applications and benefits of energy storage maui, hawaii june 16, 2010 garth p. corey, consultant...
TRANSCRIPT
Applications and Benefits of
Energy StorageMaui, Hawaii
June 16, 2010
Garth P. Corey, ConsultantSandia National Laboratories
Sandia is a multiprogram laboratory operated by Sandia Corporation, a Lockheed Martin Company,for the United States Department of Energy under contract DE-AC04-94AL85000.
Hawaii Energy Storage Seminar
2
Applications• Power vs. Energy Applications
• Large Scale vs. Small Scale
• Technology Selection
• Storage and Renewables
Benefits• Benefits by Category
• The Value Propositions
Overview
3
General ApplicationsPower vs. Energy ApplicationsLarge Scale vs. Small ScaleTechnology SelectionStorage and Renewables
Applications
4
General Applications
T&D Upgrade DeferralTransmission Congestion ReliefRenewables Penetration
• Photovoltaic• Wind
Peak ShavingMicro-Grid SystemsEnergy Price ArbitrageRemote Area Power Systems
5
Power vs. Energy Applications
Capacity Issues• High Power/Low Energy• Low Power/High Energy
Operational Limitations• Discharge• Recharge
6
Storage and Renewables
Acts to Stabilize Power VariationsFor grid-tied applications, Can Provide
Transmission Congestion Relief• At the Generation Site• At the Distribution Point
Allows Dispatch of Renewable Power• Off grid applications• On grid applications
7
Opportunity Drivers
Storage Developments Emphasis on Modularity Smart Grid Focus Cost Reduction and Performance Improvements
Increasing Interest by End Users and Utilities Peak Demand Transmissions Constraints Demand Response Program Reliance Time-of-use Implementation Application to Ancillary Services
Renewables Portfolio Standards Broadening Recognition of ES Roles
8
Value Propositions - DefinedBenefits by CategoryThe Value Propositions
Benefits
9
Value Propositions: Defined
Value = Benefit minus Cost benefit: revenue and/or avoided cost
Attractive Value Proposition: Benefit > Cost cost includes necessary return on capital typically need 2 or more benefits
Other Criteriaup-front capital requirementpayback periodopportunity cost
10
“Conventional” Value Propositions
Utility-owned Electric Supply Resource Power Purchase Agreement Merchant (“real options”)
electric energy time-shiftelectric supply capacityancillary services
End-User Electricity Cost Reductiontime-of-use energy cost reduction (on-peak)demand charge reduction (on-peak)power quality and/or reliability (backup) future: wholesale market during non-peak?
11
Value Propositions: Defined
Value = Benefit minus Cost benefit: revenue and/or avoided cost
Attractive Value Proposition: Benefit > Cost cost includes necessary return on capital typically need 2 or more benefits
Other Criteriaup-front capital requirementpayback periodopportunity cost
12
Benefits-Defined Electric Energy Time Shift Electric Supply Capacity Load Following Area Regulation Voltage Support Transmission Support Transmission Congestion Relief T&D Upgrade Deferral Time-of-use Energy Cost Management Demand Charge Management Power Quality Renewables Capacity Firming Renewables Energy Time Shifting
13
Benefits by Category
Category Benefits
Electric Supply 1. Electric Energy Time-Shift 2. Electric Supply Capacity
Grid Operations
3. Load Following 4. Area Regulation 5. Electric Supply Reserve Capacity 6. Transmission Support 7. Voltage Support
Grid Infrastructure 8. Transmission Congestion Relief 9. Transmission and Distribution Upgrade Deferral 10. Substation Onsite Power
End-User
11. Time-of-Use Energy Cost Management 12. Demand Charge Management 13. Electric Service Reliability 14. Electric Service Power Quality
Renewables Integration 15. Renewables Energy Time-Shift 16. Renewables Generation Capacity Firming 17. Wind Generation Grid Integration
14
Incidental Benefits
Avoided T&D “I2R” Energy Losses• on-peak minus off-peak
Avoided Transmission Access Charges Increased Asset Utilization
• generation & transmission, possibly distribution Power Factor Correction Flexibility (e.g. for expansion planning) Reduce T&D Investment Risk Generation Dynamic Operating Benefits (EPRI)
Reduced: 1) ramping, 2) part load operation, 3) wear and tear, 4) fuel use (per kWh) and 5) air emissions.
“Conventional” Value Propositions
Utility-owned Electric Supply Resource Power Purchase Agreement Merchant (“real options”)
electric energy time-shiftelectric supply capacityancillary services
End-User Electricity Cost Reductiontime-of-use energy cost reduction (on-peak)demand charge reduction (on-peak)power quality and/or reliability (backup) future: wholesale market during non-peak?
15
EESAT 200916
T&D Deferral Value Proposition
Primary Benefits
1. T&D Deferral *
2. Electric Supply Capacity (on-peak)
3. Electric Energy Time-Shift (on-peak)
4. Reserve Capacity (>8,000 hrs/year)Secondary Benefits
1. Voltage Support *
2. Transmission Congestion Relief * * benefit is location-dependent
17
T&D Deferral Background
Significant T&D Deferral Benefit Possible• $300/kW to $800/kW for one year
Necessarily Distributed Deployment• richer value propositions possible• if transportable: multiple deployments
Limited Storage Cycling RequiredRecent DOE/Sandia Report (SAND-2009-4070)
survey of existing research important context such as indicators generalized benefit estimation framework
EESAT 200918
Small Air Conditioning (A/C)Value Proposition
Primary Benefits
1. Electric Supply Capacity
2. Electric Energy Time-Shift
3. Voltage Support *
4. Transmission Congestion Relief *Secondary Benefits
1. Electric Supply Reserve Capacity
2. T&D Deferral ** benefit is location-dependent
19
Small Air Conditioning Value Proposition Background
Small A/C: “load from hell” • on when demand is highest
high energy and capacity cost
• off >90% of the year very low utility asset utilization
• compressor motors have a significant effect on voltage during grid-wide voltage emergencies
On-Site or Nearby “Community” Storage Grid provides “surge current” for start-up. Storage + Small A/C Smart Grid Synergies
20
Renewables + Distributed Storage Value Propositions
Distributed PV + StorageCentral Wind Gen. into Distributed Storage
Primary Benefits1. Renewables Generation Capacity Firming
2. Electric Energy Time-Shift
3. Electric Service Reliability (UPS, backup)
Secondary Benefits1. T&D Deferral *
2. Transmission Congestion Relief *
*benefit is location-dependent
21
Wind Generation Integration
Short Duration (seconds)• reduce output “volatility” (ramping)• improve power quality
Long Duration (minutes to hours)• reduce output variability (ramping)• transmission congestion relief• “backup” for unexpected wind generation shortfall• reduce “minimum load violations”
22
Societal Value Proposition
Lower electric energy price/costLess Supply & T&D infrastructure needsReduced fuel use
• Reduced I2R T&D energy losses• In some cases: reduced direct fuel use
More robust gridSuperior integration of renewablesOptimized electric supply fleet operation In some cases: reduced air emissions
23
Conclusions Emphasize Value Propositions
less emphasis on applications & technology need artful aggregation of benefits (> cost) many storage opportunities require two or more
benefits (combined) to exceed cost
Increasingly Rich Possibilities for Attractive Value Propositions
• increasingly rich pricing• increasing value for those benefits• Smart Grid and “load aggregation”• distributed resources
(storage, generation, demand response)
References and Credits
Presentation Materials• Thanks to Jim Eyer, [email protected]
For much of this materialReference Material
• SAND 2010-0815 Energy Storage for the Electricity Grid: Benefits and
Market Potential Assessment Guide Jim Eyer and Garth Corey Feb-2010
24