Battery Integration &Energy Storage Options

Jake McKeeVice President Engineering, Solar PVE.ON Climate & Renewables

Energy Storage USAJuly 8th, 2015

Opportunities and monetizing

PG&E, PJM, TEP

Experiences in Puerto Rico

Developing, Engineering & Optimizing – Solar & Battery Projects

Design Considerations

Battery Technologies

Contracting

Overview

OPPORTUNITIES AND MONETIZING

BATTERIES

4

(Source: IHS)

How PG&E plans to use Energy Storage (ES) procured through their RFO? -From their 2014 Energy Storage RFO Update 2-11-15

PG&E seeks ES that can be scheduled into the California Independent System Operator (“CAISO”) market, or

ES capable of enhancing system reliability, such as deferring distribution system upgrades

6

PJM, ERCOT - Frequency Response Projects

(Source: IHS)

Tucson Electric Power (TEP) Energy Storage RFP

Frequency Response Real Power – ESS automatically delivers 10MW

real power within 2 seconds and lasting 60 seconds then linearly ramping

down to 0 in 15 seconds

Reserve Power – Deliver 10MW real power for up to 15 minutes upon

manual command

Fault Response – Automatically dispatch reactive power when the utility

POI voltage falls below 0.8 p.u.

Voltage Control – ESS provides proportional reactive power when POI

voltage deviates outside defined deadband

PUERTO RICO EXAMPLE

PREPA and MTRs!!

Ramp Rate + Frequency Control

What if these happens at the same time?

MTRs led to a cost benefit sizing of battery

Complex language to measure violations

Ramp Rate Control

The PV facility shall be able to control the rate

of change of power output

Rate of decrease of power!

A 10 % per minute rate (based on AC capacity)

11

Frequency Response

The PV facility shall provide an

immediate real power primary

frequency response of at least 10%

of the maximum AC active power

capacity

The time response (full 10%

frequency response) shall be less

than 1 second

The facility frequency response shall

be maintained for at least 9 minutes

Options Considered for PR/Island Grid Requirements

Fly Wheels, lacking longevity

Diesel Generators, lacking response time

Super Capacitors, lacking longevity

Forecasting, not mature of a field to finance

Batteries

Various combinations of the above

PURE BATTERY SOLUTION WON

MOST PROMINENT ES TECHNOLOGY…FOR DEVELOPERS ?

-

5,000

10,000

15,000

20,000

25,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

(MW

)

NAS BatteryCAESPumped HydroAdvanced Lithium IonAdvanced Lead AcidFlywheelAdvanced Flow BatteryHydrogenSMH

Energy Storage Technology Forecast, World Markets: 2013-2023

(Source: Navigant Research)

Advanced Lithium Ion will Continue to Increase in Demand and Lead Other Technologies

(Source: IHS)

Battery Installations Have Shifted Towards Li-ion

DEVELOPING, ENGINEERING & OPTIMIZING –SOLAR AND ES PROJECTS

Design Considerations

Battery Technologies

Contracting

DESIGN CONSIDERATIONS

18

What to Consider

What is the primary need for the storage?

Any peripheral uses?

Choosing a storage technology

Choosing a battery provider

Choosing an integrator

Choosing an installer

19

Goals for the Storage

Renewable Energy Smoothing (ramp rate)

Renewable Energy Shifting and Firming

Ancillary Services

Arbitrage

Peaking Capacity

Transmission and distribution investment deferment

Distributed Generation Support / Distributed Storage

BATTERY TECHNOLOGIES

Selecting the Battery Technology for your Project

Flow

NaS

Li-Ion

Advanced Lead Acid

Selecting the Battery Technology for your Project

Flow technologies

Higher Cycle Lifetimes

Low Maintenance

Quick Response Time

Applications requiring longer duration

Break point to go to flow is ~2 hours

Selecting the Battery Technology for your Project

NaS

High Energy Density

High Efficiency

High Cycle Life

High Energy to Capacity Ratios

Selecting the Battery Technology for your Project

Li-Ion

High Energy Density

Microsecond Response Time

Better Round Trip Efficiency than NaS and Flow

25

Technology to Fit the Application

Current grid-connected battery product offeringsManufacturer Chemistry Standard “duration” at

rated capacityTarget grid applications Major customers

Altairnano Lithium titanate 15 minutes Frequency regulation, renewables shaping

Hawaiian Electric Company

Toshiba Lithium titanate 15 minutes Distributed storage -Mitsubishi Lithium ion 15 minutes Frequency regulation AES (in Chile)Saft Li-ion / Nickel-

Cadmium15 minutes to 1 hour Multiple Cowesses First Nations

EnerDel Lithium titanate 15 minutes to 2 hours Multiple Wanxiang, Portland General Electric

Ecoult Advanced lead acid 15 minutes to 3 hours Multiple Public Service of New Mexico

A123 Systems (Wanxiang Group)

Lithium iron phosphate

15 minutes to 4 hours Frequency regulation, renewables shaping

AES Energy Storage

BYD Lithium iron phosphate

1–2 hours Multiple Chevron

Samsung Lithium manganese 1–2 hours Multiple Xtreme Power

Panasonic Lithium ion 1–2 hours Distributed storage, renewables shaping

Solar City

ZBB Zinc-flow 2 hours Distributed storage, T&D US MilitaryPrimus Power Zinc-flow 2–3 hours T&D, capacity credit,

renewables shapingModesto Irrigation District

GE Sodium nickel chloride

2–6 hours Renewables shaping, T&D, distributed storage

-

Enervault Redox-flow 4–6 hours Capacity credit RaytheonNGK Sodium sulfur 6–7 hours T&D, renewables shaping,

capacity creditAEP, PG&E

Prudent Energy Vanadium redox flow 6–8 hours T&D, capacity credit, distributed storage

Gills Onions

Note: Includes primary product offerings for grid-scale applications.

Source: IHS © 2014 IHS

Hig

he

r p

ow

er

Hig

he

r d

ura

tio

n

(Source: IHS)

Comparison of three Li-Ion Chemistries

Nickel Manganese Cobalt (NMC)

Lithium Iron Phosphate (LFP)

Lithium Titanate Oxide (LTO)

Charge-Rate Should Fit the Application

A C-rate is a measure of the rate at which a battery is

discharged relative to its maximum capacity

A 1C rate means that the discharge current will

discharge the entire battery in 1 hour

A C-Rate should be closely sized to the capacity and

time requirements/goals of the Energy Storage System

Nickel manganese cobalt (NMC)

Many factories (use in consumer electronics and vehicles) Tailored to high specific power and/or energy; but not both!

(Source: BatteryUniversity.com)

Lithium iron phosphate (LFP)

Many factories due to use in consumer electronics and vehicles Higher current rating Higher lifetime

(Source: BatteryUniversity.com)

Lithium titanate oxide (LTO)

Capable of charging/discharging at higher C-Rates (4-C or greater) Higher prices due to less applications

(Source: BatteryUniversity.com)

31

Cost

Cost per MWhr

Battery

Cost per MW

Battery

BOP

CONTRACTING

Contracting the BESS

Wrap as much as possible

Battery supplier, integrator, installer, O&M

A wrap?

With a large balance sheet

If tied to a longer solar PPA Battery replacement plan

Not to exceed replacement price

Lifetime NPV evaluation

34

Contracting – Nameplate Capacity (MWs, MWhrs)

What is the nameplate of the battery system?

The batteries have more capability than the nameplate since they should not

be charged or discharged completely

The batteries can be run at different charge/discharge rates affecting the

cycle life!

35

Limiting factors with

the batteries can be

calendar life or cycle

life

“Charge Acceptance”

can be the weak point

for batteries

Charge Acceptance

Contracting -- Guarantees

Language to guarantee performance

Rigorous Approach

Typical weather year for ramp

Standard deviation doesn’t exceed

Existing grid frequency data for frequency

Cycles and DOD - standard deviation again

Number of cycles

Define a Depth of Discharge (DOD) for the cycle

Guarantees come at a price

37

Pricing – MWhr/Cells are the most variable

Li-ion NaNiCl Flow NaS Metal air0

500

1,000

1,500

2,000

2,500

3,000

2010 2020 2030

Ba

tte

ry m

od

ule

pri

ce

(U

S$

/kW

h)

IHS battery module price forecast (real 2013$)

© 2014 IHS

Note: These costs are representative module prices for each technology. Data is based on public reports and IHS interviews with manufacturers and project developers. Source: IHS, US Department of Energy, Sandia National Laboratory, Electric Power Research InstituteSource: IHS

The price for the cells is the most variable Battery chemistry chosen Project specifics Battery supplier

(Source: IHS)

Accounting for Your Battery.. w/ and w/ out Solar

“round-trip efficiency” of the battery

system

batteries dissipate when storing

over periods of time; too minor or

not?

From Solar or Grid!

Sign a utility contract

These are losses from the

solar production

  Statistical efficiency

through operating

projects

Guaranteed

efficiency

Battery (round-trip)    

Inverter (round-trip)    

Transformer (round-trip)

*if vendor provide the

transformer

   

Parasitic Load (round-trip)    

Direct Grid Interconnected Project.. Utilities Procurement Still Figuring Out How to Contract

How to monitor the energy stored and the energy

used by the system

Two lines and meters running to the ES For charging For parasitics (e.g. lights, controls, cooling)

Retail rates vs. Wholesale rates

Contact:

Jake McKeeVice President Engineering, PVE.ON Climate & Renewablesjake.mckee@eon.com