© 2015 electric power research institute, inc. all rights reserved. ben kaun sr project manager...

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

Ben KaunSr Project Manager

Energy Storage Program

7/28/15

Energy Storage Benefit-Cost Analysis

Publicly Available Software Development

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

The Electric Power Research Institute

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Non-profit

Chartered to serve the public benefit

Collaborative

Bring together researchers, industry experts, and policy makers

Independent

Collaborative

Nonprofit

Together… Shaping the Future of Electricity


Today’s Agenda

Explain the vision Introduce the new software projectHow you can helpQ&A


The Vision


The Issue: Where and When Does Energy Storage Make Sense?

It Depends Who You Ask…

Behind the Meter

T&

D D

eferrals

Frequency Response

Regulation Energy Management

Renewables IntegrationP

eake

r R

epla

cem

ent

Demand Charge Management

Solar B

ackup

FR

AC

MO

O2(

…?)

Real time Energy

Microgrids

Generation-sited

EV Charging

Transactive Energy

FlexiRamp


Vision for Desired Outcomes

Publicly available tools and methods to fairly, transparently, and consistently estimate the benefits and costs of energy storage projects across all cases– Grid Services– Technologies and Sizes– Locations

Ability to identify and characterize high value locations to deploy energy storage, so that early successes in energy storage maximize value to all stakeholders


The Upshot…

Discussion needs to evolve to be about real situations

Not about the “modeling process”

Bounding ranges of costs and benefits is more important

than the “exact answer”, which doesn’t exist…


The Project


An Opportunity: Publicly Available Energy Storage Valuation Software funded by California Energy Commission

What is it?– Cloud-Hosted Energy Storage Valuation Software– Customized for California Needs– Available in 2016

Goals– A software platform for transparent, validated estimation of energy

storage project benefits and cost– Include all CPUC use cases and storage technologies under

consideration – Achieve broad stakeholder buy-in on approach and support highest

value uses


Project Description (Continued)

Resources– $1.9M Budget = $1M CEC + $0.9M Cost Share from EPRI + Partners– Leverage the technical community of the Energy Storage Integration

Council (ESIC)

Project Team– EPRI – Energy and Environmental Economics (E3)– Lumina Decision Systems– Customized Energy Solutions– Udi Helman (consultant)– Strategen Consulting (organizer of CESA)

Build off Prior Efforts with Energy Storage Valuation Tool (ESVT)


Forum for Input: Energy Storage Integration Council (ESIC)

To advance the integration of energy storage systems through open, technical collaboration: guided by the vision of universally accessible safe, secure, reliable, affordable, environmentally-responsible electricity

Mission Statement:


ESIC Working Groups: Analysis Working Group will be the Venue for Technical Input / Review of the Model

ESICWG1

Applications

WG2

Performance

(Testing)

WG3

System Development

(Products) WG4

Grid Integration

WG5

Analysis


Participation in ESIC

Over 150 participating organizations, including:– Electric Utilities– ISOs– Energy Storage Vendors– System Integrators / Project Developers– Researchers and Universities– Regulators

Contact E-mail: [email protected]– Send full contact info (name,title, e-mail, phone, company address)– No cost to participate

mailto:[email protected]


Model Background Work: Energy Storage Valuation Tool (ESVT) – What it is

Focus on energy storage project benefit-cost techno-economic analysis

Highly customizable input fields

Price taker type model

Diverse energy storage technologies

Grid services covering generation, transmission, distribution, and behind-the-meter value propositions

Evaluation of individual and “stacked benefits”

ESVT will serve as technology and knowledge starting point

for this project


Quick Recap: Energy Storage Valuation Tool (ESVT)

INPUTS MODEL OUTPUTSDefine Grid Services

Define Storage Capability

Define Financial Perspective

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2410K

11K

12K

13K

14K

10.5K

11.5K

12.5K

13.5K

Hours in a Day

Dis

trib

uti

on

Lo

ad

Be

fore

an

d A

fte

r S

tora

ge

Dis

pa

tch

(k

W)

Storage Operation

Cost Benefit

Cost / BenefitSimulate

Storage Operation

Detailed Financials


A prior version ESVT was used in the 2013 Energy Storage Proceeding R.10-12-007

Available for Download: http://www.epri.com/abstracts/Pages/ProductAbst

ract.aspx?ProductId=000000003002001162

Report Describes the Model in Detail and Provides Assumptions and Results of Over 30 Model Runs


How You Can Help


We Need Input and Review on Multiple Topics to Define Software Functional Requirements and Interface Specs

Functional Use Cases: Who Will Use This Tool and How Will they Use It

Energy Storage Use Cases: What Are All the Circumstances Where Storage May be Deployed

Grid Services

Locations

Technologies


First Step: Define the Highest Priority Functions for each Stakeholder – What are you trying to answer for what purpose?


New Storage Valuation Tool

Data Sets

Inputs

Outputs

New Storage Valuation

ToolAnother Tool

As a Stand-alone Analysis Tool…

...or as a Stage in Another Analysis Methodology

Inputs

Data Sets

Outputs


Functional Use Cases Starting Point for ConsiderationSource: Initial EPRI Brainstorming and SocializationStakeholder Group

Possible applications of the tool for storage cost-benefit analysis

Utilities • Resource planning / Transmission planning functions• Distribution planning functions• Storage procurement – offer ranking• Customer facing program execution (e.g. SGIP, DR, etc)• Real-time uses to forecast storage operations in the wholesale market

Regulators • Analysis of storage in oversight of utility procurement planning• Evaluation and benchmarking of utility storage procurement decisions• Assessment of storage as Resource Adequacy capacity resources• Assessment of integrated renewable and storage projects (RPS procurement)

Regional System Operators

• Evaluation of storage benefits in transmission planning• Assessment of how storage operations could affect wholesale market design• Calculation of benchmark storage market value, for various uses, e.g., in annual

“State of the Market” reports

Project Developers

• Valuation and pricing of projects for utilities and regulators; determination of optimal size and technology for projects

• Locational value of energy storage projects, or aggregate distributed resources• Optimization of new product capabilities to maximize value

Electricity Customers

• Understanding of cost-effectiveness potential of storage at different customers• Determination of appropriate storage/DER products under particular rate structures• Effect of storage on value/utilization of other DER

Researchers • Common platform for storage model extensions; repository of models and datasets


Next Step: Energy Storage Use Cases are Considered within Context of Functional Use Cases




Energy Storage Use Cases Starting Point

From CPUC Decision D. 13-

10-040


Energy Storage Use Cases are Converted to Feasible Combinations of Grid Services, Locations, Technologies



Grid Services: What Storage Does to Produce Value

Locations: Requirements and

Adjustment Factors

Technologies: Generic Models that can be Customized

for Specific Projects


Grid Services Starting Point: CPUC CEP “Applicable End Uses”


Grid Services Starting Point: CPUC CEP “Applicable End Uses”

Strong consistency with ESVT to start from…

Detailed socialization required and some new development

Services currently

modeled in ESVT


Locations Starting Point

Initial Siting Locations to Consider– Fossil Generation– Renewable Generation– Transmission Substation– Distribution Substation– Along Feeder– Service Transformer– Behind the Meter (industrial)– Behind the Meter (commercial)– Behind the Meter (residential)

Locations are important for..– Solving problems– Not creating problems– Loss factors– Voltage impacts– Etc.


Technology Starting Point: Generic Technology Classes Currently Represented in ESVT Model

Batteries / Flywheel

CAES

Pumped hydro

Gas Turbine

Requires close look from storage technology community

to ensure accurate representation


Summary of Input Needs from the Stakeholders

Functional Use Cases– What Questions Do you Need to Answer? How would you like to use it?

DEVELOP USE CASES

Energy Storage Use Cases– Ensure all the likely storage deployment scenarios are compatible with the tool

Grid Services– Ensure services are modeled in a credible way -> Requirements + Benefit/Cost

calculation approach

Technologies– Ensure all applicable storage technologies are considered with socialized inputs

from the developer community – Not the performance per se, only the critical parameters to define

Locations– Consider the locational requirements and adjustment factors that are important

for the modelWe envision a working subgroup to advance each of these topics


Planned Project Schedule

2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4

Stakeholder Interviews & Software Use Case

Development

Model Architecture Development

Model Development

Software Delivery & Tech Transfer

Alpha Model Review (Testing

Features)

Beta Model Review (Debugging &

Feature Freeze)

Functional & Interface

Requirements



2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4


Development


Model Development



Features)


Feature Freeze)


Requirements

Tell Us if We Need to Adapt Schedule to Maximize Value



2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4


Development


Model Development



Features)


Feature Freeze)


Requirements

NEXT STEP: DEVELOP A DETAILED

MODELING AGENDA FROM YOUR

INPUTS


Opportunities to Engage

Participate in the Energy Storage Integration Council – Analysis Working Group – No Cost– Working group meetings monthly and topic subgroups meet more

regularly– Next webcast: August 14, 10am Pacific time– For meeting invites, send full contact info to: [email protected]

Use Case Workshop September 1st all-day @ EPRI in Palo Alto (by invitation)– E-mail [email protected] and [email protected] for invite request and

justification (Need a small, balanced group of ~30 people to be successful)

Separate Interviews with Key Stakeholders:– E-mail Ben Kaun at [email protected]






Questions and Comments?

Contact Information:

Ben Kaun

E-mail: [email protected]

Office Phone: 650-855-2208



Together…Shaping the Future of Electricity

© 2015 electric power research institute, inc. all rights reserved. ben kaun sr project manager...

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