Electric Energy Storage an Essential Asset in the Smart Grid Silicon Valley Photovoltaics Society August 12, 2009 Dan Rastler, Program Manager Electric Power Research Institute

Discussion Topics • Dimensions of the Smart Grid • Market Drivers, Industry Pain Points • Roles for Energy Storage • Update on Energy Storage Options and Advances • PV / Energy Storage • Summary and Q&A

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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Electric Power Research Institute (EPRI) • Founded by and for the electricity industry in 1973 as Independent, nonprofit center for public interest energy and environmental research • Collaborative resource for the electricity sector – $315M annual R&D funding, ~17% international members – 450 engineers and scientist, participants in more than 40 countries

• Four major R&D portfolio: Nuclear, Generation, Environment, and Power Delivery & Utilization

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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EPRI’s Energy Storage Program Scope Cost and Value Ranges for Storage Technologies in System Applications

Compressed Air - Below Ground Pumped Hydro

Technology Watch and Strategic Intelligence

Compressed Air - Above Ground Cost

Lead Acid Battery

Value

NaS Battery ZnBr Flow Cell VRB Flow Cell Lithium Ion Battery 0

500

1000

1500

2000

2500

Market Analysis

Technology Assessment & Evaluation

3000

$/kWh

Fuel Cells and Flow Batteries

Strategic Intelligence

Compressed Air Cycles

On-line Assessment Guide

Li-ion Batteries

Evaluation Tools

Thermal Storage Systems

Micro-generation

Testing, Validation and Demonstration NaS Battery

Technology Development & Innovation

ZnBr Battery

Large CAES

Li-ion Battery

Mobile Storage Systems

5-10 yr. Technology Strategic R&D Plan Nano materials for energy storage

Novel Energy Storage Systems

ES & PV in Smart Grid

Short-Term © 2009 Electric Power Research Institute, Inc. All rights reserved.

Long-Term 4

Dimensions of the Smart Grid Sensors…. Communications….Intelligence

* Report to NIST on the Smart Grid Interoperability Standards Roadmap, Page 21, June 17, 2009

Acting Acting on on this this Information Information Will: Will: Enable active participation by consumers – Linking Wholesale Conditions to Consumers (Supply & Demand) Anticipate & respond to system disturbances (self-heal)

Accommodate all generation and storage options

Operate resiliently against attack and natural disaster

Enable new products, services and markets

Optimize asset utilization and operate efficiently

Provide power quality for the digital economy

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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Dimensions of a Smart Grid

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Dimensions of a Smart Grid

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U.S. Wind Power Capacity Up >50% in 2008

Record year for new U.S. wind capacity: • 8,558 MW of wind added in 2008, bringing total to 25,369 MW • Roughly $16.4 billion in 2008 project investment Source: U.S. DOE Energy Efficiency and Renewable Energy © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Wind Power Large Power Fluctuations

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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Capacity Projections (‘visions’) for PV Growth by 2030 source: Robert Margolis, National Renewable Energy Laboratory

Note: The Clean Edge projection is for 2025.

10 © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Utility-Scale PV Generation

Power Tower and Dish Stirling Engine 210-kV grid support at substation

Hybrid Gas-Solar Thermal Troughs © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Cloud Effects on Large Scale Solar Plant

4000

kW

3000 2000 1000 0 1400000

1450000

1500000

Seconds since 00:00:00 Jan 1, 2007

2000

kW

kW

3000

1000 (b) 0 250

750

1250

Minutes Source: Jay Apt & XX, CMU 4.6 MW TEP Solar Array (Arizona)

12© 2009 Electric Power Research Institute, Inc. All rights reserved.

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1550000

Industry Investments in T&D Infrastructure: $ 200 B for T and $ 400 B for D over next 15 Years Reducing Peak Demand Will Result in Optimal Utilization of Grid Assets Hourly Loads as Fraction of Peak, Sorted from Highest to Lowest 100%

90%

generation

Load Factor (%)

80%

75% 60%

40%

5% = ~400 hrs/yr

distribution

20%

0% 0% 5%

20%

40%

60%

Percentage of Year

80%

100%

(8,760 hrs)

25% of distribution & 10% of generation assets (transmission is similar), worth of 100s of billions of dollars, are needed less than 400 hrs/year! © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Need for More System Balancing Opportunities for Fast Storage Systems

Current method to balance constantly shifting load fluctuation is to vary the frequency and periodically adjust generation in response to an ISO signal. © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Market Drivers for Electric Energy Storage in the Electric Enterprise

• Managing Increased Wind Penetration • Ancillary Services – Avoiding the cycling of thermal power plants • Managing Grid Peaks and Outage Mitigation • Increasing the value of Distributed Photovoltaic systems • Enhancing the value of a Smart Grid

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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Roles for Electric Energy Storage Locational Opportunities for Energy Storage in the Electric Enterprise Bulk Energy Storage

Ancillary Services

Smoothing of Wind

Central Plant

Residential -Energy Storage

Step-Up Transformer

PV Smoothing

Transportable Storage

Distribution Substation

Pad Mounted Transformer Storage

Industrial

Electric Vehicles © 2009 Electric Power Research Institute, Inc. All rights reserved.

Distributed Energy Storage

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Distributed Storage

Commercial

Markets and Applications for Energy Storage Systems Utility Side of the Meter – Wind Integration: Smoothing / Bulk Storage – Substation Grid Support – Ancillary Services: Frequency Regulation – Large-scale PV ramping support – Neighborhood Storage Systems – (at pad-mounted transformers) – Truck Transportable Power – urban load pockets Customer ( End-User Side of the Meter) – PV – Distributed and Residential home – Dispatchable Back-up Generators – Dispatchable telecom backup – Dispatachable UPS : Commercial / residential – Peak shaving / Demand Response – PHEV / V2G? © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Positioning of Energy Storage Options Hours

Grid Support

Power Quality

Load Shifting

Energy Management

Bridging Power

ZrBr

VRB

PSB

NaS Battery

Minutes

Bulk Power Mgt

Flow Batteries: Zn/Cl

Metal-Air Batteries

Zn-Air

Pumped

Novel Systems

Hydro

Advanced Lead Acid Battery

High Energy ZEBRA Battery Super Caps Li-Ion Battery

CAES

Lead Acid Battery NiCd NiMH

Seconds

Discharge Time at Rated Power

UPS

1 kW

Nano-cap hybrids? High Power Fly Wheels High Power Super Caps 10 kW

100 kW

SMES 1 MW

System Power Ratings © 2007 2009 Electric Power Research Institute, Inc. All rights reserved.

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10 MW

100 MW

1 GW

Review of Current and Emerging Energy Storage Solution Options

1 MW / 7 hr NaS

U.S. Patent Numbers 7389644 and 4872307, invented by Dr. Michael Nakhamkin, Chief Technology Officer, Energy Storage and Power LLC. Use of this technology may require a license.

400 MW / 10 hr CAES

1 MW / 15 min Li-ion

20 kWh Li-ion System

0.5 MW / 4 hr ZnBr © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Sodium Sulfur Batteries - NaS Grid Support and End-user Peak Shaving Applications 1 MW /7.2 MWh NYPA – End-User Peak Shaving

6MW / 48MWh at TEPCO’s Ohito Substation 1 MW / 7.2 MWh NAS AEP Substation

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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Flow Batteries – Zn / Br Gaining Utility Consideration for Grid Support Applications

TransFlow 2000 Layout

0.5 MW / 2 MWh Design by Premium Power Corporation © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Vanadium Redox Flow Battery Applications

• Several VRB batteries have already been installed – 250 kW, 2 MWh unit at Castle Valley, Utah (PacifiCorp) – 200 kW, 800 kWh unit at King Island, Tasmania (HydroTasmania) – 4MW, 6MWh unit at Tomamae, Hokkaido (JPower) – Smaller units 5kW-50 kW modules possible for PV integration.

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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Advanced Solid State “ Dry Cell” Systems • 1.5 MW / 1 MWh unit to be deployed for Wind Application • 1 MW / 4 MWH units for utility applications • “Dry Cell” - advanced lead acid –”type”

1 kWh @ 3 Hour Rate – 25 kW Instant. Power – 5” x 5” x 30” – 57 Lbs (25.9 kg) – 12V Cell – Improved ability to deep cycle © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Lithium-ion batteries – High Energy in a Small Space.

* Currently, the maximum energy density for Li-ion cells 630 Wh/l and specific energy is 230 Wh/kg ( based on the Panasonic 2.85 Ah 18650 cell).

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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Li-ion Cell Structures There are mainly two types of liquid Li-ion cells, cylindrical and prismatic.

Schematic of Cylindrical Cell Top cover Gasket

Schematic of Prismatic Cell Terminal plate Insulator

Cathode lead Safety vent and CID (PTC) Separator

Cathode pin

Top cover

Gasket Insulator case Safety vent

Insulator

Spring plate Anode lead

Anode can

Cathode lead Anode can

CID Insulator Separator

Anode Cathode

Anode

Cathode

Another approach, prismatic polymer lithium-ion technology, is generally only used for small portable applications such as phones and MP3 players. © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Li-ion OEM Historical Cost Trends 2009 Li-ion module / battery pack estimates with BMS $/kWh Cost Trend in Japan - Small Rechargeable Cells Averaged Across Sizes 1800

*

1600

2009 module est. 1400

$/kWh

1200

*

1000 800

*

600

NiMH NiCd Li-ion

400

*

200

Ni/M H

ep

-0

6

6 -0 S

06

ay M

n-

Ja

ep

-0

5

5 -0 S

ay

05 M

n-

Ja

ep

-0

4

4 -0

Li ion

S

04

ay M

n-

Ja

ep

-0

3

3 -0 S

ay

03

Sealed N i/C d

M

n-

Ja

-0

2

2 -0

ep S

02

ay M

Ja

n-

1

1 S

ep

-0

-0

01

ay M

n-

Ja

ep

-0

0

0 -0 S

ay

00 M

n-

Ja

-9

9

9 -9

ep S

ay M

Ja

n-

99

0

Source: Created by TIAX based on METI data

Historical OEM costs are based on an average of a range of cell sizes (e.g., phone and laptop cells). Module / battery pack cost claims vary significantly by vendor and by chemistry type © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Conceptual 12 kWh Li-ion system for PV integration The balance of the battery pack includes power electronics, the battery management unit, thermal management, and the system housing.

Short Circuit/Surge Protection

Battery Management Unit

Inverter System Housing

Thermal Management

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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Summary of Li-ion Modeled System Costs

( Costs/kWh) *

On a kWh basis, the modeled manufactured cost of the Residential DES System ranges between $230/kWh and $380/kwh.

Modeled Li-ion Residential DES System Manufacture Costs ($/kWh at 12 kWh, usable)* $400 $350 $300

$/kWh

$250 $200 $150 $100 $50 $0 NCM

LiFePO4

NCA

LiMn2O4

* To establish a range, BOP power electronics costs ($1,360 nominal) were varied +/- 30%. The cost range for all other components for each of the chemistries is based on the sensitivity analysis. 12 kWh fully integrated system; Actual price estimates could be 2-3 times higher. © 2009 Electric Power Research Institute, Inc. All rights reserved.

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2 MW Lithium Ion System for Frequency Regulation at AES Power Plant

Early Field Trials by • Altair Nano • A123 © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Emerging Distributed Energy Storage Systems Li-ion System photo from GreenSmith Energy Mgt.

Zn / Br photo from RedFlow Technologies Ltd. © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Potential Applications Neighborhood Energy Storage

Source: American Electric Power ( AEP ) © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Aggregation Distributed Storage can be Utility‐Scale Small distributed systems can have a grid‐scale impact Demand Curve after Implementation of 3,000 MW solar

Typical Summer Daily Demand for CA-ISO Region

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Peak - Shaving Impact of 13 GWh storage

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CA Generation (GW)

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Equivalent to 5 kWh Storage for each kW Installed Solar

38 36 34 32 30 28 26 24 0

6

12

18

Hour of Day Source: EPRI

32 © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Energy Storage to Improve PV Support for Grid Integration

PV generation does not align fully with residential demand – leaving excess PV early in the day and unmet demand late in the day.

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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Research underway to assess costs & benefits of energy storage by use and application

Preliminary Example $1,800 $1,600 $1,400

Energy Arbitrage Regulation System Capacity Local Capacity VAR Support

$/kWh

$1,200 $1,000 $800 $600

Increased Reliability

$400 $200 $w/ Reg

w/o Reg

w/ Reg

Avg

w/o Reg High

Preliminary results based on specific assumptions

Energy Storage Value from Societal Perspectives Other Potential Value from PV not considered yet Regulation values – may or may not be able to be monetized © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Short-term Support for Large-Scale Solar PV

© 2009 Electric Power Research Institute, Inc. All rights reserved.

Jay Apt and Aimee Curtright“The Spectrum of Power from Utility-Scale Wind Farms and Solar Photovoltaic Arrays”, Carnegie Mellon Electricity Industry Center Working Paper, CEIC-08-04

• Solar photovoltaics exhibit short-term variable power output from cloud cover and other sources • Forms an integration issue • Short-duration storage (seconds to minutes) can help mitigate these fluctuations by reducing ramp rates • Requires storage with highcycle life and power density, without requiring large durations

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Plug-In Hybrid and Electric Vehicles Are Coming! Opportunities to Leverage and Use Storage System in Stationary Markets

EV

PHEV or EREV

Production

Demo

Saturn VUE 2-Mode Blended Intro: 2011 CY

Chevrolet Volt Extended Range EV 40-mile EV range 16kWh Li-Ion Intro: 2010 CY

Ford Escape PHEV 2008 CY, 21 car fleet with SCE/EPRI/Utilities Ford/Eaton Trouble Truck 10 truck fleet w/ utilities

Toyota Prius PHEV 500-car fleet 2009 CY © 2009 Electric Power Research Institute, Inc. All rights reserved.

VW Golf TwinDrive 30 mile EV range 20-car fleet, 2009 36

Nissan 2010 CY

Daimler Smart ForTwo 2010 CY Mitsubishi iMIEV 2010 CY, 100 mile range, PG&E, SCE demo

Dodge ZEO 150-200 mile range

BMW Mini E 150 mile range 500 car fleet 2009 CY Subaru R1e 50 Mile AER 10-car fleet 2008 CY

Night Time Over Generation ERCOT Market Clearing Price ($ per MWh), Mar. 18 and 19, 2009

Wind Generation in ERCOT (Percent of Total Generation), Mar. 18 and 19, 2009

ERCOT Market Clearing Price ($ per MWh), Mar. 18 and 19, 2009

Wind Generation in ERCOT (Percent of Total Generation), Mar. 18 and 19, 2009 50

25

40 30

20

10

15 Price

Percent Wind

20 North South

0

West Houston

-10

10

-20 -30

5

-40

Get Paid to Charge your PHEV

-50

0 0

6

12

18

24

30

36

42

0

48

6

12

18

24

30

36

42

48

48 Hour Period Beginning 12:00am, March 18, 2009

Hour, Beginning 12:00am, March 18, 2009

Where to Dispose Energy During Night Time When We Have 20% Wind and 64GW of New Nuclear? © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Storage is a key component of the smart grid Commercial & Industrial Transmission Operator

Distribution Operator

Load Serving Entity

Industrial Customer

Distributed Resources

Energy Storage

Commercial Customer

Substation

Substation Large-Scale Renewables

Other Substations

Microgrid / sustainable communities

Microgrid Diagram courtesy of PG&E 38 © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Residential Customer

MultiDwelling Unit

Residential

Smart Grid Pilots underway High-Penetration PV thru Grid Automation and Demand Response

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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EPRI Smart Grid Demonstrations

Á

• Deploying the Virtual Power Plant • Demonstrate Integration and Interoperability • Leverage information & Communication Technologies • Integration of Multiple Types of Distributed Energy Resources (DER):

Á

Á Á Á Á Á Á Á Á Á Á Á ÁÁ Á Á Á Á

Á• Distributed Generation Á• Renewable Generation Á• Storage Á• Demand Response Á• Multiple Levels of Integration - Interoperability © 2009 Electric Power Research Institute, Inc. All rights reserved.

Á

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Energy Storage Program Road Map Enabling Mgt of Peak-loads and Intermittent Renewables via Smart Grids End-Game Adiabatic –CAES Evaluation Go/No Go vs. Bulk Flow Batteries or other options

Commercially Available Bulk & Distributed Storage Solutions Aggregated Storage Systems in Smart Grid

Utility Scale Storage for Grid Support NaS, ZnBr Customer & Utility Side of Meter Storage in Smart Grids: Li-ion , Advanced flow batteries; advanced batteries

Advanced 350 MW CAES Below Ground Demonstration © 2009 Electric Power Research Institute, Inc. All rights reserved.

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Advanced 15 MW CAES Above Ground Demonstration

Summary Barriers and Opportunities • No energy technology is superior in all functional categories – and a portfolio of storage options will be needed to address needs in a Smart Grid • Successful deployment of energy storage will depend on: – Technology readiness & validation, safety and durability – Improved cost economics and understanding of benefits – currently limited cost effective solutions – Demonstrations of emerging technologies – need for more real world experience of large scale storage – Need to study integration issues and development of wide area controls – R&D funding for basic science and long lead-time technologies – Both bulk and distributed storage will be needed – Regulatory Policy • Market rules and policy recognition of storage • Difficult to aggregate all value streams from storage • Tariff design to maximize societal values and win-win for all stakeholders

Distributed energy storage can be utility scale via aggregation and Use of Smart Grid

© 2009 Electric Power Research Institute, Inc. All rights reserved.

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Thanks for your Attention!

Together…Shaping the Future of Electricity Dan Rastler Program Manager, Energy Storage Program [email protected] 650-855-2521 © 2009 Electric Power Research Institute, Inc. All rights reserved.

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