Blake F. Richetta Senior Vice President, sonnen Inc. - - PowerPoint PPT Presentation

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The Leader in Grid Tied Residential Energy Storage

Blake F. Richetta Senior Vice President, sonnen Inc. Blake.R@sonnen-batterie.com

#1. Solve a Problem: The inherent challenge presented to the power grid, as a result of the intermittent and unpredictable nature

• f renewable energy, can be mitigated

by a distributed network of energy storage systems “Green grid reliability requires flexible resource capabilities” “Reliability requires balancing supply and demand”

• California ISO

Why Energy Storage?

Challenges: 1. The rapid downward ramp during peak renewable production hours and the rapid upward ramp, to evening peak 2. Grid stress, voltage fluctuation or loss, inefficiency 3. Less than ideal carbon offset Result: Electricity Grid requires a resource mix that can react quickly to rapid changes

#2. Add Value! A distributed network of behind the meter energy storage systems can help solve the challenges associated with “peak demand” on the grid

Why Energy Storage?

#2. Add Value! Building a decentralized “virtual power plant” can be less expensive, more efficient and significantly cleaner than building a traditional “peaker plant” or new substation Distributed energy storage can represent a viable “non wire alternative” to traditional grid infrastructure upgrades Both of the above examples can lead to substantive investment deferrals

Why Energy Storage?

#1. Daily cycling of stored sunlight energy

• Offset “peak periods” with stored

sunlight energy or energy from grid load shifting:

• Aka “Time of Use”
• Environmental benefit +

potential financial benefit

• Avoid TOU Peak Rates

“TOU arbitrage”

• Avoid Demand Charges
• Run your home on solar energy

24 hours a day:

• Aka “Self-Consumption”
• Environmental + potential

financial benefit

Energy Storage Applications

when the sun is no longer shinning, run your home on stored sunlight harness the sunshine 24 hours a day

#2. Solar Optimized Backup Power

Energy Storage Applications

+ =

#3. Grid Services via the aggregation

• f Distributed Energy Resources
• 1. Demand Response
• Offset grid peak periods

(utilizing stored sunlight or grid load shift energy)

• Act as an outlet for excess

renewable production

• 2. Flexible Ramping
• 3. Capacity Firming, Dynamic Capacity
• 4. Frequency Regulation
• 5. Voltage and Reactive Power

support

• 6. Emergency Backup
• 7. Situational Intelligence

Energy Storage Applications

• Utility manages an intelligent,

decentralized power grid that is both complex and dynamic – interacting efficiently at the individual circuit level

• “Low-cost information and

communications technologies and advanced metering enable more cost-reflective prices and charges for electricity services that can finally animate the “demand side” of the power system and align myriad decisions with the optimization of net social welfare” – MIT Future of the Power Grid Research, 2016

“The Utility of the Future”

• High renewables penetration, supported

by storage

• Residential
• Commercial
• Utility Scale
• Critical role of Distributed Energy

Resources (DERs) and Distributed Energy Resource Management Systems (DERMS)

“The Utility of the Future”

• Significant percentage of energy will be

self-produced by “prosumers” and will either be self-consumed or exported when required

• Smart Consumption and Managed

Production

• Increased significance of smart

home and building energy management systems and appliances, specifically for the purpose of “demand control” and “load balancing”

“The Utility of the Future”

• Agile Utility manages the transactional

platform between “prosumers,” supplementing where needed as a “reliable backup”

• Electricity Grid consists of a fleet of low-

carbon footprint centralized power plants, complemented by a large network of distributed energy resources, specifically renewable generation coupled with storage – both Front-of-Meter and Behind-the-Meter

• Eliminating the need for Peaker Plants

“The Utility of the Future”

• The electrification of transport will play a

significant role, as grid infrastructure will be utilized to charge EVs, often during “off-peak” hours

“The Utility of the Future”

• Smooth, highly managed relationship

between Production and Consumption

“The Utility of the Future”

Distributed Generation

Storage Loads *Export to Grid when needed

*Behind the Meter DER

Central Generation

According to the MIT 2016 grid innovation study, customers are making inefficient investments and are overcompensated for the services that they provide to the power system At the same time, many more opportunities that could deliver greater value are being left untapped because of inadequate compensation

“The Utility of the Future”

Grid Innovation

The Utility and Electricity Grid Landscape of the future (Aspirational as well as Logical)

• A more level playing field for the provision

and consumption of electricity services, whether via centralized or distributed resources

• A more competitive, market driven Utility

landscape, clearly separated from the Grid Operator function

Grid Innovation

The Utility and Electricity Grid Landscape of the future (Aspirational as well as Logical)

• Remove inefficient barriers to the integration
• f cost-effective new sources of electricity

services

• Rethink ill-designed incentives for certain

resources

• Create a system of prices and charges that

can animate efficient decisions

• Electricity Grid that is more efficient and

nimble, yet less expensive to operate

Grid Innovation

The Utility and Electricity Grid Landscape of the future (Aspirational as well as Logical)

• Utility companies will become inherently

“lean” - rewarded for greater efficiency and systemic improvements

• Utility companies will be incentivized for

longer-term innovation, in order to accelerate R&D investments – with a special focus on “novel technologies and practices” with a higher-risk factor and longer-term payback

Grid Innovation

The Utility and Electricity Grid Landscape of the future (Aspirational as well as Logical)

• Highly flexible TOU rate structures, including

a significant delta between Peak and Off-Peak

• TOU rates will be accompanied by high levels
• f local and situational granularity, based on

specific location and specific conditions on the grid, at a specific time

• Requiring flexible distributed energy

resources

Grid Innovation

The Utility and Electricity Grid Landscape of the future (Aspirational as well as Logical)

• The electricity grid of the future will include a

“Central Data Hub”

• Securely storing metered data on customer

usage, telemetry data on network operation and constraints, and other relevant information

• The “Hub” will enable timely access to this

useful data to end customers

• Cyber Security and Privacy will become a

keystone of the future “distributed intelligent grid”

Grid Innovation

The Utility and Electricity Grid Landscape of the future (Aspirational as well as Logical)

Wholesale market design will be improved to better integrate distributed resources, reward greater flexibility, and create a level playing field for all technologies

• Wholesale market rules, such as

bidding formats, will evolve to ease the participation of energy storage

• Wholesale markets should enable

transactions to be made closer to real time to reward flexible resources and to enable better forecasting and control of variable renewable resources and electricity demand.

Grid Innovation

The Utility and Electricity Grid Landscape of the future (Aspirational as well as Logical)

• DERMS will rely heavily on Blockchain

technology

• Blockchain: a digital ledger in which

transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.

Unique value proposition: #3 sonnen Community

• Over 7,000 Members
• Peer-to-Peer Clean Energy Trading

Platform

• Providing Grid-Services
• Frequency Regulation
• Demand Response
• sonnen “Flat” offers free clean

energy, for 10-years (kWh limits apply)

• sonnen City further substantiates

the viability of aggregating a distributed network of energy storage systems, for the purpose

• f grid stabilization and VPP

The sonnen Brand Story

Unique Value Proposition: #3 sonnen Community = “clean energy community”

The sonnen Brand Story