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Sili Silicon Valley Silicon Valley ll Energy Storage Symposium Energy Storage Symposium gy g y p May 30, 2012 Microsoft Auditorium Mountain View, California , Media Partners Media Partners Event Partners Event Partners Exhibitors


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Sili ll Silicon Valley Silicon Valley Energy Storage Symposium Energy Storage Symposium gy g y p

May 30, 2012 Microsoft Auditorium Mountain View, California ,

Event Partners Exhibitors Media Partners Event Partners Exhibitors Media Partners

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LOCAL INDUSTRY BRIEFING LOCAL INDUSTRY BRIEFING LOCAL INDUSTRY BRIEFING Eric Wesoff Eric Wesoff

Editor in Chief Editor in Chief Greentech Media Greentech Media

Silicon Valley Energy Storage Symposium

May 30, 2012 Mountain View California Mountain View, California

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Sili ll Silicon Valley Silicon Valley Energy Storage Symposium Energy Storage Symposium gy g y p

May 30, 2012 Microsoft Auditorium Mountain View, California ,

Event Partners Exhibitors Media Partners Event Partners Exhibitors Media Partners

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C lCh Ca lCharg e Ca lCharg e

E St I ti C t l t E ne rg y Sto ra g e I nno va tio n Ca ta lyst

E ne rg y Sto ra g e I nno va tio n Ca ta lyst E ne rg y Sto ra g e I nno va tio n Ca ta lyst Do ug Da ve npo rt, L BNL dtda ve npo rt@ lb l g o v dtda ve npo rt@ lb l.g o v Pa ul F ra nke l Ca lCE F Pa ul F ra nke l, Ca lCE F pa ul.fra nke l@ c a lc e f.o rg p g

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C lCh Ca lCharg e Ca lCharg e

E ne rg y Sto ra g e I nno va tio n Ca ta lyst E ne rg y Sto ra g e I nno va tio n Ca ta lyst

L BNL Ca lCE F a nd a fe w fo unding pa rtne rs will L BNL , Ca lCE F , a nd a fe w fo unding pa rtne rs will la unc h Ca lCharg e to a c c e le ra te the pa c e o f la unc h Ca lCharg e to a c c e le ra te the pa c e o f b tt i ti i C lif i b a tte ry inno va tio n in Ca lifo rnia .

  • I

n-L a b Co llab o ratio n

T ra ining & T e c hno lo g y

Co llab o ratio n

g E duc a tio n g y

De ve lo pme nt

  • Pro fe ssio na l

De ve lo pme nt p k t

  • Ma rke t &

Po lic y

Re g io na l Ma rke ts &

I nte llig e nc e

Cluste r Po lic y

g E i

  • E

c o no mic Re so urc e s

6

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Our Go a l: F

  • rm Califo rnia’ s “Ce nte r o f Gravity” fo r

Our Go a l: F

  • rm Califo rnia s Ce nte r o f Gravity fo r

b atte ry inno vatio n in S ilic o n Valle y. b atte ry inno vatio n in S ilic o n Valle y. T h iti l i di t ll h T he c ritic a l ing re die nts a re a ll he re g

 30+ e me rg ing b a tte r te c hno lo g c o mpa nie s  30+ e me rg ing b a tte ry te c hno lo g y c o mpa nie s  W

ld l R D d i tit ti

 Wo rld-c la ss R&D re so urc e s a nd institutio ns  1st in Cle a nT

e c h inve stme nt a nd pa te nt filing s p g

 E

nlig hte ne d po lic y, e a rly a do pte r c ulture

 E

nlig hte ne d po lic y, e a rly a do pte r c ulture

 L

e a de rship in c le a n te c hno lo g y de ve lo pme nt

 L

e a de rship in c le a n te c hno lo g y de ve lo pme nt

Ca lCharg e strive s to b ring the m to g e the r Ca lCharg e strive s to b ring the m to g e the r

7

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A Pla tfo rm fo r E ne rg y Sto ra g e A Pla tfo rm fo r E ne rg y Sto ra g e I nno va tio n I nno va tio n

 C

ll b ti ith l di b tt i ti t

 Co lla b o ra tio n with le a ding b a tte ry sc ie ntists  Ac c e ss la b -g ra de re so urc e s fo r de ve lo pme nt

g p

 Ne w de ve lo pme nt pa rtne rships a nd c o lla b o ra tio ns  Ne w de ve lo pme nt pa rtne rships a nd c o lla b o ra tio ns  L

inks to inc ub a to rs c o mme rc ia liza tio n a nd fie ld tria l pa rtne rs

 L

inks to inc ub a to rs, c o mme rc ia liza tio n, a nd fie ld tria l pa rtne rs

T ra nspo rta tio n Co nsume r E le c tric a l Co su e E le c tro nic s Grid 8

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Wo rld Cla ss Sc ie nc e & E ng ine e ring Wo rld Cla ss Sc ie nc e & E ng ine e ring

 L

t f b tt d l t i ti t h

 L

a rg e st g ro up o f b a tte ry de ve lo pme nt sc ie ntists, a nywhe re

 T

rue e xpe rts in L i-io n c e lls, flo w c e lls, a nd a dva nc e d b a tte rie s

 L

a b -sc a le b a tte ry fa b ric a tio n, te sting , a nd de ve lo pme nt fa c ilitie s

 L

a b sc a le b a tte ry fa b ric a tio n, te sting , a nd de ve lo pme nt fa c ilitie s

 Wo rld-c la ss use r fa c ilitie s in ma te ria ls de ve lo pme nt a nd mic ro sc o py  Wo rld-c la ss use r fa c ilitie s in ma te ria ls de ve lo pme nt a nd mic ro sc o py  I

ndustry o rie nte d a ppro a c h to c o lla b o ra tio n

 I

ndustry-o rie nte d a ppro a c h to c o lla b o ra tio n

 I t

di i li t i l h i t t li ti

 I

nte rdisc iplina ry ma te ria ls, c he mistry, syste ms, a pplic a tio ns

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Suppo rting the E ne rg y Sto ra g e Suppo rting the E ne rg y Sto ra g e I ndustry I ndustry

Bring ing T e c hnic a l Ma rke t a nd Po lic y Bring ing T e c hnic a l, Ma rke t, a nd Po lic y tt i t ti ith b ma tte rs into c o nve rsa tio n with me mb e rs i i

 Ba tte ry Unive rsity

y y

 Adva nc e d tra ining in b a tte ry de sig n &

g y g a pplic a tio ns a pplic a tio ns

 I

nfo rma tive we b ina rs & ne two rking

 I

nfo rma tive we b ina rs & ne two rking

C i S S S i 20 3

 Co re pa rtne r in SV E

ne rg y Sto ra g e Summit 2013

 L

  • c a l ne two rking e ve nts a nd to pic a l we b ina rs

 L

  • c a l ne two rking e ve nts a nd to pic a l we b ina rs

10

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Jo ining Ca lCharg e Jo ining Ca lCharg e

C ll b i h i f b

 Co lla b o ra tio n me c ha nisms fo r me mb e rs

 E

limina te s c o ntra c ting de la ys a ssure s c o nfide ntia lity

 E

limina te s c o ntra c ting de la ys, a ssure s c o nfide ntia lity

 Ne w de dic a te d la b spa c e a nd te sting e q uipme nt  Ne w de dic a te d la b spa c e a nd te sting e q uipme nt

f C lCh ll b ti fo r Ca lCharg e c o lla b o ra tio n

 Stra te g ic a g re e me nts with o the r re g io na l institutio ns  Stra te g ic a g re e me nts with o the r re g io na l institutio ns

in the wo rks

 C

lCh ill ti i t i d ANL / L BNL

 Ca lCharg e will pa rtic ipa te in pro po se d ANL

/ L BNL

  • le d DOE

E ne rg y Sto ra g e Hub le d DOE E ne rg y Sto ra g e Hub

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Jo ining Ca lCharg e Jo ining Ca lCharg e g g

Initially r eaching… Initially r eaching…

 E

i B tt C i d l i i ti f d i

 E

me rg ing Batte ry Co mpanie s: de ve lo ping inno va tio ns fo r de vic e s, t t id tra nspo rt, g rid

 L

arg e Batte ry Pro duc e rs: inte re ste d to suppo rt de ve lo pme nt o f g y pp p te c hno lo g y a nd ta le nt g y

Potential Additional Member s

 Majo r Batte ry Use rs: tra nspo rta tio n g rid c o nsume r se c to r c o mpa nie s  Majo r Batte ry Use rs: tra nspo rta tio n, g rid, c o nsume r se c to r c o mpa nie s

tha t drive ne e ds a nd o ppo rtunitie s tha t drive ne e ds a nd o ppo rtunitie s i i i i i f

 Po lic y Make rs: g o ve rnme nt le a de rship sha ping the dire c tio n o f e ne rg y

i i sto ra g e a pplic a tio ns

 L

  • c al E

c o no mic De ve lo pme nt: b usine ss inc ub a to rs a nd a c c e le ra to rs

 L

  • c al E

c o no mic De ve lo pme nt: b usine ss inc ub a to rs a nd a c c e le ra to rs, wo rkfo rc e de ve lo pme nt wo rkfo rc e de ve lo pme nt

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i F

  • r me mb e rship, ple a se c o nta c t:

Do ug Da ve npo rt a t L BNL g p dtda ve npo rt@ lb l.g o v dtda ve npo rt@ lb l.g o v Pa ul F ra nke l a t Ca lCE F Pa ul F ra nke l a t Ca lCE F pa ul fra nke l@ c a lc e f o rg pa ul.fra nke l@ c a lc e f.o rg

Ca lCharg e Ca lCharg e g

E ne rg y Sto ra g e I nno va tio n Ca ta lyst E ne rg y Sto ra g e I nno va tio n Ca ta lyst

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Sili ll Silicon Valley Silicon Valley Energy Storage Symposium Energy Storage Symposium gy g y p

May 30, 2012 Microsoft Auditorium Mountain View, California ,

Event Partners Exhibitors Media Partners Event Partners Exhibitors Media Partners

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PANEL DISCUSSION PANEL DISCUSSION: PANEL DISCUSSION: Grid Level Storage Grid‐Level Storage g

Edward Cazalet, MegaWatt Storage Farms , g g H h K th EPRI Haresh Kamath, EPRI Jon Eric Thalman Pacific Gas & Electric Jon Eric Thalman, Pacific Gas & Electric Amy Guy Wagner Energy & Environmental Economics Amy Guy Wagner, Energy & Environmental Economics David Rummler (moderator), CleanTech Strategy Group and David Rummler (moderator), CleanTech Strategy Group and Stanford University Civil & Environmental Engineering Stanford University Civil & Environmental Engineering

Silicon Valley Energy Storage Symposium

May 30, 2012 Mountain View California Mountain View, California

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Sili ll Silicon Valley Silicon Valley Energy Storage Symposium Energy Storage Symposium gy g y p

May 30, 2012 Microsoft Auditorium Mountain View, California ,

Event Partners Exhibitors Media Partners Event Partners Exhibitors Media Partners

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S B b i h Steve Berberich Steve Berberich

President and Chief E ec ti e Officer President and Chief Executive Officer C lif i I d d t S t O t C ti California Independent System Operator Corporation p y p p

Silicon Valley Energy Storage Symposium

May 30, 2012 Mountain View California Mountain View, California

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Sili ll Silicon Valley Silicon Valley Energy Storage Symposium Energy Storage Symposium gy g y p

May 30, 2012 Microsoft Auditorium Mountain View, California ,

Event Partners Exhibitors Media Partners Event Partners Exhibitors Media Partners

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C E S P B CALIFORNIA ENERGY STORAGE POLICY BRIEFING

Janice Lin Janice Lin

l Managing Partner, Strategen Consulting, LLC Executive Director, California Energy Storage Alliance , gy g

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Strategen Overview Strategen Overview

We combine strategic thinking with deep industry expertise to create profitable businesses

Strategen Core Team

Clean Tech Manufacturers / S i P id

Strategen Core Team

Service Providers

Partners

Technology Specialists Corporations Exploring Clean Technology Specialists St t d Fi Corporations Exploring Clean Energy Opportunities Structured Finance Energy Opportunities Controls & Smart Grid Project Developers Private Equity / VC Firms Tariff and Rate Specialists q y / Investing in Clean Tech p

A sampling of our clients: A sampling of our clients:

U.S. Department of Department of Energy

Confidential

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Why California? Why California?

Energy Storage is fundamental to many key California policy Energy Storage is fundamental to many key California policy i i i i initiatives

» BIG: 13% of US GDP, 8th largest economy in the world, ahead of Canada and Spain. » ‘Foundational’ Legislation

  • Energy Storage Procurement Targets: (AB 2514)
  • RPS Legislation (SB X1‐2)

S lf G i I i P SGIP (SB 412 AB1150))

  • Self‐Generation Incentive Program: SGIP (SB 412, AB1150))

S t G id S t (SB 17)

  • Smart Grid Systems (SB 17)
  • Global Warming Solutions Act of 2006 (AB 32)
  • Global Warming Solutions Act of 2006 (AB 32)
  • Solar Energy System Incentives: CSI (SB 1)
  • Solar Energy System Incentives: CSI (SB 1)

» Pro storage policy makers: Governor’s office CPUC CAISO CEC & CARB » Pro‐storage policy makers: Governor s office, CPUC, CAISO, CEC & CARB » Incentives available for customer sited applications via SGIP (~$450M) and PLS ($32M) » Incentives available for customer sited applications via SGIP ( $450M) and PLS ($32M) » Storage key to renewable integration – new wholesale products under development (CAISO) » Storage key to renewable integration – new wholesale products under development (CAISO) » Many CA storage projects currently underway » Many CA storage projects currently underway

CESA is driving results oriented change in all of these areas CESA is driving results‐oriented change in all of these areas

Confidential

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About CESA About CESA

Our Mission: Expand the role of storage technology to promote the growth of renewable p f g gy p g f energy and create a cleaner, more affordable and reliable electric power system gy , ff p y

» Core principles for a healthy market – diversity is important! Core principles for a healthy market diversity is important!

  • Technology neutrality

Technology neutrality

  • Ownership/business model neutrality
  • Ownership/business model neutrality

» Explicit support of renewable energy in our mission and our membership » Explicit support of renewable energy in our mission…and our membership » Philosophy of ‘coalition building’ with all stakeholders (especially utilities) – strength in diversity g y W h li it d d t b f d i ff t » We have limited resources, and so must be very focused in our efforts l f l

  • California Legislature
  • CPUC
  • CAISO
  • CEC
  • CARB

CARB

  • FERC
  • FERC

Confidential

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CESA: Strength Through Diversity & Collaboration CESA: Strength Through Diversity & Collaboration

Steering Committee Steering Committee General Members General Members

Confidential

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Role for All Storage Technologies on the Grid Role for All Storage Technologies on the Grid

Technology Classes Energy Storage Examples

S di S lf B tt Sodium Sulfur Battery

  • Electrical energy is stored for later use in chemical form Existing battery technologies are being
  • Electrical energy is stored for later use in chemical form. Existing battery technologies are being

improved, and new battery technologies are becoming available.

Chemical Storage

  • Example: 34 MW Sodium Sulfur Battery — 51 MW wind farm, Japan (NGK)

Chill d W t St Chilled Water Storage

  • Combustion turbines’ efficiency is dependent upon the temperature of the air taken into the

Thermal

  • Combustion turbines efficiency is dependent upon the temperature of the air taken into the
  • turbine. Water chilled during off‐peak hours can greatly increase their efficiency by pre‐cooling

Thermal Storage

the air before intake.

  • Example: 23 700 tons of chilled water for a 1300MW Warren County Virginia CCCT
  • Example: 23,700 tons of chilled water for a 1300MW Warren County, Virginia CCCT

High Speed Flywheel High Speed Flywheel

  • Flywheels convert electrical energy to kinetic energy then back again very rapidly Flywheels

Mechanical

  • Flywheels convert electrical energy to kinetic energy, then back again very rapidly. Flywheels

are ideal for power conditioning and short‐term storage.

Mechanical Storage

  • Example: 3 MW Mechanical Storage for Ancillary Services — NE ISO (Beacon Power)

g

Below Ground Compressed Air Below Ground Compressed Air

  • Electricity is used to compress air into small or large modular storage tanks or a large

Bulk Mechanical

  • Electricity is used to compress air into small or large modular storage tanks or a large

underground cavern. The compressed air is used to spin turbines when electricity is needed.

Bulk Mechanical Storage

  • Example: 115 MW Compressed Air Energy Storage — McIntosh, Alabama

g

Pumped Hydro Pumped Hydro

  • Excess electricity is used to pump water uphill into a reservoir When power is needed the

Bulk Gravitational

  • Excess electricity is used to pump water uphill into a reservoir. When power is needed, the

water can run down through turbines, much like a traditional hydroelectric dam.

Bulk Gravitational Storage

  • Example: 1,532 MW Pumped Hydro — TVA’s Raccoon Mountain

Confidential

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CESA Vision for California CESA Vision for California

Storage creates a more efficient, cleaner, smarter grid! g , , g

Current Grid Infrastructure Future Grid Infrastructure

  • Built for load and generation peaks

h l f i

  • Strategic buffers level generation and load,

d i (M ) d i that occur only a few times per year reducing unevenness (Mura) andri

  • verburden (Muri)

y

  • Massive fossil storage required

( )

  • Result: more efficient & reliable electrical

system

Fossil Fuel

Fossil delivery infrastructure R bl d Base Load Generation Renewable and Traditional Generation Base Load Generation Storage-Optimized Storage-Optimized Regulation & Transmission Oversized Transmission Grid Peaking & Regulation Storage-Optimized g g p Distribution Oversized Distribution Grid On-site renewables + storage + storage

  • 1. The approach is similar to Heijunka in the Toyota Production System, which levels production schedules in order to reduce overall waste

Confidential

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CESA’s Top 2012 Policy Priorities CESA s Top 2012 Policy Priorities

ild b k d i » Build a Robust Market Foundation (CPUC)

» Implement AB 2514 ‐ Comprehensive Storage Rulemaking (CPUC): appropriate procurement targets, applications, priorities, cost‐effectiveness » Achieve multi‐year procurement – Resource Adequacy Rulemaking y p q y g

» Behind the Meter Incentives and Value Proposition (CPUC) » Behind the Meter Incentives and Value Proposition (CPUC)

I l S lf G i I i P $400M b d » Implement Self‐Generation Incentive Program ~$400M budget » Implement Permanent Load Shifting Program ~$32M budget » Access Ancillary Services markets (with CAISO)

» Comparable Treatment in Wholesale Markets (CAISO) » Comparable Treatment in Wholesale Markets (CAISO)

» Implement Pay for Performance robust implementation of FERC Order 755 » Implement Pay for Performance robust implementation of FERC Order 755 » Various Flexible Dispatch Initiatives ‐ REM, flexible dispatch, FERC Order 745 demand response

» Promote Energy Storage as a Mainstream Energy Resource (all): educate policymakers and

stakeholders in all relevant proceedings, legislation:

  • 33% RPS implementation
  • Calif. Loading Order

p g

  • AB32 GHG rules
  • Flexible dispatch rules
  • Federal ITC*
  • FERC proceedings*

* with ESA Advocacy Council Confidential

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AB 2514 – Landmark New Storage Bill AB 2514 Landmark New Storage Bill

AB 2514 considers procurement targets for new storage capacity AB 2514 considers procurement targets for new storage capacity

» Considers establishing Energy Storage Procurement Targets for 2015 and 2020 (2016 and 2021 for POUs) » IF cost‐effective » IF commercially available » Sponsored by Jerry Brown, former California Attorney General, now Governor p y y y » Authored by Assembly member Nancy Skinner, Chair, Assembly Rules Committee y y y , , y » Directs CPUC to convene a proceeding to evaluate energy storage procurement targets: » Directs CPUC to convene a proceeding to evaluate energy storage procurement targets:

  • Technology neutral – but must be cost‐effective
  • Technology neutral but must be cost‐effective
  • Application neutral

key to implementation

  • Application neutral – key to implementation
  • Utilit o ned

stomer o ned and third part o ned are eli ible

  • Utility‐owned, customer‐owned, and third party‐owned are eligible

A li i ll d f 1/1/10

  • Applies to systems installed after 1/1/10
  • Requires CPUC to consider info from CAISO and integration of storage with other programs, including

demand side management

  • Electrical corporations with <60k customers are exempt

» Status – signed into law 9/29/10, implementation underway at CPUC!!

AB 2514 provides necessary focus on storage AB 2514 provides necessary focus on storage

Confidential

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How AB 2514 is being implemented How AB 2514 is being implemented…

The CPUC is has been very proactive in implementing the Storage Bill The CPUC is has been very proactive in implementing the Storage Bill.

March 9 March 9, 2011 – 1st Workshop December 31 2021– December 31, 2016 – October 1, 2014 October 1, 2013 ‐ June 28, 2011 – 2nd W k h 31, 2021 Deadline for 2016 Deadline for 2014 ‐ Deadline for 2013 ‐ Deadline for Workshop POUs to meet 2nd POUs to meet 1st POUs to adopt any CPUC to adopt any Dec 12, 2011 – Draft meet 2 procurement 1 procurement any procurement adopt any procurement , Staff Proposal targets. targets p targets. targets. A il 3 2012 April 3, 2012 – Final Staff Final Staff Procuremen t Proposal

2011 2012 2014 2015 2013 2020 2021 2016 2011 2012 2014 2015 2013 2020 2021 2016

December 31, December 31, By March 2012, the CPUC and December 31, 2020, Deadline December 31, 2015 ‐ Deadline By March 2012, the CPUC and POUs must begin to consider for IOUs to meet 2nd for IOUs to meet 1st energy storage procurement targets meet 2nd procurement meet 1 procurement targets. targets targets

Happened Key: Legislative Milestone

Confidential 28

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Status of AB 2514 Implementation Right Now Status of AB 2514 Implementation Right Now …

1 Fi l E St F k St ff P l i d 4/3/12

  • 1. Final Energy Storage Framework Staff Proposal issued 4/3/12

2 I f l ll b ti ti ith CPUC t ff d i t

  • 2. Informal collaboration meetings with CPUC staff and investor
  • wned utilities underway

y A hi t i l /d fi iti

  • Achieve consensus terminology/definitions
  • Framework for identifying and prioritizing applications
  • Framework for identifying and prioritizing applications
  • Discuss approach to cost‐effectiveness

pp methodology/analysis methodology/analysis B i b i / li i

  • Brainstorm barriers/policy options

3 N t t

  • 3. Next steps:
  • Expect Phase 1 Proposed Decision sometime this summer
  • Expect Phase 1 Proposed Decision sometime this summer.

Then on to Phase 2! Then on to Phase 2!

Confidential

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Incentives Are Critical to Align Current Costs & Benefits Incentives Are Critical to Align Current Costs & Benefits

Distributed storage has many value streams that can’t be directly g y y monetized by the end user monetized by the end user

I ti Incentives Storage System Cost

Fair Margin

T&D

Incentives

T&D O ti

Incentives

Overgeneration Losses

Storage

Energy

g System Cost

Energy Emissions

TOU Savings TOU Savings TOU Savings

Emissions Capacity Ancillary Services

Total Benefits Monitized Benefits Monitized Benefits Sytem Costs

y TOU Savings

Total Benefits Monitized Benefits Monitized Benefits w/Incentives Sytem Costs

TOU Savings

/

Market transformational incentives for distributed storage will enable Market transformational incentives for distributed storage will enable h i i f C lif i ’ f l l the vision for California’s future clean energy supply

Confidential 30

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Self‐Generation Incentive Program History Self Generation Incentive Program History

Evolution of the SGIP Evolution of the SGIP

AB 2778

  • D. 01‐03‐073

D.08‐11‐044 AB 1150

Extended SGIP through 1/1/12

SGIP established to implement AB 970. Creates financial incentives for Energy storage systems eligible only when Clarifies intent

  • f SGIP For

through 1/1/12 Limited eligibility

Creates financial incentives for distributed generation technologies that provide “energy conservation eligible only when coupled with eligible wind or fuel cells

  • f SGIP For

energy storage and

Limited eligibility to wind and fuel

that provide energy conservation demand‐side management and other i i i i i d d d d wind or fuel cells, including pre‐existing i d f l ll j storage, and extends f d b

cell DG technologies

initiatives in order to reduce demand for electricity and reduce load during wind or fuel cell projects funding by three years

technologies

peak demand periods.” (2012‐2014)

2001 2002 2006 2007 2008 2009 2010 2005 2011

D 02 04 004 l f d D.02‐04‐004

CPUC O i i l th t

D.06‐01‐047 California Solar Initiative SB 412 Signed Final Decision ‐ SB 412

CPUC Opinion reveals that “Legislature expressed no

Solar Initiative Established

Extends program through 12/16 and

SB 412 Implementation

guidance on the extent or scope of incentives for Removes all PV incentives

through 12/16 and restores CPUC th it t dd

p

CPUC Final Decision

p distributed generation.” from SGIP and creates CSI program, also administered by

authority to add new technologies to Implementing SB412 Standalone storage

the CPUC

  • SGIP. Effective

1/1/10 Standalone storage and storage + PV is 1/1/10 eligible!

The SGIP was the ‘birth‐place’ of the CSI and is equally The SGIP was the birth‐place of the CSI, and is equally important for storage (storage has no other incentives) important for storage (storage has no other incentives)

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SGIP Incentive Program – 2012 SGIP Incentive Program 2012

Funding Structure Funding Structure

System Size Incentive Renewable and Waste Non‐renewable Emerging Technologies Structure Energy Recovery Conventional CHP

  • Wind Turbine
  • Internal Combustion
  • Advanced
  • Fuel Cell
  • Waste Heat to Power

Engine – CHP Energy (CHP or

  • Pressure Reduction
  • Microturbine – CHP

Storage Electric Turbine*

  • Gas Turbine – CHP
  • Biogas

Only) 0‐1 MW 100% $1.25 $0.50 $2.00 $2.25 0 1 MW 100% $1.25 $0.50 $2.00 $2.25 1 2 MW 50% $0 63 $0 25 $1 00 $1 13 1‐2 MW 50% $0.63 $0.25 $1.00 $1.13 $ $ $ $ 2‐3 MW 25% $0.31 $0.13 $0.50 $0.56

*Includes, but is not limited to any small turbine generator installed in an existing, man‐made channel for delivery of water, steam or natural gas.

50% of the incentive is paid upfront, 50% is a performance‐based‐incentive (PBI) paid over 5 years Systems under 30kW get all incentive payments upfront. For more program details, see: http://energycenter.org/index.php/incentive‐programs/self‐generation‐incentive‐program

‐ AES can participate in either bucket depending on if it is standalone or coupled with renewable or non‐renewable generation! ‐ Any installation provided by a California supplier will receive an additional 20% incentive. ‐ Incentives in the “Emerging Technologies” category decline at 10% per year beginning 2013.

Confidential

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SB 412 Implementation: D 11‐09‐015 SB 412 Implementation: D.11 09 015

Current SGIP handbook is very favorable to Energy Storage. y gy g

AES G l R i t AES General Requirements » Maximum size: A standalone system can be no larger than the host t ’ i 12 th l k d d t th d Size Restriction: customer’s previous 12‐month annual peak demand at the proposed site A generation‐paired system can be no larger than the generation

  • site. A generation paired system can be no larger than the generation

system it is paired with. y p » Must meet onsite load – Max. 25% export to grid » Rated Capacity = average discharge kW over 2 hours Discharge Capacity Criteria: p y g g » Standalone systems must be able to discharge once per day. Discharge Capacity Criteria: » Wind‐coupled projects must be able to handle “hundreds” of partial di h l d discharge cycles per day. Incentive Payment Method: » Tech Based, 50 % up front, 50 % PBI (100% up front if <30kW) I ti l l ti t f i t h l i y » Incentive calculations are separate for companion technologies Minimum Required Round Trip Efficiency (AC t AC) 67.9% (AC to AC) Capacity Factor (% total yearly capacity th t i i ti ) 10% the system is in operation) Cost Cap » Applicants must pay a minimum of 40% of the eligible project cost $5 illi i i ti t j t p » $5 million maximum incentive amount per project W t R i t » All SGIP‐eligible systems must have a minimum 10 year warranty on all j t f th t th t li ibl f th i ti hi h Warranty Requirement major components of the system that are eligible for the incentive which covers the cost of repair or replacement covers the cost of repair or replacement.

All systems must meet the Institute of Electrical and Electronics Engineers Inc interconnection standards and comply with all local All systems must meet the Institute of Electrical and Electronics Engineers, Inc. interconnection standards and comply with all local environmental and air quality requirements. Confidential

33

slide-34
SLIDE 34

Energy storage is doing well in the SGIP!

AES

Energy storage is doing well in the SGIP!

AES Standalone,

Remaining CCSE Funding $*

P Ad i i t t (PA) A l B d t* , $1,003,200 Program Administrator (PA) Annual Budget* Pacific Gas and Electric Company $33,480,000 AES Plus PV, $2 055 640 Remaining Southern California Edison $26 040 000 $2,055,640 Remaining Renewable, Southern California Edison $26,040,000 Pressure $7,729,412 California Center for Sustainable Energy $10,230,000 Pressure Reduction Southern California Gas Company $7,440,000 Turbine, $ Remaining p y $ , , T l $77 190 000 $1,037,500 g Non‐ Total $77,190,000

**

Fuel Cell Renewable, $5 416 484

Renewable Bucket

**Each PA’s annual budget allocation is divided into two categories ‐ 75% in Renewable and Emerging Technologies; 25% in Non‐Renewable

Fuel Cell, $729,000 $5,416,484

Non‐Renewable Bucket

g g g ;

  • Technologies. Any remaining funds in each category at the end of the year

are added to their respective annual budget allocations for the following are added to their respective annual budget allocations for the following year.

Number of CCSE SGIP Applications* CCSE kW to be Installed* Number of CCSE SGIP Applications CCSE kW to be Installed

Pressure Reduction Turbine Pressure Reduction Turbine Pressure Reduction Turbine Pressure Reduction Turbine Fuel Cell Fuel Cell AES Pl PV AES Pl PV AES Plus PV AES Plus PV AES Standalone AES Standalone 10 20 30 40 200 400 600 800 1,000 1,200 kW Applications kW Applications * CCSE data as of 4/30/12 Confidential

34

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SLIDE 35

SGIP’s Future is Assured: AB 1150 (Perez) SGIP s Future is Assured: AB 1150 (Perez)

AB 1150 authorized new funding and extend the SGIP beyond 2012 AB 1150 authorized new funding and extend the SGIP beyond 2012

» Signed into law by Governor Brown September 22, 2011 $ » Authorizes the extension $83M/year of rate‐payer based funding through December 31, 2014 ($249 million, total) December 31, 2014 ($249 million, total) » Statutorily clarifies eligibility of energy storage (Section 1. 379.6 a(1)): Statutorily clarifies eligibility of energy storage (Section 1. 379.6 a(1)):

It is the intent of the Legislature that the self-generation incentive program g g p g increase deployment of distributed generation and energy storage systems increase deployment of distributed generation and energy storage systems to facilitate the integration of those resources into the electrical grid improve to facilitate the integration of those resources into the electrical grid, improve efficiency and reliability of the distribution and transmission system and efficiency and reliability of the distribution and transmission system, and reduce emissions of greenhouse gases peak demand and ratepayer costs reduce emissions of greenhouse gases, peak demand, and ratepayer costs.

Confidential

35

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SLIDE 36

$32 million program: Permanent Load Shifting (PLS) $32 million program: Permanent Load Shifting (PLS)

» New category created by CPUC in 2006 recognizing that storage (particularly thermal storage) is similar to DR but » New category created by CPUC in 2006 recognizing that storage (particularly thermal storage) is similar to DR but has different benefits, costs, markets and performance.* , , p » PLS programs reauthorized and significantly increased by IOUs and CPUC 4/19/12 to $32 million for 2012‐2014 p g g y y / / $ (rough doubling of current annual budgets).

  • Nearly all $ are directly for incentives of $250‐$500(‐$1000?)/kW to end users investing in qualifying PLS
  • Recognition that “not all of the benefits of PLS are accurately captured in the [current] cost‐effectiveness protocols.”
  • New directive to IOUs to standardize PLS programs statewide; CESA will be at the center of that process over coming 2‐3

months

  • IOUs authorized to transfer money into PLS from other programs if/as needed, but not vice versa (economic recovery,

SONGS h td d d f dditi l PLS ) SONGS shutdown underscores need for additional PLS resources)

PLS t d i ti t f ld d i t b d t t /i ti h h i AB » PLS category and incentives may get folded into broader storage category/incentives when comprehensive AB 2514 authorized storage rulemaking is completed 2514‐authorized storage rulemaking is completed.

IOU 2012‐14 Budgets g P ifi G d El i $15 000 000 Pacific Gas and Electric $15,000,000. Southern California Edison $14 000 000 Southern California Edison $14,000,000. San Diego Gas & Electric $3,000,000. g , , Total $32,000,000.

* “…PLS involves [on a recurring basis] storing electricity produced during off peak hours and using the stored energy during peak hours to support …PLS involves [on a recurring basis] storing electricity produced during off peak hours and using the stored energy during peak hours to support loads.” Confidential

36

slide-37
SLIDE 37

Lots going on at CAISO! Lots going on at CAISO!

»Regulation Energy Management – V2.1 implementation underway »Regulation Energy Management V2.1 implementation underway (Plan published 3/11/12) (Plan published 3/11/12) »Pay for Performance (FERC Order 755 implementation) – capacity »Pay for Performance (FERC Order 755 implementation) capacity d f t t d S i 2013 and performance payments expected Spring 2013 »Flexible Ramping Product – ramping procurement for 5 min RTD »Flexible Ramping Product – ramping procurement for 5 min RTD / /

  • imbalances. Technical conference 5/29/12

/ / »Flexible Capacity Procurement Proposal introduced 1/12 will »Flexible Capacity Procurement – Proposal introduced 1/12 – will be part of 2013 RA proceeding at CPUC be part of 2013 RA proceeding at CPUC D d R (FERC O d 745 i l t ti ) h ld »Demand Response – (FERC Order 745 implementation) ‐ on hold for now; FERC rejected CAISO tariff filing as non‐compliant; new for now; FERC rejected CAISO tariff filing as non compliant; new l i th k proposal in the works »DG Deliverability – Board of Governors approved new proposed »DG Deliverability – Board of Governors approved new proposed d d li bili h d l f / / RA assessment and deliverability methodology for DG 5/16/12 y gy

Confidential

37

slide-38
SLIDE 38

California Applications: Compensation Timeline California Applications: Compensation Timeline

Top California storage applications will become increasingly attractive p g pp g y as economic incentives and markets come online as economic incentives and markets come online

2013 2014 2015 2016 2017 2018 2019 2020 Now

er Mete $2/W Incentive

SGIP

the M Program

SGIP

e of t 30% Investment Tax Credit if ESS Paired with

FITC

r Side PV

FITC

  • mer

ESS R t il P ti i ti i CAISO A/S M k t (P D d R )

WHOLESALE

Custo ESS Retail Participation in CAISO A/S Market (Proxy Demand Response)

WHOLESALE ENERGY MKT.

C

WHOLESALE

ESS participation in CAISO F/R Market (2012: REM 2014: Pay for Performance)

WHOLESALE F/R MKT

*R Ad

the

*Resource Adequacy contracts

Utility/IPP ESS Peakers bid into CAISO Capacity Markets

WHOLESALE CAPACTIY MKT.

e of ter

contracts are procured on an

y Sid Met

annual basis. All th h l l

T/D and imbalance penalties associated with 33% RPS RPS Utility

All other wholesale markets are

U

markets are day ahead.

ESS owners/developers sell R.A. via bi‐lateral contracts with utilities Resource Adequacy Adequacy FERC creates accounting standards for storage to facilitate ratebasing

FERC Accounting FERC Accounting Standards

ratebasing

Standards

Confidential

38

slide-39
SLIDE 39

Shaping our future in California Shaping our future in California….

California’s regulatory framework is rapidly evolving to accelerate g y p y g deployment of grid storage deployment of grid storage

» CAISO Flexibility Implementation REM Flexible Ramping Flexible Capacity » CAISO Flexibility Implementation, REM, Flexible Ramping, Flexible Capacity » CAISO Pay for Performance Implementation regulation (FERC Order 755) y p g ( ) CPUC St R l ki t t AB 2514 » CPUC Storage Rulemaking pursuant to AB 2514 » CPUC Long Term Procurement Planning (LTPP) Renewable Integration » CPUC Long Term Procurement Planning (LTPP), Renewable Integration » CPUC Resource Adequacy (RA) » CPUC Self Generation Incentive Program (SGIP) » CPUC Self‐Generation Incentive Program (SGIP) » CPUC Standard Offer for Permanent Load Shifting (PLS) g ( ) CPUC S t G id D l t » CPUC Smart Grid Deployment » CPUC General Rate Cases – Storage friendly tariffs » CPUC General Rate Cases Storage friendly tariffs » CEC Integrated Energy Policy Report – includes storage

Be the master of your own destiny, get involved! y y g

Confidential 39

slide-40
SLIDE 40

Questions? Questions?

Janice Lin Janice Lin

Co Founder & Executive Director O 510 665 7811 2150 Allston Way Suite 210 O 510 665 7811 M 415 595 8301 2150 Allston Way, Suite 210 Berkeley, CA 94704 M 415 595 8301 F 888 453 0018 Berkeley, CA 94704 l www.strategen.com jlin@strategen.com

For more information about CESA membership, public filings, and p p g

  • ther energy storage educational documents please visit us online at:
  • ther energy storage educational documents, please visit us online at:

www.storagealliance.org g g

Confidential

40

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SLIDE 41

Sili ll Silicon Valley Silicon Valley Energy Storage Symposium Energy Storage Symposium gy g y p

May 30, 2012 Microsoft Auditorium Mountain View, California ,

Event Partners Exhibitors Media Partners Event Partners Exhibitors Media Partners

slide-42
SLIDE 42

k Imre Gyuk Imre Gyuk

U S D t t f E U.S. Department of Energy p gy E S R h P M Energy Storage Research Program Manager gy g g g

Silicon Valley Energy Storage Symposium

May 30, 2012 Mountain View California Mountain View, California

slide-43
SLIDE 43

P i Progress in Progress in G id E St Grid Energy Storage Grid Energy Storage

IMRE GYUK PROGRAM MANAGER IMRE GYUK, PROGRAM MANAGER ENERGY STORAGE RESEARCH, DOE ENERGY STORAGE RESEARCH, DOE

Si-Valley 05– 30-12

slide-44
SLIDE 44

E St id E Energy Storage provides Energy Energy Storage provides Energy h it i d d when it is needed when it is needed j t T i i id E just as Transmission provides Energy just as Transmission provides Energy h it i d d where it is needed where it is needed

slide-45
SLIDE 45

Renew ables ( not capacity factor adjusted)

9

Renew ables ( not capacity factor adjusted)

8 7 6

W

Wi d

M

Wind

5

  • g

Wind (proj)

5

Lo

Solar PV Solar PV (proj)

4

Hydro

4

Hydro (proj) y (p j) World Consumption

3

World Consumption

3 1990 2000 2010 2020 2030 2040 1990 2000 2010 2020 2030 2040

Y

G G k 2011

Year

  • G. Gyuk 2011
slide-46
SLIDE 46

29 U S States have Renewable 29 U.S. States have Renewable Portfolio Standards (RPS) Portfolio Standards (RPS) ( ) Requiring 10 40% Renewables Requiring 10-40% Renewables g O P k Wi d On Peak Wind On Peak Wind th R lit !

  • the Reality!

the Reality!

Cost effective Energy Storage yields better Asset Utilization Cost effective Energy Storage yields better Asset Utilization

slide-47
SLIDE 47

Some Large Energy Storage Projects: Some Large Energy Storage Projects:

27MW / 7MWh 1995 Fairbanks, AL , 34MW / 245MWh 2008 Rokkasho Japan 34MW / 245MWh 2008 Rokkasho. Japan 20MW / 5MWh 2011 Stephentown, NY p , 32MW / 8MWh 2011 Laurel Mountain WV 32MW / 8MWh 2011 Laurel Mountain, WV 14MW / 63 MWh 2011 Hebei, China , 8MW / 32MWh 2012 Tehachapi CA 8MW / 32MWh 2012 Tehachapi, CA 25MW / 75MWh 2013 Modesto, CA ,

Annual new Deployment

Worldwide CNESA

Annual new Deployment

Worldwide – CNESA

p y

2011 May 370MW

2011 : 121MW

2011 May 370MW 2011 Aug 455MW

2011 : 121MW

2011 Aug. 455MW 2011 N 545MW

→ 2021 : 2 353MW

2011 Nov. 545MW 2012 F b 580MW

→ 2021 : 2,353MW

2012 Feb. 580MW (Pike Research) 2012 Apr. 590MW ( )

slide-48
SLIDE 48

ARRA Sti l F di f St ARRA Stimulus Funding for Storage ARRA Stimulus Funding for Storage $ Demonstration Projects ($185M) Demonstration Projects ($185M) A ten fold Increase in Power Scale! A ten-fold Increase in Power Scale! Large Battery System (3 projects 53MW) Large Battery System (3 projects,53MW) Compressed Air (2 projects 450MW) Compressed Air (2 projects, 450MW) p ( p j ) Frequency Regulation (20MW) Frequency Regulation (20MW) q y g ( ) Di t ib t d P j t (5 j t 9MW) Distributed Projects (5 projects,9MW) Distributed Projects (5 projects,9MW) Technology Development (5 projects) Technology Development (5 projects)

533MW $585M Costshare! 533MW - $585M Costshare!

slide-49
SLIDE 49

L B tt i f Wi d I t ti Large Batteries for Wind Integration Large Batteries for Wind Integration

Feb 24 2007: 500MW / 2 5hr; 30x Spotprices Coincident BPA Wind Ramps

  • Feb. 24, 2007: 500MW / 2.5hr; 30x Spotprices

NREL: ∆ = 25% @ 2days ∆ = 50% @ 1 week Coincident BPA Wind Ramps NREL: ∆ = 25% @ 2days, ∆ = 50% @ 1 week

3 Large Battery + Wind Projects = 3 Large Battery + Wind Projects = 53MW in Stimulus Package! 53MW in Stimulus Package! g

slide-50
SLIDE 50

ARRA Primus Power ARRA – Primus Power

Installing a 25 MW / 3hr battery plant for the Installing a 25 MW / 3hr battery plant for the

Modesto Irrigation District in CA providing Modesto Irrigation District in CA, providing equivalent flex capacity to 50 MW of natural gas equivalent flex capacity to 50 MW of natural gas i ti $73M engines costing $73M

4MW/12MWh incremental “Plug & g Play” deployment y y

High power High power metal electrodes

Fully self-contained, hermetically 250kW/750kWh y , y sealed flow battery modules EnergyPods™ y gy

slide-51
SLIDE 51

ARRA S h C lif i Edi / A123 Li I ARRA - Southern California Edison / A123 – Li-Ion:

8 MW / 4 hr battery plant for wind integration at Tehachapi, CA. y p g p ,

8MW Storage Plant under Construction g A Tehachapi Wind Field p

slide-52
SLIDE 52

ARRA D k E / Xt P ARRA – Duke Energy / Xtreme Power gy 36MW / 40 min battery plant 36MW / 40 min battery plant Ramp control wind smoothing Ramp control, wind smoothing g

Linked to 153MW Linked to 153MW Wind farm Wind farm at No Trees TX at No-Trees, TX

slide-53
SLIDE 53

Xt P K h k Wi d P j t Xtreme Power Kahuku Wind Project Xtreme Power, Kahuku Wind Project

Largest North American Installation with Wind g

L ti O h HI Location Oahu, HI Application Wind Application Wind DPR™ 15 MW / 10 MWh DPR™ 15 MW / 10 MWh COD Q1 2011 COD Q1 2011 S C Services Ramp Control, Voltage Regulation

This DPR™ will operate on a 30 MW wind farm on the island of Oahu This DPR will operate on a 30 MW wind farm on the island of Oahu to meet PPA ramp control and smoothing requirements to meet PPA ramp control and smoothing requirements.

slide-54
SLIDE 54

G id F R l ti Grid Frequency Regulation Grid Frequency Regulation with Fast Storage: 1 project 20MW with Fast Storage: 1 project 20MW g p j

Kirby 2004 Kirby 2004

Current method to balance constantly shifting load fluctuation is Current method to balance constantly shifting load fluctuation is to vary the frequency and periodically adjust generation in response to vary the frequency and periodically adjust generation in response to an ISO signal Fast storage can respond instantaneously! to an ISO signal. Fast storage can respond instantaneously!

slide-55
SLIDE 55

)

Key Outcomes (PNNL Study 2012) Key Outcomes (PNNL Study, 2012)

When additional renewables are planned a certain amount of storage or fast When additional renewables are planned, a certain amount of storage or fast- ramping generation is also needed to firm the variable renewable power ramping generation is also needed to firm the variable renewable power. – For every unit of wind capacity power, approximately 0.08 to 0.15 units of y p y p pp y intra-hour balancing (minute-to-minute variability) need to be added. g ( y)

Intra hour balancing power requirements caused by wind variability only Intra-hour balancing power requirements caused by wind variability only f

MW

as a percentage of as a percentage of as a percentage of

storage

as a percentage of as a percentage of installed wind

storage

average demand peak demand installed wind capacity capacity AZ NM AZ-NM- SNV 174.08 1.0 0.5 12.8 SNV 7 .08 .0 0.5 .8 CA-MX 943.65 2.5 1.4 14.4 NWPP 1 071 26 2 1 1 5 11 0 NWPP 1,071.26 2.1 1.5 11.0 RMPA 504 89 5 6 3 6 8 0 RMPA 504.89 5.6 3.6 8.0

slide-56
SLIDE 56

FREQUENCY REGULATION FREQUENCY REGULATION FREQUENCY REGULATION

DOE Loan Guarantee – Beacon:

20MW Flywheel Storage for 20MW Flywheel Storage for Frequency Regulation in NY-ISO Frequency Regulation in NY ISO 20MW commissioned July 2011 20MW commissioned July 2011

DOE Loan Guarantee AES / A123: DOE Loan Guarantee – AES / A123:

20MW Lithi I B tt f 20MW Lithium Ion Battery for Frequency Regulation in NY-ISO 8MW on Line!

slide-57
SLIDE 57

AES Laurel Mountain WV 32 MW Storage AES, Laurel Mountain, WV - 32 MW Storage less than 1 acre no emissions less than 1 acre, no emissions Integrated with 98MW Wind Farm Integrated with 98MW Wind Farm

57

slide-58
SLIDE 58

Compressed Air Energy Storage Compressed Air Energy Storage 2 CAES Projects 2 CAES Projects j

Inexpensive Off-Peak Power to Compress Air Inexpensive Off-Peak Power to Compress Air for Storage in Aq ifers Salt Domes Ca erns for Storage in Aquifers, Salt Domes, Caverns,

  • r abandoned Gas Wells. On-Peak,

Compressed Air is used as Input for Gas Compressed Air is used as Input for Gas Turbine Compressor increasing Efficiency Turbine Compressor, increasing Efficiency

Huntdorf, Germany, 1978, 290 MW McIntosh, Alabama, 1991, 110 MW Huntdorf, Germany, 1978, 290 MW McIntosh, Alabama, 1991, 110 MW

slide-59
SLIDE 59

ARRA – PG&E: ARRA PG&E:

300 MW / 10hr Compressed Air Depleted Gas Wells p Energy Storage Facility in p G Pi Li Energy Storage Facility in Tehachapi CA Gas Pipe Line Tehachapi, CA E i ti 500kV T i i Li Existing 500kV Transmission Line 4 500 MW New Wind in 4 5 Years 4 500 MW New Wind in 4-5 Years

Location of Wind Resources Location of Depleted Gas Fields

slide-60
SLIDE 60

Ultrabattery A nd VRLA Battery 1C 1 Capacity After H RPSoC Cycling

ARRA P bli S i NM

After H RPSoC Cycling.

110

ARRA – Public Service NM:

100 U ltraB attery V R LA (A fter Cycling at 1C, 2C , & 4C R ate)

500kW 2 5MWh for smoothing of

90 Capacity

500kW, 2.5MWh for smoothing of 500kW PV installation; Using

80 Of Initial C

500kW PV installation; Using E tP L d C b T h l

70 % AG M V RLA (A fter C ycling at 1C R ate)

EastPenn Lead-Carbon Technology

50 60 AG M V RLA (A fter C ycling at 1C R ate) 50 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 H R PS oC C ycle Num ber

PbC Testing at Sandia PbC Testing at Sandia

ARRA EastPenn PA: ARRA – EastPenn, PA:

3MW Frequency Reg for PJM q y g 1MW 1-4hrs Load Management 1MW 1 4hrs Load Management during Peak Periods during Peak Periods

Commissioned Sep. 24, 2011 Integrator: Ecoult Integrator: Ecoult Commissioning June 2012 Commissioning June 2012

slide-61
SLIDE 61

D t it Edi ARRA C it Detroit Edison, ARRA Community , y E St P j t Energy Storage Project gy g j

20 Units 20 Units each 25kW / 2hr each 25kW / 2hr Coupled with 500kW PV Coupled with 500kW PV d 500kW / 30 i St and 500kW / 30min Storage g

M i C t Monrovia County Community College Dow Kokam Battery S&C Inverter Dow Kokam Battery S&C Inverter

slide-62
SLIDE 62

ARRA Enervault: ARRA - Enervault:

250kW/4hr Fe-Cr Flow Battery for PV y

PV: 300 kW Storage: 250 KW Storage: 250 KW Peak output: 450kW Peak output: 450kW Storage Cost: +16% Storage Cost: +16% Storage Value: +84% Storage Value: +84%

Tracking PV in Almond Grove Fl B tt P t t L i PV ith St Flow Battery Prototype Leveraging PV with Storage

slide-63
SLIDE 63

ARRA DistributedProject: ARRA DistributedProject:

Installation of 5 Transflow 2000 500kW Installation of 5 Transflow 2000 500kW Z B B tt S t t l ti ithi ZnBr Battery Systems at locations within y y SMUD and National Grid Utility Districts: SMUD and National Grid Utility Districts:

2 it t b t ti i S

  • 2 units at a substation in Syracuse

S

  • 1 unit at Syracuse University
  • 1 unit at SMUD HQ microgrid
  • 1 unit at SMUD Solar Smart Homes Project

j

slide-64
SLIDE 64

ARRA A i E ARRA - Aquion Energy:

Winner, 2010

q gy

Aqueous Sodium Ion Battery

, World Technology Award

Aqueous Sodium Ion Battery

World Technology Award

  • Cost Goal: <$200/kWh
  • Lifetime cost: <$0.10/kWh

Lifetime cost: $0.10/kWh

  • Ubiquitous low cost precursors

Ubiquitous, low cost precursors

  • Inexpensive manufacture
  • Inexpensive manufacture
  • Roundtrip Efficiency >85%
  • Roundtrip Efficiency >85%

5000 c cles demonstrated

  • 5000 cycles demonstrated

120 100

y)

100

Charge Capacity

acity

80

Charge Capacity Discharge Capacity

ity Capa

60

g p y

pac ial C

40

Cap init

20

% of

20

(%

1000 2000 3000 4000 5000

Cycle #

slide-65
SLIDE 65

ARRA S t i X ARRA - SustainX:

Awards: GE Ecomagination,

Totally green Isothermal CAES

g , Clean Tech 100 in 2010 / 11

Totally green Isothermal CAES

Clean Tech 100 in 2010 / 11 A site-anywhere solution – eliminates A site anywhere solution eliminates lengthy siting and risk associated with lengthy siting and risk associated with geologic storage geologic storage Superior thermodynamics – eliminates reliance on natural gas Isothermal efficiency of 95% compared Isothermal efficiency of 95% compared with 54% for adiabatic technique with 54% for adiabatic technique Higher pressure and efficiency make pipe-type Higher pressure and efficiency make pipe type storage cost effective storage cost effective A patented and demonstrated low cost long A patented and demonstrated, low-cost, long lif ti t l ti lifetime energy storage solution

slide-66
SLIDE 66

Energy Storage Project Database

Clickable States to

Energy Storage Project Database

Clickable States to display more detailed information

A publicly accessible database of energy storage projects world-wide,

Rollover Pop out

as well as state and federal

Pop-out boxes with

legislation/policies

summaries

  • f State data
  • f State data

h // h / http://www.energystorageexchange.org/.

M k d ti Markers denoting projects and points p j p

  • f interest

DOE/EPRI Energy Storage Handbook DOE/EPRI Energy Storage Handbook

Partnership with EPRI and NRECA to develop a definitive energy storage handbook: Partnership with EPRI and NRECA to develop a definitive energy storage handbook:

  • Details the current state of commercially available energy storage technologies
  • Details the current state of commercially available energy storage technologies.
  • Matches applications to technologies

Matches applications to technologies

  • Info on sizing siting interconnecting

Info on sizing, siting, interconnecting

  • Includes a cost database

Includes a cost database

slide-67
SLIDE 67

ES-Select: Energy Storage Selection Tool ES-Select: Energy Storage Selection Tool

  • A tool for high-level decision makers to

facilitate planning for ESS infrastructure: Hi h l l t h i l d i

  • High-level technical and economic

i f t t h l i review of storage technologies D t i d i li bl

  • Determine and size applicable energy

storage resources storage resources

  • Develop a preliminary business case
  • Develop a preliminary business case
  • Educate potential owners electric system
  • Educate potential owners, electric system

stakeholders and the general public on stakeholders and the general public on energy storage technologies energy storage technologies

  • Developed by KEMA
  • Developed by KEMA
  • http://www sandia gov/ess/esselect html

http://www.sandia.gov/ess/esselect.html

Storage Guidebook for Regulatory Officials Storage Guidebook for Regulatory Officials

I f l t b t St b fit

  • Inform regulators about Storage benefits

P id i f ti t h i l t f E St S t

  • Provide information on technical aspects of Energy Storage Systems

Id tif l t h ll t i d St S t d l t

  • Identify regulatory challenges to increased Storage System deployment

Suggest possible responses/solutions to challenges

  • Suggest possible responses/solutions to challenges
  • Develop model PUC submissions requesting approval of rate base addition
  • Develop model PUC submissions requesting approval of rate base addition
  • Advisory Committee comprised of industry and government experts
  • Advisory Committee comprised of industry and government experts
slide-68
SLIDE 68

Development of a Protocol to Measure and Report p p Performance of Energy Storage technology Performance of Energy Storage technology

  • We need a common language for technology providers and prospective users
  • No uniform acceptable criteria exist for comparable statements of performance
  • This causes confusion in the market and adversely affects technology acceptance
  • DOE is leading an effort to develop an initial protocol (pre-standard)
  • Formation of representative stakeholder group
  • Clarification of anticipated application and use of the protocol by industry

D l d d i h bl

  • Develop a pre-standard with reasonable consensus

O i t t h l l

  • Ongoing support as technology evolves

Collaboration with Clean Energy States Alliance Collaboration with Clean Energy States Alliance

  • Webinar Series on Policy Issues related to Energy Storage
  • Webinar Series on Policy Issues related to Energy Storage
  • Provide information on technical aspects of Energy Storage Systems
  • Provide information on technical aspects of Energy Storage Systems
  • Identify regulatory challenges to increased Storage System deployment
  • Identify regulatory challenges to increased Storage System deployment
  • Suggest possible responses/solutions to challenges

Suggest possible responses/solutions to challenges

  • Develop model PUC submissions requesting approval of rate base addition

Develop model PUC submissions requesting approval of rate base addition

  • Advisory Committee comprised of industry and government experts

Advisory Committee comprised of industry and government experts

slide-69
SLIDE 69

SNL E St S t A l i L b t SNL Energy Storage System Analysis Laboratory gy g y y y

R li bl i d d t thi d t t ti d ifi ti f Reliable, independent, third party testing and verification of advanced energy technologies from cell to MW scale systems

Expertise to design test plans for technologies and their potential applications Expertise to design test plans for technologies and their potential applications Cell, Battery and Module Testing Cell, Battery and Module Testing

  • Testers to accommodate a wide range of

Testers to accommodate a wide range of testing applications including: – 14 channels from 36 V, 25 A to 72 V, 1000 A for battery to module-scale tests – Over 125 channels; 0 V to 10 V, 3 A to 100+ A for cell tests Energy Storage Test Pad (ESTP) 100+ A for cell tests

S t T ti System Testing

S f C

  • Scalable from 5 KW to 1 MW, 480 VAC, 3 phase

1 MW/1 MVAR l d b k f ith ll l

  • 1 MW/1 MVAR load bank for either parallel

microgrid or series UPS operations microgrid, or series UPS operations

  • Subcycle metering in feeder breakers for system

Subcyc e e e g eede b ea e s o sys e identification and transient analysis

  • Can test for both power and energy use cases

72 V 1000 A Bitrode (2 Parallel Channels)

David Rose Summer Ferreira dmrose@sandia.gov srferre@sandia.gov

slide-70
SLIDE 70

DOE Energy Storage Program DOE Energy Storage Program gy g g Aggressively Furthers Aggressively Furthers Market Pull and Technology Push: Market Pull and Technology Push: Demonstrations and Research Demonstrations and Research

slide-71
SLIDE 71

Sili ll Silicon Valley Silicon Valley Energy Storage Symposium Energy Storage Symposium gy g y p

May 30, 2012 Microsoft Auditorium Mountain View, California ,

Event Partners Exhibitors Media Partners Event Partners Exhibitors Media Partners

slide-72
SLIDE 72

PANEL DISCUSSION PANEL DISCUSSION: PANEL DISCUSSION: Enterprise Level Storage Enterprise‐Level Storage p g

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Silicon Valley Energy Storage Symposium

May 30, 2012 Mountain View California Mountain View, California

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May 30, 2012 Microsoft Auditorium Mountain View, California ,

Event Partners Exhibitors Media Partners Event Partners Exhibitors Media Partners

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i i h l l Commissioner Cheryl A LaFleur Commissioner Cheryl A. LaFleur

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Silicon Valley Energy Storage Symposium

May 30, 2012 Mountain View California Mountain View, California

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May 30, 2012 Microsoft Auditorium Mountain View, California ,

Event Partners Exhibitors Media Partners Event Partners Exhibitors Media Partners

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