regulatory developments and impacts involving electricity storage in texas
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11
Regulatory Developmentsand Impacts
Involving Electricity Storage in Texas
Elizabeth Drews31st USAEE/IAEE North American Conference
Austin TX, November 4-7, 2012
2
The usual disclaimers
• This is not legal advice or legal services
• This is no one’s opinion but mine, & might not stay mine
• This is a summary
• Laws & facts change
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Why storage could especially benefit ERCOT
ERCOT’s
• Electrical isolation from other grids
• > 11,000 MW wind (# 1 in US, # 6 in world, > 2,000 MW coastal) 12,277 MW by 2014
• Growing demand
• Potential capacity shortfalls
• Nodal market design
4
Where would storage fit in ERCOT?Capacity, Demand, Reserves Report (May 2012)
5
Generation under study in ERCOT *
* No firm commitment to build+ Calculated at 8.7% of nameplate capacity
Fuel typeCancelled studies (MW)
Suspended studies (MW)
Active studies (MW)
Gas 1,939 2,890 8,317
Nuclear 5,900
Coal 3,635
Wind + 394 1,092 1,560
Solar 236 353 856
Biomass 50 100
Storage 906
Other 700 1,480
Total 7,400 21,747 16,854
Peak demand68,379 MW
Wind record8,368 MW (17.64% of 47,452 MW load) of which 7,381 non-coastal
6
Some IPP storage development in Texas
Compressed Air Energy Storage Battery
Apex: 275 MW AES: 40 MW
Chamisa: 270 MW, expandable to 810 MW
Xtreme/Duke: 36 MW, behind meter w/ wind
ConocoPhillips: behind meter w/ wind or solar
Source: filings in Public Utility Commission of Texas (PUCT) Projects 39764, 39917, 41026
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Some uses of electricity storage
• Energy time-shift• Peak shave• Ancillary services• Reliable power in outage• Address voltage, frequency variations• Transmission support• ↓ transmission congestion• Defer T&D upgrades
Adapted from PUCT 2011 Scope of Competition Report
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Generalized attributes of storage technologies
CAES Battery
Can inject for hours-days Can inject ≤ hour
Can respond to grid needs in minutes
Can respond to grid needs in seconds
Hundreds of MW Tens of MW, modular
$ hundreds of millions $ 1-10 million
2 years to build 1 year to build
Must be near cavern or similar, TX has
Attributes/capabilities vary by project & technologies are evolving
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Regulatory limits on uses of ERCOT storage
In non-retail choice areas, utility, coop, muni can own G&T
• Can own storage that serves both functions
In retail choice areas, utility owns T&D, power generation company owns generation
• Protects competition
• Keeps storage from supplying & being paid for all its uses
1010
Storage as transmission
PUCT Docket 35994, ETT
• Transmission/distribution utility owns 4 MW battery to help voltage & delay transmission in remote area, does not own or sell energy from the battery
• PUC: transmission asset, can put in rate base• Operational since 2010
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Storage as generation
2011 statute (SB 943) – Texas storage:
• Intended to sell energy or ancillary services at wholesale is generation
• May interconnect, obtain transmission service, sell electric energy & ancillary services at wholesale consistent w/ TX law re: power generation company or EWG
• Must register as power generation company
1212
PUCT pricing rule on storage(2012, Project 39917) 3 main decisions
• Electricity purchases by storage for charging are wholesale, not retail (same as FERC)
• Such electricity purchases are settled nodally (at bus that connects the storage facility), not zonally like a load
• Retail transmission & ancillary service charges do not apply to such electricity purchases
1313
ERCOT rule changes, integration issues
ERCOT’s Emerging Technologies Working Group
IDs & proposes changes to ERCOT requirements that preclude market participation of emerging technologies
• Has addressed # issues relating to storage
• Is developing a list of operations issues relating to storage
1414
PUCT ERCOT pilot project rule(2012, Project 40150)
Allows ERCOT pilot projects for storage/other ET• ERCOT may temporarily exempt pilot participants from specific ERCOT requirements• ERCOT board must approve pilot project; board decision appealable to PUCT• Rule leaves many issues, e.g. cost allocation & post-pilot transition if any, to ERCOT pilot review process to resolve
1515
Pilot projects at ERCOT
• ERCOT posts documents for each pilot project on its website• ERCOT has been working on a pilot project for a Fast Responding Regulation Service (similar to FERC Order 755, “pay for performance”)
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