Energy StorageThe Snohomish Viewpoint

Agenda

Why

Status of the Industry

What Snohomish County PUD is doing

Environmental Commitment

Snohomish County PUD No.1

Total Electrical Customers: 332,000

Energy Sales: 8,812,294 MWh

Generating Capacity: 120 MW

Residential Rates: 9.9¢ per kWh

# of Substations: 88

# of Circuits: 400

Resource Mix: 8% Renewables

Average # of Employees: 980

Renewable Energy is Variable

Challenge:Meet load growth and renewable portfolio standard requirements without the use of fossil fuels

Why is Energy Storage needed?

Battery Energy Storage is Accelerating!

1. Energy Storage – State of the Industry 2. Lithium Ion - Current Battery of Choice3. Energy Storage System Vendors4. MESA 3 Objectives5. Next Steps

1,349 MW

65MW192MW

8

Note: Does not include underground compressed air energy storage, pumped hydro, or lead-acid batteries for non-grid applications; minimum threshold for projects is either 100kW or 100kWh, includes projects announced up to 4 November 2015. Note that Alevo’s 200MW project with Customized Energy Solutions and Amergin’s 60MW project in PJM are not included because their exact locations are not yet announced. Capacities in each state may have changed from H1 2015 due to BNEF energy storage project database clean-up concluded on 30 June 2015. Source: Bloomberg New Energy Finance

25 November 2015

US COMMISSIONED AND ANNOUNCED ENERGY STORAGE PROJECTS, (MW)

0.2 AL

58.5 AK

10.0 AZ -

AR

414.5 CA

1.8 CO

0.1 CT

- DC

0.4 DE

0.2 FL

1.0 GA

58.0 HI

-ID

93.0 IL

26.1 IN

-IA

0.1 KS

1.0 KY

-LA

0.8 ME

0.5 MD

4.5 MA1.8 MI

2.2 MN

-MS

4.1 MO

0.1 MT

-NE

-NV

-NH

14.0 NJ

2.6 NM

27.2 NY

1.0 NC

-ND

46.3 OH

0.4 OK

10.2 OR

56.4 PA

- RI

-SC

-SD

0.0 TN

60.6 TX

2.8 UT

5.4 VT

0.2 VA

24.2 WA

67.9 WV

-WI-

WY

997.8 US

AL AZ CA CT DE GA ID IN KS LA MD MI MS MT NV NJ NY ND OK PA SC TN UT VA WV WY

CA: 1.3GW storage

mandate by 2020

HI: KIUC signed 13MW solar

+13MW storage 20-year PPA with

SolarCity

PA, OH, IL: 43MW new projects for

frequency regulation in PJM

NY: Storage subsidy in New York City; Con

Edison announces

1.8MW ‘virtual power plant’

demonstration project

IN: 20MW AES Indiana project first

project in MISO

TX: City of Austin targeting 200MW by 2024; Duke Energy repowering 36MW

lead-acid to li-ion batteries, adds to 2.2MW for renewables integration;

1.7MW storage in microgrids

VT: 4.3MW installed in

microgrid projects

MA: $10m Energy Storage Intitiative

< 5MW

5-55MW

> 55MW

No storage

OR: 5MWh procurement

target by 2020 for PGE and PacificCorp

Ontario, Canada: Grid operator targeting 50MW of storage

WA: $14.3m grant for storage projects

Clean Energy Fund 2 - $12.6M approved in 2015 for Utility Projects

Residential Energy Storage

Tesla Powerwall announcement April, 2015

7.5 kWh and 10kWh Lithium Ion Battery Pack. Established a new low price for batteries 38,000 order reservations Gigafactory – Reno, Nevada – 50 Gigawatt-hours

annual production by 2020

Residential Energy Storage

Many companies competing China’s BYD, Germany’s Sonnebatterie, GE, etc.

Increasing investment in Lithium Ion Decreasing cost – and – improving performance

How are some Utilities engaging? Subsidies, Discount Financing, Utility Ownership

California, Hawaii, and Vermont

Lithium Ion is Leading the Battery Market

CAES –Compressed Air Energy Storage

Total Global MW installed as of 2014

Source: Navigant Research (Dehamna, Eller & Embury, 2014) for installed battery capacity by type, and GlobalData (2015) for the pumped-storage hydroelectricity capacity.

Why is Lithium-Ion Currently the Popular Choice?

Mature and Proven Technology Phones, Laptops, Electrical Vehicles, etc.

Strong combination of: Energy and Power Density Cycle Life Efficiency Low Maintenance Cost

13

Bloomberg New Energy Finance

August 2015

LITHIUM-ION BATTERY COST OUTLOOK, 2011-2030 ($/KWH)

Battery pack costs ($/kWh)Energy Storage and Electric Vehicles

0

50

100

150

200

250

300

350

400

450

0

100

200

300

400

500

600

700

800

900

2011 2013 2015 2017 2019 2021 2023 2025 2027 2029

Global EV lithium-ion batteryproduction

BNEF observedvalues

Experience curveat 13% (BNEFobserved rate)

Experience curveat 22% (Historicalconsumer LiB rate)

Tesla projectedcosts

BNEF observed values: annual lithium-ion battery price index (average of PHEV+BEV packs), 2011-14

BNEF expected 2015 value (average of PHEV and BEV packs)

Estimate current Tesla cost (BEV pack only , 18650 format)

Long term Tesla cost target

$250/kWh

$400/kWh

$100/kWh

$800/kWh

Control Software

Energy Storage(Battery)

GridPower

ConversionSystem(DC‐AC)

Utility Control System

‐MESA ‐

StandardCommunications

(Modular Energy Storage 

Architecture)

Energy Storage Components

Source – Navigant 2015

Top 10 Vendors

1. LG Chem (MESA 1b)2. Samsung SDI3. BYD4. Kokam5. Toshiba6. Panasonic/Tesla7. Hitachi8. Saft9. Sony10.Lishen

Lithium Ion Batteries

Source – Greentechmedia.com storage monitor - 2015

Top 10 Vendors

1. ABB2. Parker (MESA 1a, 1b)3. Bosch4. Eaton5. S&C6. SMA7. Schneider Electric8. Princeton Power9. Ingeteam10.Dynapower

Power Conversion Systems

Members of MESA Alliance

Other software companies

MESA Compliant

Companies who have indicated they can provide MESA compliant software

6 Vendors

1. 1Energy Systems2. NEC Solutions3. Lockheed Martin4. Integrated Dynamics5. Greensmith6. DC System

GeliSTEMAES Energy StorageBoschDemand EnergyYounicosS&C EnergyABB

MESA Compliant Control Software

MESA Embraced by Industry & Utilities

21 Members as of December 2015 6 utilities, including Duke Energy 4 software companies 2 large battery vendors – LG Chem and NEC Energy Solutions

Duke Energy –“We went out into the marketplace to see what standards are out there, and there wasn’t really anything beyond MESA. What we get out of this is an opportunity to influence the standard we think will push the industry to the next level.” – Thomas Golden, Duke Technology Development Manager

(Modular Energy Storage Architecture)

Standards Required for Scalability

MESA1A

MESA2

MESA3

Snohomish PUD

Bonneville Power Association

Transmission

PUD System

Distribution

MESA1B

First Energy Storage SystemMultiple vendor

Lithium Ion2MW / 1 MWh

Innovative chemistryLocal WA start-up

Flow Battery2.2 MW / 8 MWh

MESAN

Lithium IonMultiple Benefits

Energy Storage Portfolio Using Modular Energy Storage Architecture

MESA 1A1MW/.5MWhLi-Ion

Analytics –Measurement & Verification

MESA 1B1MW/.5MWhLi-Ion

Controls Integration -Optimization

MESA 22.2MW/8MWhVanadium Flow

MESA Standards Alliance

Projects partially funded through Washington State ‐ Clean Energy Fund

Current Energy Storage Projects

• MESA-ESS Specification for direct utility control of ESS built on the DNP3 Protocol Operational Management Monitoring Control Functions Smart ESS Modes Scheduling

• MESA-Device Specifications for connections between components within the ESS built on the Modbus Protocol MESA-PCS: Power Conversion

Systems MESA-Storage: Batteries

(lithium-ion & flow models to date) MESA-Meter: Meters

MESA is currently developing two specifications: MESA-ESS and MESA-Device/SunSpec Energy Storage Model.

Orange Developed by MESAGray Developed by MESA and SunSpec Alliance

Overview of MESA Specifications

MESA 1 Project

Develop scalable energy storage solutions based on Modular Energy Storage Architecture

Field deploy and test MESA based Energy Storage System at a District Substation

Integrate Energy Storage System into District communication networks to communicate end-to-end with the District Control Center and Power Scheduling Systems

MESA 1 Technology

2MW/1MWH Lithium – Ion System

Two individual systems connected into a

single substation breakers

Two different battery vendors

One power conversion system vendor

One control system

Contracting

Contracted with single company to deliver Project System Integrator

Control System Manufacturer

Subcontracts with battery and power conversion system

suppliers

Owners Engineer Design Review

Grounding, Hazardous Material Management Plan, etc.

Installation &Commissioning

Certification & Performance

• Integration into utility operations

• Configuration for optimal performance

Engineering & Procurement

Design Services

• Site management• Installation• Field Testing

• Circuit studies• ESS sizing analysis

• Technology recommendations

• Electrical design• Vendor mgmt• Comms and software design

Design & System Integration Components

Site Physical

MESA 1A site physical arrangement. MESA 1A and 1B site physical configuration.

System Integration Engineering

Site Physical

MESA 1A three‐line drawing

Electrical

MESA 1A: 144 engineering documents

System Integration Engineering

Site Physical

MESA 1A ESS Communications Network Drawing

Electrical

Communications

System Integration Engineering

Site Physical

MESA 1A 1E‐IC Manual excerpts

Electrical

Communications

Manuals

MESA 1A: 17 individual component manuals

MESA 1A Emergency Response Manual

System Integration Engineering

Site Physical

Consolidated Hazard Analysis Report

Electrical

Communications

Manuals

Hazard/MSDS

MESA 1A: 19 MSDS’s

System Integration Engineering

Site Physical

MESA 1A Acceptance Test Report

Electrical

Communications

Manuals

Hazard/MSDS

Test Plans

MESA 1A Acceptance Test Plan

System Integration Engineering

MESA 1A: 237 documentsBatteries

Meters

Power Conversion System

Utility substation infrastructure

Safety Systems

System Integration Engineering

Performance-optimized ESS

Control and Communications

Disconnect Switch

Interconnection Components

Utility Standards

ESS: A Single, Integrated System

System Design and Project Plan

Specifications

Performance Requirements

Drawings Schematics Wiring Civil package

Bill of Materials

System Integration Plans

Hazard Analysis

System Testing and Verification Plans

Factory Acceptance Test

Commissioning Plan

Acceptance Test

Hazardous Material Management Plan

Broad Utility Management

Substation Engineering/Construction Communications SCADA System Planning and Protection Environmental and Safety Power Scheduling Facilities Information Technology Cyber Security Steering Team

Testing

Factory Acceptance Testing Tested complete battery and power conversion system Failure Modes and Event Analysis

Commissioning Complete check out of all systems System charging/discharging at full capacity within 1 week

Site Acceptance Testing Repeat testing of select Failure Modes and Event Analysis Testing of all control modes Testing of control mode scheduling

Manufacturing Acceptance Testing

Design

1/3/2014Design 

Complete

11/3/2014Equipment Delivery

6/12/2014Communication Test Complete

2/9/2015Commissioning

 Complete

Electrical Assembly

7/13/2015Battery System

Turnover to District

11/20/2012 7/31/2015

1/1/2013 4/1/2013 7/1/2013 10/1/2013 1/1/2014 4/1/2014 7/1/2014 10/1/2014 1/1/15 4/1/15

FactoryTesting

MESA 1a - Schedule

Manufacturing

Acceptance Testing

Design

2/4/2015Design 

Complete

8/26/2015Equipment Delivery

5/27/2015Communication Test Complete

11/16/2015Commissioning

 Complete

Electrical Assembly

2/12/2016Battery System

Turnover to District

8/7/2014 2/29/2016

10/1/2014 1/1/2015

4/1/2015

7/1/2015

10/1/2015

1/1/2016

FactoryTesting

MESA 1b - Schedule

MESA 1a

MESA 1a and 1b

Battery ContainerBAT‐1A

TransformerK‐366

AC/DC ConverterPCS‐1A

SwitchAC‐1A

ControlCabinet

MESA 1a Equipment

HMI and Controls Cabinet

Inverter Power Stack

DC Battery PowerConnections

DC Contactors

Filter Capacitors & Inductors

AC ConnectionsAnd Breaker

Chiller

Air Handler

Battery Racks

DC Connection Cabinet

Battery Container HMI

DCSwitch

Lithium-Ion Battery Modules A module is built from 12 individual cells

Each module operates at around 45 volts, provides 50 amp-hours capacity

Built-in monitoring for individual cell voltage and module temperature

Weight is 26 kg, dimensions 220x617x135 mm, operates -10o to +45oC

Design lifetime is 10 years

RelaysSEL‐751

1Energy HMI

Test

Switches

Commgateway

MetersION 8650

Control Cabinet Layout

DISTRIBUTED ENERGY RESOURCE OPTIMIZER (1E-DERO™): One per fleet, located in Control Center

Interacts with operational and market-based platforms

Executes and optimizes multiple fleet level ESS applications

INTELLIGENT CONTROLLER (1E-IC™) One per ESS, located at ESS site Executes local, autonomous operating

modes based on local sensors Provides standard MESA interface to all

ESS’s regardless of battery type/manufacturer

Coordinated, Hierarchical Control Platforms

Applications

Market Participation

Transmission Congestion Relief

Unfavorable Market Avoidance

Energy Imbalance Mitigation

Frequency Response

…and more based on customer needs

Operating Modes

Peak Power Limit

Load/Generation Following

Power Factor Correction

Real Power Smoothing

Spinning Reserves

Volt-VAR

…and a number of others

…and more based on customer needs

Local circuit, autonomous

Bulk system, centralized 

Coordinated, Hierarchical Control Platforms

Concept Detailed Operating Mode

Local, Autonomous Operating Modes

1E-DERO ApplicationsNimble Responses to Changing Conditions

Now Future

Transmission Constraints: Avoid Energy CongestionLooks ahead 6 hrs – 5 days; Calculates every 6 hours.

Energy Arbitrage: Buy Low, Use, or Sell HighLooks ahead 1 – 5 days; Calculates once a day.

Ability to be Nimble

Ability toPlan AheadBlend to Maximize

Value for Your Grid

Energy Imbalance Mitigation: Avoid forecast error penaltiesLooks ahead 20 – 90 mins; Calculates every 5 – 10 minutes.

Best Market: Avoid Unfavorable PurchasesLooks ahead 1 – 5 hrs; Calculates at least once an hour.

TM

MESA 2 Project Background

2.2MW/8MWH Vanadium Flow Battery

MESA 2 Project Background

Modular Energy Storage Architecture (MESA) Open, non-proprietary set of communication and

connection specifications and standards Allows electric utilities to choose interchangeable

components; batteries, inverters and software

Benefits of Energy Storage Load Shifting (Peak Shaved) – Storage enables

reduced load peak Over Generation – Absorbs wind/solar over-generation

UET Battery String

Vanadium Flow Battery

MESA 2 Internal Containment

MESA‐2

BOS (container, switching, temp controls, etc.)

1E‐IC

PCS

ESU

BMS

District I/T Environment

1E Optimizer

SCADA /DMS

Power Scheduling

MESA 2 Architecture

Leak Sensors

Avista Installation

MESA 2 Battery Stacks

MESA 2 Battery Elevation Dwg

Everett Substation

MESA 2 Current Status

Key Civil and Electrical designs are complete

Battery Strings have been ordered and are in

the process of being manufactured by UET

Public Works Permit was issued on 3/4

Completed construction planning session with

1Energy and UET

Civil Construction Package is out for bid

MESA 2 Accomplishments & Challenges

Design The project team was not satisfied with the

subcontractor’s civil design approach.

Project team decided to complete civil design

internally, resulting in a more practical design that will

benefit the construction process.

MESA 2 Accomplishments & Challenges

Environmental and Permitting Hazard Analysis (HA) – HA identified high volume of

electrolyte (vanadium) with acidic properties. District

chose to add additional containment measures.

SEPA - Completed a successful SEPA review process

resulting in a Determination of Nonsignificance on

12/16/15

Permitting Special Property Use Permit issued on 01/13/16

Public Works Permit issued on 03/04/16

Manufacturing AcceptanceTesting

Design

06/24/2016Civil Construction 

Installation

10/06/2016Go‐Live

Analytics 

9/1/16

FactoryTesting

6/1/163/1/161/1/16 1/1/17 3/1/17

Commissioning

MESA 2 - Schedule

BaselineEstimate

Total Cost to Date

Total Forecast Cost

Variance Pending CEF Reimbursements

$11,873,000 $5,185,070 $11,221,214 $651,786 $1,936,000

Reason for Project Variance: District labor costs have been lower due to

experience gained from previous battery projects

MESA 2 Project Costs

MESA 3 Objectives“One Project with Multiple Benefits”

1. Meet the interests of the District, the State (Clean Energy Fund 2) and our customers.

2. Enable the investigation of different use cases.

3. Gain experience with technologies that are further along the production and cost curve – more performance for less $.

4. Continue to build the District’s competency and experience and leverage lessons learned from MESA 1 and 2

5. Add MWs and MWhs to benefit Power Scheduling.

6. Stay consistent with the Commission’s Strategic Plan and the 2015 update to the 2013 IRP.

Next Steps

Pursue Clean Energy Fund 2

Competitively Bid MESA 3

2016 - Build Project Team and Partners

2017 - Design and Permit

2018 - Build and Commission

Lessons Learned

Test Lab FAT Testing Site Acceptance Testing Warranty One Prime Contractor In house Engineering Specific about Charge/Discharge requirements and

Energy storage capacity Insurance Company verification HMMP Complete set of wiring diagrams, Bill of Materials

Questions?Thank You