Michigan Energy Forum - April 3, 2014 - Distributed Storage


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  • Smart Grid: An upgraded grid that allows the real-time two-way flow of both electricity and information (grid & usage)Commences transition to Internet of Everything
  • 210 MW in 201450 MW in 2015
  • From Pole #5, tilt 30deg; 180 south; using irradiance data.
  • Michigan Energy Forum - April 3, 2014 - Distributed Storage

    1. 1. Michigan Energy Forum: Distributed Storage April 3, 2014
    2. 2. Brindley Byrd Executive Director Tonight’s Moderator
    3. 3. EE to Distributed Storage
    4. 4. Tonight’s Panelists Roland Kibler Chief Technologist NextEnergy, Detroit Haukar (Hawk) Asgeirsson Manager of Power Systems Technologies DTE Energy, Detroit Dr. Michelle Chitambar, Ph.D. Technology Futurist Spider9, Northville
    5. 5. The New Electric Power Industry Structure
    6. 6. Tonight’s Agenda • Panelists’ Presentations – 15 minutes back-to-back • Question & Answer – Framing question – Save till end – Use cards • Continue Networking/Discussion
    7. 7. 7 3 April 2014 Roland Kibler, NextEnergy Overview of Grid Energy Storage “Vehicle 2 Grid” Storage Demonstration
    8. 8. 8 NextEnergy’s impact Leverage people, place & relationships to accelerate growth People Knowledge Market studies, technology roadmapping, supply chain analysis, value chain dynamics, domestic competitiveness, etc. Relationships Connections Funding sources, connect to R&D institutes, go-to-market partners, customer connections, business model support, etc. Place Technical Facility Technology demonstrations, system integration, validation and testing, etc.
    9. 9. 9 NextEnergy’s technology Demonstrations Incubation Labs Exhibition & conference facilities Vehicle charging infrastructure Alternative fuels platform DC Power Demos (lighting & Data Center)
    10. 10. 10 NextEnergy’s assets Next generation vehicle electrification testing & demonstration Corporate Partners: Chrysler, General Dynamics, REV Technologies, Nextek Power Systems, Coritech, TARDEC Dual Bidirectional Charging Module (DBCM) capable of up to 20 kW Vehicle Charging Station (connected to Solar Array)
    11. 11. 11 Where is Energy Storage on “The Grid”? A familiar graphic showing “The Grid”A familiar graphic showing “The Grid”
    12. 12. 12 Generation Characteristics of AE sources are unique and potentially problematic in a couple of areas. There are several reasons or benefits to adding storage to the “Grid”. Some benefits accrue to the power generator, some to the distributor and some to the end user. Often, to make a business case for storage, several benefits must be agglomerated, but there is no clear single benefactor who is therefore willing to pay.
    13. 13. 13 Solar PV PV generation characteristics have some issues : •Time shifting •Rate of change of generation AZ approx 2,400 kWhr/yr/m2, MI approx 1,500.
    14. 14. 14 Energy Storage Family Tree Conventional Batteries (incl. Li-Ion) Electrochemical Redox Flow Batteries Metal-Air Batteries Hybrid Flow Batteries Mechanical Electrostatic Super- Capacitors CAES Sodium-based batteries Pumped- Hydro (>95%) Flywheels Thermal & Phase Change (≈1%) Li Sulfur Batteries Hybrid Systems (i.e., Supercaps-AGM / Supercaps-Li ion Batteries)
    15. 15. 15 Advanced Energy Storage
    16. 16. 16 Ludington Pumped Hydro Energy Storage
    17. 17. 17 Where is Energy Storage on “The Grid”? A familiar graphic showing “The Grid” Is the energy storage in the vehicle a load, a generator, or both? A familiar graphic showing “The Grid”
    18. 18. 18 EV Interactions with the grid  If the vehicle is plugged in for an extended period of time, “energy storage” in the vehicle might be used for grid support functions including:  Demand response, i.e. only charge during off-peak periods.  Frequency stabilization  Peak shaving
    19. 19. 19 Typical ACE chart The Grid is always “almost” in balance The Area Control Error (ACE) chart provides a close to real-time display of the current ACE value for the MISO footprint. The chart is updated every 30 seconds. https://www.misoenergy.org/MarketsOperations/RealTi meMarketData/Pages/ACEChart.aspx
    20. 20. 20 Interaction with the grid Forecasted Load Real-time Volatility in Load ISO (independent service operators) procure 1.5-2% of their forecasted load from real-time market assets including: • Spinning reserve • Flywheels • Batteries Load demand curve
    21. 21. 21 Interaction with the grid Day-ahead and real-time electricity prices in PJM, 2011 Marginal price can range from $10 to $200 or more per MWhr within an hour in real-time markets Despite low volume, the opportunity in these markets is significant
    22. 22. 22 EV charging interaction with the grid  NextEnergy, in conjunction with some of our partners, ran an evaluation showing battery state of charge as it responded to grid regulation signals.  Levels 1, 2 and 20kW “Fast Charge” evaluated.
    23. 23. 23 EV interactions with the grid Battery state of charge in response to “Up or Down Regulation” signals from the ISO.
    24. 24. 24 EV interactions with the grid ISO Response Signals Response of V2G Electric Car Real Time Prices Potential Revenue for Aggregator (Gross) Cost of Aggregator Potential Gross Revenue for a vehicle owner NOTE: Net value to the vehicle owner must comprehend battery degradation due to additional cycling. Aggregator functions to achieve minimum power level required for market bid. Established by the relevant ISO
    25. 25. 25
    26. 26. 26 Some Back-Up Detail
    27. 27. 27 Locational Marginal Price 27 Mar 2014 1:30 PM
    28. 28. 28 Wind Generation Characteristics Same source as next slide.
    29. 29. 29 Wind
    30. 30. Distributed Energy Storage Hawk Asgeirsson Manager Power Systems Technologies April 3, 2014 30
    31. 31. Four technologies with the potential to change the electrical system • The increase of renewable energy • The use of energy storage on the grid • The use of Advanced Meter Information • The increase in customer managed load and generation 31
    32. 32. Large Central Storage 10’s or 100’s of MW Substation or Circuit Level Storage 1 - 2 MW Storage Close to the Customer 25-50 kW 32
    33. 33. 33 DTE Electric has ~ 900 MW of renewable energy
    34. 34. Solar resource variability for Jan 2013 Irradiance profiles in Ann Arbor, MI Blue area: measured irradiance Orange line: calculated clear sky irradiance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Tue Wed Thu Fri SatSun Mon January 2013 35
    35. 35. Energy Storage Opportunities – Distributed Energy Storage at the Edge of the Grid 36 240/120 V69 kV 4 - 34 kV 480 V 138 kV345 kV Distributed (Community) 1-20 MW (Substations) Storage Value Central Storage Distributed Storage 100’s of MW (central) Residential Shipping Containers C&I, Microgrids High accumulated value at Edge of Grid Keeping on Utility Side, rate-basing installs is an enabler Shipping Containers Small Boxes
    36. 36. PV and Battery Storage Integration Demonstration Project • Large storage system – 500kW PV – 500kW Li-ion Storage–(250kWh) • Distributed energy storage systems – 20 CES Li-ion – 25 kW/50 kWh – 18 New system – 2 are used EV batteries – refurbished battery system 37
    37. 37. DTE Energy Demonstration of Li-ion Distributed Energy Storage (CES) • 18 new units installed and operating • 2 refurbished automotive batteries are demonstrating secondary-use EV batteries 38 Key Parameters Value Power 25 kW Energy 50 kWh Voltage 120/240 V AC Battery Li-Ion Round trip efficiency > 85%
    38. 38. Secondary use of EV batteries • Interest in reusing EV batteries after vehicle retirement • End of auto EV life ~70-80% capacity available • Lower cost battery option – Reliability and longevity is a concern • Repurpose battery pack into other uses – Electric grid storage – Home or business to managing load & backup – Microgrid applications • Environmental benefit by deferring battery recycling & disposal 39
    39. 39. The world's most advanced energy storage controls. Dr. Michelle Chitambar, Technology Futurist
    40. 40. 4 The smart controller that makes large battery systems reliable & profitable Mainstream energy storage customers will not be seduced by novel cell chemistries or inverter designs. Instead, they will choose the system that maximizes their return on investment and can be relied on when they need it.
    41. 41. zMARKET The energy storage market is growing. Annual stationary energy storage sales by 2022 Energy storage adds value by protecting against grid failure, reducing electricity bills, allowing for reliable power in remote locations, and stabilizing the electric grid. California, Germany, New York, Puerto Rico, and others are setting goals for stationary energy storage $30 billion Source: Navigant Research, Oct 24, 2012 4 Uninterruptible Power Supply Electric Bill Reduction Microgrids Utility Grids
    42. 42. z 4 PROBLEM Traditional energy storage systems often perform poorly with expensive failures. American businesses lose $77 billion per year from unplanned power outages The average data center loses $500,000 every time there is a power outage. 30% of power outages at data centers are caused by energy storage system failures. If just one cell (of thousands) fails in an energy storage system, the entire system can shut down. Sources: InformationWeek Hardware, 2011 / Berkeley: Ernest Orlando Lawrence Berkeley National Laboratory, 2004
    43. 43. z 4 PROBLEM TRADITIONAL BATTERY MANAGEMENT SYSTEM BATTER Y CELLS BATTER Y CELLS BATTER Y CELLS When one cell fails, the whole system can shut down Cannot mix or add different battery cell chemistries together Have to replace a $1000 module even if only one cell fails The problems with traditional energy storage systems come from inadequate controllers. Can only monitor the front-end electrical load ENERGY STORAGE SYSTEM Can only use a fraction of energy due to cycling limitations Maintenance is long and costly since faults are difficult to locate
    44. 44. z 4 SOLUTION Increases available energy with smarter cycling & control Spider9's smart controller makes energy storage systems reliable and profitable. Enables the system to expand with different battery chemistries Extends system life with easy cell-level serviceability Alerts operators of issues (sometimes before they happen!) Leverages the cloud for remote operation and analysis Isolates cell failures so entire system does not shut down
    45. 45. z 46 LIFE-CYCLE COST Up-front system cost only represents a fraction of total system cost. Total 20- Year Cost 36.0 kWh Solar Vault (residential/small commercial unit)
    46. 46. z 47 ADVANTAGE Spider9's OSE dramatically reduces the costs of an energy storage system. 40% Savings! ($1.3 million)
    47. 47. z 48 DATA SOURCES Slide 6: “Energy Storage on the Grid Will Surpass $30 Billion in Annual Market Value by 2022,” Navigant Research, 24 October 2012. Accessed 11 November 2013 at http://www.navigantresearch.com/newsroom/energy-storage-on-the-grid-will-surpass-30-billion-in- annual-market-value-by-2022. Slide 7: Chandler Harris, “Data Center Outages Generate Big Losses,” InformationWeek Hardware, 12 May 2011. Accessed 10 October 2013 at http://www.informationweek.com/hardware/data-centers/data-center-outages-generate-big-losses/229500121. Kristina Hamachi LaCommare and Joseph H. Eto, Understanding the Cost of Power Interruptions to U.S. Electricity Consumers, Berkeley: Ernest Orlando Lawrence Berkeley National Laboratory, 2004. Accessed 10 October 2013 at http://certs.lbl.gov/pdf/55718.pdf.
    48. 48. • Framing Question Question & Answer
    49. 49. What should Michigan DO?
    50. 50. Next Michigan Energy Forum Program: Renewable Portfolio Standard: Can We Talk? May 1, 2014