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An EPRI perspective on the future of Distributed Energy Storage
by Barry MacColl, Electric Power Research Institute - International
2© 2017 Electric Power Research Institute, Inc. All rights reserved.
Three Key Aspects of EPRI
Independent
Collaborative
Nonprofit
Independent
Objective, scientifically based
results address reliability,
efficiency, affordability, health,
safety and the environment
Nonprofit
Chartered to serve the public
benefit
Collaborative
Bring together scientists,
engineers, academic
researchers, industry experts
3© 2017 Electric Power Research Institute, Inc. All rights reserved.
Our Members…
450+ participants in more than 30
countries
EPRI members generate
approximately 90% of the electricity
in the United States
International funding of over 25% of
EPRI’s research, development and
demonstrations
4© 2017 Electric Power Research Institute, Inc. All rights reserved.
International EPRI R&D Collaboration
Over 25% of EPRI Collaboration Membership is International
SOUTH AMERICAArgentinaBrazil
AFRICASouth Africa
NORTH AMERICACanadaMexico
AUSTRALIAAustraliaNew Zealand
ASIAJapanIndiaMalaysiaPeople’s Republic of ChinaR.O.C. TaiwanSouth Korea
EUROPEBelgiumCzech RepublicFinlandFranceGermanyGreeceHungaryIrelandItalyNetherlandsNorwayScotlandSlovakiaSloveniaSpainSwedenSwitzerlandUnited Kingdom
Middle EastUAESaudi Arabia
5© 2017 Electric Power Research Institute, Inc. All rights reserved.
Storage Changes Supply Chains
Refrigeration transformed food supply by allowing preservation of a highly perishable product
• Changed delivery mechanisms
• E.g. No more milk man
• Created new supply and demand patterns
• E.g. Winter produce from Chile
Energy storage may similarly transform when and where electricity is produced, transmitted, and used GE Monitor-Top
refrigerator, c. 1927
Picture rom digital collection of Mike Manning, retrieved 31 Oct 2013from http://en.wikipedia.org/wiki/File:Monitor_refer.jpg
6© 2017 Electric Power Research Institute, Inc. All rights reserved.
The Drivers for a Storage Transformation
Policy and Regulatory Shifts– Regulatory evolution to accommodate storage
– Policy incentives and targets
Economic Transformation– Rapidly declining costs
– Monetization through markets and tariffs
Societal Change– Increased environmental awareness
– Desire for reliability and resiliency
Technological Advancement– New storage technologies
– Maturing product and understanding
$
Q
7© 2017 Electric Power Research Institute, Inc. All rights reserved.
Are we reaching the Tipping Point for Storage?
Massive investment in lithium ion battery
manufacturing has caused the cost of the
technology to plummet over the last two years
– Installed costs less than $500/kWh reported for 2016
– EPRI estimates have been $350 - $500/kWh
by 2020
Prices have reached a very interesting level
– Still too high for “classical” storage applications such as
load leveling
– But applicable in niche applications such as peak
shaving for asset deferral, and peaker replacement
8© 2017 Electric Power Research Institute, Inc. All rights reserved.
Residential Storage: The Difference a Year Makes
Tesla PowerWall 2Announced October 28, 2016
Tesla PowerWallAnnounced April 30, 2015
Power: 2 kWEnergy Capacity: 6.4 kWhWeight: 214 lbs.No Integrated Inverter
Installed Cost: ~$950/kW per hour of storage
Power: 5 kWEnergy Capacity: 13.5 kWhWeight: 264 lbs.Fully Integrated Inverter
Installed Cost: ~$580/kW per hour of storage
2x Energy2x Power60% less space
9© 2017 Electric Power Research Institute, Inc. All rights reserved.
Solar + Storage: The Difference a Year Makes
September 2015: Kauai Island Utility Cooperative signs a Power
Purchase Agreement with Solar City/Tesla
– 17 MW solar array + 52 MWh battery
– 13.9 cents / kWh under 20 year PPA
January 2017: Kauai Island Utility Cooperative
signs a PPA with AES
– 28 MW solar array + 100 MWh battery
– 11 cents / kWh under PPA (unspecified period)
May 2017: Tucson Electric Power signs PPA with
NextEra
– 100MW solar + 30MW / 120MWh battery
– 4.5 cents / kWh over 20 year PPA
Sou
rce:
So
lar
Cit
y
10© 2017 Electric Power Research Institute, Inc. All rights reserved.
Aliso Canyon: Less than a year from inception to installation
Aliso Canyon (California): Gas storage plant issues pushed California Public
Utilities Commission to call for energy storage to be installed to replace gas
peakers by the end of 2016
Several large-scale battery systems installed
20 MW / 80 MWh AltaGas Pomona Energy (SCE)
20 MW / 80 MWh Tesla Energy at Mira Loma (SCE)
2 MW / 8 MWh Powin Energy system at Irvine (SCE)
30 MW / 120 MWh AES Energy Storage at Escondido (SDG&E)
7.5 MW / 30 MWh AES Energy Storage at El Cajon (SDG&E)
Other systems to come
Systems were installed at breakneck speed
RFO / RFP issued in June 2016
Awards / CPUC Approval in September 2016
Several systems online by December 31st, 2016
Final commissioning Jan/Feb 2017
11© 2017 Electric Power Research Institute, Inc. All rights reserved.
Has energy storage arrived?
Aliso Canyon shows that lithium ion batteries can be
attractive as peaker replacements years before expected
– Special conditions (reduced availability of gas) make energy storage
the preferred choice – even though prices may be somewhat higher
than gas turbines ($2000/kW)
– By 2020, storage at $1400/kW for 4 hours may be directly
competitive with natural gas turbines in some locations
But technology maturity is more than just cost!
– Does storage have a track record of safety, reliability and
predictable performance?
– How are we using the storage, and what is the business model?
– How do we incorporate storage into grid planning and operating
practice?
12© 2017 Electric Power Research Institute, Inc. All rights reserved.
Gaps to Energy Storage Implementation
Real-world performance data
– Testing and evaluation in lab and field settings
– Collecting data from deployments to build track
record
Understanding the value of storage
– Learning how storage can be used to improve grid
design and operation
– Getting the most value out of an energy storage
deployment
Organizational adaptation to new technology
availability
– Developing best practices for design, deployment,
integration, operation, and disposal
– Incorporating storage into existing planning and
operations procedures
13© 2017 Electric Power Research Institute, Inc. All rights reserved.
Building a Utility Energy Storage Deployment Program:
Pillars to Support Transition from R&D to Operations
Get the Data
Specify relevant data to safety, reliability, value
Consistent comparison
Performance/reliability track record
TESTING AND DATA
Analyze the Options
Identify and screen opportunities
Feasible and optimal location
Design for optimal lifecycle value
MODELING
Put into Practice
Guidelines for deployment
Customized tools
Technical training
IMPLEMENTATION
14© 2017 Electric Power Research Institute, Inc. All rights reserved.
Understanding the Value of Storage
What are the potential benefits of energy storage?
– Capacity: Peaker replacement or non-wires
alternative
– Flexibility: System ramping, renewable variability
– Reliability: Electricity inventory for reserves
– PQ: Maintain voltage and power quality
How can we dispatch storage to optimize these benefits?– How do benefits “stack” and do they justify the
costs?
– What benefits are easily monetizable?
The industry is developing analysis methodologies and tools to support these studies
15© 2017 Electric Power Research Institute, Inc. All rights reserved.
StorageVET™: Publicly-accessible storage valuation tool
Goal: support common understanding
of storage value between stakeholders
Consistently analyze storage across
range of uses, technologies, locations
Ongoing collaborative effort to apply
and refine tool through open forum -
EPRI Energy Storage Integration
Council (ESIC)
More info at www.storagevet.com
16© 2017 Electric Power Research Institute, Inc. All rights reserved.
Energy Storage Integration Council (ESIC) Mission
To advance the integration of energy storage systems through
open, technical collaboration
Guided by Public Benefit Vision…Practical Needs for Real DeploymentMore info on products and enrollment at www.epri.com/esic
Develop and publish a robust set of evolving publicly available guidelines and tools in collaboration with ~1000 technical staff from utilities, developers, and research organizations
17© 2017 Electric Power Research Institute, Inc. All rights reserved.
Identify Gaps
Define Work Needed
Collaborative development
Working group review
Publication and application
Energy Storage Integration Council (ESIC)
Develop energy storage integration guidelines and tools through industry collaborationStarted in 2013, 700 participants from utilities, suppliers and research community
Published products at ESIC website: www.epri.com/esic
18© 2017 Electric Power Research Institute, Inc. All rights reserved.
ESIC Products Published to Date
Energy Storage Implementation Guide
Energy Storage Cost Tool and Template
Energy Storage Technical Specification
Template
Energy Storage Safety Guidelines
Energy Storage Test Manual
Energy Storage Commissioning Guide
Common Functions for Smart Inverters V4
StorageVET and Supporting Documentation
(www.storagevet.com)
Coming Soon: Request for Proposal Guide Available at ESIC Website:www.epri.com/esic
20© 2017 Electric Power Research Institute, Inc. All rights reserved.
EPRI Research Questions on DER and AECs
1. What are the costs and benefits of customer-owned DER to achieve specific types of grid benefits?
2. With respect to design and deployment, where are optimal locations in a utility service territory that offer the greatest
benefit to ratepayers and the grid?
3. How can we evaluate distribution systems and optimize DER penetration?
4. How can we obtain useful insight into expected customer adoption and the impacts to the distribution grid?
5. How can we evaluate the design and sizing of microgrids and assess their benefits?
6. How can we develop demonstrations targeting specific types of communities—such as low income housing, new
residential construction, college campuses, and industrial and agricultural facilities—with a goal of understanding distribution
system impacts?
7. How can technologies to aggregate multiple types of DER be developed and demonstrated to enable both utilities and
aggregators to deploy and control DER effectively?
8. How can we develop customer programs to promote DER adoption that is targeted with respect to both technology and
location?
9. What are the economics and effectiveness of off-grid applications?
10. How can emerging technologies be integrated through AECs to enable underserved segments of the customer base—
such as low income, rural, and small business customers?
11. What innovative financing strategies can support development of such communities and make them financially attractive
or practical relative to developments lacking advanced energy attributes?
21© 2017 Electric Power Research Institute, Inc. All rights reserved.
Developing Technologies of the Future
22© 2017 Electric Power Research Institute, Inc. All rights reserved.
Today’s Key Takeaways
Energy Storage has Real Possibilities: Even after cutting through the tremendous hype, grid energy storage has substantial potential to make inroads into the electricity industry, through niche applications and specialized technologies at first, but proceeding into broader uses, with potential widespread adoption beginning between 2020 and 2025.
Lithium Ion Batteries are the Immediate Opportunity: A sharp drop in lithium ion prices in the last two years, and strong interest among developers and regulators, have resulted in a number of prominent deployments in niche applications. If successful, these deployments point the way towards broader application of battery storage in specific locations and uses, though prices are still far too high for more “classical” uses of storage such as load leveling or bulk storage of renewables. Other storage technologies will find it difficult to compete in the near term but may benefit from a mature storage market in the 5-10 year time frame.
Long-Term Research is Critical to Success: Present-day technologies meet some needs on the grid, but future needs require radically better technologies with more energy density, higher efficiency, better reliability and lower cost. These technologies cannot be developed without a systematic approach to research and development covering the entire spectrum of Technology Readiness Levels, from early proof-of-concept through demonstration, pilots, and deployment.
23© 2017 Electric Power Research Institute, Inc. All rights reserved.
Together…Shaping the Future of Electricity
25© 2017 Electric Power Research Institute, Inc. All rights reserved.
The U.S. Department of Energy (DOE) defines microgrids as
a group of interconnected loads and distributed energy
resources (DER) within clearly defined electrical boundaries
that act as a single controllable entity with respect to the grid.
A microgrid can connect and disconnect from the grid to
enable it to operate in both grid-connected and island mode.
26© 2017 Electric Power Research Institute, Inc. All rights reserved.
Energy Storage Implementation Guide
A practical reference guide to the complete lifecycle of an energy storage project that organizes ESIC products and publically available materials, developed for utility project managers
Download at www.epri.com/esic
27© 2017 Electric Power Research Institute, Inc. All rights reserved.
Energy Storage Cost Tool and Template
Excel tool for supporting that all energy storage project costs items are
accounted for and quotation requests and responses are clear
Vendor Quote
Cost Line Item Cost Input Options Vendor Input Units Vendor Quote Units
Total ESS Equipment Included-Itemized USD $1,525,000 USD
Battery / Energy Storage Medium Included-Itemized $1,000,000 USD $1,000,000 USD
Power Conversion System (PCS) Included-Itemized $350,000 USD $350,000 USD
Control Software Included-Itemized $25,000 USD $25,000 USD
Control Equipment Included-Itemized $50,000 USD $50,000 USD
UPS & Other Electronics Excluded USD Excluded USD
ESS Thermal Management System Included-Itemized $100,000 USD $100,000 USD
Pre-Engineered ESS Structural Components (e.g. containers & racks) Excluded USD Excluded USD
Other ESS Purchases N/A USD N/A USD
Download at www.epri.com/esic
28© 2017 Electric Power Research Institute, Inc. All rights reserved.
Energy Storage Technical Specification Template
Adaptable Excel tool for requesting requirements and receiving specs
for energy storage products and projects.
Download at www.epri.com/esic
29© 2017 Electric Power Research Institute, Inc. All rights reserved.
Energy Storage Safety Guidelines
Example Probability Risk Assessment
Guidance on energy storage safety throughout a project, including reference
codes and standards organized by functional area.
Download at www.epri.com/esic
30© 2017 Electric Power Research Institute, Inc. All rights reserved.
Energy Storage Test Manual
Manual to support consistent characterization of energy storage performance and
functionality, including specific, detailed procedures.
Auxiliary load determination
Round-trip efficiency
Available energy capacity
Charge duration
Rated continuous power
Response, rise, settling time
Harmonic distortion
Volt-VAR regulation
Charge/Discharge management*
Peak power limiting*
Startup/Shutdown time*
Self-discharge*
Autonomous frequency regulation*
*To be included in 2017 revision
Download at www.epri.com/esic
31© 2017 Electric Power Research Institute, Inc. All rights reserved.
Energy Storage Commissioning Guide
Develop a written commissioning plan with requirements, schedule, and budget
Develop a decommissioning plan with risk assessment, safety plan, disposal plan, and shutdown procedures
Refine commissioning plan and formalize through contract language
Commissioning, field and factory acceptance tests ensure system is operating to specification
Re-test or recommission as required by maintenance or performance monitoring
Guidelines for energy storage commissioning throughout a project, including
recommissioning and decommissioning.
Download at www.epri.com/esic
32© 2017 Electric Power Research Institute, Inc. All rights reserved.
Common Functions for Smart Inverters
IEEE 1547, IEC-61850, Rule 21
DNP3, SEP 2.0, Modbus
IEC-61850
Guide to industry on smart inverter functionality for PV/Storage function
definitions for communication and responses
Download at www.epri.com/esic
33© 2017 Electric Power Research Institute, Inc. All rights reserved.
Storage Value Estimation Tool
(StorageVET™) www.storagevet.com
Sophisticated web-hosted and publicly available storage optimization and cost-
benefit analysis tool supporting cross-stakeholder communication about CBA of projects
34© 2017 Electric Power Research Institute, Inc. All rights reserved.
Energy Storage Request for Proposal Guide
Guide to support clear communication of project requirements and scope in
an RFP with links to other ESIC products supporting storage procurement
Responsibility matrix tool
Publication expected November 2017
35© 2017 Electric Power Research Institute, Inc. All rights reserved.
Get involved with ESIC
For more information, visit www.epri.com/esic
Enroll today by sending an email to [email protected] with:
– Name
– Title
– Organization
– Address
– Phone