introduction to energy storage

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©2016 NEC Energy Solutions, Inc. All rights reserved. INTRODUCTION TO ENERGY STORAGE Philip Fischer NEC Energy Solutions [email protected] 1

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Page 1: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved.

INTRODUCTION TO ENERGY STORAGE

Philip Fischer NEC Energy Solutions [email protected]

1

Page 2: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved.

Electricity Grid Basics

Page 3: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved.

• The electricity grid is a complex system that produces and delivers electricity to end users

• The grid can be thought of as composed of these parts:

– Generation (Electricity Producers)

– Transmission & Distribution

– Load (Electricity Consumers)

• The grid was designed with these characteristics in mind:

– Electricity flows from Generation to Load and not in the other direction.

– Generation must always match Load; there is no storage

Introduction

Electricity Grid Basics

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Page 4: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved.

• The grid must be supplying electricity to customers at all times.

• The grid must be operated safely and minimize hazard to people and equipment at all times.

• The grid must stay in balance at all times.

How does the grid work?

Electricity Grid Basics

Page 5: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved.

Why do we need energy storage on the grid?

Page 6: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved. 6

• Today’s grids require more flexibility to address:

– Increased renewable generation

– Changing load patterns

– Aging transmission and distribution network

• Energy storage in the grid is a powerful tool

– Increase capacity utilization for generation, transmission, and distribution infrastructure

Preparing Grids For A Renewable Future Adding flexibility, efficiency, and reliability

Why Energy Storage for the Grid?

Page 7: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved.

• In our context, Energy Storage refers to the ability to hold electricity safely, reliably, and economically for future use.

• Mediating between variable sources and variable loads.

• Decoupling production from consumption.

• Reducing price volatility.

• Enabling 100% renewable generation.

• Making the grid more efficient.

• Increasing reliability.

• Today, only about 2.2% of electricity is stored world-wide(1)

What is Energy Storage?

Introduction to Grid Energy Storage

Adapted from: Introduction to Bulk Power Systems, B. Kirby, EUCI course, Jun 8-9 2009, Washington DC

(1) Source: “Annual Electric Generator Report”, 2011 EIA – Total Capacity 2009; US Energy Information Administration, Form EIA-860, 2011.

Page 8: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved.

Commercial and Industrial “Behind-the-Meter”

Applications

Page 9: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved. 9

• Behind-The-Meter indicates that the application is located on the customer side of the electricity meter

What does Behind-The-Meter mean?

Behind-The-Meter

Electricity meter Measures the electricity usage of a customer

Electricity Customer Could be a home, office building, or a factory

Electric Utility Responsible for serving customers electricity

“Utility side of the meter” “Behind the meter”

Page 10: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved.

Energy Storage for Commercial & Industrial

Optimizing how and when energy is supplied from the grid

• Energy Cost Optimization

– Demand charge reduction – Simpler demand response – Time of Use (TOU) rate management

• Energy Resiliency

– Renewables integration – Back-up power enablement – Power quality assurance

Page 11: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved.

How Energy Storage Provides $$$

• Reducing demand charge levied by servicing utility – As much as 50% or more of C&I electricity costs may come from utility

demand charges

• Shifting timing of energy consumption so as to manage time of use rate utilization

• Increases value of PV solar

Typical Energy Tariff

Consumption with Energy Storage

Consumption Solar + Energy Storage

Page 12: Introduction to energy storage

©2016 NEC Energy Solutions, Inc. All rights reserved.

For more info:

• Energy Storage Initiative (ESI)

– http://www.mass.gov/eea/energy-utilities-clean-tech/renewable-energy/energy-storage-initiative/

• Energy Storage Association

– http://energystorage.org/energy-storage

• Phil Fischer – NEC Energy Solutions

[email protected]