Energy Storage in Vermont

1. Energy Storage in Vermont VT Department of Public Service

2. Act 53 Storage Report • On or before Nov. 15, 2017, Commissioner of Public Service “shall submit a report on the issue of deploying energy storage on the Vermont electric transmission and distribution system.” • Summarize existing state, regional, and national actions or initiatives affecting deployment of energy storage; • Identify and summarize federal and state jurisdictional issues regarding deployment of storage; • Identify the opportunities for, the benefits of, and the barriers to deploying energy storage; • Identify and evaluate regulatory options and structure available to foster energy storage, including potential cost impacts to ratepayers; and • Assess the potential methods for fostering the development of cost-effective solutions for energy storage in Vermont and the potential benefits and cost impacts of each method for ratepayers. • Report can be accessed at: http://publicservice.vermont.gov/content/energy-storage-study

3. Report Outline • Introduction • Benefits and Costs of Storage Systems in Vermont • Ownership Options and Delivery Pathways for Promoting Storage • Other Considerations • Potential Programs and Policies to Encourage Storage in Vermont • Recommendations • Appendix A: Act 53 Storage Report Language • Appendix B: Energy Storage in the State, Region, and Nation

4. Act 53 Storage Study “….we view energy storage as a means to an end – rather than an end in and of itself – and thus many of our recommendations focus on pursuit of storage within the broader pursuit of a clean, efficient, reliable, and resilient grid in the most cost-effective manner for ratepayers.”

5. State energy policy 30 V.S.A. § 202a It is the general policy of the State of Vermont: (1) To assure, to the greatest extent practicable, that Vermont can meet its energy service needs in a manner that is adequate, reliable, secure, and sustainable; that assures affordability and encourages the State's economic vitality, the efficient use of energy resources, and cost-effective demand-side management; and that is environmentally sound. (2) To identify and evaluate, on an ongoing basis, resources that will meet Vermont's energy service needs in accordance with the principles of least-cost integrated planning; including efficiency, conservation and load management alternatives, wise use of renewable resources, and environmentally sound energy supply.

6. Energy storage technologies Courtesy Massachusetts Department of Energy Resources, from “State of Charge”

7. Storage benefits • Peak shaving • Other electricity market services • Renewables integration • Resilience

8. Whole energy system sized to meet these peaks Source: VELCO

9. Source: VELCO

10. Source: ISO-NE Source: GMP

11. Source: VELCO

12. Source: CEC & NREL (top); EPRI (bottom)

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16. Report: Levelized Cost of Energy for Lithium-Ion Batteries Is Plummeting Bloomberg New Energy Finance finds the long-term costs of multi-hour energy storage can compete with natural gas and coal in an increasing number of markets today. Source: Bloomberg New Energy Finance

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19. Do these cost less than storage? • Peak management • Passive energy efficiency & active demand response • Rate design – timing of energy use • Integration of renewables • Rate design – timing & location of energy generation • Resilience • Vegetation management • Strategic location of utility infrastructure • System protection • Grid-sensing & self-healing • Forecasting & event prep • Post-event analysis

21. Valuing resilience “The costs to island can be highly variable and depend on a multitude of site-specific factors. Based on anecdotal experience, the cost to island a system might add incremental expenses ranging from 10% to 50% of the non-islandable PV and storage system cost. The benefit of any avoided losses during grid outages must be balanced with these added costs of designing a system to meet critical loads. For a resilient power system to result in a net economic benefit for a customer, the cost to island must be no more than the added savings delivered by the system.” This paper is a summary of an NREL analysis detailed in: Laws, Nicholas D., Kate Anderson, Nicholas A. DiOrio, Xiangkun Li, and Joyce McLaren. “Impacts of Valuing Resilience on Cost-Optimal PV and Storage Systems for Commercial Buildings.” Manuscript submitted for publication.

22. Ownership options & delivery pathways

23. Stafford Hill 2 MW solar + 3.4 MWh storage project in Rutland. Batteries are In the shipping containers in the upper right. Credit: GMP • Also….. • GMP Powerwall pilot – 2,000 units, 10 MW peak shaving • Other utilities evaluating similar offerings • GMP 1 MW/4 MWh battery on Panton PV site (plus forthcoming islanding study) • GMP 5 MW PV + 2 MW/8 MWh solar + storage projects in Milton, Ferrisburgh, & Essex • VEC ESA for a 1.9 MW storage project in Hinesburg • VELCO analyzing potential for storage to alleviate N. VT export constraints Utility storage activities VermodSonnenbatteries (6 or 8 kWh) at McKnight Ln. project in Waltham Simpliphi 82 kWh system at Emerald Lake Sunverge 8 kWh in Plymouth BED King St. Youth Center storage project GMP Tesla Powerwall 5.5 kW install

24. Non-utility storage activities Tesla Powerwall unit installed by Peck Electric in S. Burlington. • Also….. • BYOD batteries participating in GMP programs • WEG 5 MW/20 MWh storage system in Barre Dynapower test pad in S. Burlington PowerGuru 32 kWh battery in Pownal Bill Laberge of Grassroots Solar with a Sonnenbatterie Northern Reliability VTA solar + storage in Rochester

25. Expected storage deployment in VT by 2020 VT is 7% of MA’s peak load, but our 2020 storage will be 65% of MA’s 200 MWh by 2020 target (13% if raised to 1,000 MWh) *Assuming all batteries are 4 hours

26. Storage & flexible demand in IRPs Source: GMP 2018 IRP

27. Opportunities for communities • Pursuant to terms of a settlement in its solar & storage projects, GMP is undertaking a systemwide analysis to identify areas were storage and/or flexible loads can provide: • Economic benefits • Facilitation of integration of distributed energy resources • Distribution system benefits (reliability, resilience, and power quality) • When proposing a specific storage project, GMP will identify expected value streams, including the items above a well as “the potential for third-party cost and benefit sharing (e.g., if a critical facility such as a hospital would gain a resilience benefit, a contribution from the hospital to the overall cost of the project could be explored).” • Under Act 174 energy planning, a region and/or its towns could take resilience into consideration when identifying preferred locations for siting a generator or a specific size or type of generator, in concert with other emergency planning efforts.

28. middletownnj.org/DocumentCenter/View/3996/Middletown-Microgrid-Feasibility-Study-Final-middletownnj.org/DocumentCenter/View/3996/Middletown-Microgrid-Feasibility-Study-Final-

29. Storage regulation • Act 31 of 2019 requires storage facilities 500 kW and larger to obtain a Certificate of Public Good • It also requires the Department to provide recommendations to the legislature by January 2020 on the regulatory treatment of: • Storage facilities < 500 kW • Storage facilities of any size not subject to utility control

30. Questions? http://publicservice.vermont.gov/content/energy-storage-study Anne Margolis anne.margolis@vermont.gov