Regionally Integrated Climate Action Planning Suite RICAPS Working Group Meeting August 22 2017 Jin Noh Policy Manager California Energy Storage Alliance CESA 1 The California Energy Storage Alliance CESA ID: 805345
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Energy Storage & Local Government
Regionally Integrated Climate Action Planning Suite (RICAPS) Working Group MeetingAugust 22, 2017Jin Noh, Policy ManagerCalifornia Energy Storage Alliance (CESA)
1
Slide2The
California Energy Storage Alliance (CESA) is a 501c(6) membership-based advocacy group committed to advancing the role of energy storage in the electric power sector through policy, education, outreach, and research. CESA was founded in January 2009 by Janice Lin and Don Liddell. CESA’s mission is to make energy storage a mainstream energy resource in helping to advance a more affordable, clean, efficient, and reliable electric power system in California.
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About CESA
Slide3Adara Power
Amber KineticsAmerican Honda Motor
Bright Energy
Storage
BrightSource Energy
Brookfield
Consolidated Edison
Customized
Energy SolutionsDemand Energy
Doosan GridTechEagle Crest EnergyEDF
Renewable EnergyElectrIQ PowereMotorWerks
Energport
Energy Storage SystemsGAFGeliGreen Charge NetworksGreensmith EnergyGridscape SolutionsGridtential EnergyHitachi ChemicalIE SoftworksJohnson ControlsLockheed Martin AESMagnum CAESMercedes-Benz EnergyNational GridNEC Energy SolutionsNEXTrackerNGK InsulatorsNICE America ResearchOrmat TechnologiesOutBack Power Parker Hannifin QnovoRecurrent EnergyRES AmericasSharp ElectronicsSouthwest GenerationSovereign EnergySTOREMESumitomo ElectricSunrunSwell EnergyUniEnergy TechnologiesYounicos
3
CESA Members
General and Series A Members
Board Members
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Why Energy Storage?
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Many Types of Energy Storage Technologies
Electro-Chemical
Mechanical
Thermal
Bulk
Storage
Mobile
Energy storage technologies store energy for use when it is needed
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Many Benefits of Energy Storage
Slide7The 50% RPS by 2030 and 40%
GHG emissions below 1990 levels by 2030 create a need for more energy storage to maximize renewables investments and manage grid reliability
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California’s Ambitious & Important Clean Energy Goals
Source: CAISO 2013
CAISO Net Load Curve
Source: CAISO 2017
California’s
2017 ‘duck curve’
is ahead of schedule and is at estimated 2020 levels
Frequency of Real-time Intervals with Curtailments
Slide8New policies drive urgency for flexible infrastructure and energy storage resources that reduce curtailments
8California’s Ambitious & Important Clean Energy Goals
Slide9Each of California’s three investor-owned utilities (IOUs) are making major progress toward their 1,325 MW
energy storage procurement target by 2020, including 99.5 MW of energy storage that was procured and operational in six months
to address reliability issues stemming from limitations of the Aliso Canyon gas storage facility
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Energy Storage Is Arriving
Updated May 2, 2017
SCE has met its customer domain target and must now fulfill its overall target with T&D domain storage
PG&E must still fulfill its energy storage targets in all three domains
SDG&E has met its overall target but must still procure 7.5 MW to meet its customer domain target
Slide10In six months, 99.5 MW of energy storage was procured and operational to address reliability issues stemming from limitations of the Aliso Canyon gas storage facility
10Expedited Aliso Canyon Procurement
Updated May 2, 2017
Utility
Developer
MW
COD
SCE
AltaGas Services / Greensmith
20.0
12/31/2016
Powin
Energy2.012/31/2016Tesla Energy20.012/31/2016GE Energy Storage20.012/31/2016SDG&EAES Energy Storage37.51/31/2017Total99.5
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Current Energy Storage CostsSource: Lazard 2016
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Current Energy Storage CostsSource: Lazard 2016
Slide13Key bills are needed to overcome some barriers that still exist that limit the realization of the benefits that energy storage can provide
13Linking Energy Storage to its Benefits
Financing, permitting, & interconnection costs
Limited understanding of capabilities, values, & multi-use applications
Limited procurement experience
Not adequately modeled in grid planning
SB 546
SB 356
AB
1030
SB 338
AB 1405
SB 801SB 338AB 1405SB 801SB 338AB 1405SolutionsBarriersBenefitsPortfolio diversity and reliabilityRenewables integrationGHG emissions reductionCustomer/ratepayer cost savings
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Identifying the Best Fit Storage Technology
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Many Types of Energy Storage Technologies
Electro-Chemical
Mechanical
Thermal
Bulk
Storage
Mobile
Energy storage technologies store energy for use when it is needed
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Energy Storage Basics: Energy vs. Power
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Customer-Sited Storage Characteristics by Technology Type
Technology
Strengths
Weaknesses
Best Fit Applications
Lithium-ion battery storage
High energy density
Ease of deployment
Relatively
low $/kWh and $/kW due to economies of scale
Good roundtrip efficiency (> 80%)
Fast response time (milliseconds)High cost for long durationsSafety perceptions for some chemistriesEnergy degradation depending on technology and cycling needsRelatively lower usable SOCDemand charge managementTOU arbitrageFrequency regulationFlexible rampingThermal storageEstablished technologyGood cycle lifeLow $/kWh for load shiftingLow energy densityLower efficiency (< 70%)Mediocre response timePump maintenance neededPermanent load shiftingPV integrationFlow battery storageRelatively low $/kWhScalable/flexible power-to-energy ratioGood cycle life & high usable SOC
Low energy density
Lower efficiency (< 70%)
Mediocre response time
Pump maintenance neededLoad shifting & balancingPV integrationFlexible rampingFlywheelHigh power-to-energy ratioVery fast response (milliseconds)Excellent cycle life & full usable SOCHigh roundtrip efficiency (> 85%)
Low energy densityLess suited for long durationsHigh self-discharge rateFrequency regulationPower quality/UPSSpinning reserves
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Complexities to Energy Storage CharacteristicsIt is important to pay attention to technology specifications (
e.g., degradation, useful capacity, operating temperatures) and warranties in considering the selection, sizing, and controlling of energy storage technologies
Note that most SGIP-funded storage is required to have 10+ year warranties. More on that later
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Complexities to Energy Storage CharacteristicsThere is no perfect battery type
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Multiple Services from Energy StorageEnergy storage can provide multiple services and stacking these values is important to maximizing its utilization and improving cost effectiveness
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Finding the ‘Best Fit’ Storage Technology
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Finding the ‘Best Fit’ Storage Technology
Domain
Short Duration (0-2
hrs
)
Medium
Duration (2-4
hrs
)
Long Duration (6+
hrs
)CustomerDemand Charge ManagementPower Quality
Resiliency
TOU Bill Management
PV Self Consumption
Distribution
Local/Flex
RA
Reliability/Resiliency
Voltage Support
Deferral
Transmission
Black Start
System RA
Wholesale
Frequency
Regulation
Primary Frequency Response
Spinning/Non-Spinning
Reserves
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Key TakeawaysEnergy storage power/energy requirements are a function of the desired application and use case and must both be evaluated for optimum technology selection
Sizing the energy storage system requires a calculation of the maximum power and usable energy required for the application
Energy storage costs should be carefully understood as all-in costs should account for usable energy/capacity and include cell, module, rack, and battery management
system
Lithium-ion batteries are the clear market leader in terms of cost/scale, but other technologies may be better fit for
specific applications
As new grid services become monetized, there will be additional revenue opportunities to make energy storage more cost effective (
e.g., deferral, ancillary services)
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What Can Local Governments Do?
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Assess Your LoadMost customer-sited energy storage systems must be selected and sized to meet the customer need first before pursuing additional revenue streams from the grid
Therefore, a load assessment is needed to identify the most effective cost reductions and/or critical loads
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Identify Load Management StrategiesDepending on the load profile and the rate schedule, different energy storage technologies and operational strategies may be needed (
e.g., clipping of ‘peakiest’ loads vs. shifting of solar generation)
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Take Advantage of IncentivesThe Self-Generation Incentive Program (SGIP) provides upfront and performance-based incentives for customer-sited storage, including for local governments
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Take Advantage of Incentives
Rules
Details
Roundtrip Efficiency
66.5% (ten-year average)
Storage Sizing
Limited to actual/estimated annual
peak demand
Commercial Availability
NRTL system certification
completed, or 10-year manufacturer’s/service warranty
Program AdministrationContinuousApplication ProcessFirst-come, first served and lottery for same-day applications in oversubscribed stepParticipant Cap20% Developer’s CapCA Supplier Adder20% adder if at least 50% of manufacturing value-add occurred in CAApplication Fee5% of requested incentive claimOperational Requirements130 full discharge equivalents per year (non-residential)Energy EfficiencyEE audit at
maximum cost of 5% of requested incentive payment but no investment required
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Get Started Early with Permitting ProcessesWork with city/county jurisdiction offices to get all the necessary building permits, fire permits, etc.
CESA is working on AB 546 to create an energy storage specific permitting process to streamline permitting, which may include a checklist for expedited or “over-the-counter” permitting
CEC grant funding may be provided for a city/county to develop its expedited process and to deploy necessary online systems
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Be Aware of New Procurement OpportunitiesAB
2868 was passed in September 2016 that requires
the CPUC to direct the three
utilities to
propose up to 500 MW statewide of new
distributed energy
storage programs and investments that are incremental to the SGIP and the AB 2514
goalsUp to 125 MW of the 500 MW can be sited behind the meter, prioritizing low-income and public-sector customersMany local government office buildings
will be eligible for these new investments
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Thank You. Questions?Jin Noh
Policy Manager
California Energy Storage Alliance (CESA)
jnoh@storagealliance.org
703-507-8809