Workshop DD Energy Storage Roadmap for Ohio and an Update on the - - PDF document

Workshop DD

Energy Storage Roadmap for

Ohio and an Update on the Cleveland Microgrid

Wednesday, February 20, 2019 11:15 a.m. to 12:30 p.m.

Biographical Information Andrew R. Thomas, Executive-in Residence, Energy Policy Center Cleveland State University, Maxine Goodman Levin College of Urban Affairs 2121 Euclid Avenue, UR 132, Cleveland, OH 44125 216-687-9304 a.r.thomas99@csuohio.edu Andrew Thomas is an Executive-in-Residence in the Levin College of Urban Affairs of Cleveland State University, where he leads research for the Energy Policy Center. His research focuses on electricity regulation and markets, distributed generation, transportation and oil and gas production, regulation and markets. He teaches energy law and policy in the Cleveland Marshall School of Law and in the Levin College. He also teaches oil and gas contract short courses at various venues around the world. Prior to coming to CSU in 2008, Mr. Thomas was an energy lawyer in private practice in New Orleans, Louisiana, and a geophysicist with Shell Oil Company. Mr. Thomas received his J.D. from Loyola University, where he was editor of the law review. He is currently an Ohio Oil and Gas Commissioner, and is of-counsel to the Cleveland, Ohio- based law firm of Meyers, Roman, Friedberg and Lewis. Jay Foran, Senior VP, Industry and Innovation, Team NEO 1111 Superior Ave. Ste. 1786, Cleveland, OH 44114-2500 jforan@teamneo.org Jay helps businesses discover exciting growth opportunities in the Cleveland Plus region. He works with corporate clients and site consultants and helps them navigate through the regional economic development framework, connecting them with state and local resources and emerging technologies. Prior to joining Team NEO, Jay was Vice President, Business Development for The Lake West Group LLC, a management consulting firm. Jay also served in a variety of key leadership positions with Procter & Gamble during a lengthy and distinguished career where he was responsible for a variety

• f business building initiatives that have been emulated throughout the consumer

products industry. Mark Henning, Graduate Research Assistant Energy Policy Center in the Maxine Goodman Levin College of Urban Affairs Cleveland State University 517.648.5428 m.d.henning@vikes.csuohio.edu Mark Henning is a graduate research assistant for the Energy Policy Center in the Maxine Goodman Levin College of Urban Affairs at Cleveland State University. He recently completed his M.S. in Mathematics with Specialization in Applied Statistics at CSU and is currently in the last semester of the Master of Public Administration program at Levin College where his focus area has been public financial management.

MEC Ohio Energy Management Conference February 2019 Jay Foran

• Sr. VP, Industry and Innovation

TeamNEO

Andrew R. Thomas and Mark Henning

Energy Policy Center Cleveland State University

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Roadmap for a Northeast Ohio Energy Storage Cluster

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• Business Development
• rganization focused on

creating jobs for Northeast Ohio.

• JobsOhio affiliate for NE Ohio
• 18 Counties
• Created in 2003 from:
• Greater Akron Chamber
• Stark Economic Development Bd
• Youngstown/Warren Chamber
• Greater Cleveland Partnership
• FirstEnergy Corporation

About TeamNEO

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Why Clusters?

• Geographic concentration of interconnected businesses and

institutions in a particular sector

• Provides strategic framework for growth
• Targets entire value chain from research to final production

Innovation Mission:

• Nurturing innovation clusters that will generate continued growth

and competitiveness

TeamNEO Innovation Clusters

• Additive Manufacturing
• Energy Storage
• Smart Manufacturing (Industrial Internet of Things) (IIoT)

TeamNEO Innovation Clusters

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TeamNEO Energy Storage Cluster

Network of industry academic, government and non‐ government leaders in energy storage development Energy Cluster Roadmaps

• 2012 Roadmap
• 2019 Roadmap

Core Stakeholders include:

• Case Western Reserve University
• NASA Glenn Research Center
• FirstEnergy

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• Define Market Segments
• Identify Trends in Energy Storage
• Identify Sector Assets in NE Ohio
• Commercial Assets
• Structural Assets
• Identify NEO Competitive Position
• Identify Market Opportunities
• Develop Roadmap

Roadmap Outline

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Number of Commercial Customers with Demand Charges that May Exceed $15/kW/month -- 2018

Source: NREL

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Application‐based Market Framework

Grid Storage Transportation Consumer Electronics

Energy Storage Technologies

Mechanical Electrical Thermal Hydrogen Electrochemical

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Trends in Energy Storage

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Trends in Energy Storage ‐ Grid

Since 2012 Roadmap

100 200 300 400 500 600

frequency regulation arbitrage load management backup power t&d deferral storing excess wind/solar generation MWh

U.S. Grid‐Scale Energy Capacity by Value Stream (2012 and 2017)

2012 2017

Source: Form EIA-860, Annual Electric Generator Report

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Trends in Energy Storage – Transportation

Since 2012 Roadmap

50,000 100,000 150,000 200,000 250,000 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 2011 2012 2013 2014 2015 2016 2017 U.S. Annual Plug‐in EV Sales Regular Gasoline Dollars per Gallon Source: U.S. DOE

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NE Ohio Energy Storage Commercial Assets

Core Industry Employment ‐ 2018

50 100 150 200 250 300 350 400 450 500 thermal electrical mechanical hydrogen electrochemical

Employment Technology Type

Employment for Core Energy Storage in NE Ohio

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500 1000 1500 2000 2500 3000 consumer electronics transportation grid Employment Application

Employment for Combined Energy Storage Balance of Plant & Power Conversion Systems in NE Ohio

NE Ohio Energy Storage Commercial Assets

Balance of Plant Employment ‐‐ 2018

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NE Ohio Structural Assets in Energy Storage

Commercial Assets

Universities and Research Labs Scientific Infrastructure and Startup Assistance Manufacturing Expertise and Production Process Improvement Innovation Funding Utilities and Grid Operator

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NE Ohio Competitive Position

Location Quotients for Engineering Occupations

Area Name Occupation LQ Detroit, MI Electrical Engineers 2.69 Akron, OH Electrical Engineers 1.95 Grand Rapids, MI Electrical Engineers 1.30 San Francisco, CA Electrical Engineers 1.21 Charlotte, NC Electrical Engineers 0.93 Cleveland, OH Electrical Engineers 0.93 Reno, NV Electrical Engineers 0.55 Area Name Occupation LQ Akron, OH Materials Engineers 2.36 Cleveland, OH Materials Engineers 1.48 Detroit, MI Materials Engineers 1.32 Grand Rapids, MI Materials Engineers 1.18 San Francisco, CA Materials Scientist 1.05 Charlotte, NC Materials Engineers 0.53 Reno, NV Materials Engineers N/A Area Name Occupation LQ Cleveland, OH Chemical Engineers 1.64 Akron, OH Chemical Engineers 1.31 San Francisco, CA Chemical Engineers 0.96 Detroit, MI Chemical Engineers 0.62 Grand Rapids, MI Chemical Engineers 0.62 Charlotte, NC Chemical Engineers 0.52 Reno, NV Chemical Engineers N/A Area Name Occupation LQ Detroit, MI Mechanical Engineers 7.42 Grand Rapids, MI Mechanical Engineers 3.32 Akron, OH Mechanical Engineers 1.29 Cleveland, OH Mechanical Engineers 1.16 Charlotte, NC Mechanical Engineers 0.99 Reno, NV Mechanical Engineers 0.70 San Francisco, CA Mechanical Engineers 0.45

Source: Bureau of Labor Statistics

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NE Ohio Competitive Position

Cost of Living by Metro Area

Area Name Price of Goods, Services, and Housing Compared to National Average Akron, OH 10% lower Cleveland, OH 9.8% lower Charlotte, NC 6.5% lower Grand Rapids, MI1 6.5% lower Detroit, MI 4.1% lower Reno, NV 1.3% lower San Francisco, CA 24.7% higher

Source: Bureau of Economic Analysis

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Energy Storage Technology CAGR Forecast (through 2026) Market Size Forecast (in billions by 2026) Northeast Ohio Assets Solid State Batteries 63.1% 1.5 University of Akron; Akron PolyEnergy Graphene 36.9% 0.6 NeoGraf Solutions Supercapacitors 21.0% 5.0 Gotion; PoymerPlus LLC Silicon-based Batteries 29.4% 0.9 NASA; Case Western Fuel Cell (hydrogen) 19.6 14.3 Case Western Reserve University; Kent State University; Yanhai Power LLC Flow Battery 30.5% 1.0 Case Western; Coventya, Inc. Flexible, Printed, & Thin Film Batteries 34.8% 1.6 Blue Spark Lithium-ion Batteries 16.3% 99.3

• Potentially Disruptive Energy Storage Technologies

Represented in Northeast Ohio

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Conclusions

• The assets exist in NE Ohio to accelerate cluster development
• Universities, NASA provide cutting edge technology research and

development at the forefront of the industry

• Around 70 businesses in various stages of development are established in

Northeast Ohio in the energy storage sector

• Commercial strength is in balance of system, storage system applications.
• Incubators, shared labs, and seed/pre-seed capital programming is

available to support commercial companies.

• A number of companies in NE Ohio are positioned to make adjustments

to enter into emerging markets, such as wearable electronics.

• NE Ohio enjoys advantages in work force skills and cost of living

compared to many competing regions.

• NE Ohio is not likely to be competitive in battery manufacturing. Its

cluster focus should be on components, material development, balance

• f plant and applications.

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• Development of Culture of Entrepreneurship
• JobsOhio, Third Frontier grant programs
• Seed and pre-seed capital funding
• Incubators/shared labs
• Centers of Excellence
• Early local adoption of energy storage technologies
• Portfolio Standards
• Green Banks
• Regulatory law that encourages development
• Clean fuels/hydrogen/EV standards and regulation
• Synergystic outreach to other clusters/technologies that

rely on uptime or energy storage

• IOT, big data, cryptocurrency
• Microgrids
• Wearable and flexible electronics
• Hydrogen and clean fuel technologies
• Materials and polymer sciences

Roadmap Recommendations

Andrew R. Thomas a.r.thomas99@csuohio.edu Mark Henning m.d.henning@vikes.csuohio.edu

Levin College of Urban Affairs Cleveland State University

Jay Foran JForan@TeamNEO.org

Team NEO

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A technical, financial, and feasibility study for a County Microgrid

MEC Ohio Energy Management Conference February 2019 Andrew R. Thomas and Mark Henning Cleveland State University

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μGrid Cle

Update on Cuyahoga County Microgrid Planning Project

Cuyahoga County MicroGrid

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A microgrid is a contained energy system capable of balancing captive supply and demand resources to maintain reliability

• Defined by function, not

size

• Incorporates multiple

distributed technologies

• Maximizes reliability and

efficiency

• Can include other utilities –

steam, hot water, chilled water, network connectivity

• May function in “islanded

mode” disconnected from larger utility grid

What is a Microgrid?

Commercial Microgrid Location Attributes

• Potential anchor end users
• Ability to leverage existing infrastructure
• Ability to grow both loads and infrastructure
• Economic relevance of areas
• Available land for new infrastructure and end

users

• Regulatory compatibility

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Cleveland Public Power

• Existing electric distribution

system

• 4 transmission interconnections
• 32 substations
• Street level distribution
• Metering and control systems
• Regulatory flexibility
• Developing rate structures
• Contracting for generation
• Contracting for microgrid

management

Cleveland Thermal

• Electric power project in

process

• Conversion from coal to natural

gas completed in 2016

• CHP Permit Acquired
• 13 to 40 MW capacity sizing
• Connected to CPP system

through CT Hamilton Plant

• Existing district energy system

for steam and chilled water

Leveraging Existing Infrastructure

μGrid Cle

Proposed Microgrid Footprint

• Size: 48 MW
• Resiliency: 13

MW

• Size:
• 4.8 Sq Miles
• 3000 acres
• 133 mm sq ft

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Potentially Developable Land Within Microgrid Area

μGrid Cle

Who Might Be Interested in Grid Resiliency?

• Universities
• Data and Financial

Centers

• Law, Accounting,

Consulting Firms

• Hospitals
• Emergency Services
• Food Services
• R&D Companies

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Strategies for Valuing Resiliency for Business

• Lost Production
• Value of Lost Load
• Stated Preference
• Survey
• Interviews
• Avoided Costs
• Reduced Investment into

On-Site Resiliency Infrastructure

• Business Interruption

Insurance

(Eaton Industrial UPS)

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Production Function Approach

1 hour outage for 1 MW facility would cost “Securities and Financial Investment” company $50,000

Offices of other health practitioners - (6213) Newspaper, periodical, book, and directory publishers - (5111) Rental and Leasing Services - (532) Specialized design services - (5414) Other professional, scientific, and technical services - (5419) Truck transportation - (484) Offices of physicians - (6211) Audio and video equipment manufacturing - (3343) Household appliance manufacturing - (3352) Other transportation equipment manufacturing - (3369) Transit and ground passenger transportation - (485) Securities, commodity contracts, & other fin. investments/activities - (523) Water transportation - (483) Software publishers - (5112) Advertising, public relations, and related services - (5418) Administrative and Support Services - (561) Air transportation - (481) Cable and other subscription programming - (5152) Home health care services - (6216) Accounting, tax preparation, bookkeeping, and payroll services - (5412) Insurance Carriers and Related Activities - (524) Legal services - (5411) Management, scientific, and technical consulting services - (5416) Computer systems design and related services - (5415)

>100 80 60 40 20

Industry Group Description and NAICS

VOLL (Value Added/kWh)

Highest Values of Lost Load for All Industry Groups

Data Sources: Bureau of Labor Statistics; U.S. Census Bureau

Survey Results

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0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 10 cents

• r more

11 cents

• r more

12 cents

• r more

13 cents

• r more

14 cents

• r more

15 cents

• r more

16 cents

• r more

17 cents

• r more

18 cents

• r more

"Which of the following average "all in" prices per‐kWh for electricity that included 99.999% availability would provide a significant inducement for you to locate your business within a microgrid?"

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EIA Average Commercial Electricity Costs

Ohio: 9-10.5 cents per kWh

Sensitivity Analysis For Three Tier Customer Rate Structure

33 $(20,000,000) $(15,000,000) $(10,000,000) $(5,000,000) $‐ $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $80 $90 $100 $110 $120 $130 $140 $150

MIcrogrid NPV Customer Rate ($ / MWh)

Tier 1 Tier 2 Tier 3

Implications for IT and IoT

• Power outages are #1 cause of IT downtime.
• Industries lose upwards of $709,000 per IT outage caused

by UPS system failure (Ponemon Institute).

• Sectors sensitive to reliable power have highest

employment growth.

• Highest VOLL: Health Care, Finance & Insurance
• Will add around 40% of the non-agriculture employment

growth nationally by 2026.

• These sectors expected to be major drivers of demand for

UPS systems as they increasingly incorporate the internet-of- things (IoT).

• IoT to impact 11% of gross world output by 2025

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200 400 600 800 1,000 1,200 2022 2023 2024 2025 2026

Additional Employment Among Selected Subsectors that Value High‐Quality Power with Microgrid Development

Cumulative Job Growth from Prior Years Job Growth

Economic Impact

Associated additional earnings of $91 million within the μGrid by 2026.

Energy Policy Center

Andrew R. Thomas a.r.thomas99@csuohio.edu Mark Henning m.d.henning@vikes.csuohio.edu

Levin College of Urban Affairs Cleveland State University

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