Energy Storage Industry Update December 16, 2015 Hosted by Todd - - PowerPoint PPT Presentation

Energy Storage Technology Advancement Partnership (ESTAP) Webinar:

Energy Storage Industry Update

December 16, 2015 Hosted by Todd Olinsky-Paul ESTAP Project Director Clean Energy States Alliance

Housekeeping

State & Federal Energy Storage Technology Advancement Partnership (ESTAP)

Todd Olinsky-Paul Project Director Clean Energy States Alliance (CESA)

Thank You:

• Dr. Imre Gyuk

U.S. Department of Energy, Office of Electricity Delivery and Energy Reliability Dan Borneo Sandia National Laboratories

ESTAP is a project of CESA

ESTAP Key Activities:

• 1. Disseminate information to stakeholders
• 2. Facilitate public/private partnerships to

support joint federal/state energy storage demonstration project deployment

• 3. Support state energy storage efforts

with technical, policy and program assistance Clean Energy States Alliance (CESA) is a non-profit organization providing a forum for states to work together to implement effective clean energy policies & programs:

• ESTAP listserv >3,000 members
• Webinars, conferences, information

updates, surveys.

Massachusetts: $40 Million Resilient Power/Microgrids Solicitation; $10 Million energy storage demonstration program Kodiak Island Wind/Hydro/ Battery & Cordova Hydro/flywheel projects Northeastern States Post- Sandy Critical Infrastructure Resiliency Project New Jersey: $10 million, 4- year energy storage solicitation Pennsylvania Battery Demonstration Project Connecticut: $45 Million, 3-year Microgrids Initiative Maryland Game Changer Awards: Solar/EV/Battery & Resiliency Through Microgrids Task Force

ESTAP Project Locations

Oregon: Energy Storage RFP New Mexico: Energy Storage Task Force Vermont: 4 MW energy storage microgrid & Airport Microgrid New York $40 Million Microgrids Initiative Hawaii: 6MW storage on Molokai Island and 2MW storage in Honolulu

State & Federal Energy Storage Technology Advancement Partnership (ESTAP) is conducted under contract with Sandia National Laboratories, with funding from US DOE.

CESA Project Director: Todd Olinsky-Paul (Todd@cleanegroup.org) Webinar Archive: www.cesa.org/webinars ESTAP Website: http://bit.ly/CESA-ESTAP ESTAP Listserv: http://bit.ly/EnergyStorageList Sandia Project Director: Dan Borneo (drborne@sandia.gov)

Contact In Info

Today’s Guest Speakers

• Ravi Manghani, Senior Energy Storage Analyst,

GTM Research

• Brett Simon, Energy Storage Analyst, GTM

Research

Prepared For: Senior Analyst, Energy Storage and Analyst, Energy Storage manghani@gtmresearch.com and simon@gtmresearch.com Ravi Manghani and Brett Simon

State of the U.S. Energy Storage Industry

December 16, 2015

1

News/Online

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About Greentech Media

Research

GTM Research is the market analysis and consulting arm of Greentech Media. GTM Research is comprised of analysts covering solar, grid edge, and energy storage markets. Our analysts combine diverse backgrounds in energy, environmental, emerging technology, information technology and strategic consulting sectors. This diverse team provides critical and timely market analysis in the form of research reports, consulting, and data subscription services.

Event

Greentech Media and GTM Research experts come together to produce all of Greentech Media’s industry conferences throughout the year. These summits provide a platform for our latest market intelligence and draw together the industry influencers from

• rganizations across the value chain.

2

Agenda

1. U.S. Energy Storage Deployments 2. Storage Applications and Technology Landscape 3. Policy and Market Developments 4. Investment and Vendor Ecosystem

U.S. Energy Storage Deployments 1

4

• 5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 Q3 2013 Q3 2014 Q3 2015

60.3

• 10.0

20.0 30.0 40.0 50.0 60.0 70.0 Q3 U.S. Energy Storage Deployments (MW) Q3 2013 Q3 2014 Q3 2015

Q3 U.S. Energy Storage Deployments, 2013-2015 (MW)

• 2.0

4.0 6.0 8.0 10.0 12.0 14.0 16.0 Q3 U.S. Energy Storage Deployments (MW) Q3 2013 Q3 2014 Q3 2015

Fr Front of

• f the Meter

Behind the Meter Tot

• tal

Q3 U.S. Energy Storage Deployments (MW)

Source: GTM Research/ESA U.S. Energy Storage Monitor Source: GTM Research/ESA U.S. Energy Storage Monitor Source: GTM Research/ESA U.S. Energy Storage Monitor

5

U.S. Energy Storage Deployments by Segment (MW)

10 20 30 40 50 60 70 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Deployments (MW) Residential Non-Residential Utility

Source: GTM Research/ESA U.S. Energy Storage Monitor

6

• 5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 Q3 U.S. Energy Storage Deployments (MWh) Q3 2013 Q3 2014 Q3 2015

53.1

• 10.0

20.0 30.0 40.0 50.0 60.0 Q3 U.S. Energy Storage Deployments (MWh) Q3 2013 Q3 2014 Q3 2015

• 5.0

10.0 15.0 20.0 25.0 30.0 Q3 U.S. Energy Storage Deployments (MWh) Q3 2013 Q3 2014 Q3 2015

Q3 U.S. Energy Storage Deployments, 2013-2015 (MWh)

Fr Front of

• f the Meter

Behind the Meter Tot

• tal

Source: GTM Research/ESA U.S. Energy Storage Monitor Source: GTM Research/ESA U.S. Energy Storage Monitor Source: GTM Research/ESA U.S. Energy Storage Monitor

7

Top Energy Storage Markets, Q3 2015

Rank Residential Non-Residential Utility 1 Hawaii California PJM (excl. NJ) 2 All Others* Hawaii California 3 California New York All Others*

* GTM Research is currently monitoring seven individual markets. Complete coverage of all markets is available in the U.S. Energy Storage Monitor Report.

Source: GTM Research

Storage Applications and Technology Landscape 2

9

Energy Storage Applications Vary by Location and Segment

Discharge Duration Frequency of Use

DR Revenues DG Electricity Sales Renewables Smoothing Ancillary Services Resiliency Power Quality Fuel Costs Peak Demand Charges Time-of-Use Shifting Occasional Frequent Rare Long Medium Short Customer-site application Front-of-meter application Both sides of meter

10

Vendors Pursue a Variety of Energy Storage Technologies

Li-Ion Battery Technology Vendors Lead-Acid Battery Technology Vendors Flow Battery Technology Vendors Sodium-Based Battery Technology Vendors Emerging Technology Storage Vendors

Ultracapacitor Technology Vendors Flywheel Technology Vendors CAES Technology Vendors

Thermal Storage Vendors

11

Lithium Ion Batteries Dominate the U.S. Technology Landscape

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Energy Storage Deployments by Technology (% of total MW deployed) Lithium Ion Lead Acid Sodium Chemistries Flow - Vanadium Flow - Zinc Other * “Other” includes flywheel and unreported energy storage technologies

Source: GTM Research/ESA U.S. Energy Storage Monitor

Policy and Market Developments 3

13

Front-of-the-Meter Policy and Market Developments, Q3 2015

Was ashington

Was ashi hing ngton

• n Utilities and

nd Tr Tran anspo portat ation Com

• mmissi

sion white paper encouraged IOUs to model energy storage costs and benefits

New York

• rk

NY NYSERD RDA and Con

• nso

solidat ated ed Edi diso son jointly released a battery storage safety RFP; Pu Publ blic Ser ervice Commissi sion ordered utilities to file Distribution System Implementation Plans

Cali alifornia

Legislature set a target of 50% renewable electricity by 2030. CPUC to provide decision

• n

storage procurement framework by December 2015; also partially approved SCE’s Local Capacity Requirements RFO. SCE chose 16.3 MW of resource adequacy storage projects under 2014’s RFO; also issued an RFO to solicit up to 100 MW to support Preferred Resources Pilot. PG&E issued RFO to procure compressed-air energy storage system. CAISO approved DERP framework, currently conducting ESDER stakeholder initiative.

Fed ederal

Sena enate introduced American Energy Innovation

• Act. Depa

epartment ent of

• f Tr

Trea easu sury and the IRS RS solicited public comments on ITC to determine if energy storage should qualify. NA NASA selected two energy storage technology proposals under its Game Changing Development Program.

PJM

PJM PJM Operating Committee proposed reduction of RegD cap and modified the ranking procedure for self-scheduled and $0 cost resources. Senior Task Force created to re-evaluate application

• f

marginal benefit function to regulation market.

14

Front-of-the-Meter Policy and Market Developments, Q3 2015 (Cont.)

Texas

AES Ener nergy Stor

• rag

age announced a 20 MW storage project in Onc ncor

• r territory which is expected to

come on-line in late 2016; ERC RCOT established DREAM Task Force to determine protocols and market rules for distributed energy resources

Oregon

Oregon PUC opened a docket to comply with the state’s procurement targets for IOUs; Oregon DOE issued an RFP for an energy storage demonstration project with up to $300,000 available to the awardee

New Ham ampshire

PUC initiated an investigation into grid modernization

Mas assac achusetts

IOUs filed grid modernization plans in August 2015 as directed by DPU PU; DOER selected a study partner for its energy storage initiative in September 2015

Connecticut

Stat ate leg egisl slat atur ure amended state budget provisions to require Conn. electric distribution companies to submit pilot proposals for grid-side system enhancements; also passed act to permit the creation of storage RFPs

Hawaii

KIUC entered in a 20-year PPA with Sol

• lar

arCity for power from a 13 MW/52 MWh lithium-ion storage system

Ar Arizona

TE TEP selected two 10 MW storage projects under REST

15

Behind-the-Meter Policy and Market Developments, Q3 2015

Cali alifornia

PG&E and Olivine opened supply-side pilot for residential

• customers. SCE

issued RFO to solicit up to 100 MW to support Preferred Resources Pilot. SCE, SolarCity and the SunSpec Alliance announced a partnership for the Smart Energy Homes demonstration project. CAISO approved DERP framework, and currently conducting ESDER stakeholder initiative. CPUC issued Demand Response Auction Mechanism; modifications to SGIP’s GHG emission factor still under consideration.

Hawaii

Haw awai aii PUC ended traditional net metering for new solar customers and instead

• ffered

two new

• ptions: self-supply or grid-supply

New York

• rk

NY NY PS PSC announced first demonstration projects under NY REV

New Jersey

NJ NJ BPU PU issued the Second Straw Proposal for the FY 2016 Renewable Electric Storage Incentive Program

Fed ederal

Depa epartment ent of

• f Tr

Trea easu sury and the IRS RS solicited public comments on ITC to determine if energy storage should qualify

16

Ene Energy St Storage Rou

• und-Trip Effic

ficiency: 69 69.6% Ini nitial al Rou

• undtrip Effic

ficiency Cas ase

Storage Can Help Meet Clean Power Plan Goals: SGIP Case Study

10 20 30 40 50 60 70 80 560 565 570 575 580 585 590 595 600 605 610 615 1 2 3 4 5 6 7 8 9 10 Cumulative GHG emissions avoided (kgCO2/MWh) Annual GHG Emissions (kgCO2/MWh) GHG Emitted GHG Avoided Cumulative GHG emissions avoided

Source: GTM Research/ESA U.S. Energy Storage Monitor

17 200 400 600 800 1000 1200 100 200 300 400 500 600 700 1 2 3 4 5 6 7 8 9 10 Cumulative GHG Emissions Avoided (kgCO2/MWh) Annual GHG Emissions (kgCO2/MWh) GHG Emitted GHG Avoided Cumulative GHG emissions avoided

Storage Can Help Meet Clean Power Plan Goals: SGIP Case Study (cont.)

Ene Energy St Storage Rou

• und-Trip Effic

ficiency: 84 84% Ini nitial Rou

• undtrip Effic

ficiency Cas ase

Source: GTM Research/ESA U.S. Energy Storage Monitor

Investment and Vendor Ecosystem 4

19

Energy Storage Investments Total $265 Million in 2015

$2 $265 22 22 10 20 30 40 $0 $200 $400 $600 $800 2010 2011 2012 2013 2014 2015 (Q1 - Q3) Deal Count Disclosed Value (Millions USD) VC Project Financing Deal Count

Note: Data excludes battery materials and upstream companies. 2014 data differs from U.S. Energy Storage Monitor 2014 Year in Review due to exclusion of EV startup Atieva.

Source: GTM Research/ESA U.S. Energy Storage Monitor

20

Vendor Ecosystem: Partnerships and M&A in Q3 2015

21

Vendor Ecosystem: Partnerships and M&A in Q3 2015 (Cont.)

22

Vendor Ecosystem: Many New Product/Service Announcements in 2015

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December 16, 2015