Energy Storage Technologies

& Their Role in Renewable

Integration

Prepared for:
IEEE SF Power & Energy Society
Workshop, November 15, 2010

Prepared by:
Dr. Robert B. Schainker
EPRI Senior Technical Executive
[email protected]
Source: EPRI, Schainker (650) 996 6186 (Cell)
Agenda

- Background Information
- How the Grid Works
- Key Challenges (Now and Into the Future)
- Energy Storage Technologies
- Value Propositions
- Applications
- Capital Cost Estimates
- Key Issues Associated With Renewables
- Example Benefit-Cost Analyses for One Type of Energy Storage Technology
- Brief Descriptions for a Wide Variety of Energy Storage Technologies
- CAES, PH, Battery, Flywheel, SMES and SuperCaps
- Conclusions
- Appendix Material

© 2010 Electric Power Research Institute, Inc. All rights reserved. 2

Challenges To The US
Electric Infrastructure

ƒ Intermittent nature and increasing amounts of

renewables (e.g., wind & solar) connected to the
grid
ƒ An alarming growth rate in customer-owned DG connections to the
grid
ƒ Increasing demand for improved service quality and reliability
ƒ Future PHEV load
ƒ Cost control
ƒ Improving use of assets
ƒ Improving efficiency (internal & customers)
ƒ Aging Infrastructure and lack of investments in
transmission, distribution and generation equipment

© 2010 Electric Power Research Institute, Inc. All rights reserved. 3

Utility Generation Dispatch With Storage
(Without Any Renewable Generation)

NUCLEAR

Forced Chg

MW COAL

COAL Chg

OIL

Stor Gen

CT
Day of Week, Monday through Sunday
Source: EPRI, Schainker
© 2010 Electric Power Research Institute, Inc. All rights reserved. 4
Energy Storage Is A No-Regret Investment

Nuclear Distributed
Generation Generation
AMI
Storage
PHEV Energy Storage
is one of the few
No-Regrets Investments
regardless of which future
Coal
scenario prevails
Generation
Source: EPRI

© 2010 Electric Power Research Institute, Inc. All rights reserved. 5

Electric Energy Storage: Value
Proposition: Multiple Benefits

Types of Physical System Corporate Customer

Benefits Generation T&D Perspective Perspective
Strategic
• Enhance
Renewables
• Mitigate
Uncertainty STRATEGIES
• CO2 Reduction
Risks
And
Opportunities
Operational
• Dynamic
• Load Leveling
Time

Source: EPRI, Schainker

© 2010 Electric Power Research Institute, Inc. All rights reserved. 6

Barriers to Implementation of
Energy Storage Technologies

• Cost of storage
Economic ¾ Need manufacturing volume
& competition
¾ Incentives to industry
• Being able to capture multiple
values in a given application

Regulatory • How to handle multiple benefits

across distribution, transmission
and generation?
• How to handle energy in and out
in a deregulated environment?
Source: EPRI, Schainker
© 2010 Electric Power Research Institute, Inc. All rights reserved. 7
Electric Energy Storage Applications
(All Boundaries Of Regions Displayed Are Approximate)

1000
Load Leveling
High Ramping
Spinning
Priority System
Reserve Energy Arbitrage High
100 Stability
Renewables Priority
VAR
- Wind
Support
- Solar
10
Power Quality Frequency Peak
Peak Shaving
Shaving
Regulation T&D Deferral
and T&D
Temporary Deferral Transmission
Power Congestion Management
1.0 Interruptions Black
Start needs
Remote Island Applications 1 to 30 MW’s
Village Power Applications For a 1 to 2 Hr.
Duration

0.1
0.1 Cycle 10 Cycle 15 Second 15 Minutes 1 Hour 5 Hour

Source: EPRI, Schainker

© 2010 Electric Power Research Institute, Inc. All rights reserved. 8
Energy Storage Plants:
Capital Cost Comparisons

This
column
determines
how many
discharge
hours one
can afford
to build.

Source: EPRI

© 2010 Electric Power Research Institute, Inc. All rights reserved. 9

Agenda, Reminder

- Background Information
- How the Grid Works
- Key Challenges (Now and Into the Future)
- Energy Storage Technologies
- Value Propositions
- Applications
- Capital Cost Estimates
- Key Issues Associated With Renewables
- Example Benefit-Cost Analyses for One Type of Energy Storage Technology
- Brief Descriptions for a Wide Variety of Energy Storage Technologies
- CAES, PH, Battery, Flywheel, SMES and SuperCaps
- Conclusions
- Appendix Material

© 2010 Electric Power Research Institute, Inc. All rights reserved. 10

Variation of Solar PV System Output

Source: AES

© 2010 Electric Power Research Institute, Inc. All rights reserved. 11

Wind Generation Varies Widely
MW The average is smooth, but day-to-day variability is great
700
Each Day is a different color. April 2005 in Tehachapi WRA
600
−Day 29

500 −Day 9

400
−Day 5
−Day 26
300
Average
200

100

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour
Source: CAISO
© 2010 Electric Power Research Institute, Inc. All rights reserved. 12
Energy Storage Efficiently Resolves Wind/Solar Power
Fluctuations, Ramping and Load Management Issues

Frequency Regulation:

Ramping:

Load Leveling
Load (MW) Str. Chrg Time ~ Min’s

• Battery, Regular or Flow Type

Str. Chrg Time ~ Hrs • Super-Capacitor
• CAES • Flywheel
0 Time (Hr) 24 • Pumped Hydro • Superconducting
Magnetic Storage
Str. Chrg Time: ~ 0.5 Day • Battery, Flow Type
• Note: For many utilities,
• CAES ramping and reducing
part load problems are
• Pumped Hydro high priority, especially Source: EPRI, Schainker
due to power fluctuations
from wind/solar plants

© 2010 Electric Power Research Institute, Inc. All rights reserved. 13

Problem: Wind/Renewable Plants Produce Power Output
Oscillations Or Provide Power When Not Needed, Which
Limits Their Value

Solution:
Deploy Electric Energy Storage Shock Absorber Plant,
Which Is Sized and Controlled To Reduce Load Leveling,
Ramping, Frequency Oscillation and/or VAR Problems
Smart Grid
Extremely Large Amounts of Wind Inputs
& Solar Are Expected In California
and Almost All Other US Electric
Utility Regions

*
*

Source: EPRI, Schainker

© 2010 Electric Power Research Institute, Inc. All rights reserved. 14

Agenda, Reminder

- Background Information
- How the Grid Works
- Key Challenges (Now and Into the Future)
- Energy Storage Technologies
- Value Propositions
- Applications
- Capital Cost Estimates
- Key Issues Associated With Renewables
- Example Benefit-Cost Analyses for One Type of Energy Storage Technology
- Brief Descriptions for a Wide Variety of Energy Storage Technologies
- CAES, PH, Battery, Flywheel, SMES and SuperCaps
- Conclusions
- Appendix Material

© 2010 Electric Power Research Institute, Inc. All rights reserved. 15

Typical Benefit to Cost Ratio for Battery
Plants Versus Hours of Storage and MW Size

Example results from EPRI benefit-cost analyses, which compares

different types of energy storage plants

Benefit to Cost Ratio

5.0 Note: The capital cost for
an extra hour of battery
4.0 storage is about $500/kW,
3.0 which drives down the B/C
2.0 ratio so quickly; whereas,
the capital cost for an extra
1.0
hour of CAES storage is
about $1/kW, which
enables CAES to be cost
g e T ime
Plant Stora effective for storage hours
Size much greater than 5.

* Based on 20GW utility that has USA mix. Source: EPRI, Schainker

© 2010 Electric Power Research Institute, Inc. All rights reserved. 16

Anticipated Savings with CAES Plant Integrated
with Wind Generation Resources

Example Results from EPRI Economic Analysis

© 2010 Electric Power Research Institute, Inc. All rights reserved. 17

Example Utility Results Showing CAES Economic
Benefits Highlighting Ancillary Service Benefits

© 2010 Electric Power Research Institute, Inc. All rights reserved. 18

Appendix
CAES Generation & Compression Cycles
(for a Typical Week)

MWH’s of Energy In Air Storage System

Compression
Generation

© 2010 Electric Power Research Institute, Inc. All rights reserved. 19

Agenda, Reminder

- Background Information
- How the Grid Works
- Key Challenges (Now and Into the Future)
- Energy Storage Technologies
- Value Propositions
- Applications
- Capital Cost Estimates
- Key Issues Associated With Renewables
- Example Benefit-Cost Analyses for One Type of Energy Storage Technology
- Brief Descriptions for a Wide Variety of Energy Storage Technologies
- CAES, PH, Battery, Flywheel, SMES and SuperCaps
- Conclusions
- Appendix Material

© 2010 Electric Power Research Institute, Inc. All rights reserved. 20

CAES Plants Built, Use and Reliability

• 110 MW – 26 hour Plant:

McIntosh Alabama
Operational: June 1991
ƒ Load Mngmt/Regulation
ƒ Buy Low, Sell High

ƒ Reliability ~ 95% to 98%

• 290 MW – 4 hour Plant:

Huntorf, Germany
Operational: December 1978
ƒ Peak Shaving/Regulation
ƒ Spinning Reserve

ƒ Reliability ~ 95% to 98%

Source: EPRI, Schainker
© 2010 Electric Power Research Institute, Inc. All rights reserved. 21
Alabama CAES Plant:
110 MW Turbomachinery Hall

Expansion Turbines

Clutch
Motor-Generator

Clutch

Compressors

Source: EPRI, Schainker

© 2010 Electric Power Research Institute, Inc. All rights reserved. 22
Above Ground CAES Plant Using Above Ground Air
Storage System (58 MW – 4 Hour):
Preliminary Plant Layout - - Top View

Volume: 630,000 CF

Source: EPRI & B&V

© 2010
© 2010
Electric
Electric
PowerPower
Research
Research
Institute,
Institute,
Inc. All
Inc.
rights
All rights
reserved.
reserved. 23
23
Advanced CAES Plant: Part Load Heat Rate and
Energy Ratio (For Overall Plant, Using Chiller Cycle)

Source: ESP, Nakhamkin

© 2010 Electric Power Research Institute, Inc. All rights reserved. 24

Geologic Formations Potentially Suitable for
CAES Plants That Use Underground Storage

Source: EPRI, Schainker

Alabama CAES Plant
© 2010 Electric Power Research Institute, Inc. All rights reserved. 25
Underground Natural Gas Storage
Facilities in the Lower 48 United States

‘ Depleted Gas Fields

‘ Porous Rock/Aquifers
‘ Salt Caverns
Source: PB-ESS
© 2010 Electric Power Research Institute, Inc. All rights reserved. 26
Types of Underground Air Storage Facilities
(same as those used for natural gas storage)

© 2010 Electric Power Research Institute, Inc. All rights reserved. 27

Major Bulk Energy Storage Projects In USA

PG&E 300 MW – 10 Hour Adv. CAES Demo Plant

ƒ DOE Award to PG&E: $25 M
ƒ Total Project Cost: $356 M*
ƒ Underground Air Store: Depleted Gas/Porous Rock
Reservoir

NYSEG 150 MW – 10 Hour Adv. CAES Plant

ƒ DOE Award: $30 M
ƒ Total Project Cost: $125 M*
ƒ Underground Air Store: Solution Mined Salt Cavern

* Note: Some of the above project costs go towards expenses not directly related to
the CAES plant (e.g., transmission line & substation upgrade costs)
© 2010 Electric Power Research Institute, Inc. All rights reserved. 28
Pumped Hydro Energy Storage Plant

Schematic of Generic Pumped Upper Reservoir of TVA’s Raccoon

Hydro Plant Mountain PH Plant
Operational Date: 1979
Capacity: 1620 MW
Max. Discharge Duration: 22 hrs

Source: EPRI, Schainker

© 2010 Electric Power Research Institute, Inc. All rights reserved. 29
Battery Energy Storage
Lead-Acid Battery Energy Storage Is One Of The Proven, Commercial Battery
Technologies. Of Particular Interest Are NaS and Li-Ion Batteries That Are Less
Expensive And Should Live Longer Than Lead-Acid Options For Each KW-H Of
Stored Energy

10 MW – 4 Hr Lead Acid Battery Plant At

Southern California Edison (1988)
Source: EPRI, Schainker
© 2010 Electric Power Research Institute, Inc. All rights reserved. 30
1 MW – 15 Minute Beacon Flywheel System

Source: Beacon Power

High-Speed Beacon Flywheels Used For Frequency Regulation
(Rating of Each FW: 100KW for 15 Min. Discharge)

© 2010 Electric Power Research Institute, Inc. All rights reserved. 31

Superconducting Magnetic Energy
Storage (SMES)

• SMES Is A Viable New

Technology For PQ and
Increased Transmission
Asset Utilization
Applications
• About 6 Small Plants Are
in T/D Operation For PQ
Application (1 to 3 MW,
with 1 to 3 Seconds of
Storage)
• High Temperature
Superconductors Will
Lower SMES Costs 10 MW – 3 Sec. Coil Tested
For Transmission Stability
Source: EPRI, Schainker

© 2010 Electric Power Research Institute, Inc. All rights reserved. 32

SuperCap Demo Plant

Hawaiian Electric Company, Inc.

(HECO) and S&C Electric Company
held on Jan. 17 a dedication at
Lalamilo Wind Farm near Waikoloa on
the Big Island of Hawaii to mark the
installation of the first PureWave®
Electronic Shock Absorber (ESA), an
innovative grid stabilizing device for
wind farms.

HECO SuperCap Demo (April 2006)

Nominal voltage 800 V DC Lalamilo Wind Farm
# of Ultracapacitors 640 Uses Maxwell SuperCaps and an
Max. power / Duration ~ 260 kW / 10 sec.
S&C Electric AC-DC-AC Inverter
Note: This demo plant was unfortunately destroyed by a 6.7 magnitude earthquake on 10/15/06
Source: HECO
© 2010 Electric Power Research Institute, Inc. All rights reserved. 33
Agenda, Reminder

- Background Information
- How the Grid Works
- Key Challenges (Now and Into the Future)
- Energy Storage Technologies
- Value Propositions
- Applications
- Capital Cost Estimates
- Key Issues Associated With Renewables
- Example Benefit-Cost Analyses for One Type of Energy Storage Technology
- Brief Descriptions for a Wide Variety of Energy Storage Technologies
- CAES, PH, Battery, Flywheel, SMES and SuperCaps
- Conclusions
- Appendix Material

© 2010 Electric Power Research Institute, Inc. All rights reserved. 34

One of Edison’s Most Famous Quotes:
“In Periods of Profound Change, The Most Dangerous
Thing Is to Incrementalize Yourself Into The Future.”

Steinmetz

Westinghouse

Tesla

Edison

Source: EPRI, Schainker

© 2010 Electric Power Research Institute, Inc. All rights reserved. 35
Conclusions

• The US electric grid today is under great stress

• Renewables, due their intermittency and rapid power fluctuations add de-
stabilizing challenges to the reliable operation of the US electric grid
• Energy Storage plants can provide extensive “shock absorbing” stability
inputs to the US electric grid
• Depending on the grid application needed, different types of energy storage
plants need to be deployed
• For bulk energy storage (applicable to the large amounts of new, off-peak wind
generation being installed), the compressed air energy storage (CAES)
technology seems to be the most cost effective energy storage technology to
deploy in the US.
• For short term storage (applicable to the large amounts of solar generation
being installed), the lithium-ion battery technology seems to be the most cost
effective technology to deploy in the US
• New regulatory initiatives need to be implemented in the US to take advantage
of the performance capabilities of energy storage technologies to stabilize the
ageing electric infrastructure in the US
© 2010 Electric Power Research Institute, Inc. All rights reserved. 36
Agenda, Reminder

- Background Information
- How the Grid Works
- Key Challenges (Now and Into the Future)
- Energy Storage Technologies
- Value Propositions
- Applications
- Capital Cost Estimates
- Key Issues Associated With Renewables
- Example Benefit-Cost Analyses for One Type of Energy Storage Technology
- Brief Descriptions for a Wide Variety of Energy Storage Technologies
- CAES, PH, Battery, Flywheel, SMES and SuperCaps
- Conclusions
- Appendix Material

© 2010 Electric Power Research Institute, Inc. All rights reserved. 37

Appendix

Operating Costs Storage Plants

Operation Costs For All Storage Plants, Except CAES:

$/KWH = $/KWH In for Charging x KWH In/KWH Out
+ Variable O&M
= Incremental Cost for Charging Energy / Efficiency
+ Variable O&M

Operational Costs For CAES Plants:

$/KWH = $/KWH In for Charging x KWH In/KWH Out
+ Variable O&M
+ Generation Heat Rate (Btu In/KWH out) x
Fuel Cost ($/Million Btu In)

© 2010 Electric Power Research Institute, Inc. All rights reserved. 38

Appendix
Expected Operating Costs for CAES Plant

Expected Operational Costs For CAES Plants:

$/Kwh = Incremental, Off-Peak Cost for Charging Electricity
x Energy Ratio + Generation Heat Rate (Btu/Kwh)
x Fuel Cost ($/Million Btu)
+ Variable Operational & Maintenance Costs

For Example, If : Then:

CAES Heat Rate = 3810 Btu/kWh CAES Operational Cost = $42.5/MWh
Energy Ratio = 0.7
Off-peak electricity cost = $10/MWh
Fuel Cost = $8/MMBtu
Variable O&M = $5/MWh

© 2010 Electric Power Research Institute, Inc. All rights reserved. 39

Appendix
Example Operating Costs For
Storage Plants and Combustion Turbines
Source:

Parameter Battery CAES CT

KWh Out/KWh In 0.750 1.429 NA
Heat Rate (Btu/KWh Out) NA 3810 11000
Incr Chrg'g Cost ($/MWh) 20.0 20.0 NA
Fuel Cost ($/Mill.Btu) NA 6.00 6.00
Var. O&M (Mills/KWh) 40.0 5.0 10.0
Total Oper. Costs ($/MHh) 66.7 41.9 76.0
IF: Incr Chrg'g Cost ($/MWh) 20.0 20.0 NA
IF: Fuel Cost ($/Mill.Btu) NA 7.00 7.00
Then Total Oper. Costs ($/MWh) 66.7 45.7 87.0
IF: Incr Chrg'g Cost ($/MWh) 40.0 40.0 NA
IF: Fuel Cost ($/Mill.Btu) NA 6.00 6.00
Then Total Oper. Costs ($/MWh) 93.3 55.9 76.0

© 2010 Electric Power Research Institute, Inc. All rights reserved. 40