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Energy Storage A Utility Perspective

Energy Storage A Utility Perspective. Dr. Ali Nourai Distributed Energy Resources American Electric Power Chairman of Board of Directors Electricity Storage Association. Installed Energy Storage on Electric Grids. 2. How Much Storage Does a Grid Need ?.

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Energy Storage A Utility Perspective

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  1. Energy Storage A Utility Perspective Dr. Ali Nourai Distributed Energy Resources American Electric Power Chairman of Board of Directors Electricity Storage Association

  2. Installed Energy Storage on Electric Grids 2

  3. How Much Storage Does a Grid Need ? Percentage of generated energy that is stored • Japan 15% • Europe 10% • USA 2.5% With the expected growth in the intermittent renewable sources, the above amount of storage would not be able to maintain grid stability The amount of needed storage is very site-specific but at least 15% of renewable generation needs to be buffered through energy storage 3

  4. Challenges to Deployment of Energy Storage Economic • Cost of storage • Need volume & competition • Incentives to industry • Being able to capture multiple values in a given application Regulatory • How to handle cost recovery of multiple benefits across distribution, transmission and generation? • How to handle energy in and out in a deregulated environment? • No “RPS” for storage 4

  5. Electricity Advisory Act Report of December 2008 www.oe.energy.gov/eac.htm Key Recommendations to DOE: • Create Financial Incentives for installing Storage • Add Storage as a component of integrated T & D and renewable portfolio standards • Guide policy makers and regulators to include storage in rate bases

  6. American Recovery and Reinvestment Act 2009 (ARRA) • ARRA Allocation to DOE $10.9 billion • DOE Allocation for Energy Storage $210 million Recovery Act Smart Grid Demonstrations DE-FOA-0000036 • Utility Load Shifting or Wind Farm $40M to $50M • 8-15MW/4-8 hours battery systems • Frequency Regulation Ancillary Services $40M to $50M • Multi-MW, under 4 seconds • Distributed Energy Storage for Grid Support $25M • 1-3 MW, 30min. To 8 hours • Compresses Air Energy Storage (CAES) $50M to $60M • 10-50 MW, 2-5 hours • Demonstration of Promising ES Technologies $25M • Concepts that could revolutionize the utility-scale ES 6

  7. Energy Storage Options for Grid Applications Some of the commercial or pre-commercial options: • Pumped Hydro • Compressed Air • Flow Batteries • Flywheels • Supercapacitors • Sodium Sulfur Battery • Li-ion Battery • Other Batteries

  8. The Evolution of the Electric Utility System BeforeSmart Grid: One-way power flow, simple interactions After Smart Grid: Two-way power flow, multi-stakeholder interactions Adapted from EPRI Presentation by Joe Hughes NIST Standards Workshop April 28, 2008

  9. Energy Storage is a central component... ...in the success of the Smart Grid! Adapted from EPRI Presentation by Joe Hughes NIST Standards Workshop April 28, 2008

  10. 2MW, 14.4 MWh NAS Battery in Balls Gap WV Energy Storage Installations in AEP • 3 MW, 22 MWh in WV (the first NaS battery site outside Japan) • 4 MW, 28 MWh in Ohio & Indiana • 4 MW, 28 MWh will be on line in Texas in 2009 Why NaS? Commercial History Compact

  11. Economic Impact of Energy Storage - on Utilities Economic benefits of Energy Storage could be more than its cost IF We learn how to “monetize” multiple values in each application !!

  12. Building on Experience … • AEP is very pleased with the performance of its substation batteries … • But we need to get MORE out of energy storage: • More value to our customers • Lower cost per stored kWHr • Greater Flexibility for Deployment • Higher Efficiency (including T&D losses) • Better fit into Smart Grid, the way of future utilities How ?

  13. Community Energy Storage (CES) CES is a small distributed energy storage unit connected to the secondary of transformers serving a few houses or small commercial loads • Uses New or Used PHEV batteries • Offers All Values of Substation Batteries when aggregated, • Offers Backup Power to customers • Buffers Customer Renewable Generation • Makes PHEV Charging Time a less critical issue

  14. CES Key Functions • Local Controls/Benefits: • 1) Backup power for the local need of the few houses connected to it • 2) Voltage correction • Grid Controls/Benefits: • 3) Load Leveling based on substation and grid needs • 4) Power Factor Correction • 5) Ancillary services through further aggregation at the grid level

  15. 2015 and Beyond A Vision of Utility Future

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