SMART GRID with FREQUENCY REGULATION SERVICES

1. SMART GRID with FREQUENCY REGULATION SERVICES

2. FREQUENCY REGULATION SERVICES • Large scale integration of wind and solar generation will affect physical operation of the grid. A key area is the increasing need for frequency regulation.

3. WHAT IS REGULATION SERVICES? • Frequency regulation is a tool that regionaltransmission organizations (RTOs) and independent system operators (ISOs) use to balance supply and demand on the transmission system to correct frequencydeviations thus maintaining reliable operations. • Frequency regulation services is the highest paid Ancillary Service. • FERC Order 755 will have revenue enhancing impact for storage resources providing frequency regulation.

4. FREQUENCY REGULATION MARKET SIZE • Regulation services capacity in the electricity markets is typically sized based on the predicted daily peak/valley load. • 7600 MW of frequency regulation capacity is estimated as the requirement today in the US (based on 1% of Energy Information Administration’s (EIA) estimate of 2011 summer peak load). • As intermittent, renewable generation levels rise to 20%, frequency regulation capacity requirement is expected to rise to double to about 2% of peak/valley load. • This will rise even further to approximately 4% should renewable penetration levels reach 33%. • Using EIA’s forecasts, and 2% of peak load as a guide, US electricity markets will require approximately 16 GW of frequency regulation capacity by 2015. • Global regulation capacity is estimated at 37 GW to 75 GW depending on the level of renewables penetration.

6. System Solution

7. 3 Meg Watt Battery

8. System Solution