how storage paves the way for the grid of the future · how storage paves the way for the grid of...

Presented By:

7/28/16

How Storage Paves the Way for the Grid of the Future

Speakers:Wesley Kennedy, Senior Application Engineer, Fronius USATristan Kreager, Director of Solar Energy, Fronius USA

Moderator:Ravi Manghani, Director, Energy Storage, GTM Research

We will begin a few minutes after the hour.Please make sure your computer speaker volume is turned up.

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Today’s Speakers

Wesley KennedySenior ApplicationEngineer,Fronius USA

RaviManghaniDirector,EnergyStorage,GTMResearch

Tristan KreagerDirector ofSolar Energy,Fronius USA

4GTM Research -‐ How Storage Paves theWay for the Grid of the Future (July 2016)

Q1 2016 Deployments Grew 127 Percent Year-‐Over-‐Year to 18.3 MW

-‐

20

40

60

80

100

120

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Deploym

ents (M

W)

Residential Non-‐Residential Utility

U.S. Quarterly Energy StorageDeployments by Segment (MW)

Source: GTMResearch / ESAU.S. Energy StorageMonitor: Q2 2016


Solar-‐Plus-‐Storage Benefits Vary in Duration and Frequency, And Go Across the Meter

Source: GTMResearch

Discharge Duration

Frequency of Use

DR Revenues DG Electricity Sales

Renewables Smoothing

Ancillary Services

Resiliency

Power Quality

Fuel Costs

Peak Demand Charges

Time-‐of-‐Use Shifting

Occasional

Frequent

Rare

LongMediumShortCustomer-‐site applicationFront-‐of-‐meter applicationBoth sides of meter

Solar-‐Plus-‐StorageValue StreamsAcross theMeter


While Demand-‐Side Management Has Traditionally Been a Narrow Set of Programs, Policymakers Have Begun To Broaden Their Definition of DSM and Transition to DER

EEDSM DRHistorical View of Demand Side Management (DSM)

Demand Side Management (DSM) Juxtaposed with Supply-‐SideResources to Create Integrated Distributed Energy Resources (DER) Worldview

EEDER DR DGDSM

Source: GTMResearch


226 281

2,081

-‐

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E 2021E

Energy Storage Deploym

ents by Segm

ent (MW)

Residential Non-‐Residential Utility

U.S. Energy Storage Market Will Exceed the 2 GW Threshold in 2021Residential Segment to Be 30% of the Overall Market

Source: GTMResearch / ESAU.S. Energy StorageMonitor: Q2 2016

HOW STORAGE PAVES THE WAY FOR THE GRID OF THE FUTURE

Wes KennedySenior Applications EngineerFronius USAPortage, IN

Wes KennedySenior applications EngineerFronius, USA Fronius USA, LLC / Smart Renewable Energy System Integration / July 2016

Climate ChangeRE IntermittencyHigh PenetrationWhy BatteriesFuture Grid

Case for Battery Energy Storage Systems BESS Use Cases

AGENDA: FIRST A BRIEF FRONIUS INTRODUCTION

Self-ConsumptionBack Up for increased

resilienceTariff OptimizationLoad defection vs grid

defection

ABOUT FRONIUS

Solar Energy

Perfect Charging

Perfect Welding

Fronius USA / Fronius Primo 10-15 kW / v1.110

Founded in 1946, still family ownedStable and BankableIn 26 countries, 3600+ employees Manufacture only in USA and EuropeOver 1 million solar inverters installed

WHY STORAGE: CLIMATE CHANGE

97% of the scientific community agrees: Climate change is real and caused by human activity

WHY STORAGE: PV TO THE RESCUE

Just replace all fossil fuel burners with PV…..

WHY STORAGE: INTERMITTENCE OF RE SUPPLY

13 Fronius International GmbH / first name last name / Titel of presentation / xx.xx.20xx - v02

WHY STORAGE: MISMATCH OF LOAD AND PV SUPPLY


WHY STORAGE: HIGH PENETRATION OF RENEWABLES


IT’S NOT JUST ABOUT BUILDING MORE PV

/ Integration of more renewable energy sources into the grid is challenging/ Fluctuations in generation need to meet the demand/ Grid stability has to be ensured à energy resilience/ Over/under voltage and frequency needs to be managed

16 Fronius USA, LLC / Smart Renewable Energy System Integration / July 2016

DIFFERENT METHODS OF ENERGY STORAGE


BESS IS EMERGING AS BEST OVERALL TECH


/ Modular/ Responsive/ Wide Power Bandwidth/ Both Load and Source/ Clean and Quiet/ Low Maintenance/ Scalable production

/ Batteries plus energy conversion device (ECD) plus software defines Battery Energy Storage System BESS

OLD GRID

20

Bulk Generation

Transmission

Loads (homes, businesses)

Distribution

Sub-transmission

Power

NEW GRID

21

Bulk Generation

Transmission

Sub-transmission

Prosumers(homes, businesses)

Power

Communication

Utility control

BESS

BESS

BESS

22

THE GRID OF THE FUTURE IS SMART

/ Increasing number of decentralised energy generators

/ In a Smart Grid, generators communicate with consumers and the grid to ensure a stable supply

/ In the years ahead, grid operators will place similar requirements on local generators, such as photovoltaic systems

Fronius USA, LLC / Smart Renewable Energy System Integration / July 2016

Climate ChangeRE IntermittencyHigh PenetrationWhy BatteriesFuture Grid

Case for Battery Energy Storage Systems BESS Use Cases

AGENDA: FIRST A BRIEF FRONIUS INTRODUCTION

Self-ConsumptionBack Up for increased

resilienceTariff OptimizationLoad defection vs grid

defection

SMART INVERTER PLUS STORAGE

/ Self Supply/Self Consumption/ Back Up Power/ Tariff Optimization

/ Peak shaving/ Load shifting

/ Grid support

24 rmi.org

SELF CONSUMPTION/SELF SUPPLY/ Perfect scenario would be to meet all homes needs with 100% PV/ So maximum PV sizing is around annual electricity consumption, to meet 100%/ Then the two strategies to increase self consumption is via load management and storage/ Coordinate consumption with pv production/ Smart Energy Management system to manage system/ Adding storage completes the maximum system efficiency

25 rmi.org

SELF CONSUMPTION/SELF SUPPLY/ With the loss of Net Energy Metering (NEM)

/ Under review in many US States/ Any location where the feed in tariff is less than the value to purchase grid power

/ Europe, Australia/ Any location where feedback to the utility grid is restricted or prohibited

/ Caribbean and Hawaii

26

RESILIENCE / BACK UP POWER/ Currently the most tangible application in the US market

/ Preparation for natural disasters, radical change of future grid stability/ Tough to monetize the value. More like insurance policy/ Mainly residential market, but commercial has some high value use cases

/ Grocery stores, preserving food supply/ Community disaster relief centers/ Computer servers

27

RESILIENCE / BACK UP POWER

/ Multi-mode system/ When grid is present, PV system feeds

loads and grid as per specific tariff structure

/ Upon grid failure, Transfer switch disconnects from grid, and powers backed up load panel

/ Battery Inverter must be capable of grid forming operation

/ System then uses available pv power and stored energy in battery to run loads

/ When grid returns, system returns to normal grid tied operation.

28

RESILIENCE / BACK UP POWER

/ Currently the most tangible application in the US market/ Preparation for natural disasters, radical change

of future grid stability

/ Tough to monetize the value. More like insurance policy

/ Mainly residential market, but commercial has some high value use cases/ Grocery stores, preserving food supply/ Credit agencies/ Computer servers

29

rmi.org

TARIFF OPTIMIZATION

/ General term used to describe using energy storage to lower customer utility costs/ With utility rate unbundling, market signals can align with energy usage optimization/ Ultimately, prosumers react to reduce utility infrastructure stressors

30

Efficoreenergy

PEAK SHAVING/ Utilities are power providers, needing to meet peak capacity requirements to maintain a

stable grid. Energy production is merely a useful consequence of meeting demand/ Demand peaks are very costly for utilities, so demand charge billing makes those costs

transparent to the customer./ BESS (with or without PV) is useful for managing demand charges by discharging

batteries at times of peak demand./ The higher the demand charge, the more financially viable installing BESS becomes

Software utilizing sophisticated predictivealgorithms monitors load and charge and discharge of BESS

31rmi.org

LOAD SHIFTING AND TIME OF USE (TOU) TARIFFS/ When utility demand has predictable and sustained times of peak demand, on the scale

of hours rather than minutes/ BESS with or without PV can be used to reduce grid consumption during TOU tariffs/ BESS can be recharged during off peak times, when rates are lower/ PV along may be of only marginal use for many TOU tariffs, as PV production peaks at

noon, and typical grid demand peaks between 4 pm and 8 pm.

32

STARTS WITH SMART INVERTERS WITH ADVANCED GRID FEATURES/ Inverter functions that can stabilize the grid‘s voltage and frequency/ Dynamically adapt to the grid‘s needs/ Prevent the inverter from tripping / Increase the energy yield due to more uptime à improve ROI on solar


TODAY‘S GRID SUPPORT FUNCTIONS/ L/HVRT - Voltage ride through dips and swells

/ L/HFRT - Frequency ride through for bulk variation

/ Ramp Rate - Ramp rate for normal operation and soft-start

/ Volt-Var - Reactive power support based on local voltage

/ Fixed Power Factor – simple reactive power setting to support voltage

/ Volt-Watt – emergency power reduction to reduce voltage

/ Frequency-Watt – active power reduction/production to stabilize frequency


Interface Card / port

Measured values and status information

BESS AND GRID SUPPORT

Central or aggregatecontroller

Comms PortSet values and characteristic curves

Modbus(SunSpec Alliance)

RS485 or Zigbee

35

Smart meter /gateway

Storage

e.g. DNP3, SEP2 over cell, TCP/IP etc.

“Smart” Inverterwith autonomous controle.g. Q(V)

P(V)P(f)

BESS offers additional capabilities to Smart Inverters to support the stability of the

grid.

AGGREGATION

/ Bi-directional communications/ Enables control of discrete generators and loads on a mass scale/ Benefits can be applied on feeder, substation, distribution or transmission level/ Now variable generators and changing loads can be automatically controlled/ Enables DER systems to be treated similar to a traditional generation sources

36 sunverge

STACKING OF BENEFITS/ PV plus BESS

/ Stacking allows a single BESS to participate in multiple value streams based on most valuable use at a given time

/ Improves ROI


rmi.org

DER PLUS AGGREGATION MAXIMIZES STACKING/ PV plus BESS

/ Customer sited offers maximum benefit throughout all use cases

/ DER is inherently more secure by reducing centralized points of failure

/ DER must be aggregated to offer full capabilities


rmi.org

RENEWABLE FIRMING

1200

800

400

0

kW AC Power

1:00 PM3/3/2013

2:00 PM 3:00 PM 4:00 PM

Time of Day

Puerto Rico Regulator requires PV output never change by more than 10% per minute.

1200

800

400

0

kW AC Power

1:00 PM3/3/2013

2:00 PM 3:00 PM 4:00 PM

Time of Day

Required Output PV Output

Source: Bay4

FREQUENCY REGULATION

Source: pjm.com

BESS offers rapid

response, and silent, clean capacity

OPTIMAL DER PV + BESS CAPABILITIES

/ Backup power/ Load shifting, peak shaving/ Self consumption

/ Tariff optimization/ Dynamic grid support

/ Participation on the electricity market (e.g. reactive power,…)

/ Basic function of a PV system

/ Integration of additional power sources (i.e. existing PV, new or existing wind)

41

DEFECTION: GRID VS LOAD

Source: rmi

2 paths: conflictual or cooperative

All information is without guarantee in spite of careful editing - liability excluded.

Intellectual property and copyr ight: al l rights reserved. Copyr ight law and other laws protecting inte llectual pr operty apply to the c ontent of this pr esentation and the documentation enc losed (inc lud ing texts, pictures, graphics, an imationsetc.) unless expressly indicated otherwise. It is not permitted to use, copy or alter the content of this presentation for private or commercial purposes without explicit consent of Fronius.

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