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Federal and State Energy Storage Policies and Efforts

Federal and State Energy Storage Policies and Efforts. New Mexico Energy Storage Task Force September 19, 2013 Dhruv Bhatnagar SAND2013-4747. Agenda. Introduction Federal Initiatives FERC Order 755 and 784 FERC Order 1000 State and Regional Efforts New Mexico Colorado California

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Federal and State Energy Storage Policies and Efforts

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  1. Federal and State Energy Storage Policies and Efforts New Mexico Energy Storage Task Force September 19, 2013 Dhruv Bhatnagar SAND2013-4747

  2. Agenda • Introduction • Federal Initiatives • FERC Order 755 and 784 • FERC Order 1000 • State and Regional Efforts • New Mexico • Colorado • California • Texas • Hawaii • New York • New Jersey • Other states

  3. Federal Storage Policy Developments FERC Orders 755: Pay for performance for frequency regulation • Implemented in PJM, MISO, NYISO, CAISO. 2015 for ISO-NE

  4. Federal Storage Policy Developments FERC Order 1000: Regional Transmission Planning • The order specifies how public utility transmission providersplan for new transmission projects and allocate those costs. • Reliability transmission upgrades, market efficiency transmission upgrades and public policy transmission upgrades • Order 1000 is broken into three main requirements. • Planning: non-transmission solutions considering public policy requirements • Cost allocation requirements across beneficiaries • Nonincumbent developer requirements: merchant transmission encouragement.

  5. Federal Storage Policy Developments FERC Order 784: 3rd Party Provision of Ancillary Services • Allows 3rd party ancillary service procurement for transmission public utilities • Requires a consideration of speed and accuracy • Simplifies and streamlines storage accounting procedures • Production, transmission and distribution Storage Act in Congress • Storage Technology for Renewable and Green Energy Act of 2013 (STORAGE) • 30% ITC for businesses, 20% ITC for grid-scale energy storage

  6. State Energy Storage Developments New Mexico Colorado California Texas Hawaii New York New Jersey Other states

  7. New Mexico Existing Resources • PNM Prosperity Project (500kW PV with 750 kW energy storage) • Mesa del Sol PV and Energy Storage • Japan-US Collaborative Smart Grid Project, 1MW NaS, Los Alamos • NEDO New Mexico Smart Grid Demonstration Project , 800kW, Los Alamos Current Initiatives • Energy Storage Task Force

  8. Colorado Existing Resources • Cabin Creek Pumped Hydro Plant 359MW. • Mount Elbert pumped hydro system, 200 MW. • Flatiron pumped hydro system 94.5 MW • SolarTAC 1.5MW sodium sulfur (NaS) battery (demonstration). • 25kW FIAMM

  9. Colorado Current Initiatives • 2009 two storage developers bid into PSCo’s open bid process for 1,200 MW of generation and capacity but the PUC did not find them to be competitive with other proposed resources • Section 123 Resources- initiative established in state law, enacted through the PUC to provide funding for emerging technologies • requires the commission to provide complete consideration and possible rate based financing to alternative technologies without a need for them to be economically competitive. There must however, be a compelling reason for their use, primarily that the resource shows a potential of being economically competitive with other resources in the near future.

  10. California Existing Resources

  11. California Current Initiatives • SGIP storage incentives for behind the meter (customer) projects (funded from customer bill surcharge) • $2/W up to 3MW for renewable powered energy storage • SCE 50 MW procurement target for 2021 + designation as a preferred resource • AB2514: Assigned Commissioner's Ruling setting storage procurement targets: 1.325 GW proposed for IOUs for 2020 (Carla Peterman) • Requires procured storage to be “viable” and “cost-effective” currently proposed through a reverse auction bid mechanism • Transmission interconnected: 700 MW • Distribution interconnected: 425 MW • Customer side of the meter: 200 MW • Utility proving cost unreasonableness or lack of competition could relive portion of requirements

  12. California Current Initiatives • AB2514: Assigned Commissioner's Ruling setting storage procurement targets: 1.325 GW proposed for IOUs for 2020 (Carla Peterman)

  13. Texas Existing Resources • 32MW/28MWh Battery at Notrees Wind Farm • 4MW/28MWh NaS Battery in Presidio, TX • 1 MW AES Energy Storage System Current Initiatives • State Bill 943 • Defines energy storage as a generation asset that must register as such when used to sell energy or ancillary services in the wholesale market- same interconnection rights and transmission access

  14. Texas Current Initiatives • PUCT Docket 39917 and ERCOT Nodal Protocol Revision 461 • energy storage, during both charge and discharge modes, would be considered a wholesale transaction and settled at the node, rather than zonally like load and face retail rates and associated retail transmission and ancillary services charges • Fast Responding Regulation Service (FRRS) Pilot • Similar to FERC Order 755 for ERCOT (Electric Reliability Council of Texas) • Emerging Technologies Working Group in ERCOT • identifies potential revisions to ERCOT rules to help increase the participation of emerging technologies

  15. Hawaii Existing Resources from the Hawaii Renewable Energy Development Venture

  16. Hawaii Current Initiatives • The Hawaii Electric Companies modeled energy storage as a supply-side resource option in their 2013 IRP (integrated resource plan). • Maui is actively considering the installation of energy storage to address wind curtailment.

  17. New York Existing Resources • Beacon Flywheel 20MW • Johnson City Li-ion 8MW • Blenheim-Gilboa Pumped Storage Power Project 1.16 GW • 7-Eleven Distributed Li-ion 100 kW Current Initiatives • NY-Best: NY Battery and Energy Storage Technology Consortium supported by NYSERDA (New York State Energy Research and Development Authority) • NYSERDA funding for energy storage demonstration projects • NY State $1 billion Green Bank initiative • New York Energy Highway • NYSERDA and NYPA (New York Power Authority) electric vehicle charging initiative -3,000 public chargers over 5 years

  18. New Jersey Existing Resources • Yards Creek Station, pumped hydroelectric storage system, 400 MW capacity in Warren County, NJ. Current Initiatives • NJ Clean Energy Program • societal benefits charge on electricity rates to fund the program • energy storage incentives currently under consideration, $2.5 million budget reserved (renewable connection required, special consideration for resiliency applications) • NJ Critical Infrastructure Bank, expectation of $500 million • New Jersey’s market potential study, released in August of last year, informs state support for emerging technologies. The most recent study includes energy storage but indicates that the state does not believe there is a significant market for the resource in the state

  19. Other States Washington • Utilities and Transportation Commission (UTC) requested that utilities include energy storage as a resource option in their next IRP. Oregon • Portland General Electric (PGE) included energy storage as an RFP storage option for 2012 (request for proposals). Connecticut, Massachusetts and Maryland are evaluating energy storage and microgrid deployment for smart grid enablement and grid resiliency.

  20. Energy Storage Project Database • A publicly accessible database of energy storage projects, research and state and federal legislation. Available at energystorageexchange.org

  21. Questions? Contact Information Electric Power Systems Research Group • Dhruv Bhatnagar | dbhatna@sandia.gov | 505-844-7716

  22. Energy Storage Regulatory Reports • Bhatnagar D. and Loose V. “Evaluating Utility Procured Electric Energy Storage Resources: A Perspective for State Electric Utility Regulators.” Sandia National Laboratories. SAND2012-9422. November 2012. • Bhatnagar D. et al. “Market and Policy Barriers to the Deployment of Energy Storage.” Sandia National Laboratories. SAND2013-7606. September 2013. Available at sandia.gov/ess

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