The document summarizes a presentation on electric energy storage systems and opportunities. It discusses how energy storage can help integrate renewable resources and manage grid assets. A variety of energy storage technologies are being demonstrated, but costs remain challenging. Opportunities exist across the energy storage value chain, including in materials, power electronics, and as service providers. Energy storage could maximize PV penetration and support customer energy solutions by providing non-storage options.

1. Electric Energy Storage Systems
for the Electric Enterprise
Trends and Opportunities
Future of Energy Summit
MaRS Discovery District
Toronto, Canada
Dan Rastler
Electric Power Research Institute
Presented by:
Mark Tinkler
Principal Energy Consultant June 8, 2012
Emerging Energy Options

2. Key Takeaways
• Key Technical Challenges in the Electric Enterprise offer
New Business Opportunities
• The Evolving Smart Grid Landscape is a channel to new
products and services; business models
• Energy Storage Solutions / Services are a key thread and
part of this evolving landscape;
• Opportunities for the right enabling technology(ies),
services solution(s), providers, business model(s)
• Global markets vary & require different solutions
• Barriers and economics are also challenging – but that is
why there is the opportunity for Innovation!
© 2012 Electric Power Research Institute, Inc. All rights reserved. 2

3. EPRI’s Role…
Help Move Technologies to the Commercialization Stage…
Technology Accelerator!
© 2012 Electric Power Research Institute, Inc. All rights reserved. 5

4. Key Strategic Technical Issues in the Electric Enterprise
Solutions and services in each of these areas are potential
growth & new business opportunities
Smart Energy Long-Term
Grid Efficiency Operations
Renewable Resources Near Zero Water Resource
and Integration Emissions Management
© 2012 Electric Power Research Institute, Inc. All rights reserved. 7

5. Today’s Power System …
is Evolving, Creating New Opportunities for Products and Services
Central generation, one-way power flow, passive consumers
© 2012 Electric Power Research Institute, Inc. All rights reserved. 8

6. Tomorrow’s Power System …
will require expertise and know how in a variety of disciplines/services
Distributed generation & Storage, two-way power flow,
© 2012 Electric Power Research Institute, Inc. All rights reserved. 9

7. Drivers and Opportunities for Electric Energy Storage
Solutions in the U.S.
• Managing increased wind and PV penetration on the grid
• Increased need for flexible grid: Ancillary Services, balancing
• Transmission and Distribution grid asset management
– Managing grid peaks, T&D capital deployment, outage mitigation
• High penetration of distributed PV systems on the grid
• Enhancing the value of a Smart Grid: peak energy management;
end-use energy management.
© 2012 Electric Power Research Institute, Inc. All rights reserved. 10

8. The Roles of Storage on the Grid
Utility or customer side of meter; central to distributed; “silent & clean capacity“;
energy management when and where it is needed.
Bulk Storage
Ancillary Services
Thermal
Distributed Storage
Storage
Distributed
Storage
Commercial
Storage
Residential V2G
Storage
© 2012 Electric Power Research Institute, Inc. All rights reserved. 11

9. Categorizing Energy Storage Applications
Source: Sandia Report: Energy Storage for the Electricity Grid, Feb ruary 2010
Emerging Energy Options E2 O

10. Application-Specific Benefits and Market Potential (US)
Source: Sandia Report: Energy Storage for the Electricity Grid, Feb ruary 2010
Emerging Energy Options E2 O

11. Technology Trends and Readiness
Electric Energy Storage Options
Research Development Demonstration Deployment Mature Technology
NaS
Flow Batteries
ZnCl FeCr ZnBr
Anticipated Level of RD&D Investment
NaNiCl2 Pumped Hydro
Superconducting Magnetic
Energy Storage (SMES)
Advanced Lead Acid Lead Acid
Nano-capacitors
Na-ion
Flywheels
Li-ion
Adv Li / metal Zn / Air
Adiabatic CAES
Super-capacitors
Compressed Air Energy Storage (CAES)
2nd Generation 1st Generation
Left end of arrow indicates current status;
Right end of arrow indicates estimated 2020 development level.
Time
© 2012 Electric Power Research Institute, Inc. All rights reserved. 14

12. Energy Storage Demonstrations in the U.S.
Planned or Underway – List is Not Complete
SustainX 1 MW / 4 MWh
Isothermal CAES MA / NH
DTE 500 kW / 250 kWh Li-ion
MI (A123) NYSEG 145 MW Adv. CAES
Watkins Glen, NY (EPRI)
NGrid 500 kW / 3 MWh ZnBr
NGrid 500 kW / 3 MWh ZnBr Everett, MA (Premium Power)
Syracuse, NY (Premium Power)
Xcel Energy 1.5 MW / 1.0 MW
PG& E NaS Battery Denver, Co (Xtreme Power)
(NGK) 25 kW / 50 kWh NaNiCl2
PJM 20 MW Flywheel
(FIAMM)
Chicago, IL (Beacon)
SMUD 500 kW / 3 MWh ZnBr
Sacramento, CA (Premium Power)
DTE 500 kW / 250 kWh Li Ion
MA (A123)
25 kWh Li-ion SMUD 5 kW / 9 kWh Li-ion
Berkeley, CA (Seeo) (Saft) KCP&L Li-ion
Kansas City, MO (Dow Kokam, Siemens)
25 MW Zn-Air Flow Battery PJM 3MW Adv Lead Acid
Modesto, CA (Primus) Lyon Station, PA (East
Amber Kinetics Flywheel Penn, Ecoult)
Fremont, CA (LLNL) AEP 2 MW Li-ion for CES
OH (International Battery, S&C)
PG&E 300 MW Adv. CAES Carnegie Melon Na Ion
Kern County, CA (EPRI) Pittsburgh, PA (Aquila)
250 kW / 1 MWh
SCE 8 MW / 32 MWh Li-ion Iron / Chrome flow battery
Tehachapi, CA (A123) Modesto, CA (Ktech Corp )
PNM Adv, Lead Acid
Albuquerque, NM (East Penn)
Vanadium ReDox
(Prudent Energy)
Duke 20 MW TBD Wind Support
Notrees, TX
© 2012 Electric Power Research Institute, Inc. All rights reserved. 16

13. Current / Planned U.S. Li-ion Demonstrations
List is Not Complete
Auto Major Contract
DTE: 500 kW No Auto Contract
(A123)
*Size of star indicates
AEP: 2 MW scale of demo
(Int’l Battery)
NYPA: 1 MW / 250 kWh
(Ultralife Corp)
AES: 1 MW / 250 kWh
(Altairnano)
SMUD: 5kW /
Duke Energy: 25 kW & 250 kW
9kWh
(Kokam)
(Saft)
KCPL: 1 MW
(Dow Kokam) Southern Co: 25 / 75 kWh
SCE: 8 MW / 32 MWh (RW Beckett)
(A123) Southern Co: 60 kW / 240 kWh
(GreenSmith TS)
Battery OEMs
SCE: distributed Li-ion • A123Systems
systems, 10 kWh each UCSD: 15 kWh
• AltairNano
(LG Chem) (Sanyo)
• EnerDel
• Saft
APS: 0.5 MW
• Dow Kokam
(Electrovaya, ABB) • International Battery
HECO: 5 kW / 20 kWh
Progress Energy: 5 kW/ 20 kWh • GreenSmith / Thundersky
(GreenSmith)
(GreenSmith TS) • Sanyo
HECO: 1 MW / 15 min • Ultralife
(Altairnano) • Electrovaya
• Kokam
• Boston Power
Field Trials of Li-ion Systems has Accelerated in the past 2 years
© 2012 Electric Power Research Institute, Inc. All rights reserved. 17

14. Present Value Installed Cost in $/kWh
Accounting for both capital and operating costs
Notes: All costs in 2012$; Costs will vary significantly based on site-specific conditions;
Financials: IOU ownership; 15 year life; $30/MWH off-peak charging costs; natural gas @ $3/MBtu for CAES
© 2012 Electric Power Research Institute, Inc. All rights reserved. 19

15. The Value of Storage
Present value of benefits expressed in $/kWh is a proxy
for total allowable installed cost
$2,000
$1,800
In ISO NE, there may be a few
places where storage costing up to
$1,600 $650/kWh is justified.
System Capacity
$1,400
PV $/kWh of Energy Storage
But in most places in ISO NE,
$1,200 storage must cost less than VAR Support
$350/kWh to be justified.
$1,000 Distribution Losses
$800 Defer Dist. Investment
$600 Voltage Support
$400 Power Reliability
$200
$0
Target High Target High Target High Target High Target High
CAISO ERCOT ISONE NYISO PJM
© 2012 Electric Power Research Institute, Inc. All rights reserved. 20

16. The Value of Storage
$2,000
$1,800 Regulation services offer a way to improve
value…
$1,600
…assuming storage is
$1,400
PV $/kWh of Energy Storage
allowed to bid into the Regulation
$1,200 market
System Capacity
$1,000 VAR Support
$800 Distribution Losses
Defer Dist. Investment
$600
Voltage Support
$400
Power Reliability
$200
$0
Target High Target High Target High Target High Target High
CAISO ERCOT ISONE NYISO PJM
© 2012 Electric Power Research Institute, Inc. All rights reserved. 21

17. Opportunities in the Energy Storage Value Chain
DC Storage Power
Materials System Electronics System Integration Service Provider
Packages Controls
• Anode • DC Packs • 1-phase • Application • Application solution
solution provider
• Cathode • Firmware for • -3phase provider
SOC Mgt • IPP
• Electrolyte • Bi-directional • Turn key
• Packaging • ESCO
• Packaging • Islanding system
• Lower cost provider • Smart Grid Integration
• New enabling • Lower cost
sub systems • O&M Support and
materials systems • Smart Grid
Integration Services
• Smart
Inverters • O&M Support • Tools & software to
and Services monetize value
streams and support
• Planning &
business case
Analysis tools
and services • Aggregation &
management
© 2012 Electric Power Research Institute, Inc. All rights reserved. 22

18. Some Key Areas to Consider
• PV and Storage Solutions
– Max Penetration of PV on Distribution Grid
– Storage / non-storage solutions
• Customer Premise Energy Solutions
– Development of win-win solutions for customer / utility
– Natural gas DG + Storage - “the killer app?”
• Centre of Excellence for Storage / DG in Smart Grid
– Industry cluster; Public/Private Partnership
– Inter-governmental collaboration
© 2012 Electric Power Research Institute, Inc. All rights reserved. 23

19. Together…Shaping the Future of Electricity
Dan Rastler
Sr. Mgr. Strategic Initiatives and
Demonstrations
Electric Power Research Institute
drastler@epri.com
650-855-2034
Presented by:
Mark Tinkler
Principal Energy Consultant
Emerging Energy Options
tinkler.energyoptions@sympatico.ca
Tel: 705-745-1243
© 2012 Electric Power Research Institute, Inc. All rights reserved. 25