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Energy Storage Overview Peninsula Clean Energy Board Meeting January 24, 2019 For: Peninsula Clean Energy Presented by: ICF Energy Storage Topics What is Energy Storage? Services and Applications What Does It Look Like? How Much Does

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January 24, 2019 For: Peninsula Clean Energy

Energy Storage Overview Peninsula Clean Energy Board Meeting

Presented by: ICF

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Prepared for Peninsula Clean Energy.

Energy Storage Topics

PCE Goals and Energy Storage How Much Does They Cost? What Does It Look Like? Services and Applications What is Energy Storage?

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What is Energy Storage?

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What is Energy Storage?

Technologies to store electricity when it is not needed so that it is ready to use when

there is demand for electricity

This is increasingly important with high % of renewable energy sources

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How is Energy Storage Described?

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Storage is like a bucket of water…

Term Energy Storage Bucket of Water Energy Capacity Amount of energy stored (kWh or MWh) How much water the bucket can hold Power Capacity Rate at which energy is charged or discharged (kW or MW) How fast the bucket can filled/emptied Duration Ratio of energy and power capacity (hours) How long it takes to fill/empty the bucket Efficiency The amount of energy lost during charging/discharging (%) Water splashes when filling/emptying Cycle Life The number of charges/discharges before energy capacity falls below a certain level Holes in the bucket form over time

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What Types of Storage Exist?

Scale: utility, commercial and industrial, residential
Type of service
front of the meter (FTM): grid services, ancillary services
behind the meter (BTM): customer services
Stand-alone or coupled with generator
Stationary or mobile (trailer, electric vehicles)

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Duck Curve - CAISO

7 1/24/2019 Source: https://www.caiso.com/Documents/FlexibleResourcesHelpRenewables_FastFacts.pdf

Storage Modified Profile Typical Solar Generation Profile

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Services and Applications

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FTM Services Relevant to PCE

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Application Description Resource Adequacy Supply capacity to meet peak electricity demands Energy Arbitrage Store excess energy and dispatch when valuable Reserves Standby capacity for unplanned capacity losses

ccur

Frequency Regulation Regulate frequency of grid to maintain power quality Grid Infrastructure Service Resource Adequacy Ancillary Services Energy Arbitrage Reserves Frequency Regulation

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BTM Services Relevant to PCE

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Customer Energy Management TOU Bill Management Demand Charge Reduction PV Self- Consumption Backup Power Application Description TOU Bill Management Reduce energy purchases during peak consumption hours Demand Charge Reduction Reduce consumption when demand charges high PV Self- Consumption Store PV generation for use later Backup Power Provides energy during power outages

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Stacking Services

Storage owner can combine (stack) various applications to increase revenue opportunity

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Renewable Specific Applications - Wind

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Renewable Specific Applications - Solar

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Renewable Load Matching

Very Large ESS

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Typical ESS

Storage can shape the output of renewable energy to match load

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What Does It Look Like?

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Many Types of Energy Storage

Pumped Hydro Compressed Air 16 1/24/2019

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What Technology is Relevant?

Pumped Hydro Compressed Air 17 1/24/2019

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Why?

Battery storage is:
Compact
Limited infrastructure requirements
Scalable
Lithium-ion is the clear front runner
Cost
Flexible
Mature
Others have promise but: expensive, limited services, lack field history
Performance considerations (Li-ion)
Efficiency à ~90%
Lifetime à ~ 10 years

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Residential Storage

Typically 3-10 kW, 5-20 kWh, 2 or 4 duration
Lithium ion batteries
Cost: $1025-1800/kWh installed
Typical Applications
TOU management
PV self consumption
Backup

(LG Chem RESU) (Tesla)

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(Lockheed Martin) (Tesla)

Typically 50-500 kW, 50-2000 kWh, 2-4 hour duration
Lithium ion batteries
Cost: $725-1375/kWh installed
Typical Applications
TOU management
PV self consumption
Demand Charge Management
Power Quality/Backup

Commercial & Industrial Storage

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Utility Scale Storage

(NEC) CELL MODULE RACK 21 1/24/2019

Typically 5 MW, 20 MWh, 4 hour duration
Lithium ion batteries
Cost: $425-650/kWh installed
Typical Applications
Grid/Ancillary Services
Load Matching
Energy Arbitrage

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How Much Do They Cost?

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Storage System Costs

Battery cost main driver for all costs
Capital Costs
Installation
Batteries
Balance of system (everything else)
Operating Costs:
Maintenance
Energy capacity augmentation

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(GTM Storage Summit 12/2018)

$425-650/kWh (Utility) $1025-1800/kWh (Resi) $725-1375/kWh (C&I) $1400-1850/kWh (Utility)

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Costs – Past, Present, and Future

(Bloomberg NEF)

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(Brattle Group)

80% price drop since 2010
~$70/kWh by 2030, ~$40/kWh by 2040
Systems prices follow battery prices

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PCE Goals and Energy Storage

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PCE Policy, Goals & Objectives

Reduce Greenhouse Gases (GHG)

Steady progress in reduction of PCE portfolio GHG
90% GHG free in 2019 with target of 100% GHG-free in 2021

PCE Supply Portfolio

Evolve supply portfolio (energy) to ~100% renewable by/before 2025, subject to

resource availability and market cost-effectiveness

Manage supply portfolio to match ~100% renewable supply with customer demand
n an hourly basis

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How can energy storage support these goals?

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Opportunities for Storage and PCE

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Energy
Shaping RE output to match load & meet ~100% RE objectives
Economically dispatch energy into CAISO day ahead or real time markets
Capacity (Resource Adequacy)
System, Local, Flexible
Storage can provide RA but must participate in CAISO markets
Ancillary Services
Regulation Energy Management
Frequency Regulation and Reserves

New rules at CAISO are being developed and market for products/services is evolving

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Thank You!

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