alberta’s opportunity compressed air energy...

Alberta’s OpportunityCompressed Air Energy Storage

Rocky Mountain Power (2006) Inc.8335 Edgevalley Dr NWCalgary, Alberta T3A 4X2Phone: 403-244-2097www.rockymountainpower.ca November 21 2014

Presentation to Southern Alberta IEEE AGM onRMP’s ASISt - Bulk Energy Storage Project

www.rockymountainpower.ca

RMP’s ASISt Project

2

• Overview – Lorry Wilson

– Rocky Mountain Power background

– Why energy storage

– ASISt Compressed Air Energy Storage Project

• Technical challenges and studies – Bill Kennedy

– Power System studies

– Motor starting

www.rockymountainpower.ca 3

• Independent power project developmentcompany

• Management conceived of and managedinitial development of the following projects:

– Montana-Alberta Tie Line (MATL)

– Wind Spirit Project / Grasslands Renewable Energy

– Qu’Appelle Dam Hydro Project

– Saskatchewan-Alberta Tie Line (SATL)

– ASISt CAES Project

Rocky Mountain Power


Alberta Opportunity

4

• World class wind resources

• Canada’s best solar irradiation resource

• Excellent salt formations in central-east andnorth-east regions

• Deregulated energy market / volatile pool prices

• Strong ancillary services markets

• Relatively small hydro generation

• Strong market growth

• Utility interest in integrating energy storageresources


• The World is our stage!

• Alberta needs to integrate more renewablesources into its supply to reduce its carbonfootprint

• Wind and solar is intermittent – like driving a carwithout a gas pedal

• The power system can only absorb so muchuncontrollable supply

• Energy storage provides the “cruise control” tomanage the randomness of renewable supply

Why Energy Storage


Concentrated Energy Value

6

• Historically, over 50% of the annual energy value inAlberta occurs in 10% of the hours

• The key to increasing wind energy revenue is to delivermore energy during the high pool price hours

$0-$25 $25-$50 $50-$100 $100-$500 $500-$900 $900-$999

# of Hours % 32% 41% 18% 7% 2% 1%

Pool Price Value % 8% 22% 19% 23% 19% 10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Alberta Historical Pool Price Profile(Jan 2008 - Dec 2012)


Alberta Diurnal Price Profile

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• Average pool price = $68.16/MWh• Average off-peak pool price = $31.05/MWh• Average on-peak pool price = $86.72/MWh

$0.00

$20.00

$40.00

$60.00

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$100.00

$120.00

$140.00

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$180.00

$200.00

$/M

Wh

CA

D

Daily HE 1-24 (Annual Averages)

Average Daily Hourly Pool Price ProfileAlberta 2006 - 2012

2006 2007 2008 2009 2010 2011 2012


Historical Wind Energy Discount

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Ave 2008 2009 2010 2011 2012

Ave Pool Price $64.52 $89.95 $47.81 $50.88 $76.22 $52.74

Ave Wind Price $48.46 $71.62 $42.22 $38.03 $49.97 $17.41

-25% -20% -12% -25% -34% -67%

-$10.00

$0.00

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$/M

Wh

Alberta Historical Prices(Jan 2008 - July 2012)


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Hourly Raw Output vs. 1000 MW Baseload

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Hourly firmed output w/600MW Firming


Alberta Energy Duration Curves

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MW

Hours - 1 Year

Alberta Wind Output and Load Duration Curves

100MW Alberta Wind Output Profile (33% CF)

35MW Alberta Load Profile (60% CF)


Surplus Wind Energy

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Hours - 1 Year

Alberta Wind Output and Load Duration Curves

100MW Alberta Wind Output Profile (33% CF)

35MW Alberta Load Profile (60% CF)


Unserved Load – 2011 Simulation

12

• Hourly simulation based on 2011Alberta wind output (100MW/33% CF)and load data (35MW/60% CF)

• Without CAES: 28% load unserved• With CAES: 4% load energy unserved

-40

-30

-20

-10

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1 41

98

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Unserved LoadWithout CAES

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Unserved LoadWith CAES


CAES Schematic

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• During off-peak hours low-cost electricity is used to compress airinto a salt cavern

• During on-peak hours the compressed air is released andcombined with natural gas to generate electricity


Conventional CAES

14

• Conventional CAES uses proven technology for both thecompression and expansion/generation cycles

• Salt caverns used as storage vessel

110MW CAES plant in McIntosh, AlabamaCommissioned in 1991

290MW CAES plant in Huntorf, GermanyCommissioned in 1978


Benefits of CAES

• Doubling Wind Generation with associated jobs, economicmultipliers and tax base - all situated in Alberta

• Better utilization of significant investment now being made inAlberta’s electricity transmission system

• Improved Alberta GHG performance benefiting the greencredentials of export oil - protecting investment and jobs

• Enhanced public opinion of the province of Alberta as a leaderin environmental responsibility

• Assurance of crown royalties from exported hydrocarbons

• CAES accommodation by AESO is non-discriminatory

• NO DOWNSIDE


• Discharge (Generation) –160MW.• Charge (Compression Load) – 2 * 80MW.• Storage Capacity ≈ 60 hours:

– # of caverns ≈ 2.

• Initially connect only to AIES.• Future AC interconnect with SaskPower:

– Create a virtual intertie.

• Capital Cost ≈ $2MM/MW of generation.• Ramp rates ≈ 20%/min rated plant output.• Heat rates ≈ 4000GJ/MWhr.• Switch from load to generation in 10 minutes.

Proposed ASISt Storage Facility


Strategic Location

17

Why Lloydminster?

Access to Alberta grid (part of theWestern Interconnection)

Access to Saskatchewan grid(part of the EasternInterconnection)

The two power grids are in closeproximity at Lloydminster –‘Canada’s Border City’

Excellent geology for salt caverndevelopment

Current transmission systemssupport 150MW transfercapability


ASISt Project – Key Attributes

18

• Centralized Bulk Energy Storage System– 125MW - 160MW charge and discharge capacity– Storage capacities of 12-60 hours have been modeled

• Strategic Location at Lloydminster– Excellent geology for salt cavern development– Strong transmission infrastructure (240kV proposed)– Adjacent to WECC and MRO energy markets

• Multiple Revenue Streams– Energy Markets / time-shift power delivery– Ancillary Services Markets (Reg, Spin, Supp L)– Arbitrage (regional and inter-regional)


Prairie Evaporite Formation

19


Salt Core Near ASISt Location

20

NearlyPureHalite

AnhydriteLayer

Mixture


CAES Facility Location - TBD

21

ATCOSubstation

SaskPowerSubstation

AB

Lloydminster


ASISt CAES Commercial Scale

22


• By law, AESO responsible for connections.

• Proponent responsible for connectionstudies.

• Follows NERC process for contingencies.

• Both steady state and transient studiesrequired.

• AESO in conjunction with projectproponent develops study scope.

Overview of Connection process


Technical Challenges

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• Lloydminster location – served by existing144 kV.

• Future development includes 240 kVreinforcement from south and/or west.

• Low short circuit levels, challenge forstarting large motors.

• Use synchronous motors.


Technical Challenges

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• Induction motors require 4 to 5 pu startingcurrent resulting in large voltage drop at240 kV bus.

• Synchronous motors can be designed for 2to 3 pu starting current.

• Want to avoid soft start equipment.

• Need a balance between the compressorand motor manufacturer.


Motor Start Example

26

• Initial short circuit capacity – 500 MVA at 240kV bus (one 240 kV line).

• Future short circuit capacity – 1,000 MVA (two240 kV lines).

• Maximum voltage drop at 240 kV bus – 10%.

• Compression requires four to five stages.

• Two compression trains.

• Multiple motors …


Motor Start Study

27

• Preliminary study shows should be able tostart 15,000 hp synchronous motor across theline.

• Need additional studies to confirm.

slack

Utility SubUtility Gen

4.08 MW3.18 Mvar

Load Sub

4.08 MW3.12 Mvar

0.00 MW0.00 Mvar

1.02 pu 1.01 pu 1.01 pu

Load

1.01 pu

A

Amps


ASISt Benefits Summary

28

• Intermittent Generators:

– Energy purchase/delivery time shift improveseconomics for wind and solar farms.

• Grid Systems:

– Increased reliability / delivery of AS,

– More efficient utilization of transmission system,

– Potentially relieve transmission congestion.

• Ratepayers / Society:

– Power pool price arbitrage reduces price volatility,

– Enables renewable energy, reduces GHG emissions.


What CAES Needs to Succeed

• A Level Playing Field – one charge for using thetransmission system like other generators and out-of-province tie-lines

• All North American Regional Transmission Organizations areworking toward accommodating Energy Storage throughtariffs that recognize the inherent utilization and benefits

• AECO’s present DTS tariff will not accommodate EnergyStorage including CAES

• Easy access to Alberta’s abundant salt formations for thepurpose of compressed air energy storage.


ASISt Project Status

• Geo-technical studies completed for cavern design at preferred site

• Environmental scan completed for Alberta and Sask site options

• Funding awarded from Alberta and Canadian governments

• University of Alberta awarded preliminary design review study

• University of Calgary carrying out a Pool price elasticity study

• AESO reviewing Transmission Tariffs as they pertain to energystorage projects.

• RMP looking for strategic partners and investors


Contact Information

31

Jan van [email protected]

Lorry [email protected]

Bill KennedyVP [email protected]

alberta’s opportunity compressed air energy...

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