Making Solar PV + Storage more cost effective: Optimized Battery Size and Centralized Solutions based on PV Inverters

Who is Ingeteam?

OUR EXPERIENCE IN RENEWABLES Wind Power Accumulated Power Installed

31 GW

Market Share (Worldwide)

8%

+73,000 converters (AC/DC/AC) Solar PV Power Accumulated Power Installed Market Share (Worldwide*)

5 GW 3%

+21,000 inverters (DC/AC) Hydro Power Accumulated Power Installed

7.5 GW

+800 Hydro generators *Excluding China and Japan

Which are the challenges of PV integra5on in the Power Grid?

PV Integration Grid stability

Genera.on = Demand at all .mes

Renewable Systems are currently expected to support the system by: !  Implementing Frequency Control !  Implementing Reactive Power / Voltage Control !  Implementing Active Power Control

Wind and Solar are totally dependent on the instantaneous available resource, at all 5mes. Hydro can “store” the resource upstream. Wind and Solar cannot.

PV Integration !  Weak power Grids with High PV penetration could experience stability issues due to power fluctuations unless PV supports the Power System Stability. !  Power fluctuations on PV plants due to cloud shading: "  Plant size "  Geographical / Climatic conditions "  Number of PV plants

PV Power Plant 80%/min Conventional Power Station 3-10%/min

PV Integration: Ramp Rate Control Ramp Rate Control (RRC):

ΔP Δt

PV Power Plant =

ΔP Δt

Conventional Power Station

Examples: "  Puerto Rico "  Mexico (Grid Code - Draft) "  CRE for French Islands Overseas

PV Integration: Energy Shifting + RRC RRC + Energy Shifting: "  Ramp Rate Control "  Energy Shifting. Constant Power Control

-  Weather forecast day ahead -  Production forecast: power & time Example: CRE for French islands overseas

How to implement an energy storage system in PV plants?

Distributed vs Centralized ESS Benefits of centralized systems: #  Cloud shading behavior: !  Higher area → Lower PV power variation Lower power (in pu) required from the ESS !  No variation when the cloud is within the PV plant

Distributed vs Centralized ESS Benefits of centralized systems: #  Cloud shading behavior: !  Higher area → Lower PV power variation

Power Variation up to 45% for a 9 MWp plant up v. up to 75% for a 1 MWp plant Courtesy: Public University of Navarre (Spain).

Distributed vs Centralized ESS Distributed:

9x 750kW = 7.12MW ESS

A distributed ESS for a 9 MWp, based on 1MW PV Inverts, would need 9 additional battery inverters and likewise nine batteries, rated 750kW.

Distributed vs Centralized ESS Centralized:

9x 750kW = 7.12MW ESS

4x 1 MW = 4 MW ESS A centralized ESS for a 9 MWp would be 45% smaller than a distributed one for the same 9 MWp plant

Distributed vs Centralized ESS Benefits of centralized systems: #  Cloud shading behavior: !  Higher area → Lower PV power variation Less power (in pu) required from the ESS !  No variation when the cloud is within the PV plant Lower number of cycles & of less DoD: less power & energy

The centralized solu5on is a more cost effec5ve solu5on for the ESS: less inverters & less/smaller BaLeries are needed

How to implement a centralized ESS solu5on?

Cost Effective ESS integration in PV Plants Towards a Cost Effective ESS: Main Components

EMS: !  Active and reactive power control !  Battery BMS control !  Advanced Energy Management Algorithms

Cost Effective ESS integration in PV Plants Battery Sizing for RRC: Conservative vs Optimized Storage power can be reduced if non-compliance is accepted for short periods of time (grid stability?) !  Ingeteam’s simulation tool: "  Irradiance data profiles "  1 sec resolution "  EMS Plant Controller algorithms

Cost Effective ESS integration in PV Plants Battery Sizing for RRC: Conservative vs Optimized !  Ingeteam’s simulation tool main benefits: "  Real behavior calculations "  Storage Power and Energy calculations "  Financial analysis "  Number of cycles and DoD calculations Case Sudy: Puerto Rico 10MW PV plant and 10%/min " 13h/year of Ramp Rate non-compliance "  Storage reduced from 7,7MW / 0,8MWh (10c) v. 4.5MW/1.1MWh (4c).

Cost Effective ESS integration in PV Plants DC/AC Inverters: Proven technology, reliable, cost effective

"  1000 & 1500 VDC "  Up to 1640kVA in a single power stack "  Indoor / Outdoor "  IP66 power electronics enclosure "  LVRT & Reactive power capability "  Batteries: Li-ion, Lead-Acid, Ni-Cd The standard DC/AC inverter can be up to 50% more cost effec5ve than designing a custom DC/DC + DC/AC converter

Cost Effective ESS integration in PV Plants Standard MV Solutions: Ingecon Sun Storage Power Station !  Product standardization as a way to: "  Reduce engineering cost & lead time "  Improve System Reliability: proven components and Factory Tests !  More Compact !  Easier to transport !  Plug & Play solution

Case studies – CRE largest storage project Referencias: EMS PLANTS

•  •  •  $  $  $  •  • 

Customer: AKUO ENERGY Location: Reunion Island Inverter series: INGECON® SUN PowerMax INGECON® SUN STORAGE PowerMax DC/DC + DC/AC INGECON® SUN EMS Plant Controller Rated output power: 9 MVA Energized in 2014

9 MW PV 9 MWh Batt

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Case studies – 2016 AC/AC battery inverters Referencias: EMS PLANTS proj. •  •  •  $  $  • 

Customer: JOHNSON CONTROLS Location: Salinas (Puerto Rico) Inverter series: INGECON® SUN PowerMax U INGECON® SUN STORAGE PowerMax U Rated power: 3 MW

•  •  •  $  $  $  • 

Customer: WINDMAR RENEWABLE ENERGY Inc Location: Vega Baja (Puerto Rico) Inverter series: INGECON® SUN PowerMax U INGECON® SUN STORAGE PowerMax U INGECON® SUN EMS Plant Controller Rated power: 3.5 MW

3.2 MW PV 375 kW Bat

•  •  •  $  $  $  • 

Customer: Solar World Location: Guayama (Puerto Rico) Inverter series: INGECON® SUN PowerMax U INGECON® SUN STORAGE PowerMax U INGECON® SUN EMS Plant Controller Rated power: 2.4 MW

2.4 MW PV 400 kW Bat

3 MW PV 1.2 MW Bat

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Summary

In summary "  An ESS integrated with a PV plant will allow fulfilling different goals: Ramp Rate Control, Frequency Regulation, Energy Shifting, peaks, etc. "  Centralized solutions are the recommended ones because: "  They allow optimizing the size of the ESS. •  ESS for Ramp Control can be further optimized if non-compliance is allowed for periods of time. "  They allow the use of standard PV inverters for both the Solar Panels and the Batteries. "  Standardization allows the use of compact, ready to go, proven, MV solutions that reduce the engineering costs, lead time and erection time and cost – Skids.

Thank you for your attention Booth # 1559

GE Energy Storage Solar Power International- 2016

[email protected] Imagination at work

A ONCE-IN-A-CENTURY DISTRIBUTED ENERGY OPPORTUNITY

Introducing Current, powered by GE INFRASTRUCTURE

LED

+

DIGITAL INDUSTRIAL

+

FINANCING MODELS

Solar Energy Management Systems

EV

Storage

Intelligent Environments

Cap Ex to Op Ex Models

Predix

Cash Flow Positive Day 1

Sensor Enablement

Energy-as-a-Service Power Purchase Agreements

OUTCOMES FOCUSED 2

GE Energy Storage Grid Projects 7MW / 7MWh Grid Stability Ontario IESO

1 MW / 2 MWh Wind Integration

(5x) 50 kW / 100 kWh T&D Network Support

300 MW / 300 MWh FFR Arenko

1 MW / 2 MWh Renewable Integration

1 MW / 2 MWh Behind the Meter

2MW / 8MWh Solar Integration

4 MW / 18 MWh Behind the Meter at large Industrial

(2x) 10 MW / 5 MWh EGT

37 MVA / 20 MWh Grid Stability Imperial Irrigation District

1 MW / 2 MWh T&D Network Support

(2x) 10 kW / 20 kWh Behind the Meter

0.5 MW / 1 MWh Behind the Meter at industrial plant

(3x) 200 kW / 400 kWh Integrated Wind Turbine

Commissioned Recent order or being built MOU or Negotiation

3MW / 6 MWh PV/Storage Micro grid MAECI Solar

200kW/1MWh T&D Network Support Major Utility

~ 80 MW / ~75 MWh of Grid projects Installed or in Process ~ 370 MW / ~375 MWh of Grid projects total © 2016 General Electric Company - All rights reserved

Anatomy of a Energy Storage System Dispatch Controls

AC Front End Interconnect AC Collector

Inverters Isolation Transformers DC Infrastructure

Enclosure Batteries Fire Suppression

Climate Control 4

© 2016 General Electric Company - All rights reserved

Scalable Solutions

1 MVA / 6 MWh

1 MVA / 4 MWh

1 MVA / 2 MWh

0.5 MVA / 1 MWh

© 2016 General Electric Company - All rights reserved

GE MW Class ES Platform

Custom solutions from standard, proven building blocks Controls

Fire Suppression HVAC

GE’s Mark VIe Control System has more than 16 million hours of combined operation

Standard pre-fab enclosure + additional safety features

Transformer >3.5 million GE Prolec transformers installed

DC Enclosure Inverter >25,000 GE Renewables Inverters installed across Wind, Solar, and ES

Proven Li-Ion chemistry Tier 1 Suppliers with full GE Supplier Qualification

6

© 2016 General Electric Company - All rights reserved

Issues Facing Asset Owners & Operators… • Integration of renewables • Fairly allocating grid costs • Increase in distributed generation • Aging infrastructure • Flat load growth – But higher peaks

• Stranded Assets • Reducing emissions

© 2016 General Electric Company - All rights reserved

Addresses target pain points- with minimal siting issues Generation

Distribution

Load Sited

Pain Points:

• Emissions/costs • Variable peaks • Low asset utilization

• Power quality issues • System reliability • Capacity constraints

• Demand charge/High Peak • High retail rates • Power outage

Benefits:

• Flexible generation • Improve power quality • Bolster reserve margin

• Renewable integration • Peak management • Asset upgrade deferral

• Peak shifting • Ancillary services • Self-use

Grid-connected storage provides value throughout the electricity value chain 8

© 2016 General Electric Company - All rights reserved

Energy Storage is a flexible asset that provides unprecedented flexibility in grid optimization. Summer day under 50% renewable conditions

Curtailed Renewables

Baseload causes excess solar to be curtailed

System Demand (MW)

40

Peak Load

Short duration peaks after sunset

30

Fast Ramping

Respond to sunset dynamics

20

Frequency Regulation Real-time frequency control

10 Baseload

0

Spinning Reserve

Dynamic response to events (clouds)

Maximize Baseload

Enables high capacity factor baseload

-10

Reduce Emissions 00:00

06:00

12:00

18:00

24:00

From peak capacity and ancillary services

ES provides instantaneous local capacity, & continuous ancillary services with no fuel consumption or emissions. © 2016 General Electric Company - All rights reserved

ES provides instantaneous local capacity, & continuous ancillary services with no local fuel consumption or emissions.

January

February

March

April

May

June

July

August

September

October

November

Curtailed Renewables

Frequency Regulation

Peak Load

Spinning Reserve

Fast Ramping

Maximize Baseload

Additional clean energy into system

Reduction in conventional “peakers” Enables dynamic capacity

December

Provides 100% of FR with no emissions or constraints Provides 100% of SR with no emissions or constraints Enables high capacity factor of baseload generation

Reduce Emissions

From peak capacity and ancillary services

© 2016 General Electric Company - All rights reserved

Why Battery Energy Storage

Rapidly declining Battery and System costs

Annual MW installed (log scale)

1,000,000

100,000

CCGT + ST $65/MWh

$1/watt

$150/MWh

$3/watt

$450/kWh

$300/kWh $350/kWh

CapEx

Energy Storage

Solar PV

$250/MWh

$6/watt 100

CapEx LCOE

$50/MWh

Wind

10,000

1,000

LCOE

$55/MWh

$700/kWh $2,000/kWh

'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 Sources: EIA, IEA, NREL, GWEC, EPIA, BNEF, Lux, Navigant, HIS CERA, GE Analysis Solar : PV panel cost

From 2010 to 2020 marks a 40X improvement in overall ES viability 12

© 2016 General Electric Company - All rights reserved

Energy Storage growing … Growth driven by … 1  Costs  Performance “Energy Storage costs expected to slide 41% by 2020” $30

Plant Control

AC Subsystem (LV)

Mechanical Systems

DC Subsystem

Cells

EPC Scope

$25

Millions

$20 $15 $10 $5 $2016

2017

2020

10MW x 40MWh

2

2025

Policy • Valuation of multiple service benefits • Utility ownership • ITC extension, tax clarity (upside)

13

Applications • Stand Alone Battery Energy Storage System • Predictable Solar • Enhanced Gas Turbine

9/13/2016

14

Predictable Solar output Solar matched with BESS to control PV output Flatten, shape, predict PV output

Up to 100% dispatchable PV

9/13/2016

15

System Variability

© 2016 General Electric Company - All rights reserved

Modifying Solar Ramp – Step at a time

17

© 2016 General Electric Company - All rights reserved

Imperial Irrigation District Publicly-owned utility 1GW Peak, 300MW min

Service territory covers 6,471 square miles, from the Mexican border to Riverside county Interties with SDG&E, SCE, WAPA and APS

Sixth-largest electrical utility in California Over 140,000 customers One of five balancing authorities in the state

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IID BESS Functions •

Solar Integration

•

Manage ACE – Area Control Error

•

Spinning Reserve

•

Black Start of adjacent gas turbine

© 2016 General Electric Company - All rights reserved

IID/Coachella Project PROJECT SUMMARY

Customer: Imperial Irrigation District, El Centro CA Market Connectivity: IID / SCE System Size: 30MW / 20MWh BESS Applications: Distribution management system integration,

ramp rate control, emergency power/black start capability, frequency response, spinning reserve

CURRENT STATUS Civil And Building Works

Install and Connect Equipment

2Q2016: Start Equipment installation

Commissioning

Energize BESS

© 2016 General Electric Company - All rights reserved

3Q2016: COD

The Project Team

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The Imperial Irrigation Facility

© 2016 General Electric Company - All rights reserved

Interior Equipment Plan

© 2016 General Electric Company - All rights reserved

Battery to transformers

© 2016 General Electric Company - All rights reserved

30MW 20MWh BESS Imperial Irrigation District-Ca

240’

120’ Title or Job Number | XX Month 201X

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Modeling and Economics

9/13/2016

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Modeling and Value Analytics 7,000.0 6,000.0

Raw Variable Data 80.0%

charge, KW

5,000.0

discharge, KW Adaptive Curtailed Variable Power

60.0%

3,000.0 State of Charge Percent

2,000.0 40.0% 1,000.0

23:50

23:10

22:30

21:50

21:10

20:30

19:50

19:10

18:30

17:50

17:10

16:30

15:50

15:10

14:30

13:50

13:10

12:30

11:50

11:10

9:50

10:30

9:10

8:30

7:50

7:10

6:30

5:50

5:10

4:30

3:50

3:10

2:30

1:50

1:10

0.0

20.0%

-1,000.0 -2,000.0

0.0%

-3,000.0 -4,000.0

600 Second Data Resolution

-20.0%

State of Charge

4,000.0

0:30

•

~33% PV through battery Forecasted Power Ramp and plateau based on season and weather

KWs

•

100.0% Smoothed Variable Power to Grid

Simple – ROM - Dispatchable Solar Economics

Battery System $/KWH-Capex Annual Opex $/KWh Years Days Cycles/Day $/KWh-T 600 0.5 20 365 1 $ 0.084 500 0.5 20 365 1 $ 0.070 400 0.5 20 365 1 $ 0.056 Solar Pricing $/KWH $ 0.07 $ 0.07 $ 0.07

BESS Pricing 600 500 400

% of PV through Battery 100% 75% 50% 25% $ 0.154 $ 0.133 $ 0.112 $ 0.091 $ 0.140 $ 0.122 $ 0.105 $ 0.087 $ 0.126 $ 0.112 $ 0.098 $ 0.084

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Reduced Project Risk Bankable - Insurable - Serviceable GE offers tiered Service Agreements, including: •

Fixed Warranty (included with equipment)

•

Routine inspection and maintenance

•

Unplanned maintenance and repair

•

Performance Guarantees

The Power of the GE Store •

Global network of GE Renewables and GE Energy Connections technicians, already trained in servicing common components

•

Spare parts storage and distribution systems supply GE utility sites all over the world

Joe Heinzmann Sr. Account Manager GE Energy Storage 925.586.5142 [email protected]

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Energy Storage - The Next Large Player on the Grid

Energy storage has reached the point of true economic viability. We can now define and create this market.



1882 First Coal Plant Built

1960 First Start of Building The US Nuclear Fleet.

2000 Beginning of Wind

2010 Solar Starts Taking a Large Share of the Green Energy Market

2016 HMP Builds the first profitable solar baKery storage with mulLple revenue streams.

Experts oRen underesLmate the potenLal of disrupLve technologies..

When disrupLve technologies arrived they cannibalized or subsLtuted exisLng ways of doing business. They created markets that didn’t exist "I think there is a world market for maybe five computers."

“There is no reason for any individual to have a computer in his home”

Thomas Watson, IBM

Ken Olsen, founder of DEC

1940

1980



“640 kilobytes ought to be enough for anyone”

Bill Gates, MicrosoR

2000

“There’s no chance the iPhone is going to get any significant market share. No chance”

Steve Ballmer, MicrosoR

2010

Nobody likes disrupLve compeLLon – why change if I can keep making money “The enLre market for renewables is locked up – I wouldn’t bother”

“Wind is too expensive and difficult to integrate – you can’t make money on an 11 cent PPA."

“Solar will only be a niche market at best. Never can displace baseload”

“Large scale energy storage is not pracLcal or reliable”

Actual quotes from various entrenched experts.

2006

2008

2010

2014

Sorry fat cats – We are at forefront of massive opportunity in how we generate and consume energy

The beginning: Minster 2015

2016

IntegraLon of solar + storage has moved from the lab to the field. HMV is focused on an distributed energy future - A future that shrinks energy systems and makes them more affordable, reliable and portable than ever before. The success at Minster is quietly being replicated around the country by us and others

2017

2019

Meanwhile, Policy Tailwinds Gathering for Storage - Recent FERC and Supreme Court rulings create plahorm for growth in energy storage. - Supreme Court ruling in favor of FERC in Hughes v. Talen – PJM has jurisdicLon on interstate energy market. Preserves Demand Response opportunity in wholesale markets. Other ISOs soon to implement program - FERC ruling that municipal uLliLes can buy their own power outside of wholesale buyer groups. - Sen Heinrich Storage bill presented – standalone tax credit for storage (no need for PV and IRS cliff). Wait and see. - Bigger picture – market is ge?ng a@enAon and policy support to complement the technology advancements. - Market is ready for more Minsters.

Why storage now? It makes money in mulLple ways PJM Grid-Tied Gen/Storage Services Service

Can do all checks w/ given MW over applicable time Resource Location> Load Metered Jurisdiction Not DR DR

PJM Energy Sales

Federal

PJM Capacity Sales

Federal

PJM Ancillary Services Sales

Federal

Bill Reduction: Consume Less Energy

Federal / State

Bill Reduction: Capacity

Federal / State

State Sale/Credit: Inject Energy

State

Distribution Constraint Management

State

Distribution Voltage Support

State

Emergency Backup for Customer

State

PJM Metered

Off Grid

How you do it – Methods of IntegraLng Storage

Minster

THE VALUE OF S&C’S ENERGY STORAGE SOLUTIONS •  •  •  • 

Specialists in renewable energy interconnection Expertise coordinating projects with utilities Power System Studies and Analysis Innovative products that can be delivered on an engineering, procurement and construction (EPC) basis

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MINSTER SITE Coupled with 4.2MW of PV First Muni energy storage project of this magnitude Provides town of Minster with 20% of energy supply, replacing coal-fired

9/15/16 | ©2014 S&C Electric Company

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9/15/16 | ©2014 S&C Electric Company

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MINSTER PROJECT – 7 MW / 3 MWH Customers

Suppliers

Integrator

EPC

9/15/16 | ©2014 S&C Electric Company

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MINSTER PROJECT APPLICATIONS ApplicaAon

Beneficiary

RaAng

PJM Frequency RegulaLon

Half Moon Ventures

7 MW

PJM Peak Load ContribuLon ReducLon

Minster

1.5 MW

Power Factor CorrecLon

Minster

5.25 MVAR

Poten&al Future Applica&on Islanding

Industrial load

3 MWh

ApplicaLons delivered via integraLon of market interface (Viridity) and local control plahorm (S&C) 9/15/16 | ©2014 S&C Electric Company

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VILLAGE OF MINSTER AWARDED SEPA’S “PUBLIC POWER UTILITY OF THE YEAR”

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