This document discusses the opportunity for grid-scale energy storage and the barriers to widespread adoption. It notes that energy storage could be the next large renewable energy market after wind and solar. However, existing storage solutions are not adequate and technology breakthroughs are needed to bring costs below $1,200/kW and $200/kWh for large-scale use. As policy and performance barriers are addressed, the market is positioned for growth after 2015, especially if technologies can reach grid parity. Success will depend on developing solutions that meet efficiency, durability and other targets for different grid applications.

1. Grid-Scale Energy Storage
Huge Opportunity
Technology Barriers
September 2011
Contact:
nachman.shelef@gmail.com
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2. Grid-Scale Energy Storage
 Huge long term opportunity
 Existing solutions are not good enough
 Technology breakthroughs are needed
 Barriers to mainstream adoption are coming down
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3. Huge long term (2020+) opportunity
 After Wind and PV, the next huge renewable market is Storage
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4. DRIVERS FOR THE MODERN GRID
OFFERS A SOLUTION!
DIGITIZATION OF INCREASED
ENERGY STORAGE
SOCIETY POWER QUALITY
ECOLOGICAL DISPATCHABLE
CONCERN RENEWABLES
GROWTH IN INCREASED
ENERGY ASSET
CONSUMPTION UTILIZATION
From: DOE - IMRE GYUK

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6. Renewable Integration – the need
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7. Renewable Integration – the need
ERCOT
wind curtailment
42% of the time
EnStorage Confidential 7

8. Storage - a critical element of the future Grid
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9. Grid Energy Storage Applications
Bulk Storage
(days – months,
10MW-1GW)
Weeks
Centralized
Days
Renewable
Integration
Energy Storage
Distributed
10KW-100MW)
(1 – 12 hours,
Hours
End-User
Grid Reliability
Demand
Management
Renewable
Smoothing
Power Storage
End-User Reliability
(seconds – 2 hours,
Minutes &
1KW-100MW)
Grid Regulation
Seconds
1KW 10KW 100KW 1MW 10MW 100MW 1GW
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End-User Distribution - Transmission Generation

10. Sample Grid Energy Storage Applications
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11. Many Grid Energy Storage Applications
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12. Different technologies for different needs
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13. Many Technologies installed for different needs
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14. Only pumped hydro in significant use
Cost important for mainstream adoption
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15. Bulk Energy Storage
Low Cost but Location Dependent
 Pumped Hydro
 Limited growth opportunities
 Most good locations developed
 Compressed Air (CAES)
 Growth Opportunities
 Dependent on Geology
 Not pure storage
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16. Cost is important for large scale adoption
Today – storage is more expensive than generation!
Levelized Cost of Delivered Energy for Energy Storage Technologies Compared to CCGT 16
Source - EPRI

17. Today costs higher than most mainstream benefits
Application Value and System Cost Gap for All Technologies 17
Source - EPRI

18. Many Storage Technologies
but today – not a lot of options that meet application needs
and less that meet multiple application needs
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19. Existing solutions are not good enough
Technology breakthroughs are needed
Requirements for
Large-Scale Adoption of
Grid-Scale Energy Storage
• <$1,200/KW for a 6 hour AC system
Cost • <$200/KWh DC
Efficiency • >75% AC/AC
• 10,000 deep cycles
Durability • 15 year lifetime
• <100ms to full power
Speed • Fast charge and discharge
• Not dependent on geology
Location Flexibility • Transportable in containers
Safety • No danger from hazardous or explosive material 19

20. The barriers to mainstream adoption
are coming down
Storage Treated Like Other
Renewable Solutions
Storage
recognized as a Incentives and
Policy Barriers critical element of Mandates
the grid
Offset initial low Technology
Price Barriers volume pricing Breakthroughs
with Incentives and High Volume
Performance Support for R&D
Technology
Barriers Breakthroughs
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21. The likely Grid-Scale Energy Storage
market situation 2015+
High fuel prices
GHG (Green House Gas) market
Caps on new GHG emitting generators
Caps on use of diesel generators
Mandatory reductions in peak capacity
Standards or mandates for storage
Independent Storage Providers – ISPs
Storage broadly used throughout the grid
Declining incentives

22. Key to become a market leader
 Technology breakthrough for “Grid Parity” storage
 Start with competitive cost and potential for “grid parity”
 Reduce costs with declining incentives
 Become cost competitive vs. main alternative – peak generation
 Meet efficiency and durability targets to broaden field of
applications
 Applications
 Start with niche applications or bundled benefits
 Test and qualify products at utilities or end users
 Tailor products to each application
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23. Energy Storage
for the Grid
September 2011
Contact:
nachman.shelef@gmail.com
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