This document summarizes a presentation on facility scale energy storage. It defines key terminology used in energy storage and outlines various value streams for facilities, including resiliency, demand charge reduction, demand response, and renewables integration. Lead acid batteries, lithium-ion batteries, sodium sulfur batteries, and flywheels are discussed as commercial energy storage technologies. Barriers to adoption include high costs, limited lifetimes, large size requirements, and safety concerns that challenge acceptance by building codes. Research is ongoing to address these issues and enable greater integration of energy storage as the grid incorporates more renewable energy.

1. Main Headquarters: 120 Water Street, Suite 350, North Andover, MA 01845 With offices in: NY, ME, TX, CA, OR www.ers-inc.com
FACILITY SCALE ENERGY STORAGE
Jesse Remillard – Energy & Resource Solutions
Mike Rovito – Energy & Resource Solutions
Alex J Hill – Dunsky Energy Consulting
Casey Mastro - NYSERDA

2. 1. Introduction
2. Definitions and key terminology
3. Facility scale value streams
4. Energy storage technologies
5. Technical and market barriers
AGENDA
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3.  To ensure power quality and level demand
 For integration of renewable generation
Incentives
 NYSERDA and Con Edison
 $2,100/kW for batteries
 $2,600/kW for thermal storage
 PG&E
 $1,620/kW for advanced energy storage
MODERNIZED GRIDS NEED STORAGE
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4. KEY TERMINOLOGY
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 Power capacity = rated kW
 Energy capacity = rated kWh
 Discharge time =
Energy capacity
Avg. power output
 Depth of discharge (DOD) = capacity used
 Roundtrip Efficiency
 Cycle life = number of useful cycles

5. 1. Resiliency and power quality
2. Demand charge reduction
3. Demand response
4. Retail energy time shift
5. Renewables integration
FACILITY BENEFITS
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6.  Systems that require high power quality
or uninterruptible power supply (UPS)
 Data centers or telecommunications,
emergency response, medical, industrial
 No direct monetary return but necessary to
maintain production
 The most common type of facility energy
storage seen today
RESILIENCY AND QUALITY
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7.  Facilities with >50% of their electric bill from
demand charges are key candidates.
 Savings Example for 100 kW, 200 kWh System
𝟏𝟐𝟐𝐝𝐚𝐲𝐬 × $𝟏. 𝟓/𝐤𝐖 + 𝟐𝟒𝟑𝐝𝐚𝐲𝐬 × $𝟏. 𝟎𝟎/𝐤𝐖 × 𝟏𝟎𝟎 𝐤𝐖 × 𝟗𝟎%
 Savings = $38,340/year
 Installed cost = $200,000
• Lead acid battery, indoors at $1,000/kWh
 Simple payback = 5.2 years
DEMAND CHARGE REDUCTION
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8. DEMAND PROFILE
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9.  Some utilities incentivize demand
reduction during peak demand events
 Cost savings of $10,000 to $15,000 for a
100kW system installed in NYC
DEMAND RESPONSE
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10.  Shifting use from high cost periods to
low cost periods
 Highest payback with large peak price
differential
 Not cost effective by itself to install
energy storage at current price points
RETAIL ENERGY TIME SHIFT
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11.  Energy storage is critical for the
integration of large amounts of grid
scale renewable generation
 Provides power quality regulation and
energy time shift.
RENEWABLES INTEGRATION
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12. Purpose Power Discharge Usage
Payback (w/o
incentives)
Resiliency and power
quality
100 kW to
1 MW
≤ 15 minutes Variable
NA (Critical to
production)
Demand charge
reduction
50 kW to
1 MW
1 to 4 hours Daily 5-7 years
Demand response
50 kW to
1 MW
4 to 6 hours Infrequent
>> equipment
life
Retail Energy Time
Shift
100 kW to
1 MW
1 to 6 hours Daily
>> equipment
life
Renewables
integration
100 kW to
500 MW
several hours Daily
>> equipment
life
VALUE STREAM SUMMARY
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13. Commercial
1. Lead acid batteries
2. Lithium ion
3. Sodium sulfur
4. Flywheels
Other Promising Emerging
1. Flow batteries
2. Sodium nickel chloride batteries
TECHNOLOGIES
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14. TECHNOLOGY COST CURVE
14Source: Smart Planet, http://www.smartplanet.com/blog/smart-takes/cars-will-top-computers-as-no-1-lithium-battery-market-by-2015/18500

15.  Status:
 Most mature, lowest capital cost, widely used
 $700 to $1,200/kWh
 Widely accepted by building codes
 Con:
 Performance lacking
 300 to 500 cycle life, 3 to 5 year shelf life
 efficiencies of 70% to 80%
 Pro:
 Advanced lead acid batteries improve
performance
 Easily recycled
LEAD ACID
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16. LITHIUM ION
16Source: Smart Planet, http://www.smartplanet.com/blog/smart-takes/cars-will-top-computers-as-no-1-lithium-battery-market-by-2015/18500
 Status:
 Recently incorporated into NYC building fire code
 Con:
 High cost: $1,500 to $2,500/kWh
 Pro:
 High performance
 2,000 to 5,000 cycles
 10 to 15 year lifetime
 Efficiencies upwards of 98%

17. SODIUM SULFUR (MOLTEN SALT)
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 Status:
 Best suited to larger capacity
 Competitive cost: $750 to $2,000
 Not widely accepted by codes
 Con:
 Limited manufacturers
 High operating temp (>300F)
 Pro:
 Good performance
 2,000 to 4,500 cycle life
 10 to 15 year shelf life
 Efficiencies of 70% to 80%

18.  Several commercial suppliers in the USA, but costs
are very high: $2,000 to $4,000
 Performance and lifetime is very good: indefinite
lifetimes and high efficiencies
 Not practical for large capacity energy storage
FLYWHEELS
18

19.  Flow
 Sodium Nickel Chloride
 Zinc Air
 Promising, but unproven commercially
EMERGING TECHNOLOGIES
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20.  High costs and limited lifetimes
 Systems are large and heavy
 Challenging to find suitable locations in
urban environments
 Chemical and fire hazard concerns
 Local fire codes are especially wary of newer
commercial systems
BARRIERS TO ADOPTION
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21.  Future grids will need energy storage to some
extent
 Many questions, but research is on-going
 CA goal of 33% generation from renewables
by 2020 will create market pull for storage
 Costs are coming down
 Utilities, code officials, and facilities need to
work together to integrate energy storage to
mutual benefit
SUMMARY
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22. CONTACTS
 Jesse Remillard
jremillard@ers-inc.com
207.622.6888 x 414
 Michael Rovito
mrovito@ers-inc.com
212.789.8182 x288
 Alex J Hill
alex.hill@dunsky.ca
514.504.9030 x30
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23. TECHNOLOGY SUMMARY
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Market
Battery
Type
Installed Energy Cost
($/kWh)
Roundtrip
Efficiency
Useful Life
Outdoors Indoors
Cycle
Life
Expected
Lifetime
(Years)
CommercialTechnologies
Lead
acid
$700 –
$1,000
$800 –
$1,200
70% – 80%
500 –
1,500
3 – 5
Lithium
ion
$1,000 –
$2,000
$1,500 –
$2,500
85% – 98%
2,000 –
5,000
10 – 15
Sodium
Sulfur
(salt)
$750 –
$900
$1,000 –
$2,000
70% – 80%
2,500 –
4,500
10 – 15
Flywheel
$2,000 -
$4,000
N/A 85% - 90% > 10,000 >15 yrs