energy storage in the smart grid · 2018. 12. 12. · li ion (2015) target (2020) $/kw-yr....

© 2015 Electric Power Research Institute, Inc. All rights reserved.

Haresh Kamath Program Manager, Energy Storage and

Distributed Generation

NEDO Forum 2015 13 Feb 2015

Energy Storage in the Smart Grid

2 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Together…Shaping the Future of Electricity

EPRI’s Mission Advancing safe, reliable, affordable, and environmentally responsible electricity for society through global collaboration, thought leadership and science & technology innovation.


Today’s Power System

Generation Customer Delivery

Base Load Generation

Load Following Generation + Customer

Demand = Bulk Energy Storage +/– Interruptible

Load DR –


Transformation of the Power System

A Highly Interconnected Power System that Optimizes Energy Resources

A Highly Interconnected Power System that Optimizes Energy Resources


Transformation of the Power System

A Highly Interconnected Power System that Optimizes Energy Resources Energy storage can play key roles across the grid

Bulk Storage: Provide peaking and ramping service and

increase grid flexibility

Distribution Storage: Give operators more

control over power flow

Customer-Sited Storage: Decouple loads from the grid


Total Deployed Grid Storage Worldwide, July 2014

Pumped Hydro 141,000 MW

1,420,000 MWh

Compressed Air 435 MW

4,010 MWh

Thermal Storage 1,570 MW

3,734 MWh

Hydrogen Storage 3 MW

35 MWh

Flywheels 898 MW 9 MWh

Batteries 387 MW

595 MWh

Sources: U.S. DOE, EPRI Estimates, Avicenne

California Procurement Target

1325 MW

Total Battery Capacity of U.S. Electric Vehicles

on the Road 5450 MWh

Total Battery Capacity of Consumer

Electronics Sold in 2014 40,000 MWh


The historical challenges are fading…

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Li Ion (2015)

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Installed Cost

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Li Ion (2015)

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Operating Costs

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Effic

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Round Trip Efficiency

T&D Upgrade Deferral

Costs of Storage Potential Benefits of Storage

Power Quality and

Reliability

Regulation Services

Demand Peak Reduction

For Illustration Only

Generation Transmission & Distribution

Load

Advanced Technologies

Lower costs

New Business Models

Lithium Ion Battery Cost

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Worldwide Vehicle Battery Production Capacity (packs/yr)

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ost

Regulatory Rulings

Policy Action

• Technical challenges • Performance • Life • Efficiency

• Economic Challenges

• High Costs • Small Value Streams

• Regulatory Challenges

• Lack of clear definition • Framework designed

for existing grid


California Storage Mandate

CPUC final ruling: Sept 2013 1.325 GW of storage in California by

2020 – Pumped hydro > 50 MW not eligible

Bi-annual targets (starting in 2014) with location / utility breakdown – ~30% CAGR of storage capacity until 2020

Request for Offer process (changed from Reverse Auction) Some reduction and deferment

possible if storage not cost-effective


CPUC Proposed Storage Procurement Targets


…but many challenges remain

The benefits and grid impacts of energy storage are still unclear in a grid designed to operate without storage

The safety, reliability and cost-effectiveness of storage solutions are still relatively uncertain

Grid deployment, integration, and operation of storage are still relatively immature

Utilities, generators, system operators,

renewables developers, storage vendors,

and others are now racing to address these challenges!


Analyzing the Value of Storage

Distribution Investment Deferral

Costs of Storage

Benefits of Storage

Power Quality and Reliability

Rate-based Services

Customer Side Services

System Capacity

Frequency Regulation

Market Services

Battery Cost

Power Electronics

Balance of Plant

For Illustration Only

The cost of storage is usually justified through multiple services

Operations and Maintenance

Disposal

Energy Time-shift


Facilitating Grid-Ready Storage Systems

Storage System Product • Ensuring safety and reliability

• Understanding cost and performance

• Simplifying procurement and operation through standardization of specification and interfaces

Energy Storage Technology • Exploring technology tradeoffs

• Optimizing technology for utility applications

Power Conditioning • Establishing appropriate operations and control

• Ensuring efficient and reliable operation

Grid integration • Establishing best practices for siting and permitting

• Standardizing the interface with the grid

• Modeling and analyzing the effects of storage on the grid

Communications and Control

• Defining interoperable protocols

• Developing operational and dispatch algorithms


Developing a track record

Ultimately, the value of storage will only be made evident through deployment and experimentation

– Validation of technical performance and durability

– Understanding grid impacts and benefits of the energy storage systems in real application scenarios

– Calculating the total cost of ownership for system – Identifying technical gaps for storage to be efficient, responsive to

market needs, safe, reliable and cost effective

Photos courtesy of: DTE Energy, PG&E, Red Electrica


Summary

Storage may become an essential part of the future grid, by enabling enhanced power control, increased flexibility and greater reliability At present, storage has yet to

prove itself technically and economically However, the technology is

now available, and the economic, regulatory, and policy situation is evolving rapidly In the long run, storage may

revolutionize electric power enterprise by allowing more efficient use of assets


Questions

Questions? Comments? Suggestions? Please contact Haresh Kamath [email protected] (650) 855-2268

mailto:[email protected]


Together…Shaping the Future of Electricity

energy storage in the smart grid · 2018. 12. 12. · li ion (2015) target (2020) $/kw-yr....

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