar PV production, and mitigate line and equipment overloads Due to it s modularity and performance capabilities, energy storage can enable PV deployment in areas previously deemed infeasible/constrained Storage can feasibly connect large, remote PV production sites that might be difficult to connect through conventional feeder configurations Storage provides additional capacity and ensures consistent production from PV

14 How DNV GL Approached Evaluation: ES-GRID Modeling Flow User Interface Input profile assumptions Multiple Scenarios Select Distribution Circuit Model(s) Circuit assumptions Storage Controls Run Model Data Processing Storage project assumptions Charts / Conclusion Analyze Inputs Load profiles EV / No EV PV / No PV (customer vs. util) Storage / No Storage Storage Control Priority Reliability Event Etc. Engineering Outputs kw Delta (time) Energy kw Voltage Levels (time) Harmonics Equipment Usage (#) Storage Usage (# cycles) Etc. Translation Capacity Energy Shifted Energy Savings Power Quality Reliability Asset lifetime Storage lifetime Etc. Financial Outputs Storage Costs Storage Benefits Avoided Costs Earnings Alternative Benefits Asset loss of life Deferral values Etc. 14

15 Assessing Storage Locations and Benefits Meeting Circuit Needs Storage solution tailored to circuit Evaluates multiple options Allows for identification of best value options Example shows different storage sizes as a possible solution Site Peak Demand (kw) Peak Demand (kva) 1 4,555 5, ,716 3, ,876 3, ,853 1, ,

16 Distributed Storage: Multiple versus a Single Unit Substation versus edge of Grid Difference in performance Difference in benefits Difference in costs 1.5MW Energy Storage Substation Site Peak Demand (kw) Peak Demand (kva) # of Device s Capacity (kw)

17 Business Case Example Distribution Deferral Substation-sited energy storage enables: 1) Distribution peak capacity support (Deferral) Output power from storage reduces flow through substation transformer Peak reduction facilitates deferral of substation upgrades k W Storage charging Sample Day Storage shaving peak Base load Storage discharging 2) Distribution operation (voltage/var support) reduced substation voltage drop, improved power quality 3) Loss reduction reduced substation power losses Core Cases Battery Types: Li-ion, Advanced Lead-acid Size: 0.5 MW, 1 MW, 2 MW Duration: 2 hour, 4 hour Total Number of Cases :

18 ES-GRID Engineering Analysis Results Summary Example Properly sized energy storage installed at the substation can: reduce peak demand, reduce system losses, mitigate voltage exceptions Metric Base case 500 kw, 500 kw, 1000kW, 1000kW, 2000kW, 2 HR 4 HR 2HR 4HR 2HR Peak demand (kva) 4,523 4,323 4,195 4,247 3,957 3,957 Maximum real power demand 4,049 3,901 3,744 3,795 3,538 3,549 Maximum reactive power 2,017 1,960 1,914 1,918 1,822 1,822 Total energy demand (MWh) 18,906 18,958 18,960 19,011 19,067 19,155 Total Losses (MWh) Tap changes (#) 6,541 7,077 7,079 7,113 7,033 6,451 Maximum voltage (p.u.) Overvoltage events (#) Minimum voltage (p.u.) Undervoltage events (#) p.u.: per-unit, maximum/minimum nodal voltage across the network Losses: refers to distribution network energy losses in lines, transformers, etc. Tap changes: refers to the total number of changes in the load tap changer setting. Monitoring equipment operations provides an indication of equipment wear and tear, though the value is not directly included in the financial calculation. Over/under voltage events: total number of over and under-voltages in the next for all hours of the year 18

19 ES-GRID Financial Results Summary Example Deferral is the primary value benefit for the substation sited energy storage. The rate of load growth affects cost-effectiveness of an investment. The use of mobile energy storage can further increase the cost-effectiveness of energy storage for deferral Mobile energy storage enables cases with lower alternative deferral costs to be cost-effective. Six illustrative runs are shown below: Scenario # Size Deferral Value Sites Load Growth Benefits Costs NPV BCR MW 4 hr $538/kW Single 1% 2,617-2, MW 4 hr $538/kW Single 1% 3,627-4,735-1, MW 4 hr $309/kW Single 1% 1,503-2, MW 4 hr $309/kW Multiple 1% 2,854-2, MW 4 hr $538/kW Single 2% 1,498-2,

20 Topics for Today s Discussion California Efforts in Energy Storage Ruling that was implemented Cost Effectiveness Process to support ruling Potential Implications of the ruling New York Best Battery & Energy Storage Lab Roles of Public Private Partnerships NY-BEST Commercialization & Test Center for Storage 20

21 Utilizing Public-Private Partnerships New York State examined the potential for electricity storage and determined that it wanted the State to be a leader in Storage Looked to leverage leading companies (GE, BAE Systems, Corning) in New York Looked to leverage strong academic / research universities in the State Goals were to not only advanced the technology, but also attempt to draw industry leading manufacturers and suppliers to the State Transform manufacturing to high tech job potential Potential to revitalize Northern Cities - Rochester, Syracuse, Buffalo with high test industries Seeded $25 million to a program and asked NYSERDA to look at innovative ways to participate and promote Storage

22 Public-Private Partnerships NYSERDA took new approach to Energy Storage departed from typical path of having a program dedicated to a technology area NY-BEST was created as an attempt to leverage public-private partnerships and accelerate the electricity storage industry Group is made up of a cross section of Industry, Academic, and At Large members from additional areas such as utilities, consulting, testing agencies, etc. Organization was originally seeded with funds to distribute as grants for storage projects Goal of organization was to become self-sustainable as well Lab was created as a venture to secure viability of the lab Board and organization created concept of a testing center in New York

23 BEST Test Center & Commercialization Center Full scale testing capabilities from cells and modules to packs, racks and MWscale systems Strength of DNV KEMA expertise and knowledge Shared, industry-wide resource intended to grow the energy storage industry in New York State Environmental testing full suite of chambers and rooms to accompany each scale of testing Cost effective life and accelerated aging testing Northeast US location with excellent user access

24 BEST Test and Commercialization Center A Joint Project of NY-BEST and DNV KEMA

25 Capabilities: Types of Testing Performance, durability/life, abuse/safety Test to existing/emerging standards IEC UL 1973 UN 38.3 IEEE P IEC DOE/PNNL Protocols Others as applicable/available

26 Capabilities: Types of Testing Single Cell Low/High Power : 5V to 50A range - Testing and evaluating cells: high volume testing such as repetitive cycling and validation CELL/Module/Packs Level 20V to 600A - Battery Life Test: ideal for testing and evaluating battery modules and large packs (e.g. HEV/EV applications) from 0 to 80 Volts, also cell level over voltage, over charge and discharge conditions Module/Battery Level - 100V/50A to 600A - Battery Life Test: ideal for testing and evaluating HEV as well as industrial battery modules and packs. System/Battery Pack Level (1000V/500A (240kW) - testing and evaluating system level high voltage battery packs found in automotive, Grid, and other energy storage applications at the system level. System Level Testing to 2 MW in Chalfont PA or in field.

27 Capabilities: Testing Test Equipment Single Cell Testers PEC SBT 550 5V/50amp PEC SBT v/50A 24CH/machine PEC SBT V/50A - 12 CH/machine PEC SBT V/500A CH - 2CH/machine 1000kW Test Stand kw channel Environmental Chambers Single cell - CSZ ZP(H)-16 Module - CSZ ZP SCT/WC Rack - CSZ WM-1100-MP4-ST2/WC Over 300 Channels total with Environmental Support

28 Capabilities: Test Programs Cell Characterization Capacity, efficiency, SOC/DOD, life, safety Cell Application Performance Utility level Applications Stack level Testing Battery Module Performance Storage System Basic Operation & Safety Safety and Failure modes, responsiveness Storage System Interconnection Compliance Harmonics, Surges, power factor, loss of grid/islanded (1547) Storage System Performance Storage System Extended Application Cycling (Temp/Hum/abuse) Field Commissioning and Extended Testing

29 Capabilities: Diagnostics and Analytical Spectroscopy and Microscopy Vibrational Spectroscopy Electronic Spectroscopy Luminescence Spectroscopy Elemental analysis X-ray diffraction X-ray crystallography Optical Microscopy SEM, TEM, FIB-SEM Ultra-microtomy Material Separation and Structure Characterization HP Liquid Chromatography Ion Chromatography Gas Chromatography Mass Spectrometry GCMS LCMS NMR and EPR Competitive Analysis Polymer and Physical Characterization Rheology Size Exclusion Chromatography Functional Analysis Chromatography Particle and Void Size Analysis Profilometry Tensiometry and surface physical properties Atomic Force Microscopy XPS/ESCA/SIMS (static and dynamic) The Center also provides access to a wide array of other unique capabilities in the NY-BEST network

30 Next Steps on Facility The Testing lab is scheduled to be open in April 2014 Initially focusing on verification and lifecycle testing Located in Rochester, NY at the site of Kodak s business park Business park, area are being revitalized by the State Many new firms are being introduced into the facility The organization is also becoming a leading voice in the storage industry Advancing stakeholder issues such as Safety Standards for Storage Assisting with Policy issues nationally and regionally for the State.

31 IEEE Power & Energy Society Technical Meeting Richard Fioravanti, Head of Department, Distributed Energy Resources (703) SAFER, SMARTER, GREENER 31